Payroll For North America: Sudarshan K Mondal

Oracle PeopleSoft
Payroll for North

America
Sudarshan K Mondal
27 Nov 2009
2009 IBM Corporation
IBM Corporation
Course Overview - Objectives
PeopleSoft Enterprise Payroll for NA integrations and Business
Processes
Set up HRMS foundation tables and payroll tables
Setup Employee Data
Create and update paysheets
Process on-cycle and off-cycle payrolls
Setup and process benefit deductions, garnishments, and
other payroll functionality.
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Agenda Day 1, 2
Day 1
Setting up HRMS tables for payroll processing
Setting up payroll tables
(USA) Setting up US payroll tax tables
Day 2
Setting up employee data
Creating and updating paysheets
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Agenda Day 3, 4, 5 (Continued)

Day 3
Calculating payroll
Confirming payroll and preparing checks and advices
Processing off-cycle payroll events.
Setting up and processing additional payroll functionality
Day 4
Retroactive Payroll
Multiple Job Processing
Setting up and processing benefit deductions in payroll
Setting up and processing garnishments
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Business Process
Overview
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Objectives
The features of PeopleSoft Enterprise Payroll for North

America
Payroll for North America integration
The steps of payroll processing
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Features of Payroll for North America

High Level payroll processing features -
Setup and maintain core payroll tables

Setup ad maintain employee pay data
Process the payroll
Post to general ledger
Pay taxes
Pay third parties
Produce reports
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Features of Payroll for North America (Continued)
(USA) Savings bonds

(USA) Group-term life insurance imputed income
(E&G) Contract pay administration
(USA) Tip allocation
(USA) FLSA (Fair Labor Standards Act) processing
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Payroll for North America integrations
Talent
Acquisition
Manager
ePay
Absence
Management
Stock
Admin
Payables
Human
Resources
Payroll for North

America
Expenses
Benefit Admin
Time and Labor
General
Ledger
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Admin
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Steps to Process Payroll for North America

Setup HRMS
Tables
Setup Payroll
Tables
Setup Employees
Paysheets
Calculate Pay
Payroll Report
Confirm Pay
Distribute to General
Ledger
Produce Reports
Payroll
Reports
Advices
Checks
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Summary
So far we discussed
Payroll for North America provides features that support payroll

processing and other optional payroll business processes
Payroll for North America is integrated with many PeopleSoft
HRMS applications and PeopleSoft Financial applications
Pay calculation is an iterative process that can be run as many
times as needed to get desired results before confirming the
payroll and producing checks.
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PeopleSoft HRMS Tables for Payroll

Processing
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Objectives
Identify HRMS tables that impact payroll processing

Describe installation table setup for Payroll for North America
Describe the role of SetID, Location, Department in payroll
processing
Describe Company Table Setup
Describe frequency and compensation setup.
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Identify HRMS tables that impact payroll processing

Setup HRMS
Tables
Setup Payroll
Tables
Setup Employees
Paysheets
Calculate Pay
Payroll Report
Confirm Pay
Ledger
Produce Reports
Payroll
Reports
Advices
Checks
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Describe installation table setup for Payroll for North

America
Selecting Products on the Installation Table
In addition to selecting products, you also make selections on pages in
the Installation Table component to:
Specify various defaults

Define processing rules
Define counters for the system to use
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America (Continued)
Specifying Default Frequency
Default values for the following fields that have an impact on payroll
processing are first established in the Installation Table component:
Default Standard Hours

Work Period
Default Compensation Frequency
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America (Continued)
Selecting Payroll Processing Options
Payroll processing options on the Product Specific page are within the
group boxes that are labeled:
NA Payroll/Payroll Interface
T&L/NA Payroll Paysheet Options
AP Invoice Number Prefix
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America (Continued)
Setting Counters
Country Specific
(CAN) Canadian parameters include:
Last ROW number
Last direct deposit file creation number
Last FSA carry forward claim number
Last CPS transmission ID number
Last ID Assigned
Last Retro Pay request sequence number and Last Retro Ded request
sequence number
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Describe the role of SetID, Location, Department in

payroll processing
Using SetIDs in Payroll
In Payroll for North America, there are two set control values that require the
use of SetID functionality:
Set Control Values
Description
Company
Companies that are associated with the same SetID

share the same rules for maintaining balances, as
identified on the Balance ID table
Pay Group
Pay groups that are associated with the same SetID

share the same shifts, as defined on the Shift table
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payroll processing (Cont)
Using Locations in Payroll
Location table enables to define -
The physical address of locations, such as headquarters, branch

offices, and remote sales offices.
A default salary plan by location
A default holiday schedule by location
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payroll processing (Cont)
Using Departments in Payroll
Payroll for North America uses the department values to:
Define organisation entities that can be used as cost centers

