Task : Manage Payroll Product Usage

Payroll Product Usage

Select the correct payroll product for each of your legislations to ensure that payroll-related
features work correctly in your implementation.

By default, each legislation's payroll product usage is blank, which means no payroll product
is selected. If you are using or plan to use Oracle Fusion Global Payroll or Oracle Fusion
Global Payroll Interface for a legislation, you must set the payroll product usage to the
payroll product that the legislation is using.

The application detects which payroll products are available for each legislation. For
predefined legislations, the payroll products available for selection are those delivered for
each legislation. For custom-defined legislations, all payroll products are available for
selection.

The three selectable values for payroll products are:

 Payroll
 Payroll Interface
 No value (other HCM products)

Payroll:

Global Payroll legislations must have the payroll product set to Payroll to ensure the
complete set of payroll-related element templates is available when creating elements.
These element templates assist in element creation and automatically create and generate
fast formulas for new elements. Elements created without this set of element templates will
not be suitable for costing or payment processing in Global Payroll.

Payroll Interface

If you use Global Payroll Interface for a legislation, set the payroll product to Payroll
Interface to ensure the correct set of element templates is available. Earnings elements
created without this product usage setting will not automatically generate the associated
features, such as the formulas and balances required when calculating gross earnings for
employees.

No Value (Other HCM Products)

If you use neither Global Payroll nor Global Payroll Interface for a legislation, ensure that
the value for payroll product is blank so that the correct set of element templates is
available. These element templates are simplified to facilitate creating elements to capture
just the required information. Elements created without this product usage setting will
include formulas and balances, which are required for payroll purposes but are unnecessary
for HR purposes.
Task: Configure Payroll Legislations

Payroll Legislative Data

We will Use the Configure Payroll Legislations task to create payroll rules for legislations not
initially provided by Oracle.

Payroll objects you configure include:

 Legislative rules
 Primary element classifications
 Valid payment types
 Component groups
 Balance dimensions
 Legislative data groups

Legislative Rules

These rules include how the employee records are managed when that person is rehired
into your organization and the starting month of your legislation's tax year.

For some localizations, a rehire continues to be associated with the earlier payroll
relationship, thereby having access to prior data, such as all year-to-date balances.

For other localizations, a rehire creates a new payroll relationship record with no access to
prior data. Statutory rules within your localization would determine the selection you make
here.

Consolidation groups facilitate separating payroll run results for supplemental processing.

For most payroll post-run processing, you can use the consolidation group as an input
parameter.

You may want the results of a supplemental payroll run to be kept separately from those of
the regular

payroll process that was already performed. To use a consolidation group to keep
supplemental run results separate from the regular payroll run, you would perform these
steps:

Separate Costing and Payment

Using multiple consolidation groups you can control processing. For example, you want to
process and pay a particular set of employees separately within a single payroll to keep
separate records of payment and costing. To process employees separately, you would
perform these steps:
 1. Create a new consolidation group to specify when running the Calculate Payroll
process.
2. Create a payroll relationship groups to separate the employees.

You can use rules to identify them dynamically or you can specify the employees by
their payroll relationship numbers.

3. Run the Calculate Payroll process for each payroll relationship group separately, once
specifying the original consolidation and once for the new consolidation group.

Primary Element Classifications

Element classifications are collections of related elements

For your legislation, you select the primary classifications that include the elements you
need for payroll processing. Once selected, you can then provide new names for them to
match whatever terminology is most appropriate.

Valid Payment Types

Payment types are the means by which payments are issued to your workers. For your
legislation, select the supported payment methods and provide new names for them as
appropriate.

Component Groups

Component groups are logical sets of component types, elements, and calculation rules. A
legislation may require them for the calculation of certain types of deductions, such as
federal, social insurance, taxes, or involuntary deductions. For your legislation, select the
supported component groups and provide new names for them as appropriate.

Balance Dimensions

Balance dimensions identify the specific value of a balance at a particular point in time,
based on a combination of criteria, including time, employee relationship level, jurisdiction,
payroll run, and tax reporting unit.

For your legislation, select the supported balance dimensions and provide new names for
them as appropriate. The Configure Payroll Legislations task creates some predefined
balances that are used within the statement of earnings, such as Gross Earnings and Net
Pay.

Additionally, the Net Pay balance is required to set up organization payment methods.
Legislative Data Groups

Legislative data groups are a means of partitioning payroll and related data.

At least one legislative data group is required for each country where the enterprise
operates.

Each legislative data group is associated with one or more payroll statutory units.

A legislative data group must be defined for your new legislation, either before completing
this task or afterwards. Access this through the Manage Legislative Data Groups task.

Oracle Fusion Payroll is organized by legislative data groups.

Each legislative data group marks a legislation in which payroll is processed, and is
associated with a legislative code, currency and its own cost key flex field structure.

A legislative data group is a boundary that can share the same set up and still comply with
the local laws.

