OUM

Solution Design Document

Cloud Bangladesh Payroll

Author: EFS

Creation Date: July 04, 2021

Last Updated: July 04, 2021

Document Ref:

Version: 1.2

Approvals:

Name ______________________________________________

Name

1 Document Control

1.1 Change Record

15

Date Author Version Change Reference

February 12, 2019 EFS Team 1.0 Creation March 6, 2019 EFS Team 1.1 Update

1.2 Reviewers

Name Position

Saima Ahmad Head Of HR

Contents

1 Document Control ........................................................................................ 2

1.1 Change Record .............................................................................................. 2 1.2 Reviewers ...................................................................................................... 2

2 Introduction ................................................................................................. 4

3 Purpose ......................................................................................................... 5

4 Stakeholder List ........................................................................................... 6

5 Introduction to Human Resources Offerings .............................................. 7

5.1 Payroll ........................................................................................................... 7 5.2 Costing Structure ........................................................................................... 7

6 Payroll Process ........................................................................................ 8

6.1 General Payroll Rules .................................................................................... 8

6.2 Monthly Payroll Processing: .......................................................................... 9 6.3 Payroll Processing Description ..................................................................... 10

6.4 Payroll Process Steps Description ................................................................ 11 6.6 Payroll Process Steps Description ................................................................ 13

6.7 Payroll Elements Description and Calculation Rules .................................... 16

7 Assumptions ............................................................................................... 18

8 Open/Closed Issues .................................................................................... 19

9 Sign Off Sheet............................................................................................. 21

2 Introduction

The Solution Design Document comprises of the business structure (Enterprise Setup) and system mapping of business processes. It also highlights open and closed points identified during meetings. This document provides the Organization structure of Module wise list of business processes with its description, rules for modules, and business requirements.

3 Purpose

Solution Design Document (SDD) is a description of the solution agreed upon by both, EFS and the partner. As requirements are registered during the project, this document provides a reference from which to verify that each requirement contributes to meeting one of the agreed objectives. This document is further used as a reference throughout the project to ensure that the requirements are properly prioritized, and that project participants keep focused on the tasks that relate to achieving these objectives.

4 Stakeholder List

EFS HR Key Users EFS IT Partner Implementation Team

5 Introduction to Human Resources Offerings

5.1 Payroll Fusion Global Payroll is a high-performance, graphical, rules-based payroll management system that is designed to keep pace with the changing needs of your enterprise and workforce in order to reduce set-up costs, administrative, and processing time.

Fusion Global Payroll provides a unique, data-driven approach that enables you to define and manage your diverse payroll requirements that reflect your business policies. With Fusion Global Payroll, you can quickly and easily process payrolls based on the frequency required by your organization.

Fusion Global Payroll Dashboard is delivered as a strategic tool for the Human Resources Manager. These dashboards are used to monitor the payroll processes that occur at any time. All the information needed to check and reconcile the payroll is available easily, efficiently, and more importantly, to the appropriate people.

Fusion Global Payroll gives you complete control over your processing rules and calculations, even the most complex ones. Fast Formula is a powerful way to model business rules

5.2 Costing Structure Cloud system support Costing Structure definition in the system. The costing structure will help in allocation of costs to respective entities. The structure followed at EFS is as follows:

Segment Name Order Segment Length Costing Level

Business Unit(Project or Department)

1 12 Refer the file UAE JE Format file

Object 2 4 Refer the file UAE JE Format file

Subsidiary 3 8 Refer the file UAE JE Format file

Subledger for Advances and deductions

6 Payroll Process

This section lists the business policies controlling the business structure and processes.