Sort paychecks and paysheets
Store a default tax location code
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Describing Company Table Setup
Defining a Company
Company address and phone information

Default settings
Some general ledger accounts
(USA) Controls for processing tips
(USA) Employer identification number (EIN) and some default tax
status values
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Describing Company Table Setup (continued)

Specifying Company Default Settings
Pay group
Earnings program
Lines on a paysheet
Single check for multiple jobs
State and Federal tax deduction priority
(USA) Employer ID number and FLSA settings
(CAN) Workers' Compensation Board identification
GL accounts for net pay and direct deposit (US and Canada) .
(USA) GL liability accounts for federal taxes.
(USA) Tax Details - tax balance processing IDs, tax reports
type, and FICA and SDI status.
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Frequency and Compensation Setup

Setting Up Frequencies
Frequency IDS, which are defined on Frequency table, are used
throughout the HRMS system to:
Define the time period for which compensation is quoted

Define the standard work period for standard hours
Define the pay period frequency on the Pay Group table
Convert compensation calculations from one frequency to
another
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Frequency and Compensation Setup (continued)

Converting compensation to Different Frequencies
Calculation Description Formula
From hourly to annual
$60000 = {$28.846(hourly) X(80 x 26)
Compensation rate x job standard hours x

frequency factor of standard work period
From other frequencies

to annual
Compensation rate x Compensation rate

frequency factor
From annual to hourly
(Compensation rate x frequency factor) / (job

standard hours x frequency factor of standard
work period)
$28.846 = {$5000(monthly
rate)X12 } / (80x26)
From annual to other

frequencies
Annual compensation rate / desired frequency

factor
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Selection Default Compensation Frequencies by Country
The display of compensation rates on the Job Data Compensation page
is controlled by the values that you selected for the country on the
Default Frequency page
You can select the four frequencies in which you want all employees
compensation displayed.
Navigation: Setup HRMS > Foundation Tables > Compensation Rules >
Default Frequencies by Country
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Job Code table
Defines the job code profile, including basic default information such
as standard hours and work period, compensation frequency, and
regular or full-time status.
Combines base pay rate codes into a default compensation package
that can be assigned to an employee along with the job code
Lists additional non-base pay components that are used as defaults
with the job code.
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Review
We have discussed so far
HRMS tables that impact payroll processing include Installation table,

SetId table, Department table, Location table, Company table,
Frequency table and Job Code table.
On the installation table you specify defaults, rules, counters for the
system to use.
The department is used as a cost center and for sorting paychecks
and paysheets
Many payroll processing defaults values are set up on the company
table
Frequency that are specified on th frequency table are used to
calculate compensation for varying time periods.
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Setting Up Payroll Tables
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Setting Up Payroll Tables

Objectives
Identify payroll setup tables

Set up source bank accounts
Create special accumulators
Set up earnings codes
Set up and earnings programs
Describe shift pay setup
Create a pay group
Create a rate code
Set up deductions
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Identify Payroll tables that impact payroll processing

Setup HRMS
Tables
Setup Payroll
Tables
Payroll Table Setup in the Payroll

Process Flow
Setup Employees
Paysheets
Setting up payroll tables follows

HRMS table setup
Calculate Pay
Payroll Report
Confirm Pay
Ledger
Produce Reports
Payroll
Reports
Advices
Checks
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Identifying Payroll Setup Tables

Payroll Setup Process Flow
This diagram shows the sequence and relationships among the payroll setup tables:
2. Bank
Table
1. Form
Table
3. Source Bank
Table
4. Special Accumulator
Table
5. Earnings
Table
(CAN)
Branch Table
7. Shift
Table
6. Earnings Program
Table
8. Pay Group
Table
9. Rate Code
Table
10. Deduction
Subset Table
11. Deduction
Table
(CAN) Wage Loss Plan

Table
12. General
Deduction
Table
13. Company
General Deduction
Table
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Payroll Setup from a Functional Standpoint

Functional
Step
Components of the Step
Functional
Step
Components of the Step
Organise each
company
Pay Groups
Earnings programs
Holiday schedule
SetId
Pay calendars
Pay run IDs
Balance IDs
Shifts
(USA) Set
up tax
tables
Taxable gross component ID

