Understanding Termination Setup
In Global Payroll for Mexico, the process used to trigger termination payments is based in a termination version. A termination version is a collection of actions and reasons that can trigger specific termination earnings and deductions.
In Global Payroll for Mexico, both payees and termination earnings and deductions are associated with termination versions. When you define a termination earning or deduction, you link it to one or more termination versions. When you terminate a payee, the payee is automatically linked to the termination version representing the action and the reason for his termination. In this way, the system can identify and process only those earnings and deductions associated with the same termination version.
Elements Used in the Termination Process
This table lists the elements used in the process that triggers termination pay.
|
Element |
Description |
|---|---|
|
LF GC VER FINIQ |
Generation control element that determines whether earnings or deductions should be paid in response to a payee's termination. This element is based on the generation control formula LF FM VER FINIQ GC. |
|
LF VR CRED SAL |
Delivered variable that defines whether the salary credit option should be considered for the termination ISR (tax) calculation. This variable defaults to "Y" but can be overridden at the payee or Calendar ID level to avoid the salary credit use in the FD FM TOT ISR SDO formula. |
|
LF VR MOTIVO BAJA |
Delivered variable that contains the termination reason. |
|
LF VR VER FINIQ 01, LF VR VER FINIQ 02, LF VR VER FINIQ 03, LF VR VER FINIQ 04, LF VR VER FINIQ 05, LF VR VER FINIQ 06, LF VR VER FINIQ 07, LF VR VER FINIQ 08, LF VR VER FINIQ 09, LF VR VER FINIQ 10 |
These 10 delivered variables represent different termination versions and are linked to different earnings and deductions to identify which earnings or deductions should be paid for each combination of termination actions and reasons. |
|
LF VR VER FINIQ EE |
Delivered variable that contains the termination version (representing the termination action and reason) for a terminated payee. Note: Termination versions are defined on the Termination Version and Action/Reasons MEX pages. |
|
WORKFORCE_SYNC |
Service operation that enables the delivered Global Payroll variables LF VR VER FINIQ EE and LF VR MOTIVO BAJA to be inserted in the supporting element override table at the payee level (thus associating a terminated payee with the termination version that applies to the payee's termination). The handler/application class that inserts these variables is GPMX_Termination_version_job handler and associated application class. |
Steps for Triggering Termination Pay
These elements are used to trigger termination pay, as outlined here:
When a payee is terminated or laid off and the appropriate action/reason codes are entered on the Job Data pages in PeopleSoft HR, the system uses the service operation WORKFORCE_SYNC to insert the Global Payroll variables LF VR VER FINIQ EE (containing the termination version) and LF VR MOTIVO BAJA (containing the termination reason) as supporting element overrides at the payee level (Global Payroll & Absence Mgmt, Payee Data, Create Overrides, Supporting Elements). In other words, the service operation links the payee to the termination version (the action and reason combination) that applies to the payee's specific termination.
Note: The only actions capable of triggering the service operation used to insert the variables LF VR VER FINIQ EE and LF VR MOTIVO BAJA in the supporting element override table at the payee level are TER (termination), LOF (layoff), and COM (completion).
Just as each terminated payee is linked to a termination version , each termination earning or deduction is linked to a termination version (using the variables LF VR VER FINIQ 01 through LF VR VER FINIQ 10) on the Supporting Elements Override page of the Earnings component or Deductions component.
When a payee is terminated or laid off, Global Payroll for Mexico uses the generation control element LF GC VER FINIQ (in combination with the formula LF FM VER FINIQ GC) to include in the payee's final payment only those earnings and deductions that are part of the termination version associated with the payee in Step 1. This is done by means of the following comparison:
When you run a payroll, the generation control element (which is linked to each delivered termination earnings or deduction on the Calculation page of the Earnings component or Deductions component) checks the payee's termination version, as represented by the variables LF VR VER FINIQ EE (containing the termination version) and LF VR MOTIVO BAJA (containing the termination reason).
At the same time, the generation control element checks the termination versions associated with each delivered termination earnings and deduction element on the Supporting Elements Override page of the Earnings component or Deductions component. If the payee's termination version (represented by the variables LF VR VER FINIQ EE and LF VR MOTIVO BAJA) equals the termination version (represented by the variables LF VR VER FINIQ 01 through LF VR VER FINIQ 10) associated with an earnings or deduction on the Supporting Elements Override page, the earnings or deduction can be processed.