6.1 General Payroll Rules

Si.No. Requirement Description

1 Payroll Definitions Only one Monthly Payroll for all countries

2 Payroll Period 20th of each month is cut off 3 Payroll Cut-off Date

End of the month for all countries

4 Payroll Relationship Group The system should allow payroll team to run payroll for a set of employees if required. –

Adhoc Payroll (EOS Settlements, Leave Salaries, part payments) , needed Bangladesh

5 Element Sets The system should allow payroll team to run payroll for a set of payroll elements if required.

6 Salary Basis

Monthly Salary Basis for all countries

7 Payment Methods Bank Transfer, some cash transfer

8 Negative Carry Over System should not allow negative payments. Negative payments should be carried over to be deducted from the next month salary and

there should be flexibility to override amount and to reflect notes in the payroll slip for the employee to show reason behind deduction from the following month

9 Retro pay Process The system should be able to handle any backdated changes and calculate the resulting difference in order to be paid in the current payroll month, note reason should be shown

10 Payroll The system should handle all the payroll components and formulas in order to calculate the payroll results required for payment or provisioning.

11 Proration The system should handle any proration calculation triggered by any change in mid-month Payroll Proration Factor is 30 days – if employee joins after cut off period how will it be

handled? 12 Quick Pay Payroll Admin should be able to run a quick pay for any person or group of employees through

mass selection at any time to handle any requirement. (Certain element payments, final settlement etc.)similar as above

Quick Pay should allow the payroll admin to select the elements required for processing. 13

Prepayments Once Payroll results are generated, payroll should be able link the net pay with employee personal payment method (bank accounts, cheque, cash)

14 Costing System should cost the payroll results as per the chart of accounts that need to be send to GL

15 Transfer to GL The costing file must be generated from Payroll with all costing data to be send to the GL.

16 Arrears The system should calculate arrears automatically.

17 Fiscal Year Calendar for Bangladesh July to June, note for Income tax as well

18 Payroll Proration Factor

Salary has to be as per prorated

19 Time Entry Period 21st of previous month to 20th of current month for Bangladesh

20

Daily Standard payment hours

Basic / 208 *2 - Housekeeper 45 per hour -Housekeeping Supervisor 50 per hour – Technicians and Drivers

208 hours std, above that is overtime (26*8) for eligible categories

21 Less Hour Deduction

Employee worked less than 208 hours then contractual salary will be reduced by less hours worked.

6.2 Monthly Payroll Processing:

6.3 Payroll Processing Description Process Description

Payroll Processing details the key activities executed mainly by the payroll personnel in order to conduct the general payroll including the various calculations and considerations such as overtime, deductions and retro payments in order to coordinate with finance to finalize and submit relevant payments to employees through adequate payment methods.

Process Input & Initiators

Payroll Processing is based on the employee’s defined pay & benefits structure while considering the following items as applicable:

Allowances and any type of other income such as (Transportation, Housing, bonus and deductions (Payroll)etc., as identified in the Payroll Questionnaire Sheet

Overtime

Loans

Retro payments (Payroll) Final settlement calculations (HR & Payroll)

New hires (HCM) (NEW Joined Assignment to be created with A formula as per current system) Salary changes, transfers, etc.

Process Output

Calculation of the Net Salary and Payment instructions will result from the payroll process in order to be translated into bank transfers or cheque or cash payments received by employees. , Salary Card , WPS as above

The Payslip will provide salary details such as earnings and deductions and Payslip should have the ability to show remarks if written on each element name

6.4 Payroll Process Steps Description

Process Step Process

Description Proce

ss Type HR.PAY.01-10 Once the employee

file is updated by all HR transactions like new hire, salary increment, promotion, transfer and termination. Payroll process can be started after this.

System

HR.PAY.01-20 Initiate payroll process following the cut-off date (Run date of Payroll), Before this date HR transactions should be done in the system.

System

HR.PAY.01-30 All non-recurring elements will be attached by Payroll officer or Payroll Officer can do the entries direct on the system and using option that allows him/her to do several entries to several employees for the same element name. Example of non-recurring element will be other earnings and other deductions.

System Payroll officer

HR.PAY.01-40 For any retrospective transactions, Payroll officer will run the Retro pay process. This will calculate all retrospective backdate transactions. Example -not limited to Salary change from any previous months and also calculate the absence and

System

leaves that can have deduction impact on payroll.

HR.PAY.01-50 After completion of Retro pay, Payroll officer will run the Monthly payroll. Payroll will calculate all the salaries and benefits attached to employees.

