Understanding Global Payroll for China

This chapter discusses:

• Global Payroll for China.

• Global Payroll for China business processes.

• Delivered elements for China.

• Element naming conventions for China.

• Archiving data for Global Payroll for China.

• Viewing delivered elements for China.

PeopleSoft Global Payroll for China

PeopleSoft Global Payroll for China is a country extension of the core PeopleSoft Global Payroll application. It provides you with the payroll rules, elements, and absence processes that you need to run a payroll.

Global Payroll for China Business Processes

Global Payroll for China supports these business processes:

• Earnings.

  Global Payroll for China enables you to define and process different earning types. Global Payroll for China also delivers common earning types, including those for monthly salary, overtime pay, variable bonus, 13^th month pay, housing allowance, spouse allowance, commission payment, and retroactive earnings.

  See Setting Up Earnings.

• General deductions.

  Global Payroll for China enables you to define and process many common general deductions, including taxation, social insurance payments, and public housing fund.

  See Setting Up Deductions.

• Benefit deduction calculations.

  Global Payroll for China is designed to integrate with PeopleSoft Enterprise Human Resources, enabling the system to calculate benefit deductions.

  See PeopleSoft Enterprise Payroll Interface 9.1 PeopleBook, "Setting Up Deduction Data."

• Absences.

  Global Payroll for China delivers rules that enable you to track paid and unpaid vacation.

  See Setting Up Absence Elements.

• Income taxes.

  Global Payroll for China enables you to calculate and process normal tax, annual bonus tax, and severance tax for payees, including specific tax calculations for the Beijing, Shanghai, Shenzhen, and Tianjin tax areas.

  See Setting Up Tax Processing.

• Payslips.

  Global Payroll for China enables you to create payslips based on your organization's needs. With payslip templates, you can specify the amount of detail to include on the payslip, such as delivery options, exclusions, accumulators, payslip sections, payroll elements (earnings and deductions), and absence elements.

  See Setting Up Payslips.

• Termination processing.

  With Global Payroll for China, you can calculate final pay for terminated employees. You can define which earnings and deductions to process in the final payment. You can also define any special processing that should occur for each earning or deduction, such as severance payment, pay in lieu of short notice, and annual leave balance.

  See Processing Terminations.

• Banking and payment processing.

  With Global Payroll for China, you can set up banking and payment processing information for payees and define source bank information. The system uses the payment ID number defined in the banking process to assign a payment ID to any type of payment. The payment process also determines the appropriate payment number to assign to each payment. You can also define and manage prenotification information, create direct deposits, run the banking process, and create banking reports.

  Note. With Global Payroll for China, you can generate an EFT (electronic funds transfer) file in the format used by the China Construction Bank, Shanghai branch.

  See Setting Up and Running Banking Processes.

• Year-end processing.

  With Global Payroll for China, you can process and generate the Annual Base Report for Public Housing Funding and Social Insurance (PHF/SI). Select Global Payroll & Absence Mgmt, Social Security/Insurance, PHF/SI Report.

  See Generating PHF/SI Reports.

• Self-service for payslips.

  If you purchased ePay, payees can view their payslips online.

  See PeopleSoft Enterprise ePay 9.1 PeopleBook, "Managing Pay Information for PeopleSoft Enterprise Global Payroll," Viewing Payslips Online.

Delivered Elements for China

Global Payroll for China defines each business process for China 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 that are delivered as part of Global Payroll for China were created using the core application.

The core application:

• Consists of a payroll rules engine.

  The rules engine is a flexible tool that enables you to define new payroll elements and run payroll and absence calculations using the delivered elements. Global Payroll does not embed payroll 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).

Element Ownership and Maintenance

This section describes the PeopleSoft Global Payroll approach to element ownership and what this means for the maintenance of payroll rules.

Element Ownership in PeopleSoft Global Payroll

Five types of element ownership exist in PeopleSoft Global Payroll:

Element Ownership in Global Payroll for China

Of the five ownership types described here, two are used to define China elements:

• PS Delivered/Maintained.

• PS Delivered/Not Maintained.

This table lists the ownership types associated with the delivered elements for China:

Element Naming Conventions for China

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

This section discusses:

• Naming conventions.

• Functional area codes.

• Element classification.

Naming Conventions

This section discusses the naming conventions for:

• Primary elements.

• Supporting elements.

• Component names (suffixes).

This section also discusses common abbreviations used in the names of China elements.

Primary Elements

Primary elements such as earnings, deductions, absence takes, and absence entitlements 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 deduction element HOUSE_EE identifies this element as a housing deduction (HOUSE) and more specifically as an employee (EE) deduction.

Supporting Elements

For supporting elements such as variables, formulas, dates, and durations, PeopleSoft Global Payroll for China uses this naming convention: CN VR CONT AREA.

• CN: Represents China.

• VR: Identifies the type of supporting element.

• CONT AREA: Identifies what the element is used for.

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.

A handful of exceptions exist for accumulators, which are displayed on the Accumulator Results page. In these cases the accumulators were given more readable names, such as CHN GROSS and CHN NET.

See Functional Area Codes.

Component Names (Suffixes)

Global Payroll automatically names the components in the calculation rule of an earning, deduction, or absence element by appending suffixes to the element's name.

For example, suppose that you define an earning named EARN1 with this calculation rule:

EARN1 = Rate × 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 component: EARN1_RATE.

• Unit component: EARN1_UNIT.

Global Payroll also generates suffixes to identify:

• Autogenerated accumulators for earnings and deductions.

• Deduction arrears components.

• Deduction arrears accumulators.

• Absence entitlement accumulators.

Note. To view all of the suffixes defined for the China, use the Element Suffixes (GP_SUFFIX) component in Global Payroll.

See PeopleSoft Enterprise Global Payroll 9.1 PeopleBook, "Defining General Element Information"

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 China elements:

Element Classification

Categories are a way to further name and classify elements after you define them at the country level. You can use categories to classify elements based on your organization's needs.

Note. You can view all of the categories defined for Global Payroll for China on the Category Types page.

See PeopleSoft Enterprise Global Payroll 9.1 PeopleBook, "Defining General Element Information"

This table lists the categories delivered with Global Payroll for China:

Archiving Data for Global Payroll for China

PeopleSoft Enterprise Global Payroll for China generates a large amount of result data. To keep the amount of saved data manageable, archiving it periodically can be helpful. PeopleSoft PeopleTools delivers an archiving tool called the Data Archive Manager. To help you archive your result data using the Data Archive Manager, PeopleSoft Global Payroll for China delivers a predefined archive object (GPCN_RSLT_ARCHIVE) and archive template (GPCNRSLT). The delivered archive template uses queries that select data by calendar group ID (CAL_RUN_ID field).

Warning! Use extreme caution when making changes to delivered archive objects, queries, or templates. Any modifications can result in the loss of important data.

See Archiving Data.

Additional Archiving Considerations

The following Global Payroll for China result data is not included in the GPCN_RSLT_ARCHIVE archive object because it is not associated with a calendar group ID:

If you want to archive this data, you can set up new archive objects, queries, and templates using the Data Archive Manager, or you can use your own archiving solution.

See Also

Enterprise PeopleTools PeopleBook: Data Management, "Using PeopleSoft Data Archive Manager"

Viewing Delivered Elements for China

PeopleSoft delivers a query that you can run to view the names of all delivered elements designed for China payroll.

See Also

PeopleSoft Enterprise Global Payroll 9.1 PeopleBook, "Viewing Delivered Elements and System Data"