Oracle Fusion Payroll - Salary

This tutorial deals with Fusion Payroll, and how it functions. In this part, we will discuss about the topic of Salary in Payroll.

Salary

When a person gets hired, a compensation (salary) would be set in Payroll for the employee. This gets integrated in the Payroll Calculation if the salary information for a person is provided.

Within the compensation, the “Base Pay” has to be defined. This includes configuring the Compensation Frequency Rules (how often is the compensation to be awarded), Grade Rate Validation data, and the Payroll Elements.

The Base Pay is defined on the Salary Basis screen, where the user specifies the frequency of the amount sent to Payroll and stored as salary, such as an annual or hourly amount.

The following are the components contained within the Salary Basis which help to define the salary paid to the employee by Payroll:

• Legislative Data Group (LDG) - the legislation which the Payroll is under.

• Payroll Element and Input Value - the amount of the salary.

• Frequency - annual or hourly.

• Salary Components (optional) - how they behave in calculation of salary.

• Annualisation Factor - the multiples of frequency in which amount is to be sent to Payroll; annual - 1, monthly - 12, etc.

• Grate Rate (optional) - the salary grade of the employee.

The task associated with it is Manage Salary Basis .

A prerequisite to this task is that the Legislative Data group (LDG) should already be defined, along with the Payroll Earnings Element; and also the value to be utilised in the Payroll calculation.

To assign a salary to a person, the following steps are involved: Hire, Person Management -> Manage Salary.

Salary Basis

The blocks under “Workers Salary Basis” are for the definition of the Salary Basis, while those under “Workers Salary Information” are responsible for the validation of the salary basis defined.

An important point to note is that the Element Entry must be for that employee for whom the salary is being calculated. The task associated with it is Manage Salary Basis.

Defining a Salary Basis

Creating an Element

1. Click on the Navigator icon.

2. Click on Setup and Maintenance under Tools from the Navigator menu.

3. Go to the Implementation Projects tab.

4. Click on the name of your Implementation Project.

5. Expand the task list and go to Define Earning and Deduction Definitions under Define Payroll.

6. Go to the Manage Elements task.

7. Click on the New icon to create a new element.

8. Choose the Primary Classification and Secondary Classification from the dropdowns and click on the Continue button.

9. Enter the basic information of the element and click on the Next button on the top right-hand corner.

10. Enter any additional details and click on the Next button.

11. Review the information and click on the Submit button.

12. On the Element Summary page, click on Actions -> Create Element Eligibility.

13. Enter the details of the element eligibility and click on the Save button, followed by the Submit button.

14. Click on the Done button.

Fig. 1 - Your Implementation Projects

Managing Salary Basis

1. On the Task List page, click on the Add Task icon.

2. Search for and select the Manage Salary Basis task and click on the Done button.

3. On the Task List page, go to the Manage Salary Basis task under Define Earning and Deduction Definitions.

4. On the Manage Salary Basis task page, click on the Create icon.

5. Enter the information of the Salary Basis (Grade Rate is optional) and click on the Save and Close button.

Fig. 16 - The Add Task icon is circled

Fig. 17 - Adding the Manage Salary Basis task

Fig. 18 - The Manage Salary Basis task

Fig. 19 - The Manage Salary Basis task page

Fig. 20 - Creating a Salary Basis

Fig. 21 - Searching and selecting the Legislative Data Group

Adding a Person

1. In the Navigator menu, go to New Person under Workforce Management.

2. Click on the Hire an Employee task (circled in the screenshot below) from the list on the left-hand side.

3. Enter the basic and personal details of the employee and click on the Next button.

4. Enter the address and other person information and click on the Next button.

5. Enter the employment information. Scroll down and select the defined Salary Basis from the dropdown, specify the Salary Amount, and you will see the Annualised Full-Time salary appear. Click on the Next button.

6. Add roles, if any, that are associated with the employee and click on the Next button.

7. Review the employee’s information and click on the Submit button.

Fig. 2 - The Salary Information of the employee. Note the selection of the Salary Basis defined

Once the Calculate Payroll process is run, the Payroll Calculation will be executed and the salary will be paid to the employee as per the Salary Basis defined for him/her, as well as the Calculation Cards defined. (For more on calculation Cards, please view the tutorial Oracle Fusion Payroll - Element Entries and Payroll calculation Cards)

Fig. 3 - Statement of Earnings after Payroll Calculation

Krishnaa Lakshmanan

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