Payroll Configuration Fundamentals

Payroll Configuration
Fundamentals
Overview
Copyright Oracle, 2007. All rights reserved.
Payroll Configuration Fundamentals 22!"77.doc
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Payroll Configuration Fundamentals
System References
None
Distribution
Job Title
*
Ownership
The Job Title [list@YourCompany.com?Subject=E!"""""# is responsible $or ensurin% that this
&ocument is necessary an& that it re$lects actual practice.
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Payroll Configuration Fundamentals
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Overvie)
Instructor Note
'utline these tutorials to the stu&ents.
The se(uence o$ tutorials in&icates that)
The o*erall business purpose is to pay the employees o$ an or%ani+ation an& maintain all
statutory recor&s re(uire& in your locali+ation.
'racle ,ayroll pro*i&es a $le"ible approach to a ran%e o$ business &ecisions commonly
encountere& by payroll &epartments.
You can ensure processin% e$$iciency an& business $le"ibility by settin% up payrolls $or
your or%ani+ation accor&in% to best practice. This course tells you ho-.
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Paying *our #mployee
Instructor Note
These %raphics represent capturin% &ata. runnin% the payroll process an& payin% an employee.
They may recur on subse(uent sli&es in this course.
Paying our !mployees
You capture the &etails o$ earnin%s an& &e&uctions $or each or your employees. You then run
the payroll process to calculate %ross pay an& &eri*e the net amount o$ payment $or each
employee. /inally. you ensure that each employee recei*es payment at the correct time in a
*ali& payment metho&. The criteria $or success$ul completion are)
+ 0ccurate an& timely payment o$ your -or1$orce
+ Compliance -ith statutory reportin% obli%ations in your locali+ation
2n most or%ani+ations. the bul1 o$ payroll processin% is concentrate& into a short time just
be$ore employees recei*e payment. 3y con$i%urin% your payrolls correctly. you can ensure that
your payrolls run as e$$iciently as possible. This ma1es it easier $or your or%ani+ation to meet
the criteria $or accuracy an& timeliness. 2n the rest o$ this course. -e shall see ho- correct
payroll con$i%uration contributes to the smooth runnin% o$ the payroll process an& accurate
payment o$ your employees.
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Choosing ,uic-Pay or .atch Processing
Choosing "uic#Pay or $atch Processing
4hen calculatin% pay. you can choose -hether to run)
5 The 6uic1,ay process -hich is al-ays $or one employee only
5 0 batch process that enables you to process all employees. or a subset o$ employees.
Typically you use batch processin% to calculate pay $or all employees in your or%ani+ation. or
$or an employee subset. 7o-e*er. 6uic1,ay is use$ul -hen you are testin% the creation o$ a
ne- employee. or -hen you -ant to calculate pay $or an employee -ho has recently starte&
employment or recently terminate& a perio& o$ employment.
/or batch processin%. you can use assi%nment sets an& consoli&ation sets to $ocus on subsets o$
employees rather than on all the employees in a $ull payroll.
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Choosing /ingle or 0ultiple Payment 0ethods
Choosing Single or %ultiple Payment %ethods
4hen your employees recei*e payment. you can arran%e to pay them in any o$ the payment
metho& types that are *ali& $or payrolls in your locali+ation. You can also combine *ali&
payment metho& types. so that an employee coul& recei*e 89: o$ payment by chec1;che(ue.
<9: by &irect &eposit. an& the remainin% =9: in cash. Note. ho-e*er that not all payment
metho& types are a*ailable across all locali+ations. /or e"ample. !.>. employees can recei*e
cash payments. but !.S. employees cannot.
You enable this $le"ibility o$ payment -hen you set up your payroll. /irst. you &e$ine an
or%ani+ational payment metho&. an& then lin1 the payment metho& to a payroll.