Company state & local taxes
Tax locations
Tax reporting parameters
Set up
special
processing
Retro pay
Retro benefits and deductions
Final check program
Continue with errors
Set up
employee
information
Taxes
Additional pay
Benefits
Deductions
Direct Deposit
Establish
Financial
Information
Form types
Bank
Source bank
Set up
earnings
Special accumulator
Earnings codes
Earnings programs
Set up
deductions
Special accumulators
Deduction subset
Deduction Codes
General deductions
Company general deductions
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Setting Up Source Bank Accounts

Source Bank Account Setup Steps
This diagram illustrates the steps for setting up source bank accounts:
2. Identify
banks
1. Identify forms
(CAN) Identify
bank branches
3. Link banks
and form IDs
to source bank
accounts
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Setting Up Source Bank Accounts (continued)

Identifying Forms
When you set up form IDs, you:
Must have one entry in the Form table to specify check or advice
forms for a pay group.
Must set up a form ID for each check or advice form that you plan to
use.
Specify the last form number used.
You must specify separate form IDs for each account if you pay employees
from
One bank with multiple accounts number
Multiple banks and their associated accounts
Navigation: Setup HRMS > Common Definition > Banking > Form Table
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Identifying Banks
To set up source bank accounts, you must first identify bank name and
address information for:
Banks
(CAN) Bank branches
Navigation: Setup HRMS > Common Definition > Banking > Banks
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Setting Up Source Bank Accounts

Set up source bank accounts to link together:
Bank ID
Account number and account name
Check and advice form IDs
Deposit medium
(USA) Prenote wait days
(CAN) Routing format
Navigation: Setup HRMS > Common Definition > Banking >

Source Bank Accounts
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Activity 1: Setting Up a Source Bank ID

In this activity, you will review the activity overview and:
1.
2.
Create form IDs

Create a source bank ID
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Creating Special Accumulators

Function of Special Accumulators
This diagram illustrates how a special accumulator group earnings that will be
used in calculating a savings plan deduction:
OT
VAC
REG
HOL
SICK
Earnings Marked for 401

Special Accumulation
401 Deduction
Calculation
401 Special Accumulator
Gross
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Creating Special Accumulators (continued)

Setting up Special Accumulator
This diagram illustrates special accumulators in the payroll setup process:
2. Bank
Table
1. Form
Table
3. Source Bank
Table
5. Earnings
4. Special
Accumulator
Table
(CAN)
Branch Table
7. Shift
Table
6. Earnings Program
Table
8. Pay Group
Table
Table
9. Rate Code
Table
10. Deduction
Subset Table
11. Deduction
Table

Table
12. General
Deduction
Table
13. Company
General Deduction
Table
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Creating Special Accumulators (continued)

Assigning Special Accumulators
After you set up special accumulators, assign them to earnings and
deductions:
Use the Earnings Special Process page to assign earnings codes to

add to or subtract from the accumulator balances.
Use the Deduction Tax Class page to assign deduction codes to add
or subtract from accumulator balances.
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Activity 2: Creating Special Accumulators

In this activity, you will review the activity overview and create special
accumulators.
Activity Overview
Your companys hourly employees are unionized and their union dues are
automatically deducted from their paychecks each pay period. The deduction
amount is based on hours reported for specific earnings types defined in the
union contract.
Your company also pays its hourly employees a shift differential based on
certain hours reported for specific earnings types.
In this activity, set up special accumulator codes called DUE and SHF to aid
in the tracking of those hours. Both accumulators are effective on January 1,
2005.
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Setting Up Earnings Codes

Defining General Characteristics of Earnings Codes
General characteristics that you define for each earnings code include:
Allowable employee types
Payment type
Eligibility for retroactive pay
(USA) Effect on FLSA
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Setting Up Earnings Codes (continued)

Specifying Tax and Earnings Processing
This table summarizes the tax and processing specifications that you enter for
an earnings code on the Taxes page:
Processing
Specified
Description
Tax Method
Specify the tax calculation method for additional pay.
Earnings
Specify additional processing requirements such as

maintaining balances, subject to garnishments or shift
differential, whether it adds to gross pay, and so forth.
U. S. only
(USA) Specify the effect of the earnings on various federal tax

grosses.
Canadian only
(CAN) Specify whether the earnings add to the taxable grosses

for the tax type components identified.
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Specifying Calculation Rules
Calculation rules that you specify for the earnings include:
Calculation priority sequence

