Getting Started with Stock Administration

This chapter provides an overview of Stock Administration and discusses:

Stock Administration business processes.
Stock Administration integrations.
Stock Administration implementation.

Stock Administration Overview

Stock Administration provides the tools to administer stock option and stock purchase plans for your workforce. As a fully integrated solution, the system enables you to leverage data and functionality that you already use as part of your human resources, payroll, and benefits applications.

Stock Administration Business Processes

Stock Administration discusses the following business processes:

Stock administration.
Stock option plan administration.
Stock purchase plan administration.

Stock Administration Integrations

This section discusses integration with:

PeopleSoft Enterprise Human Resources.
PeopleSoft Enterprise Human Resources Base Benefits business process and PeopleSoft Enterprise Benefits Administration.
PeopleSoft Enterprise Payroll for North America.

Human Resources

Stock Administration uses various types of information that you set up in Human Resources, including employee and nonemployee data. Changes that you make to a plan particpant's status in your human resources system can trigger a workflow notification to a stock administrator.

Stock Actions

The setup tables used for HR integration are Stock Action, Stock Action Reason, and Stock Action Rules. The type of action determines the type of processing. You can process an action by receiving a worklist or by processing it manually.
Nonemployees

The stock system handles regular employees within your company and nonemployees. Examples of non-employees are members of boards of directors, contractors, or employees of a subsidiary or foreign office who are not administered by HR.

Multiple Jobs

For stock options and reports that require an employee’s job title and other job information, the stock system refers to the primary job identified by HR for supporting processes. For stock purchase plans, the system refers to the job designated within the Base Benefits business process.
Variable Compensation

Stock awards are given through the Variable Compensation business process. Because of this integration, stock awards are included with all other variable monetary and non-monetary awards for total variable compensation reporting and history. Stock Administration grants and administers stock awards after they are approved and received from HR as application messages. Both Stock Administration and Variable Compensation use the group build feature so that when groups are used, they are consistent between the two systems.

When splitting or repricing stock, it is important that you coordinate this action with your Variable Compensation process.

Base Benefits Business Process and Benefits Administration

Either the Base Benefits business process within Human Resources or Benefits Administration can administer your stock purchase plan and enroll participants, including eligible employees and non-employees who are not administered by Human Resources. A stock purchase plan is a savings plan designating the reserved plan type 4A to indicate stock purchase. After setting up your stock purchase plans, you can enroll eligible plan participants directly through the Base Benefits business process or through the automated eligibility and event-driven Benefits Administration system.

Payroll for North America

Several stock option and stock purchase transactions are integrated with PeopleSoft Enterprise Payroll for North America 8.9 PeopleBook.

The integrated Stock Option transactions are:

Exercises and releases.

Payroll for North America calculates taxes on ordinary income from exercises and releases. You invoke the calculation process and display the results in Stock Administration, then send ordinary income and taxes to the payroll system. Payroll loads these transactions using the Load/Reset Paysheet process, which updates employee balances but does not issue a check.
Dispositions.

Stock Administration enables you to send ordinary income from dispositions to the Load/Reset Paysheet transaction record (PSHUP_TXN) in Payroll for North America.

The integrated Stock Purchase transactions are:

Contributions.

Contributions are gathered from Payroll for North America during the Purchase Stock process.
Refunds.

The Refund Contributions process in Stock Administration sends contributions to be refunded to the Load/Reset Paysheet transaction record (PSHUP_TXN) in Payroll for North America.
Dispositions.

Stock Administration enables you to send ordinary income from dispositions to the Load/Reset Paysheet transaction record (PSHUP_TXN) in Payroll for North America.

Stock Administration Implementation

PeopleSoft Setup Manager enables you to generate a list of setup tasks for your organization based on the features that you are implementing. The setup tasks include the components that you must set up, listed in the order in which you must enter data into the component tables, and links to the corresponding PeopleBook documentation.

Other Sources of Information

In the planning phase of your implementation, take advantage of all PeopleSoft sources of information, including the installation guides, data models, business process maps, and troubleshooting guidelines. A complete list of these resources appears in the preface in the PeopleSoft Enterprise HRMS 8.9 Application Fundamentals PeopleBook with information about where to find the most current version of each.