oracle whitepaper on india localziation for retropay
TRANSCRIPT
Retropay for Oracle HRMS India Payroll [ID 387673.1]
Modified 14-JUL-2010 Type WHITE PAPER Status PUBLISHED
This White Paper describes the implementation set up related to Oracle HRMS India Payroll
TOC/Navigation TitleThis white paper contains the following information.
Introduction1.Set up Retro Notification Report, Elements2.Employee Level Information3.Process4.Appendix5.References6.Change Record7.
Introduction
Enhanced Retropay for India supports recalculation of past payroll runs and computes retro salary and legislativedeductions
Retro salary computation involvesa) arrears salary due to back dated salary changes
Example: An employee is paid a Basic Salary of 3000 per month in Apr 2006. In the month of Jul 2006, hissalary is revised to 4000 per month from April onwards
b) salary adjustments, which is due to correction of salary in the pastExample: An employee is paid a Basic Salary of 5000 per month in Apr 2006 by mistake. In the month of Jul2006, it is found that the employee's salary shall be corrected from April onwards
The legislative deductions/relief automatically computed are
Section 89 relief, when the arrears is paid across the financial yearsRetrospective Professional TaxRetrospective Provident FundRetrospective ESI
This white paper discusses the set up required for the computation of arrears, salary adjustments and retro legislativedeductions/relief
Set up for RetroNotification Report/ElementsThe implementation set up for Retronotification report and the elements are given below.
Implementation Setup Retro Notification Report
The Retro-Notification report identifies the list of assignments, retro element names and retro values for which retropay has to be computed. Retro-Notifications report requires the following set up.
1. Enable Dynamic Triggers
Search for the tables namely -PAY_ELEMENT_ENTRY_VALUES_F and PAY_ELEMENT_ENTRIES_F, in the 'Find Trigger' Window. In the Dynamic
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Trigger Generation Window, select the Action type as given in the table below
Table 1: List of Tables and Actions in Dynamic Trigger
Table Name Action
PAY_ELEMENT_ENTRY_VALUES_F Update
PAY_ELEMENT_ENTRIES_F Update
PAY_ELEMENT_ENTRIES_F Insert
PAY_ELEMENT_ENTRIES_F Delete
For each table, choose the radio buttons namely 'Enabled' and 'Generated' and save the record
Note:
The above set up informs the minimum number of tables for which triggers must be enabled for the Retro notification report.Enabling of triggers in any other table is left to the implementation team, depending upon the business requirements.
Navigation : Other Definitions > Dynamic Triggers
2. Define Event Group
A seeded event group namely - IN Retro Event Group is provided. The list of tables seeded in the event group are given in Appendix. User can makeuse of this existing event group or can create his own Event group as required by the Business requirements
Navigation : Other Definitions > Event Groups
3. Functional Areas
Query for 'Incident Register' in Functional Areas form and Ensure there are triggers defined. Depending on the Business Requirements, enable ordisable 'Incident Register' for India legislation, business group or payroll
Navigation : Other Definitions > Functional Areas
Implementation set up for elements
1. Define the RetroElements
Create the Earning Elements, with effective dates before the financial year.
Navigation: Total Compensation>Basic> Element Description
Users shall define separate Non Recurring elements for retropay (ie Retro Basic or Retro Dearness Allowance)
Navigation: Total Compensation>Basic> Element Description> Input Values
2. Record Retro pay components for the user defined elements
Record retro components for the all the user defined elements, for which retro payment is to be paid. Retropay component decides whether theretrocomputation is an arrears payment or salary correction or section 89 relief related computation.
Note: Retropay components need not be defined for the seeded Retro elements and shall be defined only for user defined elements.
2.1 Salary Arrears
To compute the salary arrears for the employees, in the Retropay Elements(Basic) window, check the Retro component namely, 'Arrears' as thedefault component.
2.2 Salary Adjustments
To compute the salary corrections for the employees, in the Retropay Elements(Basic) window, check the component namely, 'Salary Adjustments'.
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2.3 Section 89 Relief
To compute the salary arrears for the employees, in the Retropay Elements(Basic) window, check the Retro component namely, 'Arrears'.
Note:Out of the above three seeded retro components, choose the component which is frequently used by the organization as the default component. In this whitepaper, Salary Arrears component is chosen as the default one.
Navigation: Total Compensation>Basic> Element Description> Recalculation tab > Retropay Component > Basic>
3. Record Time Spans for the Retro pay components
For the two retrocomponents namely Arrears and Salary Adjustments, in the Time Spans Area, record From as Start of Time, To as End of Timeand the element through which Retropay is paid.