Calculation adjustment factors
Maximum value by the hour or year
Effect on budget
Calculation options for earnings based on other earnings
(USA) FLSA processing options
(USA) Tips category
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Calculating Earnings Based on Other Earnings Codes
Use settings in the Based on Other Earnings/Hours group box to specify
these methods of calculating earnings based on other earnings codes:
A percentage of another earnings code amount

A percentage of the amount for a group of earnings (special
accumulator)
A rate times hours of a single earnings code
A rate times hours of a special accumulator of hours
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Specifying Leave Accruals and Special Accumulators
This table describes the earnings code special processing that you specify
for leave accruals and special accumulators:
Special
Process
Description
Leave Accruals
Select a leave plan type and indicate how the hours

for each earnings code affect leave plans.
Special
Accumulators
Select special accumulators related to this earnings

code and indicate how the earnings impacts the
accumulator balance.
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Setting Up Earnings Programs

Defining an Earnings Program
This diagram illustrates that the earnings program provides a link between
earnings and employees through the pay group.
Earnings
Earnings
Program
Pay
Group
Employees
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Activity 3: Creating Earnings Codes and an Earnings

Program
1.
2.
3.
Create 2 earnings code

Create an earnings program
Verify special accumulators
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Describing Shift Pay Setup

Methods to Set Up Shift Pay
This diagram lists some methods for setting up and calculating shift pay:
Earnings code based
on other earnings
Shift
Pay group SetID

+ Shift table
Earnings code with
Earnings Adjustment Factor
or Rate adjustment Factor
Calculation
Methods
Time & Labor application
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Describing Shift Pay Setup (continued)

Comparing Shift Methods
These are some of the ways that the various shift methods difer from each
other:
Whether or not the Shift table is required
Value of the Eligible for Shift Differential check box on the Earnings
table
Whether or not an Additional Pay record must be created
How the earnings are added to the paysheet
Whether shift pay is reported on a separate line on the paycheck
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Shift Method Comparisons

Below table briefly compares the shift pay methods:
Method
Use
Shift
Table?
Earnings
Elig. for
shift
Additional
Pay Setup
Shift Earnings to Paysheet
Shift Pay on
Paycheck
Earnings
based on other
earnings or
accumulator
No
Clear
Assign shift
earning code
System adds shift earnings code as other

earnings
Separate
Rate
adjustment
factor or
earnings
adjustment
factor
No
Pay group
SetID and Shift
table
Yes
No manual paysheet entry

Clear
Assign shift
earnings
code
System adds shift earnings code as other

earnings
Separate
Select
Not
Required
No separate shift earnings code.
Not separate
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Describing Shift Pay Setup (continued)

Setting Up Shift Pay with Shift Table and Pay Group SetID
This diagram illustrates the steps for setting up shift pay processing using the Shift table and the
SetID of the pay group:
Define Set ID
Navigation: Setup HRMS > Product Related >

Payroll for NA > Compensation & Earnings > Shift
Table
Set up Shift table

by SetID
Link SetID to
Paygroup
Assign employees
to a valid shift
Select earnings
that are eligible for
shift differential
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Pay Group Setup in the Payroll Setup Process

This diagram shows the position of pay group setup in the payroll table setup process:
2. Bank
Table
1. Form
Table
3. Source Bank
Table
Table
5. Earnings
Table
6. Earnings Program
Table
7. Shift
Table
8. Pay
Group
Table
9. Rate Code
Table
10. Deduction
Subset Table
(CAN)
Branch Table
11. Deduction
Table

Table
12. General
Deduction
Table
13. Company
General Deduction
Table
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Creating a Pay Group (continued)

Defining Pay Group Attributes
This diagram illustrates two pay groups within an organisation:
Salaried
Employees
Pay Group: MO1

Frequency: Monthly
JAN
31
FEB
28
MAR
31
FEB
15
Exception Hourly
Employees
Hourly
Employees
Pay Group: SM1

Frequency:
Semi-Monthly
FEB
28
MAR
15
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Specifying Processing Controls
This diagram illustrates the effects of the confirmation requirement values
on paysheets:
Pay Group Table Value
Corresponding Paysheet Value
Confirmation Required for Job

