Managing Multiple Contracts

This chapter provides an overview of multiple contracts and discusses how to:

• Set up and enter multiple contracts for an employee.

• Set up and run the General Ledger process for multi-contract employees.

Understanding Multiple Contracts

This section discusses:

• Multiple contract support.

• Creation and identification of employee records.

• Steps for setting up and entering multiple contracts for an employee.

• Use cases.

Multiple Contract Support

PeopleSoft Enterprise Global Payroll for Switzerland supports both payroll calculation and legal reporting requirements for employees with multiple contracts by using standard employee record functionality in PeopleSoft Human Resources. In PeopleSoft Human Resources, each job held by an employee is represented by a separate record in the Job Data table and is identified by a distinct employee record number. Global Payroll for Switzerland makes use of this functionality to define and track data for multi-contract employees by creating one record in the Job Data table with a unique employee record number for the legal definition of the employee, and multiple additional records with their own record numbers to drive separate payroll calculations for each concurrent job or contract. No matter how many different contracts an employee has, there can be only one legal record per employee in the same multi-contract company (as the employee must be presented to the official government bodies as a unified individual); however, an employee can have as many additional records as he or she has jobs. In other words, in a multi-contract company, each record in the Job Data table is identified as:

• Job data for a single contract (if only one contract exists within the company for the employee).

  or

• Job data to define the employee as a legal entity (also known as receiving contract data).

  and

• Job data for each concurrent contract (also known as sending contract data).

To summarize, in a multi-contract company, the possible scenarios are:

• One single contract record in Job Data.

  or

• One legal or receiving contract record + n sending contract records.

Note. In a non multi-contract company, each job represents a single contract. The same is true in a multi-contract company for employees with only one job or contract.

Creation and Identification Employee Records

When you hire an employee into a job in a multi-contract company, you do not need to add a job data row for the receiving contract; you only need to enter job data for the sending contracts, and the system automatically creates the corresponding legal record. In addition, the system automatically identifies which record (job data row) for an employee is the legal or receiving record, and which records are sending records used to drive internal payroll calculations.

The system identifies the different records as follows: when you enable multi-contract functionality for a company on the Company Details page, the system assigns the first available legal record number to that company starting with the number 999. For any employee with multiple contracts in the company, this number becomes the default number of the legal or receiving record in the Job Data table. You can view this record and any other job records for the employee on the Review Multi Contracts page. This page identifies the function or role of each record (sending, receiving, or single contract) and displays the record number for receiving contracts assigned to company employees.

This can be illustrated as follows:

1. When you select Enable Multi Contract on the Company Details page, the system generates a legal record number for all employees with multiple contracts in the company. This number (998 in the example below) is displayed in the Legal Rcd# field:

Company Details page

2. After assigning multiple contracts to an employee, you can view the legal record generated by the system as well as the job record (single or sending) for each concurrent job on the Review Multi Contracts page:

Review Multi Contracts page

The Empl Rcd# field in the Legal Contract group box displays the legal record number generated for all employees of the company for which you have enabled multiple contracts.

In addition, the numbers of single and sending records appear in the Empl Rcd# field in the Contract group box, and detailed information about each record appears on the Action and Status, Job Information, and Compensation tabs at the bottom of the page.

Steps for Setting Up and Entering Multiple Contracts for an Employee

To set up multiple contracts for an employee, complete these steps:

1. Select the Enable Multi Contract check box on the Company Details page for the company into which you are hiring the employee.

2. Hire the employee in the company for which you have enabled multiple contracts (step 1) and add a job assignment using the Add a Person (PERSONAL_DATA) and Job Data (JOB_DATA) components.

   We discuss these components in the PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Administer Workforce.

   See Adding a Person in PeopleSoft Human Resources, Increasing the Workforce.

3. Add a concurrent assignment for the employee. To do this, click the Create New Contract button on the Review Multi Contracts page. This takes you to the New Employment Instance (JOB_DATA_EMP) component, where you can enter information for the new assignment.

