Payroll Module

oracle Fusion Human Capital Management (HCM) is a comprehensive cloud-based

solution that encompasses various aspects of human resources management,
including payroll. In the context of Oracle Fusion HCM, the payroll module handles
the processing of employee compensation, tax withholdings, and related financial
transactions. Here are some key aspects of payroll within Oracle Fusion HCM:

1. Integration with Core HR: Oracle Fusion HCM integrates payroll with other
core HR modules, such as employee records, benefits administration, and
time and labor management. This integration ensures that payroll calculations
are based on accurate and up-to-date employee data.
2. Automated Payroll Processing: Oracle Fusion HCM automates the payroll
process, making it more efficient and reducing the risk of errors. The system
calculates gross pay, deductions, and net pay based on predefined rules and
policies.
3. Tax Management: The payroll module in Oracle Fusion HCM handles the
calculation and management of various taxes, including federal and state
income taxes, Social Security taxes, and Medicare taxes. It helps
organizations stay compliant with tax regulations and ensures accurate tax
withholdings.
4. Benefits and Deductions: Oracle Fusion HCM allows organizations to
manage employee benefits and deductions seamlessly. This includes tracking
and processing contributions to benefits programs such as health insurance,
retirement plans, and other voluntary deductions.
5. Reporting and Analytics: The system provides robust reporting and
analytics capabilities, allowing organizations to generate various payroll
reports. These reports may include payroll registers, tax reports, and other
financial documents necessary for compliance and analysis.
6. Compliance: Oracle Fusion HCM is designed to help organizations stay
compliant with local, regional, and global labor laws and regulations. The
system is regularly updated to reflect changes in legislation that may impact
payroll processing.
7. Self-Service Capabilities: Employees can access self-service features to
view their payroll information, such as pay stubs, tax documents, and other
related details. This empowers employees to manage some aspects of their
payroll information without direct HR involvement.
8. Audit Trails: Oracle Fusion HCM maintains detailed audit trails, documenting
changes and transactions related to payroll processing. This helps
organizations track and review any modifications made to payroll data for
transparency and compliance purposes.

It's important to note that the features and capabilities of Oracle Fusion HCM,
including the payroll module, may evolve with updates and new releases.
Organizations implementing Oracle Fusion HCM should refer to the latest
documentation and consult with Oracle support resources for the most accurate and
current information.

If we want to have multiple LDG when we have different Cost Allocation Structure.
At Global HR we are able to configured at till Legal Entity level to hiring as Employee
whereas at payroll we are able to configure till LDG level
Payroll Pre-requisition setups verification
Define LDG, Define LE, PSU, TRU
Bring the Legal Entity into Scope in define legal entities task.
Assign Legal Entities to Ledger at Assign Legal Entity Task.
Before creating Backs, and Bank Accounts, it will ask for Legal entity So we need do it.
Payroll Module

Making Legal Entity as Tax Reporting Unit in Task manage legal reporting unit HCM
information.
General Ledger:
It is books of Accounts
Every transaction of organization should be recorded in the book of accounts.
For cash management.

Banks, Bank branches, Bank Accounts:

It is the place where we can create a at what bank, which branch, and account details of the
organization.
Define Banks:

Define Bank Branches:

Define Bank Accounts:

Payroll Module

Consolidation Group:
Consolidate payroll result by giving label / name for that.
In simple terms we are given name /label for pay results.
Grouped Based on country.

Employe
e Consolidation group
9500 Monthly
2000 Weekly
200 Yearly

Task : Consolidation Group

Type Of Payment Methds:

Payment Methods are the definition of how the payments are handled through
organizations and employees.

Three Types Of Payment method:

 Organizational payment method.

Payroll Module

 Personal Payment Method. (For employee)

 Third party Payment Method.
Organizational payment method (Currency,Mode,Source)
 Which currency, which method and which source organization going to pay.
 Organization payment methods define the payment type and currency selected for the
employees.
 They also define the payment sources (Bank Account) 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.
 LDG mandatory

USD Currency
Check Payment Type
HDFC
Bank Payment Source

Task : Organization payment methods

 To know the types payment methods for any country to check this
 Go to Task: Configure Payroll Legislations
Payroll Module

Search with country.

