Slide 3 - Oracle Global Human Resources Cloud
Release 9, Bundle 6
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Hello, my name is Louisa. Welcome to training for Release 9 Patch Bundle 6. In this session we will talk what’s coming in Oracle Global Human Resources Cloud for enhanced country support for China.
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Slide 4 - Agenda
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For the enhancements covered in this training, we’ll give an overview, followed by more detail to explain how you can use them, and what business value they bring.
Then we’ll walk you through demonstrations.
Next we’ll explain what you need to consider before enabling these features in your business, and what you need to know to set them up.
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Slide 5 - Enhancements Overview
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In this update bundle, we are adding three new features. They are:
New Contribution Type Field on Payroll Side for Social Security Management;
Validation Reports; and
Set up Years of Service Calculation Rule by Territory for Tax Calculation on Severance Payments.
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Slide 6 - New Contribution Type Field for Social Security Management
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Let us start from the first feature: new contribution type field on payroll side for social security management.
Before this release, system used the hukou type information setup on HR side for social security calculation and reporting. However, in special cases where employees work in territory A, but make social security contribution to territory B, you had to set up the Hukou Type field on HR side in the way to assure correct social security calculation and reporting, resulting in incorrect hukou type information for the employees.
In this release, we introduced the Contribution Type field, which is independent from the Hukou Type field on HR side. It is the contribution type value that is used in social security and enterprise annuity contribution calculation and reporting. Starting from now on, payroll users need to set up the contribution type value for any new hires and update the value whenever required say in transfer and global transfer cases.
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Slide 7 - Validation Reports
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The second feature we are introducing are two validation reports. This slide covers the Worker Data Validation Report.
The report produces a list of local employees whose one or more pieces of the following information are missing.
Gender
Data of birth
Citizen identification number
Hukou type
The report also captures the expatriates whose passport number or pass number is missing.
In the screen-cut, all the three employees are expatriates, whose nationality information, passport or pass number is missing.
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Slide 8 - Validation Reports
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The other validation report is Payroll Data Validation Report. It shows the list of employees that one or more pieces of the following information are missing.
Payroll;
Personal statutory deduction card;
Aggregation information component;
Tax reporting unit association;
Association details;
Personal payment method; and
Final close date.
In the screenshot, the first employee is an active employee, who is missing six pieces of information that are all required to assure successful payroll and payment processing. The second employee is a terminated employee, whose final close date is missing.
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Slide 9 - Years of Service Calculation Rule by Territory for Tax Calculation on Severance Payments
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The third feature is setting up years of service calculation rule by territory at the payroll statutory unit statutory deductions calculation card level, to be used in the tax calculation on severance payments. In the screen-cut, the rule set up for Beijing is to calculate any fragment period less than 6 months as 0.5, and if the period is more than 6 months but less than a year, calculate it as 1.
In special cases, you may provide overriding years of service value at personal calculation card level. Then the system will not calculate the years of service value, but use the overriding value in tax calculation on severance payments for the employee.
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Slide 10 - Enhanced Country Support
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The introduction of Contribution Type field expands the solution to assure correct hukou type information and reporting, and correct social security contribution calculation and reporting in the special cases where employees work in territory A, make social security contribution to territory B. Similarly, foreigners who do not have hukou type information, can make social security contribution by setting up the Contribution Type field on payroll side.
Validation reports increase operational efficiency by providing you with a list of employees whose HR and payroll information is missing but required for successful payroll and payment processing, as well as statutory reporting.
To comply with different years of service calculation rule by territory to be used in tax on severance payments calculation, you are now able to set up the different rules by territory at payroll statutory unit calculation card level.
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Slide 321 - Summary of Enhancement Capabilities
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Here is the summary of the features I have talked about today.
The new Contribution Type field on payroll side is independent from the Hukou Type field on HR side. It expands the existing solution to cover the complex cases in which employees work in territory A, but make social security contribution to territory B.
The Worker Data Validation Report and the Payroll Data Validation Report show the information that is missing but required in the subsequent payroll processing and reporting.