For 'Section 89 Relief' retrocomponent , in the Time Spans Area, record
From as 'Start of Time', To as 'End of Previous Fiscal' and the element through which Retropay is paid for previous year.From as 'Start of Current Fiscal' To as 'End of Time' and another retro element through which Retropay is paid for current year.
Navigation: Total Compensation>Basic> Element Description> Recalculation tab > Retropay Elements > Time Spans
4. Define Balance Feeds for the Retro elements
Earnings Classification
Record the input value ‘Pay Value’ to seeded balances for retro elements which belong to earnings classification
ESI Eligible Salary - This balance stores the Salary eligible for computation of ESI.ESI computation Salary - This balance stores the Actual salary on which ESI is computed.PF Computation Salary - This balance stores the salary on which PF is computed.Professional Tax Salary or Professional Tax Salary for XX where XX stands for State - This balance stores the salary on which PT iscomputed.
Allowance Classification
Add the input value 'Pay Value’ and subtract the input value 'Taxable Value' to seeded balance namely 'Retro Allowances Exempt Prev Year' for allretro allowances elements which belong to earnings classification. This balance stores the exempted Entertainment allowance value of previousyears.
Record the input value ‘Pay Value’ to seeded balance 'Retro Entertainment Allowance Prev Year' for user defined retro entertainment allowanceelement which belong to earnings classification.
Navigation: Total Compensation>Basic> Element Description> Balance Feeds
5. Define Element Link
Create the element links for the user defined elements and the seeded elements related to retropay as given below as appropriate.
Arrears EDLIArrears EPSArrears Employee ESIArrears Employee Statutory PFArrears Employee Voluntary PFArrears Employer ESIArrears Employer PFArrears Income Tax for Section 89Relief under Section 89Arrears Professional TaxRetro EDLIRetro EPSRetro Employee Statutory PFRetro Employee Voluntary PFRetro Employer PFRetro Professional Tax
Employee Level Information
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Record Elements
Record User defined retro elements
Record the user defined retro elements for all the employees and record the retro values
Section 89 relief
For Section 89 relief computation, attach the element 'Relief under Section 89' to the employee for whom the section 89 relief shall be computed.
Note:
If this seeded element is not attached, then Relief is not calculated.If the user enters a value for “Relief under Section 89”, the user-entered value is consideredThe 'Relief under Section 89' element shall be attached only in the month of March of the Financial Year
There is no additional set up required for Employee State Insurance, Professional tax and Provident Fund
Navigation: People> Enter and Maintain>Assignment > Entries
Process
Run Retro Notification Report
Run the Retro Notification report(Enhanced) which identifies the assignments eligible for the Retropay
Table 2 : Parameters for Retro Notification report
Parameter Description Type
Overriding event group Select the name of the Overriding event group from the list of values Optional
Payroll Select the payroll for which retropay is to be processed Mandatory
Navigation : Processes and Reports > Submit Processes and Reports > Single Request > Retro-Notifications Report (Enhanced)
Define Retro Assignments (Manual)
All rows the are created by the retropay report are included in the next execution of the RetroPay run
Record changes by clicking the name of the employee in the Search Results Table. In the Entries Screen, update thename of Element , Recalculation Date and Recalculation Reason
Navigation : View > RetroPay Status > Add another row
Run the Retropay (Enhanced)
Run the Concurrent Request namely - Retropay(Enhanced) Process which computes the retropay values for different elements in the current payrollperiod Table 3 : Parameters for Retropay(Enhanced) Process
Parameter Description Type
EffectiveDate
Enter the date on which the retrovalues to be paid to the employees. Normally this date falls in thenext payroll period.
Mandatory
Payroll Select the payroll for which retropay is to be processed Mandatory
Navigation : Processes and Reports > Submit Processes and Reports > Single Request > Retropay (Enhanced)
View the retropay values for Salary Adjustment
After running the retropay process, verify whether the retro elements are attached to the employees in assignment window.
The system automatically computes the retro values for all the legislative deductions namely Provident Fund, EmployerState Insurance, Professional Tax and also for the user defined retro elements
The retro values of legislative deductions are shown in different seeded elements namely
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Arrears Employee ESIArrears Employee Statutory PFArrears Employee Voluntary PFArrears Employer ESIArrears Employer PFArrears Professional Tax
Navigation: People> Enter and Maintain> Assignment > Entries
View the retropay values for Section89 Relief
In case of section 89, the user defined retro elements and the seeded elements are shown as follows
User defined retro elementsRetro EDLIRetro EPSRetro Employee Statutory PFRetro Employee Voluntary PFRetro Employer PFRetro Professional TaxArrears Income Tax for Section 89
Navigation: People> Enter and Maintain> Assignment > Entries
View the retropay values for Arrears
In case of Arrears retrocomponent, the retro elements are shown.