It can span many jurisdictions as long as they are within one country, and contain many
legal entities that act as payroll statutory units.

Each payroll statutory unit can belong to only one legislative data group.

Define legal jurisdictions related legal authorities to support multiple legal entity registrations, which
are used by Oracle Fusion Tax and Oracle Fusion Payroll.

legal jurisdictions

legal authorities
legal entity registrations

Task: Manage Legal Address

Manage Legal Address:

Create the address a legal entity uses to register with a legal authority.

Legal entities can use different addresses for different authorities and hence, may
have more than one registered address. The legal address must be located within
the territory entered.

Task : Manage Legal Jurisdictions

Jurisdiction is a physical territory such as a group of countries, country, state, county, or parish
where a particular piece of legislation applies.

French Labor Law,

Singapore Transactions Tax Law,
and US Income Tax Laws
are examples of particular legislation that apply to legal entities operating in different countries'
jurisdictions. Judicial authority may be exercised within a jurisdiction.

Types of jurisdictions are:

 Identifying Jurisdiction
 Income Tax Jurisdiction
 Transaction Tax Jurisdiction
Identifying Jurisdiction

For each legal entity, select an identifying jurisdiction. An identifying jurisdiction is your first
jurisdiction you must register with to be allowed to do business in a country

Income Tax Jurisdiction

Create income tax jurisdictions to properly report and remit income taxes to the legal authority.

Transaction Tax Jurisdiction

Create transaction tax jurisdictions through Oracle Fusion Tax in a separate business flow

Task:Manage Legal Authorities

A legal authority is a government or legal body that is charged with powers to make laws, levy
and collect fees and taxes, and remit financial appropriations for a given jurisdiction.

For example, the Internal Revenue Service is the authority for enforcing income tax laws in
United States.

In some countries, such as India and Brazil, you are required to print legal authority information
on your tax reports.

Legal authorities are defined in the Oracle Fusion Legal Entity Configurator. Tax authorities are
a subset of legal authorities and are defined using the same setup flow.

Legal authorities are not mandatory in Oracle Fusion Human Capital Management (HCM), but
are recommended and are generally referenced on statutory reports.
Task: Bank
Bank Branches
Bank Accounts
Manage Organization Payment Methods

Organization payment methods define the payment type and currency selected for the
employees. They also define the payment sources used to pay workers or third parties, based on
their tax reporting unit.
To simplify use by employees, the organization payment method name should refer to the
payment type and other variables upon which the payment source might be determined

You create third parties when you want to process payments to external organizations and people who
are not on the payroll.

You can also create predefined third-party organization for payments, such as
pension providers
or professional bodies,
or third-party organizations that do not receive payments, such as disability organizations.
When you create third parties, you record the name, address, and contact information, and associate
the third parties to employees on their calculation cards or element entries. Third-party types are
Person and Organization.

Third-party organizations can have the following party usage codes:

Party Usage
Purpose
Code
Identifies organizations that can be associated with employee calculation cards or
External Payee element entries, such as County Sheriff for involuntary deductions. Use this party usage
code for organizations when the others don't apply.
Identifies organizations responsible for issuing instructions for involuntary deductions,
Payment
such as a tax levy or bankruptcy payment order. An example of a payment issuing
Issuing
authority is a court, agency, or government official that issues a legal process. Payment
Authority
issuing authorities do not receive payments.
Pension Identifies organizations that provide pension administration for employee pension
Provider deductions.
Identifies organizations entrusted with maintaining oversight of the legitimate practice
Professional
of a professional occupation. For example, the American Society for Mechanical
Body
Engineers in the US.
Bargaining Identifies organizations representing employees in negotiations, for involuntary
Association deductions.
Identifies organizations that are authorized to make disability assessments. For
Disability
example, the Royal National Institute of Blind People in the UK. Disability organizations
Organization
do not receive payments.

Use the Manage Third-Party Payment Methods task to create payment methods for all external
payees who are not on the payroll. A third party can be either a person or an organization.

Payments to third parties are normally involuntary deductions, such as court-ordered

garnishments or voluntary deductions, such as pension plan or union membership payments.

Before creating a third-party payment method, create the third party using the Manage Third
Parties task in the Payment Distribution work area. In addition, the organization payment
method that determines the payment source to use for payments must already be defined. Use
the Manage Organization Payment Methods task in the Payment Distribution work area to
define the payment source for third-party payments.

Payments to Persons

When you create a third-party payment method for a person, you select the legislative data
group of the employee whose pay is subject to the deduction, and then select the employee
payroll relationship. This makes the third-party person payment method available for selection
as a payee on the employee's calculation card.
Payments to Organizations

When you create a third-party organization for payments, you select a party usage code. When you
create the payment method for the third-party organization, you select the legislative data group of the
employees whose pay is subject to the deduction, to make the organization available for selection as a
payee on the employee calculation cards.