Payment Types

Any payment method that you define must belong to one of the payment types that your
enterprise supports.

Each payroll must have at least one valid organization payment method for each
payment type available to employees on that payroll. There may be more than one
payment method with the same payment type.

The most common payment types are:

 Electronic funds transfer (EFT)

 Check
 Cash

Your enterprise may support a different range of types that are appropriate for your
localization. For example, some localizations do not allow cash, some do not support
checks, and very few support postal money orders.

The names of payment types can vary by localization. For example, in the US, the
payment type for EFT is NACHA(National Automated Clearing House Association);

In the UK it's BACS (Bankers' Automated Clearing Services),

and in Australia it's BECS (Bulk Electronic Clearing System).

Payment Sources

Payment sources associate bank accounts and other sources of funds with organization
payment methods. If you are using Oracle Fusion Global Payroll for payroll processing,
each organization payment method that is in use must have at least one valid payment
source.

Personal Payment Method. (For employee):

 This Payment method given by employee for which type of method a employee want
their pay.
Payroll Module

 Associates a person to a payment method, currency, and payment source.Holds

the payment method details of a person.


Payment Method preferences:

Here in this task we can restrict the no of payment methods of the employee.
Payroll Module

Third party Payment Method.

 When organization going to pay for third party person/entity.
 When employee want to pay 20% of their salary to family / charities.
 Enables separate payment information for payments to third parties who aren't on
the payroll. Payments to third parties, such as garnishments or other involuntary
deductions, are typically check payments processed separately from the payroll.

Payroll Definition:

When you create or modify payroll definitions, the application generates a calendar of payroll
periods based on your selections. The choices you make for these values determine the resulting
schedule of payroll periods:

 To fix the payroll calendar /period of pay roll.

 To define the Payroll Frequency which means to define the period when to run payroll as
monthly /weekly.
 It is the characteristics of payroll, and every payroll created under LDG.

Offset Settings:
Payroll Module

Dynamic Offsets When you create a payroll definition, you can use dynamic offsets for payroll cycle
events. All of the predefined payroll time periods you can use support dynamically generated dates
for offsets. Use dynamic offsets to offset each payroll cycle event by a specified number of days
before or after the start or end date.

IF want to pay salary for before 3 Days Of month end date then we can use the Dynamic Offesets.

Fixed-Date Offsets The predefined Monthly (Calendar) payroll time period supports both dynamic
offsets and fixed-date offsets. Use fixed date to adjust the exact date of each of the payroll cycle
events for the first payroll period. Any adjustments that you make are reflected in the payroll
calendar for subsequent payroll time periods. For example, if you set the cutoff date as the 25th of
the month, then all payroll periods in the calendar will have those offsets.

If the Fix the Date 28 is the pay roll date for every month the use the fix-date offset.

Task: Payroll Definitions

 First Periods end date is end of the first pay period

 When every you running for first time the end date of that period.
 Default Payment method when you employee does not have bank account in personal
Payment method then this method triggers as default payment method make sure it should
be either Cash / cheque only.
Payroll Module

 Costing available at payroll level

 Suspense Account is false transition are recorded
 Default Account the default account
Element:

Elements are building blocks of Payroll that help determine the payment of base pay,
benefits, absences, and other earnings and deductions.

Every Salary Components are considered as elements in fusion.

Apart from within Payroll (for bonuses, overtime earnings, etc.),

Compensation Benefits (on the basis of the base pay) and

Absence Management (for absence payments like in the case

of maternity leaves and other long
leaves).

Element Classification
They are a mechanism by which you classify the Element as Earnings or Deductions and defines a
default processing priority for the element in payroll runs.

Primary Classifications

Primary classifications meet the legislative requirements of your country or territory, so

you can't change them.

Secondary Classifications
Payroll Module

Secondary classifications are subsets of the primary classifications. Use them to manage
wage basis rules for deductions and taxes.