   When you enter an additional job record for a muli-contract employee and save your work, the system automatically creates the corresponding legal record.

   Note. In addition to using the Review Multi Contracts page to add concurrent assignments, you can use it to view existing records for a multi-contract employee and to update, maintain, or terminate job records (see step 4).

4. To update and maintain job records or to terminate a contract, access the Review Multi Contracts page and click the Edit button. This takes you to the Job Data (JOB_DATA) component, where you can view, enter, and modify an employee's job information.

   Note. When you terminate the legal job record for a multi-contract employee, the system automatically terminates all of the associated sending records so that you do not need to terminate each one manually.

   See Use Cases.

5. After adding job records, terminating records, or modifying existing job data, access the Exception Details page, which displays any contract changes that the system was unable to process or resolve. If there are unresolved changes, you will need to enter them into the system manually.

   For example, if you add an additional job for a multiple contract employee and this job is the second sending contract, the system creates—via a component interface—a new job with the legal (receiving) record number for the company. If the component interface fails to create the legal record, this information will appear on the Review MC Exceptions CHE component, and you can access the Add Additional Assignment (JOB_DATA_CONCUR) component and manually create a job record with the legal record number for the employee's company.

Use Cases

This section presents several use cases to illustrate how the system updates job data records for multiple contract employees in different situations, including termination.

Example 1: Hiring When an Employee Has Multi-Contract Management in One Company and Non Multi-Contract Management in Another

In this scenario, the employee has multiple contracts enabled in company KW1 and multiple contracts disabled in company KW2.

Assume that the legal record number for the employee's company—as displayed on the Company Details page—is 998.

Assume that you complete the following actions:

1. Hire the employee in company KW1 (employee record number = 0).

2. Add an additional job in company KW2 (employee record number = 1).

After completing these steps, there are two rows of data in Job Data:

Now, assume that you add an additional job for the employee in company KW1 (employee record number = 2). After completing this step, there are four job data records in the system:

Now, suppose that you add another job for the employee in company KW2 (employee record number = 3). Because this company is not enabled for multiple contracts, the system inserts the new job as an additional single contract:

Finally, suppose that you add one more job in company KW1 (employee record number = 4). Because a legal (receiving) record already exists for the employee in company KW1, the system inserts only the new job (there can be only one legal definition of the employee per company):

Example 2: Terminating One Multi-Contract Job

In this scenario, assume that you begin with the six employee records that are in the system at the end of the previous example. In addition, assume that you terminate the employee record with record number = 0.

After terminating record 0, there are 5 active records in the system:

Example 3: Terminating All But One Multi-Contract Job

Continuing with the previous example, assume that you terminate the multi-contract job with record number = 2 (only one multi-contract job is left, with record number = 4). When you take this action, the system:

• Automatically terminates the legal record (employee record number = 998).

• Adds a job data row for record number 4 with the effective date of the termination.

• Changes the role of the remaining job in company KW1 to Single contract.

  Note. The role of an employee's job record in a multi-contract company is defined as Single if he/she has only one job and no concurrent assignments. Sending and Legal roles apply only when the employee has multiple assignments.

This is illustrated in the following table:

Example 4: Terminating All Multiple Contracts at One Time

In this scenario, assume that you begin with the following records in the Job Data table for companies KW1 and KW2:

If you want to terminate—in one step—all of the multiple contracts in company KW1, all you need to do is terminate the legal (receiving) record (record number = 998). The system then automatically terminates all of the sending records associated with that legal record:

Note. After making changes to job data records such as the ones described in this section, access the Review MC Exceptions component to determine if the system has correctly updated the records.

Prerequisites

PeopleSoft Global Payroll for Switzerland uses routings and handlers in the WORKFORCE_SYNC and GPCH_MC_SYNC service operations to automatically create legal (receiving) job records for multi-contract employees and to terminate these records when concurrent contracts are removed. The same routings and handlers synchronize the data between sending contracts and legal contracts in case of hires, company changes, or termination of multiple contracts.