Choosing /ingle or 0ultiple Currencies
Choosing Single or %ultiple Currencies
Your business %roup has a &e$ault currency an& this is the usual currency in -hich you
calculate an& &isburse employee pay. 7o-e*er. you can -or1 in an entirely &i$$erent currency
or a&& an a&&itional currency to your payroll calculations. /or e"ample. i$ you ha*e employees
-or1in% in an o*erseas subsi&iary you may -ant to pay them in an entirely &i$$erent currency.
or pay them in a combination o$ &e$ault currency an& local currency. The payroll processes
?,ayroll run an& ,re,ayments@ automatically mana%e any con*ersion bet-een currencies that
you ha*e enable& $or your or%ani+ation. The &etails o$ ho- to set up currencies in 'racle
7ABS are outsi&e the scope o$ this course. but it is possible to -or1 -ith a&&itional currencies
pro*i&e& that your System 0&ministrator has enable& them.
/or &etails on ho- to complete the payment metho& -in&o-. see e$inin% a ,ayment Betho&
in the online help.
Choosing /ingle or 0ultiple Payrolls
Instructor Note
0s1 the class $or their practical e"perience o$ operatin% sin%le an& multiple payrolls. !se this
(uestion simply as a pollin% (uestion to con$irm au&ience in*ol*ement. 7o- many o$ you
or%anise multiple payrolls as a sin%le payroll?
Choosing Single or %ultiple Payrolls
2$ your or%ani+ation has multiple sites each -ith a separate payroll super*isor. an& -ith all
employees on the same pay $re(uency an& pay &ate. you can choose one o$ these alternati*e
approaches to payroll &e$inition)
+ e$ine payroll $or your entire or%ani+ation. then process each site usin% an assi%nment set
+ e$ine each site as a separate payroll.
Your choice &epen&s on the &e%ree o$ a&ministrati*e $ree&om or responsibility that each
super*isor nee&s. /or e"ample)
+ 2$ e*erythin% is 1ept separate be$ore an& a$ter pay run. then separate payrolls are use$ul.
You -ill $in& it easier to (uery an& *ie- results by payroll.
+ 2$ only processin% is separate but results are combine& $or $urther processin% then one
payroll may be better $or con$i%uration an& maintenance o$ &ata.
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,uestion 2 3hat 4s 5a Payroll67
Instructor Note
0s1 the stu&ents to %i*e an e"planation o$ -hat is meant by a CpayrollD in 'racle 7ABS.
This (uestion is inten&e& to %enerate interaction. 2t is not meant as a substitute $or the 6uic1
6ui+ (uestions. an& some o$ the possible ans-ers -ill also $eature in the (ui++es $or this
course.
Steer the (uestion in the &irection o$ C2$ a %roup o$ employees are on the same payroll. -hat &o
they ha*e in common?D
2t is also true that the payroll itsel$ must ha*e a name. a start &ate. an en& &ate an& at least one
payment metho&. but -e mention those aspects later in the course. /or the moment -e -ant to
1no- the implications $or employees. rather than the minimum set o$ &e$inin% &etail that
constitutes Ca payrollD.
The Expected Answer?
0 payroll inclu&es a number o$ employees -ho share the same payroll calen&ar an& there$ore
recei*e payment on the same &ate. an& at the same re%ular $re(uency.
2$ you -ant to prompt the stu&ents to consi&er particular criteria. please re$er to the ne"t sli&e
$or some su%%estions.
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/uggestions2 3hat 4s 5a Payroll67
Instructor Note
,rompt the stu&ents to consi&er -hether)
0ll employees on the same payroll must be pai& by the same payment metho&.
0ll employees on the same payroll must be pai& in the same currency.
0ll employees on the same payroll must share the same pay perio&.
0 6uic1,ay constitutes a payroll.
0 payroll can be use& $or a&&itional purposes besi&es the main purpose o$ payin%
employees.
0 payroll al-ays applies to employees only. or -hether it can e"ten& to partEtime -or1ers
an& nonEpermanent employees.
The Expected Answer?
0 payroll inclu&es a number o$ employees -ho share the same payroll calen&ar an& there$ore
recei*e payment on the same &ate. an& at the same re%ular $re(uency.
