Setting Up Salary Packaging Defaults

Within PeopleSoft, there are specific pages you use to define defaults in the employee salary packaging modelling. Specify various salary packaging default values using the following pages in PeopleSoft HCM:

  • Company Table - Default Settings—Set Up HCM > Foundation Tables > Organization > Company.

  • Job Code Table - Job Code Profile—Set Up HCM > Foundation Tables > Job Attributes > Define Job Code

  • Position Data - Description—Set Up HCM > Product Related > Organizational Development > Position Management > Maintain Positions/Budgets > Add/Update Position Info.

These default values assist you in setting up consistent employee salary packages when you model packages as part of your salary packaging business process. They streamline your modelling time per employee and ensure consistent application of salary packages for employees in the same jobs or positions in your organization.

This topic discusses the following tasks:

  • Setting up your organization's TPV and TEC compensation rate codes.

  • Setting up default package templates and rules for jobs and positions.

  • Setting up default salary packaging pay frequencies.

To establish default TPV and TEC compensation rate codes for a specific company to use when modelling employee packages, use the Company Table - Default Settings page—Set Up HCM > Foundation Tables > Organization > Company. Select a salary packaging compensation rate code from among the valid codes set up on the Comp Rate Code Table. These companies are then enrolled into compensation containing TPV and TEC amounts.

You can also specify whether the company is liable for Payroll Tax.

Note: You must enter a TPV. This compensation rate code is referenced in the rules used when processing terminations for packaged employees (unused leave is paid out at the packaged rate).

To set up default package templates and rules for jobs and positions, use the Job Code Profile (JOB_CODE_TABL) component.

Salary packaging is completed on an individual basis. Each employee may require different components and the overall value of the package may be unique to that employee. Therefore, a package is always modelled for a single employee.

However, if you structure your organization using positions or base your remuneration structures on jobs, set up defaults for package templates and rules that administer salary packages by default standards or minimum levels of remuneration to employees based on their positions and jobs.

To specify a default package template and package rule ID for a job code, access the Job Code Table - Job Code Profile page (Set Up HCM > Foundation Tables > Job Attributes > Define Job Code and select the job code to which you are assigning salary packaging defaults. Access the Australian group box and select values for the Package Template ID and the Package Rule ID.

To update position data to use the salary packaging defaults, access the Australian group box on the Position Data - Description page: Set Up HCM > Product Related > Organizational Development > Position Data > Description.

When you are defining calendars for salary packaged employees, the pay frequency comes from the value you enter in the Pay Frequency field in the Salary Packaging group box on the Pay Groups AUS page in Global Payroll (Set Up HCM > Product Related > Global Payroll & Absence Mgmt > Framework > Organizational > Pay Groups AUS).

This group box enables you set up default pay frequencies for the pay groups you use as part of Administer Salary Packaging. The frequency you select is also retrieved by the Package Calendar Table page, which enables the budgeting capabilities in the actual salary package because the system needs to know over what type of frequency to divide the component totals.