You can't remove or change any predefined secondary classifications. In some countries
or territories, you can create your own secondary classifications.

Sub classifications

Sub classifications provide a way to feed balances. Elements can have only one primary
and secondary classification, but multiple sub classifications.
Lones, etc

Frequency rules determine which pay periods a recurring element should be included in the payroll
process.

For example, a monthly deduction might be processed in the third period of the month for
employees paid weekly and in the second period of the month for employees paid on a semimonthly
basis. This region identifies if frequency rules have been enabled for this classification.

Process Order:

These fields define the priority for element processing. Elements with lower numbers are processed
first.

Costi
ng
To track the labor costs of payroll run results, identify the element classifications the application can
cost. You can also establish whether the run results for the element are used to distribute the costs
over a set of elements in a distribution group and whether the application debits or credits the cost
account when posting the costs.
Payroll Module

Element Creation

In Fusion Payroll, the organization or legislation provides a set of predefined elements either for
regulatory purposes or deductions. The first thing to be done is to identify these predefined
elements and make them eligible to all employees.

For the creation of elements, templates are used. Primary Classification, Payroll Product Usage, and
Category determine the templates that are used. Any number of elements can be created
depending on your requirement.

Decision to Consider In This Example

What is the primary One of these three choices:

classification?  Standard Earnings
 Supplemental Earnings
 Voluntary Deductions
What is the secondary This item is optional. The available choices vary based on the selected primary
classification? classification.
 Standard Earnings: Regular, Regular Not Worked
 Supplemental Earnings: Bonus
 Voluntary Deductions: Leave blank
At which employment level Match the employment level to the Assignment Level.
should this element be Note
attached?
Although a salary basis can be associated with a worker on either the
assignment level or the terms level, most third-party payroll providers will
expect salary information at only the assignment level.

Does this element recur each One of these three choices:

payroll period, or does it  Standard Earnings: Recurring
require explicit entry?  Supplemental Earnings: Nonrecurring
 Voluntary Deductions: Recurring

Example Purpose or Use Primary Classification

Recurring base pay, such as annual salaries and Standard Earnings

hourly earnings

Recurring payments, such as an allowance Standard Earnings

Nonrecurring payments, such as a bonus Supplemental Earnings

Recurring voluntary deductions, such as savings Voluntary Deductions

plans or charitable contributions

Example Purpose or Use Secondary Classification

Recurring base pay Regular

Nonrecurring payment Bonus

Payroll Module

Recurring voluntary deduction Select the relevant choice. If there is none, leave it blank.

Field Sample Value

Name Annual Salary

Hourly Wages
Allowance
Spot Bonus
Red Cross Contribution
Reporting Name Enter the name that you want to display on reports for
this earnings or deduction payroll element.

Effective Date 1/1/1951

Enter a very early date so that the payroll element is

available for use immediately.

Input Currency US Dollar

Should every person eligible for the element No

automatically receive it?

What is the earliest entry date for this First Standard Earning Date
element?

What is the latest entry date for this Last Standard Process Date
element?

At which employment level should this Assignment Level

element be attached?

Does this element recur each payroll period, For nonrecurring payments such as a bonus,
or does it require explicit entry? select Nonrecurring.

For all other purposes or uses in this worked example,

select Recurring.

Process the element only once in each Yes

payroll period?

Process and pay element separately or with Process and pay with other earnings.
other earnings elements?

Proration:
Proration is the calculation of proportionate element amounts whenever payroll-
relevant data is changed during a payroll period. For example,

a person joining or leaving the company or a change of pay rate, mid-payroll period,
could trigger proration. You add a proration formula to the element and add the element
to a proration event group. Proration creates two payroll run results: one for the payroll
period up to the day before the event, and one from the date of the event to the end of
the period.
 Payroll Module

In the above example, the amount to pay after the salary increase is 200 * 4 = 800.

In the above example, the amount to pay after the allowance increase is 10 * 4 = 40.
 Payroll Module

In the above example, the amount to pay after the daily rate increase is 200*4 = 800.