Navigation: People> Enter and Maintain> Assignment > Entries
Run the Payroll Process
Run the Concurrent Request namely - Payroll Run (India)
Table 4 : Parameters for Payroll Process
Parameter Description Type
Payroll Select the payroll for which retropay is to be processed Mandatory
Consolidation Set Select the Consolidation Set Mandatory
Pay Period Enter the Pay period in which payment to be made Mandatory
Date Paid Enter/Update the date on which payment is to be made to the employees Mandatory
Element Set Enter the name of the Element set Optional
Assignment Set Enter the name of the Assignment set Optional
RunType From the List of values choose the appropriate Run Type Mandatory
Navigation : Processes and Reports > Submit Processes and Reports > Single Request > Payroll Run (India)
View the retropay values
After running the Payroll process, verify whether the retropay elements are attached to the employees in assignment window.
Section 89
The system automatically includes arrears values in the computation of Provident Fund, Employer State Insurance,Professional Tax and Section 89 Relief related to previous years
Note:
1. Section 89 relief value is computed for every period. Hence the element 'Arrears Income Tax for Section 89' is attached to the employeemultiple times, one record for each period.2. For active employees, Section 89 relief is computed in the month of March of Financial Year3. For terminated employees, Section 89 relief is computed in the termination pay period and not in Mar of that Financial Year
Arrears
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In case of the arrears retropay component, system includes computes PF,ESI,PT and income tax computation on the regular monthly values andretropay values and are shown in the seeded elements namely
Employee Statutory PF ContributionEmployer PF ContributionEDLI ContributionEPS Contribution Employee ESI ContributionEmployer ESI ContributionProfessional Tax DeductionIncome Tax
AppendixThe information seeded in the product for Retropay is given below
Table 5 : List of Seeded Retrocomponents
Retro Definition Name Retro Component Name Priority
Standard Retropay (India) Salary Adjustments 10
Standard Retropay (India) Section 89 Relief Calculations 20
Standard Retropay (India) Arrears 30
Standard Retropay (India) Recalculations 40
Table 6 : List of seeded elements related to retropay
Element Name Classification Priority Input Values
Retro EDLI Employer Charges 21000 Pay Value Organization
Retro EPS Employer Charges 21000 Pay Value Organization
Retro Employer PF Employer Charges 21000 Pay Value Organization
Retro Employee Statutory PF Involuntary Deductions 30000 Pay Value Organization
Retro Employee Voluntary PF Voluntary Deductions 30000 Pay Value Organization
Retro Professional Tax Pre-Tax Deductions 33000 Pay Value OrganizationState
Arrears EDLI Employer Charges 21000 Pay Value Organization
Arrears EPS Employer Charges 21000 Pay Value Organization
Arrears Employer ESI Employer Charges 21000 Pay Value Organization
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Element Name Classification Priority Input Values
Arrears Employer PF Employer Charges 21000 Pay Value Organization
Arrears Income Tax for Section 89 Information 1000 Pay Value
Arrears Employee ESI Involuntary Deductions 41000 Pay Value Organization
Arrears Employee Statutory PF Involuntary Deductions 30000 Pay Value Organization
Arrears Employee Voluntary PF Voluntary Deductions 30000 Pay Value Organization
Arrears Professional Tax Pre-Tax Deductions 33000 Pay Value OrganizationState
Table 7: List of seeded balances related to Retropay for India
Seeded Element Name Input Value Seeded Balance Name Scale
Arrears EDLI Pay Value
Employer Charges Add
EDLI Contribution Add
Arrears EPS Pay Value
Employer Charges Add
EPS Contribution Add
Arrears Employee ESI Pay Value
Net Pay Subtract
Involuntary Deductions Add
Employee ESI Contribution Add
Arrears Employee Statutory PF Pay Value
Involuntary Deductions Add
Employee Statutory PF Contribution Add
Net Pay Subtract
Employee Total PF Contribution Add
Arrears Employee Voluntary PF Pay Value
Net Pay Subtract
Voluntary Deductions Add
Employee Total PF Contribution Add
Employee Voluntary PF Contribution Add
Arrears Employer ESI Pay Value
Employer Charges Add
Employer ESI Contribution Add
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Seeded Element Name Input Value Seeded Balance Name Scale
