Payroll Definition – An Overview

A payroll is an entity that specifies the nature of processing that needs to be done.  There can be multiple payrolls in the Organization.  Example: Regular Payroll, Over Time Payroll, Bonus Payroll etc. Payroll is always attached to a Calendar, so that the actual dates of processing can be specified at a later point in time.  The need for multiple payrolls arises due to two main reasons.  The first is that an organization may choose to simultaneously run separate payrolls for different categories of employees such as Managers, Executives, Trainees and Workers.   The second reason is that payrolls are run at different points of time. For instance, one payroll is run weekly and the second payroll monthly, which means that these payrolls must be differentiated uniquely.

The Payroll Definition component is used to create, edit and view the payroll, payroll calendar and process period through the following activities that are briefly explained below.

Create payroll

This activity is used to add a new payroll and associate it to a payroll calendar.  Payroll is defined under a calendar.  Before defining a new payroll, the organization unit to which the payroll will be applicable must be specified. Hence the payroll is attached to the payroll calendar that is available under the organization unit.

Create payroll calendar

This activity is used to define a payroll calendar by a unique code and description. The organization unit group for which the payroll calendar will be applicable must be specified.  The length of time for which a payroll must be processed needs to be specified by mentioning the unit of time that the payroll calendar will use. Examples are hours, days, weeks, and months.  The payroll calendar is therefore one-time information, which controls the duration of all the process periods attached to it.

Create process period

This activity is used to create new process periods for a given payroll calendar.  When the process period details are saved, the system generates a unique process period code. You can automate the generation of process periods, and generate them in bulk.

Edit payroll

This activity is used to modify the description of a given payroll.  Through this activity, you can mark the payroll for deletion, if required, and carry out translations to other languages.

Edit payroll calendar

This activity is used to modify the description of a given payroll calendar details like the payroll calendar description, the mapping and unmapping of organizational units, the payment frequency.

Edit process period

This activity is used to edit the details of any process period. It includes process periods that were automatically generated in bulk. Additionally, you can delete a process period record.

View payroll

This activity is used to view the details of any selected payroll.  It is also possible to view the details of the payroll in any language that is listed in the “Language” drop-down list box.  The organization units to which the payroll is currently mapped can also be viewed, along with details of the mapping.

View payroll calendar

This activity is used to view the details of a specified payroll calendar. All information about the payroll calendar, such the period units associated to the payroll calendar, minimum units and maximum units, can be viewed. You can also view the details of the payroll calendar record in the other languages in which it is maintained.

View process period

This activity is used to view the most recently updated details of a process period record created in any of the available languages.  The details that can be viewed are the code, description, alias of the process period, payroll calendar to which it belongs, date range of the process period.

Set payroll parameters

This activity is used to set the parameters that will determine the functioning of the payroll business process.  These parameters can be categorized as General Payroll Parameters, Accounting Parameters, Interface with ARS, and Interface with Business Processes.

Getting familiar with the activities inside

The following table lists the activities involved in the employee payroll definition component.