Managing Off-Cycle Payments

This chapter provides an overview of off-cycle functionality and discusses how to:

Make corrections.
Make unscheduled payments.
Enter advances.
Record manual payments.

See Also

Managing Off-Cycle Processing

Understanding Off-Cycle Processing

This section discusses:

The off-cycle process.
Types of off-cycle transactions.
Delivered off-cycle processing elements.

The Off-Cycle Process

Off-cycle processing refers to processing payments and making corrections to payroll results outside of the normal payroll schedule. Off-cycle transactions are usually made to correct prior payments, to process late notification of a new hire, to make early termination payments that can't wait until the next scheduled payroll, to process unscheduled payments such as bonus or expense runs, or to process advance holiday pay

Types of Off-Cycle Transactions

The four types of off-cycle transactions are:

Corrections

Corrections enable you to correct results of any finalised payroll. Examples include reversing an overpayment, processing late notification of a new hire, or correcting pay (for example, following late notification of a termination).
Unscheduled payments

Unscheduled payments enables you to enter one-time payments that fall outside the normal payroll process. Examples include one time bonuses or expense reimbursement.
Advances

Advances enables you to pay payees before their normally scheduled pay run. Examples include advance holiday pay or salary due on termination.
Manual payments

Manual payments enable you to enter payments that you have calculated and paid outside of the payroll system. Manual payments are unlikely to be required in the U.K. An example when a manual payment may be used is to record a payment to a terminated employee who is in cash.

Delivered Off-Cycle Processing Elements

Global Payroll for the U.K. delivers this processing structure for off-cycle processing:

The GBR PR OFFCYCLE process list.
The GBRRTOFF run type.
The GBR EG TAX NI LES limited element set.

Use this limited element set with manual payments, unscheduled payments, and corrections to limit the elements resolved during the off-cycle process. GBR EG TAX NI LES contains the deductions for tax and NI.

Making Corrections

This section discusses:

Using corrections in the U.K.
Entering corrections.

Using Corrections in the U.K.

Corrections enable you to correct the results of a finalised payroll before the next scheduled payroll run. Essentially, you use corrections to make changes that would normally be corrected by retroactivity processing in the next payroll.

Here are some examples when you may use corrections in the U.K:

Late notification of new employees.

Use corrections to pay employees who were hired in the previous period but were not processed in payroll.
Pay changes.

If an employee has a retrospective change in salary or other earnings, you can use corrections to calculate the changes and pay the employee before the next scheduled payroll run.
Late notification of terminations.

Use corrections to correct the payroll results of an employee who left employment in the previous period but was incorrectly processed as an active employee.
Retrospective NI category code changes.

Use corrections to recalculate National Insurance when an employee's NI category is retrospectively changed.
Retrospective change of hire date.

Use corrections to recalculate employees' pay and correct accumulators when an employee's pay has been processed using an incorrect hire, rehire or transfer date.

Note. Corrections are only processed if retro triggers already exist.

See Also

Reviewing Triggers for the U.K.

Defining Retroactive Processing

Entering Corrections

Use the Corrections page to enter a correction. There are two types of corrections, replacements and reversals. A replacement is used when a calculation in the finalized payroll was incorrect, for example if a payee's overtime was incorrect. A reversal is used to correct payments made in error. Corrections can be applied using either forwarding or corrective retroactive methods. When you enter a correction, you have four options in the Type of Correction field:

Normal Retro	This is a replacement using the default retroactive method. For the U.K., forwarding is the default retroactive method. This is the most common type of correction you will make.
Replacement	This is a replacement using the corrective retroactive method. No elements are forwarded and any deltas must be managed in another way.
Reversal — Normal Retro	This is a reversal using the default retroactive method. For the U.K., this is forwarding, which means that all elements are recalculated and forwarded and the retro process override list is ignored.
Reversals — Replacement	This is a reversal using the corrective retroactive method. The original calculation is reversed and there are no elements forwarded.

Example: Late Hire

Consider the example of an employee who was hired in a finalised period, but the employee was not processed. How you enter a correction for this employee depends on the timing of the correction:

If the accounting period is closed and the Inland Revenue payment has been completed, use the Normal Retro correction type.

The employee's pay is forwarded and all tax deducted in the next pay period. The Retro Hire process override definition should be applied so that the employee's NI is calculated using the previous period, but all other payments and deductions are applied in the next open period.

For this type of correction, the Target Period is the next open period.
If the hire occurred within the most recently processed period, the accounting period is not closed and the Inland Revenue payment has not been made, you can use the Replacement correction type.

If replacement is used the hire is processed within the period in which the hire actually occurred. Therefore, the Target Period is the most recently processed period.

Example: Change in Pay

In the example of a change to pay, there are three possibilities:

The employee is owed money.

Use the Normal Retro correction type to use forwarding, and select the next open period as the Target Period. The tax and NI for the payment is calculated in the next open period.
The employee was overpaid and he or she will be processed in the next scheduled payroll.

