PeopleSoft Enterprise Global Payroll for India 9.1 PeopleBook

Enrolling Payees in Employee State Insurance

This chapter provides overviews of employee state insurance (ESI), ESI reports, and delivered ESI deductions and discusses how to enroll payees in an ESI program.

Understanding ESI

ESI is a Social Security plan that is designed to provide subsidized or free medical assistance to employees and their dependents during the course of their employment, or if an employee becomes unable to work due to specific circumstances. With Global Payroll for India, you can register payees under an ESI program and process the appropriate deductions during the normal payroll cycle.

With Global Payroll for India you can:

Ensure that all of the payees are registered per the ESI Act and capture beneficiary information.
Ensure that the deductions for contributions from payees are deducted from their pay each month.

Note. Enrolling payees in ESI is a manual process. The human resources department should ensure that the appropriate payees are enrolled in the ESI program.

Note. The PeopleSoft system delivers several queries that enable you to retrieve ESI information.

See Also

Delivered Queries

Understanding ESI Reports

As part of the ESI process, you need to generate and submit certain reports, such as:

A remittance statement report that includes details on mandatory ESI contributions that were deducted for the contribution period by both the employer and the employee.
A new ESI registration report that identifies new payees who need to be issued identification numbers so that they can take advantage of the ESI benefits.
A terminated employee report that identifies payees who have terminated employment and who are not eligible for ESI contributions due to the Act.
A new report that gives details of each employee, including the insurance details and contribution made on a monthly basis.

See Also

Creating Payee Reports

Understanding Delivered ESI Deductions

This section discusses:

Delivered ESI deductions.
Process lists and sections.
Viewing delivered elements.

See Also

Defining Earning and Deduction Elements

Delivered ESI Deductions

PeopleSoft delivers the following deductions to process ESI:

Name/Description	Unit	Rate	Base	%	Amount
ESI Employee State Insurance (gc)	NA	NA	ESI GROSS WAGES	ESI VR PYE PCT	NA
ESI ER Employee State Insurance Employer Contribution (gc)	NA	NA	ESI GROSS WAGES	ESI VR ER PCT	NA

Name/Description

Unit

Rate

Base

Amount

ESI

Employee State Insurance (gc)

ESI GROSS WAGES

ESI VR PYE PCT

ESI ER

Employee State Insurance Employer Contribution (gc)

ESI GROSS WAGES

ESI VR ER PCT

In this table, the first column combines the name and description of the delivered deductions. A (gc) in the row indicates that the deduction has an associated generation control element. A (po) indicates a post-processing formula, and (pr) indicates a preprocessing formula. The other four columns indicate the deductions calculation rule (Amount, Base × %, and so on).

These deductions may need to be modified to meet particular business requirements:

ESI

The ESI deduction has a calculation rule of base multiplied by percentage and is used to calculate the employee's contribution to ESI; the base is the accumulator ESI GROSS WAGES and the percentage is determined by the numeric variable ESI VR PYE PCT. The generation control element ESI GC ENROLL determines when the system processes this deduction. The deduction is made during the contribution period. If any employee crosses the limit (od Rs.7,500/-) during the contribution period, he continues to pay for the whole period.
ESI ER

The ESI ER deduction has a calculation rule of base multiplied by percentage and is used to calculate the employer's contribution to ESI; the base is the accumulator ESI GROSS WAGES and the percentage is determined by the numeric variable ESI VR ER PCT. The generation control element ESI GC ENROLL determines when the system processes this deduction.

Process Lists and Sections

The ESI and ESI ER deductions are members of the ESI SE ALL process section.

The ESI SE ALL section is included in the IN PL PAY and IN PL PAY BON process lists.

Viewing Delivered Elements

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

See Also

Viewing Delivered Elements

Enrolling Payees in an ESI Program

This section provides an overview of ESI program enrollment and discusses how to enroll payees in an ESI program.

Understanding ESI Program Enrollment

To enroll a payee in an ESI program:

Make sure that the ESI registration information is entered on the ESI Registration page.

See Entering ESI Registration Information.
Enroll the payee by using the Define ESI Data IND(employee state insurance enrollment) page.

See Enrolling Payees in an ESI Program.

Page Used to Enroll Payees in an ESI Program

Page Name	Definition Name	Navigation	Usage
Define ESI Data IND (define employee state insurance data IND)	GPIN_ESI_ENROLL	Global Payroll & Absence Mgmt, Payee Data, Social Security/Insurance, Define ESI Data IND, Define ESI Data IND	Enroll a payee in an ESI program.

Enrolling Payees in an ESI Program

Access the Define ESI Data IND page (Global Payroll & Absence Mgmt, Payee Data, Social Security/Insurance, Define ESI Data IND, Define ESI Data IND).

Effective Date

The ESI effective date must be on or after the payee hire or rehire date. If the ESI effective date is before the hire date for the payee, the system issues an error message.

Registration Number

Enter the payee's ESI registration number when it is assigned by the authorities.

Name of Hospital/Dispensary

Enter the name of the medical facility providing the payee's ESI medical care.

Registered

This field is automatically populated when you run the NEW ESI ENROLLMENT report. When this field is selected, it indicates that an application for ESI registration has been submitted for the payee.

See Creating Payee Reports.

Beneficiaries

Dependent/Beneficiary ID

Select the ID for the appropriate dependent or beneficiary. When you select an ID, the name and relationship appear.

Note. To terminate a payee from ESI, add a row and change the status to Inactive.

Effective Date	The ESI effective date must be on or after the payee hire or rehire date. If the ESI effective date is before the hire date for the payee, the system issues an error message.
Registration Number	Enter the payee's ESI registration number when it is assigned by the authorities.
Name of Hospital/Dispensary	Enter the name of the medical facility providing the payee's ESI medical care.
Registered	This field is automatically populated when you run the NEW ESI ENROLLMENT report. When this field is selected, it indicates that an application for ESI registration has been submitted for the payee. See Creating Payee Reports.