Defining Country Data

This chapter provides an overview of Global Payroll for Japan system setup and discusses how to set up file handles.

Understanding Global Payroll for Japan System Setup

This section provides general information about how we set up the delivered elements in Global Payroll for Japan. It also provides some notes and cautions about using and configuring the system.

This section discusses how to:

• Use base pay and other PeopleSoft Enterprise Human Resources data.

• Define pay entity.

• Set up pay types.

• Set up calendar group IDs.

• Understand retroactive pay calculations.

• Use the delivered writable arrays.

• Set up monthly salary earning attributes.

• Set up bonus earning attributes.

• Set up variables for time tracking.

Using Base Pay and Other Human Resources Data

Your Global Payroll for Japan application is designed to use company data and employee personal and job data that is entered in your Human Resources application. We provide the necessary Global Payroll rules, Structured Query Reports (SQRs), and application engine programs to manage the HR data that is needed for payroll processing.

Mapping Base Pay Rate Codes

In calculating base pay, Global Payroll for Japan uses the employee’s compensation package that you define using compensation rate codes in Human Resources. As sample data, we deliver three generic rate codes for Global Payroll for Japan (J08–J10) and map them to three generic base pay rate codes in HR (J08-J10). Add, remap, and modify these rate codes as required, as long as the HR rate codes that you map to have the Base Pay check box selected on the Comp Rate Code table.

See Also

Defining Rate Code Elements

Working with Salary and Bonus

Defining Pay Entity

The pay entity is a legal definition of an organization from a payroll perspective; it is the organization that is responsible for making payments to payees. Often, the organization and the pay entity are the same. Use the Pay Entity component in the core Global Payroll application to define pay entities for your organization.

If your social insurance establishments, labor insurance establishments, and tax establishments for income tax and inhabitant tax are smaller organizations than the pay entity, define them on the Tax Establishment page described in this chapter. You must have at least one tax establishment defined for social insurance, labor insurance, income tax, and inhabitant tax even if the pay entity as defined is the same as each of these establishments.

See Also

Defining the Organizational Structure

Setting Up Pay Types

Global Payroll for Japan uses the variable ER VR PAY TYPE to identify the employee’s pay type. As delivered, the formula ER FM BASE RATE assigns the value of this variable according to the employee’s compensation frequency on the Job Data Compensation record in Human Resources. Valid Human Resources compensation frequencies for Japan are:

Note. You should verify that monthly salaried employees who are subject to overtime payment are assigned the JM frequency on the Job Data-Compensation page in Human Resources.

Setting Up Calendar Group IDs

Set up calendar group IDs that are meaningful to your organization and payroll processing periods. Each calendar group can have only one run type, which means that you must set up a unique calendar group ID for each regular, bonus, year-end tax adjustment, or retirement allowance pay run. As sample data, PeopleSoft provides six run types for Japan: salary, bonus, year-end adjustment on bonus, year-end adjustment on salary, independent year-end adjustment, and retirement allowance.

See Also

Using Calendars

Understanding Retroactive Pay Calculations

The Global Payroll for Japan application provides the necessary elements for processing retroactive changes in base salary. The following list summarizes how the application processes retroactive changes:

• The trigger for retroactive base salary processing is any change in the HR Job Data Compensation record (COMPENSATION).

  Because this record is a child of the Job Data record, changes in both the Compensation record and the Job Data record trigger retroactive processing.

• The following elements are adjusted for retroactive processing:

  ER BASE PAYM, ER BASE PAYD, ER BASE PAYH, ER OVERTIME, ER NIGHT, ER HOLIDAY, ER HOLNIG, ER TAED RED, ER SPLE RED, ER ABS RED, ER SCLE RED, SC REM S01, SC REM S02, SC REM S03, SC REM S04, SC REM S05, SC REM S06, SC REM S07, SC REM S08, SC REM S09, SC REM S10, SC REM S11, SC REM S12.

• Social insurance processing tracks retroactive changes when calculating monthly remuneration and when determining eligibility for occasional revision.

Note. When you add a retroactive data row in Human Resources records, you should place your cursor in the row of data that you want carried forward into your new row. You must manually update any existing data rows that come after your inserted row if you want your new data to be carried forward into the remaining rows of the table.

Payment Keys

Japan organizations should not use payment keys when configuring payroll for Japan.