In this situation, we recommend that you do not use a correction, but let the retro calculation deduct the overpayment in the next regular payroll run. If overpayment is processed using off-cycle processing, the negative pay is forwarded to the next target period. However, because it is an off-cycle process, there is no positive pay from which to deduct the overpayment. The negative pay will then have to be managed, possibly as a deduction from the next regular payroll run.
The employee was overpaid and he or she will not be processed in the next scheduled payroll.

In this example, you can use either Normal Retro or Replacement. However, the result of the correction will be a negative net pay and you will need to determine how to collect the overpayment.

Example: Late Termination

Consider the example of an employee terminated in the previous (finalised) period who was processed as an active employee. You process this as a reversal as follows:

If the employee has already been paid (bank transfer is completed), use the Reversal — Normal Retro correction type.

The Target Period is the next open period. This correction sets all results for the finalised period to zero and forwards the negative pay to the next open period.
If the employee has not been paid (bank transfer stopped), you can use the Reversal — Replacement correction type.

The Target Period is the previous finalised period. In this case, the correction sets all results for the finalised period to zero and there are no elements forwarded.

Making Unscheduled Payments

This section discusses:

Using unscheduled payments in the U.K.
Entering unscheduled payments.

Using Unscheduled Payments in the U.K.

Unscheduled payments are one-time payments such as a bonus payment or for reimbursement of expenses. Do not use unscheduled payments for bonus payments that are paid at regular intervals; process regular payments in on-cycle processes.

Entering Unscheduled Payments

Use the Unscheduled Payments page to enter an unscheduled payment:

Use a limited element set or stop regular resolution depending on the payment type.

Select the Stop Regular Resolution check box on the Processing Controls tab or select the element set in the Limited Element Set field to restrict element resolution. If you select Stop Regular Resolution, the system resolves only those elements for which you enter positive input. This means that tax and national insurance are not calculated. Typically, you would select Stop Regular Resolution for an expense payment that does not require tax and national insurance calculations.

If you select a limited element set, the system resolves the elements included in the limited element set in addition to those entered using positive input. Typically, you would use a limited element set when the payment is subject to tax and national insurance. PeopleSoft delivers the limited element set GBR EG TAX NI LES for this purpose.
Enter supporting element overrides for the variables TAX VR PERIOD and TAX VR BGN YR.

On the Associated Data (Links) tab, click the Supporting Element Overrides button to display the Payee / Calendar Overrides page. Add the variables and assign the appropriate values on this page. The TAX VR PERIOD identifies the tax period and TAX VR BGN YR identifies the tax year in which the payment is made.

Unscheduled payments are discussed in detail in the PeopleSoft Enterprise Global Payroll 8.9 PeopleBook.

See Also

Making Unscheduled Payments

Entering Advances

This section discusses:

Using advances in the U.K.
Processing advances.

Using Advances in the U.K.

Advances provide a way to process payments before the next scheduled payroll run. Typically, you would use advances to:

Pay terminated employees before the normal payroll is run.
Pay holiday advances.

When you run the next scheduled payroll, employees who receive advances are not identified.

Processing Advances

Use the Advance Payrolls page to enter an advance and select the next scheduled (on-cycle) calendar group in the Calendar Group ID field.

We recommend that you process advances for whole pay periods only.

When you later process the next on-cycle calendar, the payroll process does not identify the employees whose pay was advanced.

Advances are discussed in detail in the PeopleSoft Enterprise Global Payroll 8.9 PeopleBook.

See Also

Processing Advances

Recording Manual Payments

This section discusses:

Using manual payments in the U.K.
Entering manual payments.

Using Manual Payments in the U.K.

Manual payments provide a way to record one-time payments that were calculated and paid outside of the payroll system. You should not use manual payments for regular payments because the payee would be identified for the payment during the normal on-cycle payroll process.

Manual payments are unlikely to be required in the U.K. In general, you should use unscheduled payments to process payments that were paid outside of the payroll system and override the payment method to ensure that the payment is not processed by the banking process.

Entering Manual Payments

To enter a manual payment:

Calculate the employee's gross and net pay before you enter the manual payment.

When you click the Validate button on the Manual Payments page, the system calculates the gross and net pay based on the earnings and deductions entered. If it does not match the values you have entered, the payment can't be processed.
Use a limited element set to restrict the elements that are resolved.

Select the Stop Regular Resolution check box on the Processing Controls tab and select the element set in the Limited Element Set field. PeopleSoft delivers the GBR EG TAX NI LES for this purpose.
Enter supporting element overrides for the variables TAX VR PERIOD and TAX VR BGN YR.

On the Associated Data (Links) tab, click the Supporting Element Overrides button to display the Payee / Calendar Overrides page. Add the variables and assign the appropriate values on this page. The TAX VR PERIOD identifies the tax period and TAX VR BGN YR identifies the tax year that apply for the payment.

See Also

Recording Manual Payments