Understanding Global Payroll for Argentina

Global Payroll for Argentina is a country extension of the core Global Payroll application. It provides the payroll rules, elements, and absence processes needed to run an Argentina payroll.

This chapter provides an overview of Global Payroll for Argentina and discusses:

• Global Payroll for Argentina business processes.

• Delivered elements for Argentina.

• Element naming conventions in Argentina.

• How to view delivered elements for Argentina.

Global Payroll for Argentina Business Processes

Global Payroll for Argentina supports these business processes:

• Earnings

  Global payroll for Argentina enables you to define and process different types of earnings, including base salary, bonuses, overtime, nightly overtime, and net salary with grossing up.

• Aguinaldo (Complementary Annual Bonus)

  You can calculate the Aguinaldo to be paid to employees. Aguinaldo amounts are based on the best salary in the last half-year and are prorated according to the number of days worked during this period.

  This Complementary Annual Bonus is paid in June and December (half of the best salary, prorated based on the number of worked days in the half year period). Aguinaldo can be paid either with the monthly salaries in a regular payroll, or through a special payroll process. The payroll process includes the calculation process for this annual bonus only when the value of the variable SAC VR PAG EN JUN? or SAC VR PAG EN DIC? is "1" (true) for the corresponding calendar.

  This Complementary Annual Bonus is paid in June and December (half of the best salary, prorated based on the number of worked days in the half year period). Aguinaldo can be paid either with the monthly salaries in a regular payroll, or through a special payroll. The payroll process includes the calculation process for this annual bonus only when the value of the variable SAC VR PAG EN JUN? or SAC VR PAG EN DIC? is 1(true) for the corresponding calendar.

• Overtime

  Define the hourly rate value per month using the value of a simple hour.

• Deductions

  Global Payroll for Argentina enables you to define and process many different types of deductions for Argentina including before tax, after tax, and non-taxable deductions. Examples of deductions include garnishments and litis expenses.

• Social Security

  Global Payroll for Argentina can calculate and process different aspects of Social Security, including retirement, INSSJP, and Social Security. You can generate several Social Security reports and interfaces, including SIJP (Sistema Ingregrado de Jubilaciones y Pensiones).

• Income Tax

  Global Payroll for Argentina enables you to calculate income tax and you can generate the interface SICORE.

• Annual Income Tax Adjustment

  Global Payroll for Argentina enables you to process the calculation of the year-end tax and determine whether the company has retained the right tax amount during the monthly processes.

• Absences

  You can track and define different types of absences including maternity leave, general illness, study leave, and so on. You can create rules for other absence types, such as for paid-permitted and unpaid-permitted and for overlapping absences (such illness during vacation).

• Vacations

  Global Payroll for Argentina enables you to record and track vacations. You can generate vacation entitlements and so on.

• Grossing Up

  Global Payroll for Argentina enables you to assign a net pay salary to an employee. To do so, a net pay code rate and a net pay eligibility group (both delivered) should be assigned to the employee. The payroll process compensates the difference between the gross and the net established in a special earning.

• Termination pay

  You can calculate the final check amount for terminated employees.

• Payslips

  You can generate payslips using Global Payroll for Argentina. If you purchased PeopleSoft Enterprise ePay, your employees can view their payslips on line.

• Banking

  You can define source bank and payee bank information. You can run the banking process and specify payment instructions to the bank. The system generates flat files for two Argentina banks: Nacion and Galicia.

• Legal Book

  You can generate the legal book provided for Art. 52 Law 20744.

Delivered Elements for Argentina

Global Payroll defines each business process for Argentina in terms of delivered elements and rules. Some of these elements and rules are specifically designed to meet legal requirements, while others support common or customary payroll practices.

This section discusses:

• Delivered element creation.

• Element ownership and maintenance.

Delivered Element Creation

All of the elements delivered as part of the country extension were created using the core application-the same application used to create additional elements and configure existing elements delivered as part of the Global Payroll system. Because the tools needed to redefine or create new payroll elements are fully documented in the core application PeopleBook, the information is not discussed here. Rather, this document briefly reviews the relationship between the core application, which contains the tools you need to define your own elements, and the country extensions, which contain country-specific rules and elements defined by PeopleSoft.

The Core application:

• Consists of a payroll rules engine.

  The rules engine is a flexible tool that enables users to define the rules of their payroll system and perform payroll and absence calculations. Global Payroll does not embed payroll-specific logic or computations in application code. Instead, it specifies all business application logic (such as earnings, deductions, absences, and accumulators) in terms of payroll rules. Global Payroll enables you to enter and maintain payroll rules through a set of pages and offers comprehensive features that enable you to work in your preferred language or currency.