Arrears Employer PF Pay Value
Employer Charges Add
Employer PF Contribution Add
Arrears Income Tax for Section 89 Pay Value Income Tax for Section 89 Add
Arrears Professional Tax Pay Value
Net Pay Subtract
Pre Tax Deductions Add
Professional Tax Add
Retro EDLI Pay Value
Employer Charges Add
EDLI Contribution Add
Retro EPS Pay Value
Employer Charges Add
EPS Contribution Add
Retro Employee Statutory PF Pay Value
Net Pay Subtract
Involuntary Deductions Add
Employee Statutory PF Contribution Add
Employee Total PF Contribution Add
Retro Employee Voluntary PF Pay Value
Net Pay Subtract
Voluntary Deductions Add
Employee Voluntary PF Contribution Add
Employee Total PF Contribution Add
Retro Employer PF Pay Value
Employer Charges Add
Employer PF Contribution Add
Retro Professional Tax Pay Value
Net Pay Subtract
Pre Tax Deductions Add
Professional Tax Add
Table 8 : List of seeded Retrocomponent/ Element Span Usages
Element/Classification Retro Component ReprocessType
From Time Span To Time Span Retro Element
EDLI Contribution
EDLI Contribution
Salary Adjustments Reprocess Start of Time End of Time Arrears EDLI
Recalculations Reprocess Start of Time End of Time Retro EDLI
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Element/Classification Retro Component ReprocessType
From Time Span To Time Span Retro Element
EPS Contribution
EPS Contribution
Salary Adjustments Reprocess Start of Time End of Time Arrears EPS
Recalculations Reprocess Start of Time End of Time Retro EPS
Employee ESI Contribution Salary Adjustments Reprocess Start of Time End of Time Arrears Employee ESI
Employer ESI Contribution Salary Adjustments Reprocess Start of Time End of Time Arrears Employer ESI
Employee Statutory PF Contribution
Employee Statutory PFContribution
Salary AdjustmentsReprocess Start of Time End of Time Arrears Employee Statutory PF
Recalculations Reprocess Start of Time End of Time Retro Employee Statutory PF
Employee Voluntary PFContribution
Employee Voluntary PFContribution
Salary Adjustments Reprocess Start of Time End of Time Arrears Employee Voluntary PF
Recalculations Reprocess Start of Time End of Time Retro Employee Voluntary PF
Employer PF Contribution
Employer PF Contribution
Salary Adjustments Reprocess Start of Time End of Time Arrears Employer PF
Recalculations Reprocess Start of Time End of Time Retro Employer PF
Professional Tax Deduction
Professional Tax Deduction
Salary Adjustments Reprocess Start of Time End of Time Arrears Professional Tax
Recalculations Reprocess Start of Time End of Time Retro Professional Tax
Income Tax Section 89 ReliefCalculations
Reprocess Start of Time End of Previous Fiscal Arrears Income Tax for Section 89
PF Information Recalculations Reprocess
No Retro Element Span Required
PF Information Section 89 ReliefCalculations
Reprocess
Professional Tax Information Recalculations Reprocess
Professional Tax Information Section 89 ReliefCalculations
Reprocess
Relief under section 89 Recalculations Reprocess
Element/Classification Retro Component Reprocess Type From Time Span To Time Span Retro Element
Earnings Arrears Reprocess
These being classification based usages; the element setupwould be left to users.
Earnings Salary Adjustments Reprocess
Earnings Section 89 ReliefCalculations
Static
Table 9 : List of tables and update types for the Event Group - IN Retro Event Group
Update Type Table Column Name
Datetrack Correct PAY_ELEMENT_ENTRY_VALUES_F SCREEN_ENTRY_VALUE
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Update Type Table Column Name
Datetrack Update PAY_ELEMENT_ENTRIES_F EFFECTIVE_START_DATE
Datetrack Update PAY_ELEMENT_ENTRIES_F EFFECTIVE_END_DATE
Datetrack End Date PAY_ELEMENT_ENTRIES_F
Datetrack Insert PAY_ELEMENT_ENTRIES_F
Datetrack Delete PAY_ELEMENT_ENTRIES_F
References
Triggers/Event Groups and Functional Area
Note 216951.1 for more information on dynamic triggers, event groups and functional area
Change Record
Date Description of Change
7 Jul 2006 Created document.
Oracle CorporationAuthor and DateArun Sahaya Kumar, Senior Product Manager, Jul 2006 Copyright InformationCopyright © 2004, 2005 Oracle. All rights reserved.
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Related
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Oracle E-Business Suite > Human Capital Management > Payroll > Oracle HRMS (India)
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RETRO PAY; INDIA; RETROPAY
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