In the above example, the amount to pay after the hourly rate increase is 30 * 15 = 450.

The calculation of the proration rate may use the following constants:

 206 - Annual working days

 2080 - Annual working hours
 Payroll Module

For elements, there are certain Critical Child Entities:

Input Values,
Element Eligibility Records,
Status Processing Rules,
Formula Result Rules.

Input values:
An element’s input values define the entry values available on each entry of that particular element.
In Fusion, any number of input values can be created depending upon your requirement. In most cases, the
template will create the input values for you.

Element Eligibility
Element eligibility determines which people are eligible for an element. To determine eligibility, you
have to select a specific criterion that people must have to receive entries of that particular element.
The eligibility criteria can be selected from the following:
 All payrolls or for specific payrolls
 Payroll Statutory Unit
 Legal Employer
 Payroll relationship type
 Department in which the person works
 Location of person’s office
 Job (e.g. associate professor or secretary)
 Position
 Grade
 People group

Status Processing Rules

These identify the formula that the payroll run uses to process the element for workers with a
specified assignment status. The formulas return formula results such as the amount to be paid or
a message.

Formula Result Rules

These results can update the current element entry or another target element entry with a lower
processing priority, which means that it is processed later in the payroll run.
There are different types of formula results:
 Direct Result - updates the entry after calculation
 Indirect Result - updates the entry of a non-recurring element
 Message - gives a message to the entry value
 Order Indirect - lowers priority within the element based on the calculation
 Stop - omits an entry from further calculation
Task: Elements
Payroll Module

Element Termination Rule:

Final Close: element end at full and final settlement of the employee till.

Last Standard Earning Date: element end at Last working day of employee.

Last Standard process Date: When the end date of employee will be ended at any day of that month
but the element ended at last day of pay period/ payroll end date.

We follow 2-tier Employment model So it is Assignment Level.

Payroll Module

Recurring: Process the element for every pay period weely/monthly etc

Example: Basic, HEA, PF,

Nonrecurring: element not processed for every pay period to process it separately.

Multiple Entries Allowed.

Proration:

Proration is the calculation of proportionate element amounts whenever payroll-relevant

data is changed during a payroll period.

For example, a person joining or leaving the company or a change of pay rate, mid-
payroll period, could trigger proration. You add a proration formula to the element and
add the element to a proration event group. Proration creates two payroll run results: one
for the payroll period up to the day before the event, and one from the date of the event
to the end of the period.

Retro:

We want added any earning/deduction element in backdated /need any changes in value.

1. For example, I have a bones element called BH_Bones but this element should be added at
previous month, we run the payroll for previous month in that we forgot to add this element
so, in this scenario we need go with the retro, here we will add that element at current
Payroll Module

month with backdated then it will trigger a notification at event notification and do
recalculate processes select the process date with next day of previous payroll run date.
2. And if you go the check the element in element entries with current date the support
element of that main element will be automatically added.
3. For example, the salary increases in the November but we are at January we need update
the value to that element
4. For example, we missed loss pay element entire in the January but we are at may.
5. when you’re running retro with back dated in the current month, Make sure that you
already ruined the payroll of that month then only it possible.

Check list of Retro

 First Create element with retro active

 Then provide element eligibility and costing to retro element
 Check retro event group with main element
 Check retro components details
 Add, update and correct element entire with back dated
 Make sure payroll will process to that employee from that back dated
 Check retro event notification
 Run recalculate payroll for retroactive changes

 The main propose of doing recalculate payroll process to pick the back dated entire.
 To submit this process in application
 Navigation  Navigator my client Group payroll submit a Flow select LDG search
with Recalculate Payroll with Retroactive changes
Payroll Module

Select the Process date to be next day of previous payroll run date.

How to enable Retro for existing Elements without Retro

Step-1: First, we create an Irregular Element without Retro.

As while creating we didn’t enabled Retro.

Step-2: Calculate Quickpay to an Employee for the period of Jan 2024 without giving the element
entry of ‘BH Bonus 1’.
Payroll Module

We can see that ‘BH Bonus 1’ was didn’t process for Jan 2024 Period.