Caution About Element Segmentation

You should not use the segmentation feature of Global Payroll. If you use segmentation, review all of your report output thoroughly for accuracy; segmentation could impact the data that is being reported.

See Also

Updating Person and Job Information

Using the Delivered Writable Arrays

Global Payroll for Japan delivers the following writable arrays

• GPJP Writable Array (GPJP_WA).

  This array stores data that is used in PeopleSoft Application Engine and SQR programs.

• Social Insurance Salary Report Writable Array (GPJP_WA_SC_RPT_SAL).

  This array stores salary data used to create social insurance reports.

• Social Insurance Bonus Report Writable Array (GPJP_WA_SC_RPT_BON).

  This array stores bonus data used to create social insurance reports.

See Also

Defining Data Retrieval Elements

Set Up Monthly Salary Earning Attributes

When you create a new earning element for Global Payroll for Japan, you must also set up the attributes. Monthly salary earnings have the following attributes:

• Taxable (or nontaxable).

• Cash (or non-cash).

• Cash remuneration (or non-cash remuneration).

• Wage.

• Fixed wage.

• Basis of overtime pay calculation.

• Basis of pay-cut calculation.

You set up these attributes by adding the earning element to the appropriate accumulators. The following table describes the attributes and their corresponding accumulators:

For example, if an earning element were taxable, non-cash, remuneration, wage, fixed wage, and the basis of overtime pay calculation, you would add the element to the following accumulators: ER AC TAX PAY SAL, ER AC NCASH SAL, ER AC NCSH REM SAL, ER AC TTL WAGE SAL, ER AC FIX WAGE SAL, ER AC PRM BASE SAL.

Set Up Bonus Earning Attributes

When you create a new bonus earning element for Global Payroll for Japan, you must also set up the attributes. Bonus earnings have the following attributes:

For a bonus earning, the element must be taxable and wage. You must always add the bonus earning element to the following accumulators: ER AC TAX PAY BON (total amount of taxable bonus pay), ER AC TTL WAGE BON (total amount of bonus wages). Additionally, you must add cash bonuses to ER AC CASH BON and ER AC CASH REM BON. You must add non-cash bonuses to ER AC NCASH BON and ER AC NCASH REM BO.

Set Up Variable for Time Tracking

You must configure the delivered variables to conform to your organization’s business rules. Then you can enter time data for each employee each pay period before running payroll.

Here’s how you set up variables:

1. Configure variables for overtime and absence.

   • PeopleSoft delivers four variables for overtime and four variables for pay cut due to absence. You can add additional variables to track additional types of overtime or absence.

   • PeopleSoft delivers five additional variables for tracking time data, such as PTO take and compensatory day off. We also deliver a “dummy” earning for each of these variables to enter the time data through positive input.

   • Remember to create corresponding variables for the overtime premium ratio and reduction ratio.

   • If you use the variables that you added to calculate overtime pay, pay-cut for absence, or any other pay calculations, remember to create or modify formulas and other rules accordingly.

2. Change the delivered value of the variable AO VR PR PRI FLAG if your organization deducts PTO from the current year first.

3. Change the delivered value of the variable AO VR ENT MONTHS if your organization entitles PTO as of a month other than October.

4. Set up your PTO entitlement schedule.

   PeopleSoft delivers four variables for scheduling PTO entitlement according to length of service.

   • Add new variables and define rules to evaluate length of service if necessary to conform to your organization’s entitlement schedule.

   • Define the amount of PTO entitlement that is associated with each variable.

   • Change the default value of the variable AO VR PTO EXP FLAG if unused PTO for the previous year expires at PTO entitlement.

See Also

Tracking Time Data

Defining Calculation Elements

Setting Up Overrides

Setting Up File Handles

If you plan to read and write flat files, you must set up file handles. A file handle instructs the application engine program on the file name and character set to use.

This section discusses how to assign file handles.

Page Used to Set Up File Handles

Assigning File Handles

Access the File Handle Table page.

File Handle	Assign a unique two-character file handle to each file that you want to import or export. The file handle can be any combination of alphanumeric characters.
File Name	Enter the exact path (including file name) to the file. Use the proper syntax for your operating system.
Character Set	Select the character set in which the file is imported or exported. For file handles related to banking, select JIS_X0201.