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8he Criteria that 9efine a Payroll
Instructor Note
Aemember that at this point -e are concentratin% on the &e$inition o$ a CpayrollD $rom the
point o$ *ie- o$ C-hat must inclu&e& employees ha*e in commonD. Fater in the course. -e
consi&er the minimum in$ormation that you nee& to &e$ine a payroll o$ your o-n ?payroll
name. start &ate an& so on@. The three items on the list belo- are co*ere& in later sli&es. but
mention them here brie$ly i$ it helps to clari$y -hat employees on the same payroll ha*e in
common.
The $re(uency o$ payment is &etermine& by the pay perio&. /or e"ample. common pay
perio&s are -ee1ly. biE-ee1ly. semiEmonthly. monthly.
,ay perio&s *ary $or each locali+ation. /or e"ample. semiEmonthly is not a *ali& !.>.
choice. The $re(uency o$ pay perio&s &etermines the number o$ pay perio&s in each ta"
year.
The common pay &ate implies a common sche&ule $or payroll processin%. $or e"ample a
common cutEo$$ &ate an& so on.
&he Criteria &hat Define a Payroll
0 payroll &e$ines a %roup o$ employees -ith a common $re(uency o$ payment an& common
pay &ate.
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Further Potential :ses of ;'0/ Payrolls
Further Potential 'ses of (R%S Payrolls
You typically use an 7ABS payroll to i&enti$y a %roup o$ employees -ith common payment
characteristics an& then process all the in&i*i&ual payments $or each pay perio&. 7o-e*er. you
can also use an 7ABS payroll to &o each o$ the $ollo-in%)
5 e$ine a security pro$ile to control secure access to 7ABS
5 etermine bene$its eli%ibility by settin% up an eli%ibility pro$ile base& on membership o$
a payroll
5 Speci$y eli%ibility $or a particular element by lin1in% the element to a payroll.
5 Speci$y 'TF timecar& pre$erences base& on the membership o$ a payroll.
5 Aun payroll reportin% $or speci$ic %roups o$ employees.
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Payroll Configuration and Processing
Instructor Note
These %raphics represent payroll con$i%uration ?top@. capturin% &ata. runnin% the payroll
process an& payin% an employee ?secon& ro-. le$t to ri%ht@. They may recur on subse(uent
sli&es in this course.
Payroll Configuration and Processing
Correct payroll con$i%uration pro*i&es the basis o$ all the later payroll processes. /or e"ample.
as part o$ payroll con$i%uration. you &etermine)
5 4hat ta" in$ormation can be capture& $or your employees $or inclusion in a payroll run
5 7o- many payrolls you -ant to operate in your or%ani+ation
5 4hat payment metho&s are appropriate $or your employees
You can chan%e the initial con$i%uration &etails to re$lect chan%es in the business nee&s o$ your
or%ani+ation. /or e"ample. you can)
5 E"ten& the en& &ate o$ a payroll.
5 elete a payroll pro*i&e& that you &elete it at an appropriate point in the payroll cycle.
5 Bo&i$y en& &ate o$ a payroll perio& to a*oi& coinci&in% -ith a holi&ay or *acation &ate.
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/ummary
Instructor Note
0s1 the stu&ents i$ they ha*e (uestions or comments about any o$ the material in this mo&ule
be$ore the course mo*es on to loo1 at the &etaile& steps in*ol*e& in payroll con$i%uration.
Summary
4e ha*e seen that payroll processin% is a critical business process. 2t is subject to time an&
accuracy constraints. an& statutory re(uirements. !sin% 'racle ,ayroll. you can con$i%ure a
payroll or set o$ payrolls that best represents the business nee&s o$ your or%ani+ation.
Aemember that a payroll represents all those employees -ho share a common payment
$re(uency an& a common pay &ate.
You can use your payroll con$i%uration acti*ities to &etermine payment metho&s $or your
employees. an& the number o$ payrolls in your or%ani+ation. !ltimately. the e$$iciency an&
accuracy o$ your payroll processes &epen& on the accuracy o$ your payroll con$i%uration.
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Payroll Configuration Fundamentals

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