System

HR.PAY.01-60 Payroll officer will extract the payroll register and they can print it also, the extract should have flexibility to be extracted as excel/PDF and can be signed electronically after verification. This payroll register has all the transactions processed under the payroll.

System

HR.PAY.01-70 Payroll officer will verify and reconcile the payroll results. The reconciliation of payroll register is based on the HR Transactions.

Manual

HR.PAY.01-80 If there are discrepancy in payroll results, Payroll officer will roll back the payroll and correct the employee transaction, which caused the differences.

Manual &

System

HR.PAY.01-90 Once Payroll Officer modified/corrected the transaction, he/she will run the payroll for employees again. This process (HR.PAY.01-50, 60, 70, 80, 90) will be repeated until Payroll officer will reconcile the whole payroll with

Manual &

System

respective HR Transactions.

HR.PAY.01-100 After reconciling the payroll, Payroll person will run the prepayment. Prepayment will create the mode by which employee will be paid. It could be a bank transfer, cheque, or cash.

System

HR.PAY.01-110 Payroll officer will then run the costing and forward the costing details report to Finance Department for review

Manual

HR.PAY.01-120 Payroll Manager will extract the Bank file from the system as per template provided which is on a notepad template

System

HR.PAY.01-130 Payroll Manager will upload the bank file on Bank portal

Manual

HR.PAY.01-140 Once the payment is done by bank, Payroll officer will generate Pay slip for the employees. The employees would be able to see the online pay slip through person gallery.

System

HR.PAY.01-150 Payroll Officer will generate the costing entries from the system and send it to Finance department.

System &

Manual

6.6 Payroll Process Steps Description

If using REST APIs to connect to Oracle HCM Cloud,

https://docs.oracle.com/en/cloud/saas/human-resources/21b/farws/Employee_Atom_Feeds.html

https://docs.oracle.com/en/cloud/saas/human-resources/21b/farws/Termination_Feed_Details.html https://docs.oracle.com/en/cloud/saas/human-resources/21b/farws/op-absences-get.html

https://docs.oracle.com/en/cloud/saas/human-resources/21b/farws/op-timerecords-get.html

For performance issues, Reports could be developed and shared as well through ftp, if that would be simpler for integration. Employee Master already exists, other reports such as time sheet, or absence could be discussed and agreed upon.

Once Payroll is processed, a Costing / Payroll JE needs to be generated

JV Lines Report_JV

Lines EFS KW.xlsx sample attached, mapping to be shared of the department and the elements. This format file to be sent via ftp (credentials to be shared) on schedule or adhoc run.

6.7 Payroll Elements Description and Calculation Rules

6.5.1 Bangladesh: Element

Name Frequency

Type Eligibility

Taxable Salary

SI Salary

Input Value

Proration Triggers

Processing Rule

RetroPay

Triggers

Termination Date

Gross Salary

Recurring

Information

All Amount

Hire Termination Salary Change

All Contractual Salary components 2nd Gross Salary = (Gross Salary – (Mobile + Fuel + Other))

Salary Change Leave Change

Actual Termination

Basic Salary

Recurring

Earnings

All

Override Amount

60% of The Gross Actual Termination

Accommodation Allowance

Recurring

Earnings

All

Override Amount

30% of The Gross Actual Termination

Transport Allowance

Recurring

Earnings

All

Override Amount

10% of The Gross Actual Termination

Medical Allowance

Recurring

Earnings

All Amount

Hire Termination

Lump Sum Entry Change

Actual Termination

Special Allowance

Recurring

Earnings

All Amount

Lump Sum Entry Change

Actual Termination

Mobile Allowance

Recurring

Earnings

All Amount

Lump Sum Entry Change

Actual Termination

Shift Allowance

Recurring

Earnings

All Amount

Lump Sum Entry Change

Actual Termination

Festival Bonus

Recurring

Earnings

All Amount

Lump Sum Entry Change

Actual Termination

Performance Bonus

Non Recurring

Earnings

All Amount

No Lump Sum Entry Change

Actual Termination

Salary Advance

Recurring

Deductions

All

Amount No of Installments

No The maximum amount is 1 Month Gross Salary No of Installments (1-6)

