Concepts of Payroll 072006

8/8/2019 Concepts of Payroll 072006

1/27

OnePurdue Initiative

Concepts of Payroll

in OnePurdueFacilitated by Rick Miller,

10:00 a.m. 12:00 p.m.Thu. July 20, 2006FRNY G140


2/27

Payroll General Information


3/27

3

Payroll OnePurdue TermsMaster Data

InfotypePayroll Area

Wage Type

Basic Pay

Off-Cycle Payroll


4/27

4

Wage TypesEverything from Gross to Net and more

PaymentsBasic Pay, Awards, Overloads, Overtime

ReductionsPretax items (medical, parking, SRA)

DeductionsTaxes, United Way, GarnishmentsAccumulators

Gross Income, Adjusted Gross Income, Net Income

Earnings (FIT, OASDI, HI, etc.)


5/27

5

Wage Type CharacteristicsPayment, deduction or accumulator

Employee GroupFrequency

Taxable/non-taxableProration

Processes/Calculations

Transfer to Finance


6/27

6

Payments

Basic Pay for Exempt Employees Salary, Administrative Adjustment, Sabbatical

Leave with Pay

Basic Pay for Non-exempt Employees Hourly Rate


7/27

7

Basic Pay Exempt Employee


8/27

8

Basic Pay Non-ExemptEmployee


9/27

9

Other Payments andDeductions

Examples Overloads, fellowships, awards, voluntary

deductions, United Way

Characteristics Frequency Pay Period Minimum/Maximum Amounts Employee Groupings Individual Employee Overrides


10/27

10

Other Payments andDeductions Recurring


11/27

11

Other Payments andDeductions One Time


12/27

12

Payroll Areas

Biweekly

Monthly

Academic Year


13/27

13

Academic Year

Regular Academic Year 10 Payments 1/18 End of August 1/9 End of Sept April 1/18 End of May

Summer Pay Paid at end of May, June, July and August Calculation of amount unchanged (Executive

Memorandum C-26 says 2.5% of academicyear annual salary = summer weekly salary)


14/27


15/27

15

Court Orders

Automated


16/27


17/27

17

Processing Payroll

Master DataTime Data Payroll RemunerationStatement

Transfer toAccounting

Payments toThird Parties


18/27

18

Prerequisites to PayrollPrerequisites Activities

Master andTime Data Work Schedules

Use Customizing to set up andgenerate work schedules

Dialog and time wage typesMake copies of model wage typesin wage type catalog to createcustomer wage types in customername range

Infotypes 0000, 0001, 0002,0006, 0007, 0008, 0009 andcountry-specific infotypes (such

as tax)

Use personnel actions to enteremployee data in the system

The Payroll processes otherinfotypes: 0014, 0015, 2001,2010, 2003, 2005

Administration Payroll areas and periodsSet up and generate usingCustomizing

Payroll control record Create using CustomizingSubsequentActivities

Bank master data, andinformation on house banks Usually set up by FI

Cost centersUsually set up by FI - links toorganizational units

Remuneration statements Retrieve standard form


19/27

19

Standard Factoring

Reduction in Pay

Joining or leaving the university within a pay periodUnpaid absencesPaid Absences

Partial Sabbatical payCalculation of pay for exact periods

Change in basic payChange in organizational assignment

Calculation of Cost Accounting Wage Types


20/27

20

Retroactivity

Date Driven

Always on

Positive and Negative

It works 100% of the time


21/27

21

Held Checks

No Held Checks


22/27

22

Special Checks

Why Late payments Early payments leaving country and university Awards

Replacement payments Year-to-date adjustments

When Once a week


23/27

23

Posting and Payroll Charges

Payroll Processing includes posting and

chargingInfotype 0027, 0014, 0015

Timing


24/27

24

Payroll Related Roles

Department Responsibility

Payroll Processor Role

Payroll Simulation Analyst Role

Special Processor Role

Tax Administrator Role

Payroll Administrator RolePayroll Manager Role


25/27

25

Resources

To learn more about Enterprise and

Personnel Structures, click to the followingURL:http://www.purdue.edu/onepurdue/resources/on

epurdue_hr_concepts_education_datalinks.shtml


26/27

26

Questions?


27/27

27

Evaluation of Session

An evaluation form is available at the following URL.

http://www.onepurdue.purdue.edu/resources/onepurdue_hr_concepts_education_datalinks.shtml

Please take a few minutes to complete the evaluation form

and provide feedback about the session.Your feedback will be used to improve future Concepts sessions.

Thank you for participating!

Concepts of Payroll 072006

Documents

Transcript of Concepts of Payroll 072006