Oracle Whitepaper on India Localziation for Retropay

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

Oracle Whitepaper on India Localziation for Retropay https://support.oracle.com/CSP/main/article?cmd=show&type=NOT&doc...

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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


EffectiveDate

Enter the date on which the retrovalues to be paid to the employees. Normally this date falls in thenext payroll period.

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


View the retropay values for Arrears

In case of Arrears retrocomponent, the retro elements are shown.


Run the Payroll Process

Run the Concurrent Request namely - Payroll Run (India)

Table 4 : Parameters for Payroll Process



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


EPS Contribution Add

Arrears Employee ESI Pay Value

Net Pay Subtract

Involuntary Deductions Add

Employee ESI Contribution Add

Arrears Employee Statutory PF Pay Value


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 Voluntary PF Contribution Add

Arrears Employer ESI Pay Value


Employer ESI Contribution Add


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Seeded Element Name Input Value Seeded Balance Name Scale

Arrears Employer PF Pay Value


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


EDLI Contribution Add

Retro EPS Pay Value


EPS Contribution Add

Retro Employee Statutory PF Pay Value

Net Pay Subtract


Employee Statutory PF Contribution Add


Retro Employee Voluntary PF Pay Value

Net Pay Subtract

Voluntary Deductions Add

Employee Voluntary PF Contribution Add


Retro Employer PF Pay Value


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.

DisclaimerThis document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle. Your access to anduse of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement, which has beenexecuted and with which you agree to comply. This document and information contained herein may not be disclosed, copied, reproduced ordistributed to anyone outside Oracle without prior written consent of Oracle. This document is not part of your license agreement nor can it beincorporated into any contractual agreement with Oracle or its subsidiaries or affiliates.

This document is for informational purposes only and is intended solely to assist you in planning for the implementation and upgrade of the productfeatures described. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasingdecisions. The development, release, and timing of any features or functionality described in this document remains at the sole discretion of Oracle.

Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without riskingsignificant destabilization of the code.

Trademark InformationOracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarksof their respective owners.

Related

Products

Oracle E-Business Suite > Human Capital Management > Payroll > Oracle HRMS (India)

Keywords


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RETRO PAY; INDIA; RETROPAY

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Oracle Whitepaper on India Localziation for Retropay

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