No Actual Termination

Mobile Deduction

Non Recurring

Deductions

All Amount

No Lump Sum Entry Change

Actual Termination

Fine & Damages Deduction

Non Recurring

Deductions

All Amount

No Lump Sum Entry Change

Actual Termination

Tax Non Recurring

Deductions

All

In accordance with the Finance Act 2018, the income tax brackets on employee salary for the income year 2018-2019 is as below :

1st 250,000

0%

Next

400,000

10%

Next

500,000

15%

Next

600,000

20%

7

Next

3,000,000

25%

Balance

30%

You will calculate the annual tax liability at the beginning of the year and will deduct on monthly basis during payment of monthly salary. Please note that, apart from income tax, there is no other taxes need to deducted or paid by company on behalf of the employees

Social Insurance

Recurring

All ???

Overtime Non Recurring

Earnings

All ???

EOS Non Recurring

Earnings

All ???

EOS Accrual

Recurring

Information

All ???

Leave Salary

Non Recurring

Earnings

All ???

Leave Salary Accrual

Recurring

Information

All ???

LOP Non Recurring

Deductions

All ???

Medical Insurance

Recurring

Information

All Amount

No Lump Sum No

Uniform Recurring

Information

All Amount

No Lump Sum No

Workman Compensation

Recurring

Information

All Amount

No Lump Sum No

Negative Salary Carry forward

Recurring

Earning

All

No No Actual Termination

Negative Salary Brought Forward

Recurring

Deduction

All

No No Actual Termination

7 Assumptions

ID Description of Assumption

Criticality Module Objective*

1 2 * B = business objective, S = system objective

8 Open/Closed Issues

Sr.No. Issue Country Resolution Responsibility Target Date

Impact Date

1 Business Case for Attire, Telephone and Mobile allowances

India

As discussed, it will lum-sum head

2 Monthly Bonus Projects List India

Project wise Calculation sheet Provided

Navpreet/Arumugam

3 Grade Matrix & Prices for Air ticket Global

CTC for UAE.xls

4

Income Tax Overtime EOS Leave Salary Sick Leave Policy

Lebanon

Income tax and leave salary is in CTC sheets shared which attaching again

Lebanon -

Details.xlsx

5 Income Tax EOS

Jordan Jordan - Payroll

Sheet jan 2019. - TAX.Abdali.xlsx

6 EOS Leave Salary

Ethiopia Morocco Nigeria Tunisia

Revised CTC vs

Budget - NEW.xlsx

7 Income Tax Pakistan

8

Income Tax Social Security Overtime EOS Leave Salary

Sudan Bangladesh

9

10 Costing Detail for all elements Global

11 Pay slip template Global

13 Final element list (Non-recurring) UAE

Attache in this file only , in UAE section

14 Grade Matrix for Cash element and CTC Global

EFS Facilities

Services - Grading Pay Scale Fringe Benefits Structure UAE KSA QATAR 2019.xlsx

EFS Facilities

Services - Grading Pay Scale Fringe Benefits Structure UAE KSA QATAR 2019.pdf

15 16

9 Sign Off Sheet

EFS

PROJECT NAME EFS Fusion HCM Implementation

PROJECT MANAGER Joel D’Souza

DATE REFERENCE

LEGEND

Yes (Y) response implies that the deliverable is approved. No (N) response implies that the deliverable is rejected with reasons and justification Yes, with Notes (YN) response implies that the deliverable is approved with the required

modifications documented in its section. Remark: Stakeholder authorized personnel Sign-off shall not relieve the Vendor of his obligation to

perform the work in accordance with the Contract document

NO DESCRIPTION TYPE

1. EFS Fusion HCM Implementation SDD Sign Off Document

STAKEHOLDERS’ APPROVAL NO.

STAKEHOLDER NAME

POSITION

DEPARTMENT

SIGNATURE

SIGNED OFF? YES NO YN

1.

2.

YES, WITH THE FOLLOWING NOTES

SIGNATURE

Signature: ____________________ Date: / /20

Signature: ____________________ Date: / /20