• Provides a payroll-processing framework.

  The payroll-processing framework provides a flexible way to define and run payroll and absence processing flows (such as calendars, run types, pay periods, and process lists).

• Country extensions:

  • Are built using the core application.

  • Consist of statutory and customary objects, such as country-specific payroll rules, elements, payroll processes, reports, pages, and self-service applications.

Element Ownership and Maintenance

The delivered elements of the Global Payroll country extension for Argentina are classified based on whether they are owned and maintained by the user or predefined in the PeopleSoft system. Some elements are predefined in the PeopleSoft system and cannot be modified or reconfigured. Others can be configured to meet requirements that are unique to a particular organization.

Element Ownership in Global Payroll

This table lists and describes the five categories of element ownership:

Element Ownership in Global Payroll for Argentina

Of the five ownership types described here, Global Payroll for Argentina defines elements only asPS Delivered/Not Maintained. This enables you to modify, update, and reconfigure delivered elements to meet your own unique requirements.

Element Naming Conventions in Argentina

Understanding the naming convention that is developed for PeopleSoft-delivered elements can help you determine how an element is used, the element type, and the functional area it serves.

This section discusses:

• Naming conventions.

• Functional area codes.

• Element type codes (PIN_TYPE).

Naming Conventions

This section discusses the naming conventions for:

• Primary elements.

• Supporting elements.

• Component names (suffixes).

• Element abbreviations.

Primary Elements

Primary elements, such as earnings, deductions, absence take, and absence entitlement elements, do not contain functional area codes or element type codes in their names. Primary elements have names that identify their functions and element types without the use of additional codes.

For example, the name of the earnings element SALARY identifies this element as earnings (Salary) and, more specifically, as a salary element.

Supporting Elements

For supporting elements (such as variables, formulas, dates, and durations), PeopleSoft Global Payroll for Argentina uses this naming convention: FF TT NAME.

• FF: Functional area code.

• TT: Type of supporting element.

• NAME: Based on a term in Spanish and provides a further means of identifying the element.

Note. This naming convention applies to these element types: arrays, brackets, counts, dates, durations, formulas, rate codes, variables, historical rules, fictitious calculation rules, proration rules, rounding rules, writable arrays, and generation control conditions.

Component Names (Suffixes)

In Global Payroll for Argentina, suffixes are used to name the components of earnings and deduction elements. When you create an earning, deduction, or absence element in Global Payroll, you must define the components that make up the element, such as base, rate, unit, and percentage. The system automatically generates the components and accumulators for the element based on the calculation rule or accumulator periods that are used. The system also names the components and accumulators by appending a suffix to the element's name.

For example, suppose that you define the EARN1 earnings element with the following calculation rule:

EARN1 = Rate x Unit

The system automatically creates two additional elements for the components in the calculation rule by appending the suffixes _RATE and _UNIT to the name of the earning:

• Rate element: EARN1_RATE.

• Unit element: EARN1_UNIT.

In Global Payroll for Argentina, all components and accumulators include the separator and country designation,_ARG.

In Global Payroll, all suffixes fall into one of the following types:

• Separator.

• Earnings or deductions component suffixes.

• Earnings or deductions accumulator suffixes.

• Deduction arrears component suffixes.

• Deduction arrears accumulator suffixes.

• Deduction recipient suffixes.

• Absence entitlement component suffixes.

• Absence entitlement accumulator suffixes.

Note. To view all of the suffixes defined for Argentina, use the Element Suffixes page in Global Payroll.

See Defining General Element Information.

Element Abbreviations

Many Argentinean elements contain abbreviations that provide additional information about their use in the system, beyond that provided by functional area codes or element type codes.

For example, consider the Global Payroll for Argentina duration element GEN DR AÑOS SERV:

• The functional area code GEN indicates that this element is used across various functional areas.

• The element type code DR identifies the element as a duration element.

• The abbreviation AÑOS SERV (Service Years) provides additional information about how the element measures time.

As you become more familiar with the payroll rules created for Argentina, these abbreviations can help you further identify and understand the role played by each element.

This table lists the most common abbreviations used for element names in Global Payroll for Argentina:

Functional Area Codes

Many elements include a three-letter functional area code in their names. This code identifies the functional area supported by an element.

This table lists the functional area codes used in the names of Global Payroll for Argentina elements:

Element Type Codes (PIN_TYPE)

This table contains the codes for all element types. Because Global Payroll for Argentina is not delivered with all element types, some of the following codes do not appear in the names of Global Payroll for Argentina elements:

Viewing Delivered Elements for Argentina

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Global Payroll for Argentina. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll PeopleBook.

See Also

Viewing Delivered Elements