To enables these operations, set up PeopleSoft Integration Broker and activate messaging using the following objects:

• Node: PSFT_HR.

• Messages: WORKFORCE_SYNC and GPCH_MC_SYNC.

• Queues: PERSON_DATA and GPCH_MC.

• Services: WORKFORCE_SYNC and GPCH_MC_SYNC.

• Service Operations: WORKFORCE_SYNC and GPCH_MC_SYNC.

• Service Operation Handlers: GPCH_Sync_Legal_Job for service operation WORKFORCE_SYNC and Sync_GP_NET_DIST for service operation GPCH_MC_SYNC.

• Service Operation Routings: all with Directions = Local and Sender.

• Node and Receiver Node = PSFT_HR for the above service operations.

Note. PeopleSoft provides detailed information on how to configure Integration Broker and set up routings and handlers in the Enterprise PeopleTools PeopleBook: Integration Broker.

Setting Up and Entering Multiple Contracts for an Employee

To set up and enter multiple contracts for an employee, use the MC Company Setup CHE (GPCH_MC_COMPANY), Review Multiple Contracts CHE (GPCH_MC_JOB_DATA), and Review MC Exceptions CHE (GPCH_MC_EXCEPTIONS) components.

This section discusses how to:

• Enable multiple contracts for a company.

• Enter and maintain job data for a multi-contract employee.

• Review contract data exceptions.

Pages Used to Set Up and Enter Multiple Contracts for an Employee

Enabling Multiple Contracts for a Company

Access the Company Details page.

Enable Multi Contract	Select to enable multiple contract functionality for a company.
Legal Rcd# (legal record number)	Displays the record number used to identify the legal (receiving) record for employees with multiple contracts in the company shown at the top of the page.

Entering and Maintaining Job Data for a Multi-Contract Employee

Access the Review Multi Contracts page.

This page provides access the New Employment Instance (JOB_DATA_EMP) and Job Data (JOB_DATA) components, enabling you to modify existing job information, create new job records, or terminate job records from a single location. The data displayed on the page is drawn from the Job Data table and can be refreshed after you make changes to an employee's work location, payroll information, salary and compensation data, or other job information, so that you can maintain accurate records and manage your employees based on current job data.

Legal Contract

Contract

Job Data - Action and Status Tab

Select the Action and Status tab.

This tab displays information about the sending and single contract records belonging to a multi-contract employee.

Job Data - Job Information Tab

Select the Job Information tab.

This tab displays information about the sending and single contract records assigned to a multi-contract employee.

Business Unit	Displays the business unit associated with the employee's job record in the Job Data table.
Job Title	Displays the job title associated with the employee's job record in the Job Data table.
Department	Displays the department associated with the employee's job record in the Job Data table.
Location	Displays the location associated with the employee's job record in the Job Data table.
Full/Part Time	Displays the full or part time status associated with the employee's job record in the Job Data table.

Job Data - Compensation tab

Select the Compensation tab.

This tab displays information about the sending and single contract records belonging to a multi-contract employee.

Pay Group	Displays the pay group associated with the employee's job record in the Job Data table. Important! The multiple contract functionality discussed in this chapter assumes that the Pay Groups and Calendars are the same across all job records (contracts) for the same employee, whether they are sending records or legal records.
Short Description	Displays the short description of the pay group associated with the employee's job record in the Job Data table.
Frequency	Displays the frequency of the components of pay associated with the employee's job record in the Job Data table.
Compensation Rate	Displays the compensation rate associated with the employee's job record in the Job Data table.
Full/Part Time	Displays the full or part time status associated with the employee's job record in the Job Data table.

Edit

Click the Edit button to access the Job Data (JOB_DATA) component where you can modify the information in an employee's job record or terminate jobs.

Exceptions

Click the Exceptions button to access the Review MC Exceptions CHE (GPCH_MC_EXCEPTIONS) component, where you can review contract changes that the system is unable to resolve or process.

Create New Contract

Click the Create New Contract button to access the New Employment Instance (JOB_DATA_EMP) component, where you can add a concurrent assignment for the payee.