Step-3: Now give a back dated entry of ‘BH Bonus 1’ in the period of Jan 2024.

Step-4: Check for Event Notifications for the employee.

Payroll Module

Here we can see no event notification is triggered because we didn’t enable retro for ‘BH Bonus 1’.

Step-5: To trigger Event Notification for the existing element, go to element page and enable
‘Retroactive Event Group’ as ‘Entry Changes for Retro’.

Step-7: Add back dated element entry and check for Event Notification.
Payroll Module

Here we can see Event Notification has been triggered.

Step-8: Submit a flow named as ‘Recalculate Payroll for Retroactive Changes’ and check the element
entries of Period Feb 2024.

We can see here no Retroactive target element is added.

Step-9: To get the target element in element entries, go to element configuration and click on
Retroactive Components and add the details as per below.
Payroll Module

Under target element we can add the main element as the target element or we can create a
support element and add as target element.

Note: The target element configuration should be same as the main element configuration and
should be a non-Recuring element too (even the main element is a Recuring element) to avoid errors
in further calculations in Payroll.

Right now, I have considered main element as the target element because it is a non-Recuring
element.

Step-10: Add the back dated entry, check for Event Notification and Submit a Flow named as
‘Recalculate Payroll for Retroactive Changes’.
Payroll Module

We can see that ‘BH Bonus 1’ which is the retroactive target element of the back dated element
entry.

Step-11: Now calculate Quickpay for the period of Feb 2024.

Payroll Module

As we can see the Retroactive entry has been processed in the Period of Feb 2024.

Pay Value:

It is the primary output value once’s we process the element the result will comes to pay value input
value

Salary Basis:

 The basic Salary elements of an employee we need add here

 Only recurring elements will add to salary basis.
 When we assign the salary basis to the employee while hire a employee that means
indirectly assigning recurring element

Task:Salary Basis

Pension:

It is an employee Saving, both Employee and Employer Can contribute it.

Payroll Module

Pension is dependent on pensionable earing. Any earing of employee will have the pensionable
earing cat balance feed then the pension deduction will happen.
Payroll Module

When you keep this option yes then at employee page level adding this element at calculation card -
> Benfits & pension there one additional field we are able to see.
Payroll Module

When you keep this option as yes then we have option to change the contribution of both employee
and employer at employee page level.

We have one calculation card (Pension Automatic enrolment), for employee to enroll for pensions
this card is automatically add to employee with statutory card.

Why it gets added default because when we hire an employee it is the pre process before running
payroll we can run this it will check automatically who will eligible for it.

If we keep YES then is eligible for Pension Automatic enrolment

State Pension age will be decided by the pension authority

Age in Years will come from Legal Employer when go to legal entity hcm information task there we
can see the option called Maximum Retirement age.
Payroll Module

The Calculator support element is calculating the percentage and distributor support element will
distribute it.

Adding This Element To the employee.

We cannot add this element directly at element entries we need add this element through
calculations card (Benefits and Pension)

Keep effective date as Employee Hire Date

Payroll Module

Calculation Value Definition

This is the task where we can change the pension default percentages for both employee and
employer. The percentage are coming from while creating a pension element, we will give the
percentage that percentage will come here.

Search with name of your element

Object Group:

Generally, we will run payroll for single employee the processes name is Calculate Quick Pay but you
need to run payroll for all employee the process name is calculate payroll.

But the requirement is run payroll to group of people in this scenario we can create a object group
for that people then when we run calculate payroll then by selecting that object group it will pick
only that employee.
Payroll Module

We have different types

1. Deduction Card Group

2. Element Group: We want group single element /multiple elements
3. Payroll Relationship Group: Based On Employee Payroll Association want group employee’s
4. Process Information Group: we want to group employees based on balanceses like NI ,payee,
5. Work Relationship Group: Based on employee work relationship

Static: we need to the employee ids to pick

Dynamic: by writing fast formulas by giving some criteria system will automatically the employees

Payroll Relationship: nothing but employee number

Payroll Module

Payroll Term: based 3tier employment model the term id will be considered

Payroll Assignment: Based on assignment Number

If we want to submit any process like recalculate Retroactive changes, calculate payroll, pre-payment,
generate pay slip, reports. The we need to submit a flow in my client group ->

Payroll-> submit a flow

Navigation to submit process

Navigator- > my client group -> Pay roll -> search with submit a flow-> search with calculate payroll

Whenever we need to submit process/ report then we need to submit a flow

How Roll Back Any Process After Submit a flow?