Earnings on Paysheet
OK to Pay
Confirmation Required for

Partial Pay Period on Paysheets
OK to Pay
Confirmation Required for Job

Earnings on Paysheet
OK to Pay
Confirmation Required for

Partial Pay Period on Paysheets
OK to Pay
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Specifying Calculation Parameters
Specify the earnings program associated with the pay group and specify
default earnings codes used by the system on paysheets for these earnings:
Regular hours
Regular earnings
Overtime hours
Holiday Pay
(CAN) Non-statutory holiday pay
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Specifying Paysheet Parameters
Enter a work schedule and specify a proration rule to calculate prorated
pay when there is a partial pay period due to a mid-period change:
Proration Rule
Calculation Formula
Salaried Percent of
Annual
Work Days x Annual Pay Rate / Work Days per Year
Salaried Rate per

Work Day
Work Days x Hours per Day x Hourly Rate
Salaried Percent of
Period
Work Days x Pay Period Compensation Amount /

Total Work Days in Pay Period
Hourly Work Days
Work Days x Hours per Day x Hourly Rate
Hourly Percent of
Period
Work Days x Hours in Period x Hourly Rate / Total

Work Days in Pay Period
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Selecting Paycheck Sequencing and Distribution Options
You select paycheck sorting and delivery options based on four pages that
can work together depending upon your selections:
Pay Group Table Check Distribution

Pay Group Table Check Sequencing
Payroll Options 1
Payroll Options 2
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Specifying Additional Pay Group Parameters
This table summarizes the last three pages in the Pay Group component:
Page Name
Usage
Report Parameters
(USA) Set up processing options for employees who

participate in the California Public Employees Retirement
System (PERS)
Bank/Tip Info
Identify the source bank for the pay group
Time and Labor
Identify task elements from PeopleSoft Enterprise Time and

Labor to load to paysheets
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Activity 4: Creating a Pay Group

Activity Overview
For this activity, create the hourly weekly pay group (HRW) for your
company (GBI). The pay group is effective January 1, 2005, and is
associated with the SHARE SetID. Accept the default daily and monthly
frequencies.
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Defining Compensation Rate Code Information

This diagram illustrates Rate Code table setup in the payroll setup process.
2. Bank
Table
1. Form
Table
3. Source Bank
Table
Table
5. Earnings
Table
6. Earnings Program
Table
9. Rate Code
Table
10. Deduction
Subset Table
11. Deduction
Table
(CAN)
Branch Table
7. Shift
Table
8. Pay
Group
Table
Table
12. General
Deduction
Table
13. Company
General Deduction
Table
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Activity 5: Creating a Rate Code

In this activity, you will review the activity overview and create a rate code.
Activity Overview
In this activity, create a non-base pay rate code for supervisor substitution by
using the Comp Rate Code SUVSB. The new rate code is calculated as an
hourly rate of $8.50 plus a flat amount (unspecified). It takes effect on
January 1, 2005, and is associated with the supervisor substitution pay
earnings code that you set up in a previous activity.
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Setting Up Deductions
Tables used to set up Deductions
This diagram shows the tables used to set up deductions and general
deductions:
2. Bank
Table
1. Form
Table
3. Source Bank
Table
Table
5. Earnings
Table
6. Earnings Program
Table
9. Rate Code
Table
10. Deduction
Subset Table
11. Deduction
Table
(CAN)
Branch Table
7. Shift
Table
8. Pay
Group
Table
Table
12. General
Deduction
Table
13. Company
General
Deduction
Table
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Setting Up Deductions (continued)

Setting Up a Deduction Code
This diagram illustrates the position of deduction code setup in the process of
setting up a general deduction:
Set up
Deduction Code
Set up general
deduction
calculation
Assign deduction
to a company
Assign deduction
to an employee
Set up
deduction subset
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Defining Deduction and Tax Classifications
Use two pages of the Deduction Table components to fully define tax
classifications and the tax effect of deductions:
On the Tax Class page, classify the deduction in terms of its impact on
the federal taxable gross.
On the Tax Effect page, specify the effect on the other taxable
grosses.
(CAN) Select a sales tax type for each deduction classification on the
Tax Class page.
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Specifying Tax Effect
The system creates a row on the Tax Effect page for each deduction
classification that you defined on the Tax Class page.
To define the tax effect of each deduction classification:
(USA) Specify the effect on FICA gross and FUT gross
(USA) Specify the effect on group term life insurance (GTL) and
dependent life (DPL)
(CAN) Specify the effect on various taxable gross accumulators.
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Selecting Processing Controls
The system creates a row on the Process page for each deduction
classification that you set up on the Tax Class page.
For each deduction classification, specify:
Partial deduction processing rules.
Yearly deduction maximum amount, if applicable.
General ledger liability account, if you do not use commitment
accounting methods.
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Scheduling Deductions
By default, each deduction is taken every period, regardless of pay
frequency.
If the deduction schedule differs for each pay frequency, indicate pay
frequency and deduction frequency as separate entries.
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Using Deduction Subsets

Benefits of Deduction Subsets
Here is a summary of the features and benefits of using deduction subsets:
Define subsets of your companys standard deductions to limit payroll

processing to a subset of employees deductions.
Add a subset to the pay calendar to override deductions for a group of
employees without entering one-time overrides.
You can define any number of deduction subsets.
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Using Deduction Subsets (continued)

Setting up Deduction Subsets
This diagram shows how to set up deduction subsets:
Define a deduction
subset
Assign the subset

to deductions
Review deductions
that are linked to
the subset
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Setting Up General Deductions

Identifying General Deductions
A general deduction is any deduction that isnt a benefit deduction. Some
examples of general deductions include:
Charitable deduction
Union dues
Parking
Garnishments
Bonds
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Setting Up General Deductions (continued)

Specifying General Deduction Calculation Rules
This diagram illustrates the calculation rules for the general deduction code must
be set up on the General Deduction table:
Set up
Deduction Code
Set up general
deduction
calculation
Assign deduction
to a company
Assign deduction
to an employee
Set up
deduction subset
Navigation: Setup HRMS > Product Related > Payroll for NA > Deductions > General Deduction Table
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Setting Up General Deductions (continued)

Associating Deduction Codes with a Company
This diagram shows assigning the general deduction to a company to make it
available for employees in the company:
Set up
Deduction Code
Set up general
deduction
calculation
Assign deduction
to a company
Assign deduction
to an employee
Set up
deduction subset
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Activity 6: Setting Up General Deductions
1.
2.
3.
Create two general deductions on the Deduction table.

Create one general deductions on the General Deduction table.
Add deductions to the Company General Deduction table.
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Review
In this lesson, you learned that:
You must set up a number of payroll tables in preparation of processing payroll.

To process paychecks and direct deposits, you must define from IDs, banks,
and source bank accounts, and link them to employees through the pay group
Special accumulators group together earnings or deductions to be used in
calculating another earnings or deduction.
On the Earnings table you specify payment type, taxes, calculation rules, and
special processing for each earnings code.
An earnings program defines which set of earnings codes is valid for the pay
groups that use the program, and therefore which earnings codes are valid for
employees belonging to those pay groups.
Payroll for NA provides a variety of methods for setting up and calculating shift
pay.
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Review (continued)
A pay group is a payroll processing entity that assembles a set of employees

with common attributes within a company for payroll processing.
All employees must have at least one rate code assigned on the Compensation
page of job data to determine the base rate of pay in Payroll for NA.
When you set up a deduction, you specify the tax class, tax effects, processing,
and deduction schedule.
Entering a deduction subset on the pay calendar enables you to process a
subset of employees deductions without entering one-time overrides.
General deductions are grouped by company and valid general deductions for
employees within the company
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(USA) Setting Up U.S. Payroll Tax Tables

Objectives
By the end of this lesson, you will be able to:
Identify tax table maintenance responsibility.
Describe PeopleSoft-maintained tax tables.
Set up customer-maintained tax tables.
Describe setup for tax reporting.
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Identifying Tax Table Maintenance Responsibility

Tax Tables in the Payroll Setup Process
This diagram illustrates tax table setup in the overall payroll setup process:
2. Bank
Table
1. Form
Table
3. Source Bank
Table
Table
5. Earnings
Table
(CAN)
Branch Table
7. Shift
Table
6. Earnings Program
Table
8. Pay Group
Table
9. Rate Code
Table
10. Deduction
Subset Table
11. Deduction
Table

Table
12. General
Deduction
Table
13. Company
General Deduction
Table
IBM Confidential
14. Tax
Tables
IBM Corporation

(continued)
PeopleSoft-Maintained Tax Tables
These tax tables are provided and maintained by PeopleSoft:
Federal/State Tax table.
Local Tax table (some fields are customer-maintained).
State Tax Reciprocity table.
Local Tax Reciprocity table.
Local Tax Reciprocity table.
SWT (state withholding tax) Marital Status table.
Taxable Gross Definition table (selected definitions).
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(continued)
Customer-Maintained Tax Tables
These tax tables are customer-maintained:
Company State Tax table.
Company Local Tax table.
Tax Location table.
Taxable Gross Definition table (other than PeopleSoft-delivered
entries).
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(continued)
Customer-Maintained Tax Reporting Tables
These tax reporting-related tables are customer-maintained:
UI Report code
Tax Collector
VDI (voluntary disability insurance) Administrator
U.S. SOC (U.S. Standard Occupation Code)
Quarterly Tax Reporting Parameters
Annual Tax Reporting Parameters
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Describing PeopleSoft-Maintained Tax Tables

Viewing the Federal/State Tax Table
The four pages of the Federal/State Tax Table component hold values that
are used by the system to calculate U.S. federal, state, and certain local
taxes.
The information on these pages:
Identifies the general type of withholding tax calculation that is
employed by each jurisdiction.
Provides all the constants that are needed by the calculation routines
for income tax withholding as well as unemployment and disability
taxes.
Contains the wage bracket rate data that is used by the taxing
authorities, including some states and localities, for implementing
graduated taxes.
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(continued)
Viewing the Local Tax Table
This table describes the pages that you use to view the Local Tax table:
Page
Description
Local Tax Table 1
Displays the locality description.
Local Tax Table 2
Displays the method used to calculate local

withholding taxes.
Local Tax Table 3
Displays tax reporting parameters and W2 details

for the locality.
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(continued)
Viewing Tax Reciprocity Tables
Payroll for North America uses these three tables to define reciprocity rules
between taxing jurisdictions:
Table
Description
State Tax Reciprocity table
Displays the rules tht are used during payroll calculation to

determine withholding liability when an employee lives in
one state and works in another state.
Local Tax Reciprocity table
Displays calculation rules for local taxes when an employee

is taxed by more than one local jurisdiction. It also identifies
reciprocity between an employees state of residence and
locality of employment.
Work Locality Reciprocity table
Displays reciprocity between two overlapping local taxing

jurisdictions.
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(continued)
Viewing State Marital Status Codes
When you enter marital status data, the system references the SWT Marital
Status table to validate and edit each state's marital status codes.
Navigation: Setup HRMS > Product Related > Payroll for NA >
Federal/State Taxes > SWT Marital Status Table
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Setting Up Customer-Maintained Tax Tables

Setting Up the company State Tax Table
For each state in which your company State tax Table with these values:
Employer IDs for tax reporting.
Company-specific state unemployment and disability rates.
General ledger liability account numbers for state taxes.
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Setting Up Customer-Maintained Tax Tables (continued)

Entering Company State VDI Plan Information
Enter this VDI plan information on the VDI page:
The VDI plan number.
VDI Administrator code.
The year and quarter for which the rates are effective.
Both employee and employer-paid rates.
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Entering Company State General Ledger Liability Accounts
Enter liability accounts for these classifications:
SWT.
State unemployment tax (SUT).
State disability insurance (SDI).
VDI.
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Setting up the Company Local Tax table
The purpose of the Company Local Tax table is to store these values for
each location in which the company collects or pays withholding taxes:
Employer ID, which designates the tax entity.
General ledger liability accounts.
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Setting Up Tax Locations

This list summarizes how the system uses locations that you set up on the
Tax Location table:
A tax location must be defined for every place where employees work.
The system uses the tax location entered on the employee job data
record to automatically create a tax record for the employee and
create a record in the Tax Distribution table provided the default is
enabled on the Installation table.
The system calculates federal, state, and local workplace taxes
according to the employees tax data and the state and locality
indicated on the paylines.
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Impact of tax location on the paysheet and payroll

processing:
Personal Data Record:
Contact Information
City
State
NJ
Postal
Tax Location Table:
Job Data Record:
Tax Loc Code:
NYC
Payroll
Pay Group
State
Locality
Loc Link
Tax Location
NY
P0001
Tax Loc Tbl2
NYC
Holiday Schedule
Tax Distribution Record:
Employee Tax Data Record:
Tax Distribution
State Tax Data 1

State
NJ
State
Locality
Dist. %
Resident
NY
P0001
100
State Tax Data 1

State
NY
UI Jurisdiction
Uses tax distribution data to feed the work

state/locality onto the paysheets
Uses employee tax data for

allowances and additional
withholding amounts or
percentages during pay
calculation
Paysheet
State
Locality
NY
P0001
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Setting Up Customer-Maintained Tax Tables

(Continued)
Setting Up Taxable Gross Definitions
This table illustrate one example of when taxable gross definition would be
required for an earnings:
Taxing Jurisdiction
Include in Taxable
gross?
Withholding required?
Federal
Yes
No
State
Yes
No
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Activity 7:(USA)Updating company State and Local Tax

Tables
Update company state tax information .
Update Local Tax entity information.
Create additional Local Tax entities.
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Activity 8:(USA)Creating Tax Locations

Activity Overview
In this activity, add the tax location where your company has employees
working. The locations are:
0005:Toledo region in Toledo, OH

The address is 1244 Greenville Rd, Toledo, OH 45780.
0008:Detroit region in Detroit, MI

The address is 24 West 4th Street Detroit, MI 48018.
0007:Scranton region in Scranton, PA.

The address is 5534 Main Street Scranton, PA 41378.
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Activity 8:(USA)Creating Tax Locations (cont)

Here are the locality and other work locality details for each state.
State
Locality
OH
77000
MI
22000
PA
I351022C
PA
O351022C
Other work Locality
O351022C
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Describing Setup for Tax Reporting

Defining Tax reporting Parameters
Tax reporting parameters identify the period on which youre reporting and
must be set up for each period before you run reports.
Use a separate page to set up:
Quarterly tax reporting parameters.
Payroll for NA > US Quarterly Processing > Define Quarterly Tax
Reporting > Tax Reporting Parameters
Annual tax reporting parameters.

Payroll for NA > US Annual Processing > Define Annual Tax Reporting
> Tax Reporting Parameters
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Describing Setup for Tax Reporting (Continued)

Setting Up Other Tax Reporting
This table lists other tax reporting setup steps and the pages used.
Page
Tax Reporting Setup
UI Report Code Table
Map tax locations to the UI report code for the Multiple Worksite
Report(TAX004)
Tax Collector Table

-Vendor Information
Set up tax collector codes to facilitate remittance of Local Tax

payments.
U.S. SOC Table
Set up SOC codes, which are used mainly for Alaska unemployment
reporting purposes.
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Review
In this lesson, you learned that:
PeopleSoft delivers and maintains some tables, the rest are maintained by
customers.
PeopleSoft-maintained tax tables define reciprocity among states and localities
when employees live in one state or locality and work in another.
The system requires the definition on the Company State Tax table and Company
Local Tax table of every state and locality in which your employees live or work.
You must set up the tax reporting parameters for each new quarter and year on
which you want to report.
IBM Confidential
IBM Corporation
End of Day 1 Session
IBM Confidential

Payroll For North America: Sudarshan K Mondal

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Oracle PeopleSoft

Payroll for North

2009 IBM Corporation

Course Overview - Objectives

PeopleSoft Enterprise Payroll for NA integrations and Business

2009 IBM Corporation

2009 IBM Corporation

Agenda Day 3, 4, 5 (Continued)

2009 IBM Corporation

2009 IBM Corporation

The features of PeopleSoft Enterprise Payroll for North

2009 IBM Corporation

Features of Payroll for North America

Setup and maintain core payroll tables

2009 IBM Corporation

Features of Payroll for North America (Continued)

(USA) Savings bonds

2009 IBM Corporation

Payroll for North America integrations

Payroll for North

Time and Labor

Steps to Process Payroll for North America

2009 IBM Corporation

Payroll for North America provides features that support payroll

2009 IBM Corporation

PeopleSoft HRMS Tables for Payroll

2009 IBM Corporation

Identify HRMS tables that impact payroll processing

2009 IBM Corporation

Identify HRMS tables that impact payroll processing

2009 IBM Corporation

Describe installation table setup for Payroll for North

Specify various defaults

2009 IBM Corporation

Describe installation table setup for Payroll for North

Default Standard Hours

2009 IBM Corporation

Describe installation table setup for Payroll for North

2009 IBM Corporation

Describe installation table setup for Payroll for North

2009 IBM Corporation

Describe the role of SetID, Location, Department in

Companies that are associated with the same SetID

Pay groups that are associated with the same SetID

2009 IBM Corporation

Describe the role of SetID, Location, Department in

The physical address of locations, such as headquarters, branch

2009 IBM Corporation

Describe the role of SetID, Location, Department in

Define organisation entities that can be used as cost centers

2009 IBM Corporation

Describing Company Table Setup

Company address and phone information

2009 IBM Corporation

Describing Company Table Setup (continued)

2009 IBM Corporation

Frequency and Compensation Setup

Define the time period for which compensation is quoted

2009 IBM Corporation

Frequency and Compensation Setup (continued)

Compensation rate x job standard hours x

From other frequencies

Compensation rate x Compensation rate