To comply with legislative requirement, the existing solution has been expanded by providing the flexibility of setting up years of service calculation rule by territory at the payroll statutory unit statutory deductions calculation card level. In special cases, you may also set up an overriding value at personal calculation card level for an employee. Then, the system will not calculate the years of service, but use the overriding value in calculating tax on the employee’s severance payments.
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Slide 322 - Implementation Advice
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In this implementation advice section we will go through what you need to consider before enabling these features in your business, and what you need to know to set them up.
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Slide 323 - Feature Impact Guidelines
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This table lists key upgrade information for the new features covered in this training.
All three features are available automatically after upgrade, and can be accessed via shipped job roles. The exact job roles are detailed later in this section. Except for the validation reports, the other two features do require setup steps to be taken before they can be fully utilized.
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Slide 324 - Setup Summary
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The setup for the new Contribution Type field feature is achieved by payroll users within the Payroll Calculation work area.
The setup for the years of service calculation rule by territory feature is performed via Functional Setup Manager within the Workforce Deployment offering under the Define Common Applications Configuration for Human Capital Management functional area and the Manage Legal Entity Calculation Cards task.
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Slide 325 - New Contribution Type Field Setup Detail
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The Contribution Type field is added to every social security item we support, as well as enterprise annuity. The screenshot shows local city resident – permanent is selected as the value for the Contribution Type field for basic pension insurance management for the foreign employee: Luk, Tony.
To minimize the impact on existing payroll customers, during patching we copy the latest hukou type value to populate the Contribution Type field on payroll side, so that your subsequent payroll runs can be carried out without an issue.
From now on, for a new hire, you need to set up the Contribution Type value for any social security item you would like to process for the employee, including public housing fund, social insurance items and enterprise annuity. For the existing employees, in cases like transfers and global transfers, you should review the existing contribution type value and make update if required.
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Slide 326 - Years of Service Calculation Rule by Territory Setup Detail
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To set up the years of service calculation rule by territory, on the statutory deductions calculation card of your payroll statutory unit, select the Taxes component group, insert the Individual Income Tax component if it does not exist, and select a territory value. Highlight the Individual Income Tax component, create the Tax on Severance Payments component details, and specify the rule.
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Slide 327 - Years of Service Calculation Rule by Territory Setup Detail
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In special cases, you may set up an overriding value on an employee’s personal statutory deductions calculation card as shown in the screen-cut. Select the Taxes component group, highlight the Individual Income Tax component, under the Enterable Calculation Values on Calculation Cards tab, add a record by selecting the Severance Payments Years of Service item and specify the value.
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Slide 328 - Implementation Decision Points
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Though the feature: years of service calculation rule by territory for tax calculation on severance payments is automatically available after upgrade, without setting up the rules by territory on payroll statutory unit calculation card, or setting up an overriding value on personal calculation card, the feature is not considered in tax calculation. By doing so, the impact on existing payroll customers is minimized. Once you decide to use this new feature by carrying out the required setup, system will ignore the Severance Payments Years of Service Balance value in tax calculation on severance payments. Please first conduct testing on your stage instance, and update your user manual accordingly before implementing the feature in your production instance.
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Slide 385 - Job Roles
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All of the features are available for Payroll Manager and Payroll Administrator job role. The Worker Data Validation Report is also available under the Human Resource Manager and Human Resource Specialist job role. You need the Application Implementation Consultant role to set up the years of service calculation rule by territory for your payroll statutory units.
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Slide 386 - Business Process Model Information
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The business processes associated with the new capabilities covered in this training are detailed here.
For the new Contribution Type field feature, the high level business process is Manage Payroll with activity Maintain Personal Payroll Information and task Manage Personal Deductions.
For the validation reports, the high level business process is Manage Payroll with activity Calculate, Validate and Balance Payroll and task Run Worker Data Validation Report and Run Payroll Data Validation Report.
For the years of service calculation rule by territory, the high level business process is Manage Payroll with activity Calculate, Validate and Balance Payroll and task Calculate Payroll. As of setting up the rules by territory, the high level business process is Set up Workforce Deployment with activity Define Legal Entities for Human Capital Management and task Manage Legal Entity Deduction Information.
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