Note. When you create a new employment instance that results in multiple contracts for an employee, the system automatically creates a job record with the legal record number for the employee's company.

Refresh

Click the Refresh button to populate the Review Multi Contracts page with current job data from the Job Data table.

Reviewing Contract Data Exceptions

Access the Exception Details page.

The system generates error and warning messages in response to contract data changes that it cannot process or resolve.

You can view these error and warning messages on the Exception Details page.

You may need to correct these errors manually.

Setting Up and Running the General Ledger (GL) Process for Multi-Contract Employees

To set up and run the General Ledger process for Switzerland, use the GL Migrating MC Elements CHE (GPCH_GL_MIGR), Accumulators (GP_ACCUMULATOR), and Send Costs to GL CHE (GPCH_GL_PREPARE) components.

This section provides an overview of the General Ledger process for Switzerland and discusses how to:

• Select segment accumulators to transfer across records.

• Identify the target record and company to which to transfer accumulator results.

• Send costs to General Ledger.

Understanding the General Ledger Process for Switzerland

The standard General Ledger process for Global Payroll uses segment accumulator results to calculate and distribute costs. However, in the case of multiple contracts, each sending record generates accumulator results for one contract only, and consequently provides incomplete cost data, whereas the single receiving record sums up all of the data for the employee (each sending contract calculates the gross for one contract, whereas the legal contract calculates all legal earnings and deductions on accumulated salaries). For legal and reporting reasons, it is precisely this record that is of interest to General Ledger. However, because General Ledger is not set up to process segment accumulator results for the legal record, Global Payroll for Switzerland delivers a General Ledger process (GPCH_GL_RC) that you can run to transfer the segment accumulators from the last record calculated—the legal or receiving record, which has the highest number and is therefore processed after the others—to a target record and company specified in the User Key fields of the same segment accumulators. The General Ledger process can then pick up the accumulator results from the record and company identified in the User Key fields and use them for cost distribution.

Before running this process, you must access the GL Migrating MC Elements page and list the segment accumulators to migrate from the legal record to the target record and company specified in the segment accumulators' User Key fields.

The steps for setting up and running the General Ledger process can be summarized as follows:

1. Select the segment accumulators to transfer to the target record where they can be picked up and processed by General Ledger.

   To do this, use the GL Migrating MC Elements page.

2. Specify the variables storing the record number and company to which you want to transfer segment accumulator results in the accumulators' User Key fields.

   Do this on the Level page of the Accumulators (GP_ACCUMULATOR) component in the core application.

3. Send the accumulator results to PeopleSoft Enterprise General Ledger.

   Do this on the General Ledger Run Control page.

Important! For a segment accumulator to be migrated across record number results, it must have both the target record number and company indicated in its USER_KEY fields and it must be listed in an effective dated migration list for the processed pay entity.

Pages Used to Set Up and Run the General Ledger (GL) Process for Multi-Contract Employees

Selecting Segment Accumulators to Transfer Across Records

Access the GL Migrating MC Elements page.

Entry Type	Select Seg. Accm (segment accumulator).
Element Name	List the segment accumulators to transfer from the legal (receiving) record to the target record for GL processing.

Identifying the Target Record and Company to Which to Transfer Accumulator Results

Access the Level page.

In the User Key Type fields, select Variable, and then enter the variable element CH_MC_RCVR_CMPNY (MC Receiver Company) in combination with the variable CH_MC_RCVR_RCD (MC Receiver) in the Key Element fields. These variables are set up to hold the company and the number of the target record to which you are transferring the segment accumulator results.

Note. We discuss this page in detail in the PeopleSoft Enterprise Global Payroll 9.0 PeopleBook.

See Defining Accumulators.

Sending Costs to General Ledger

Access the General Ledger Run Control page.

The fields on the General Ledger Run Control page for Switzerland are identical to those on the Send Costs to GL page in the Global Payroll core application.

See Running the General Ledger Process and Sending Data.