We Have Three Ways for that

1. Submit A Flow (Name: Roll Back process)

2. In View Flow Open the process which you submit click on action rollback
3. At same place if open your process we have option to rollback individual.

What is the result of Calculate payroll and Quick Pay?

To process the salary. Gross Pay, Gross Deductions, Net Pay for all employee

Pre-payment:

After processing salary to employee with any process like calculate payroll, quick pay. we can know
the employee net pay as a result.

The gross pay generated by the process of calculate pay roll to the information of payment

By running the pre-payment process to know from which back account of employer to which back
account of employee the net pay will proceed.

To now the which organizational payment methos to which personal payment method.

For this we need to Submit a flow a called Calculate Prepayments

Payroll Module

The result of pre payments

Generate Cheque Payments:

It is one type of payment process

Payroll Module

Archive Periodic Payroll Results:

The main Purpose Of this process is to process the Payslip

Basically, archive meaning clubbing actually we running calculate payroll, pre payment’s, payments
process separately but in payslips this all information will be together for that we are running this
archive Process.

After this we can run payslip process then payslips will be generated and available.

The result will be just we can see the head count.

The result of archive process

Payroll Module

Generate Payslips:

This is a Report to generate Payslips.

The result
Payroll Module

Balance Definitions:

A balance is a positive or negative accumulation of payroll results for an element

or group of elements, over a specified period of time.
Most of the balances you require are predefined. Depending on your country
extension, additional balances are automatically created when you create
elements. You can edit the definition of these generated balances, or create
more balances.

Balance is used to store Something.

If you feed the particular balance to any of the element whenever that element is processing, the
processed value is stored in this balance that can be used for calculation.

For example, we have ten gross earing elements in that only five elements are eligible for loss pay
then we need to create custom Balance and feed these five elements to it.

Something needs to be calculated on something.

For example, we need to create a balance for new pension scheme and need to need to feed only
few elements to that.

Some Seeded Balance

Taxable pay, Niable pay, Pensionable Earning

Balance Dimension is nothing but how do we want to view the stored balance. For example, taxable
pay for an employee is processing every month after processing one month we can see balance for
that month or after processing three months we need see the balance for all three months then QTD,
like that we have different option YTD, QTD, MTD, Period to date.

Balance Feeds it is the place where we feed / add the elements

Payroll Module

Task Name: Balance Definitions

Payroll flow Patterns:

A payroll flow pattern links together a sequence of automatic payroll processes and reporting tasks,
and manual tasks, such as verification tasks. When you submit a payroll flow, the flow is based on a
predefined or user-defined flow pattern.

When you create your own flow pattern, you have the option to copy a predefined flow and make
these edits to meet your company's business requirements.

Determine the tasks included in the flow. The tasks can be automatic tasks, such as a payroll process,
or manual tasks, such as a task to verify a report.

Determine the sequence of tasks you include in the flow.

Define parameter binding rules so that you can enter parameters that are common across multiple
tasks, such as dates, only once on submission. When you submit the flow pattern, the parameter
value is constant across all tasks within the generated flow.

When you submit a flow pattern, provide a unique name for the flow, such as 'Semimonthly
Payroll_15-Sept-2019'. This instance of a flow pattern is referred to as a flow. Use the Checklist to
monitor the status of all tasks within the flow.
Payroll Module

Some Predefined Task

1. Recalculate Payroll for Retroactive Changes

2. Calculate Payroll
3. Calculate Prepayments
4. Archive Periodic Payroll Results
5. Generate Check Payments
6. Make EFT Payments
7. Generate Payslips

User Define Table: