Oracle Fusion

HCM (UK)
Payroll Implementation and Functional Considerations

WHITE PAPER / JANUARY 31, 2020

PURPOSE STATEMENT
This document provides an overview of features and enhancements included in release 13. It is intended
solely to help you assess the business benefits of upgrading and to plan your I.T. projects.

DISCLAIMER
This document in any form, software or printed matter, contains proprietary information that is the exclusive
property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions
of your Oracle software license and service agreement, which has been executed and with which you agree
to comply. This document and information contained herein may not be disclosed, copied, reproduced or
distributed to anyone outside Oracle without prior written consent of Oracle. This document is not part of
your license agreement nor can it be incorporated into any contractual agreement with Oracle or its
subsidiaries or affiliates.

This document is for informational purposes only and is intended solely to assist you in planning for the
implementation and upgrade of the product features described. It is not a commitment to deliver any
material, code, or functionality, and should not be relied upon in making purchasing decisions. The
development, release, and timing of any features or functionality described in this document remains at the
sole discretion of Oracle.

Due to the nature of the product architecture, it may not be possible to safely include all features described
in this document without risking significant destabilization of the code.

2 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
TABLE OF CONTENTS

Purpose Statement ......................................................................................2

Introduction ..................................................................................................8

Other Information Sources ........................................................................................................... 8

Payroll Data ...............................................................................................10

Person and Employment Payroll Data ....................................................................................... 10

Payroll Relationships and Assignments ..................................................................................... 10

Calculation Cards ...................................................................................................................... 10

Statutory Deductions Calculation Card ......................................................11

Associating the Statutory Deductions Calculation Card to a TRU .............................................. 12

Associating a PAYE Component to an Earning or a Set of Earnings ......................................... 13

Associating an NI Component to an Earning or a Set of Earnings............................................. 13

Statutory Deductions Card – Reporting to New PAYE Reference ............................................. 18

National Insurance Calculation .................................................................................................. 18

National Insurance Deductions .................................................................................................. 19

Legislative Repository for Deduction Information....................................................................... 20

Tax Calculation .......................................................................................................................... 21

Tax Deductions .......................................................................................................................... 22

Legislative Repository for Deduction Information....................................................................... 22

Elements ....................................................................................................24

Element Classifications .............................................................................................................. 24

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Element Templates ....................................................................................28

Availability of Element Template Functionality Based on Product

License ...................................................................................................................................... 28

Process Configuration Groups ...................................................................28

Salary Basis and Additional Allowance Elements ...................................................................... 29

Proration .................................................................................................................................... 30

Balances ....................................................................................................32

Balance Types ........................................................................................................................... 33

Balances and Statement of Earnings ......................................................................................... 35

Payroll Setup .............................................................................................38

Payments Setup ........................................................................................................................ 38

Payroll Definitions ...................................................................................................................... 41

Hire an Employee and Run Payroll: Worked Example ...............................44

Hire an Employee ...................................................................................................................... 44

Pensions Automatic Enrolment Multiple Updates

Process ......................................................................................................48

Employee Notification Letters .................................................................................................... 50

Payroll Validation Archive Report...............................................................53

Run Payroll and Review Results ................................................................................................ 54

Payroll Run ................................................................................................................................ 54

Review Payroll Results .............................................................................................................. 55

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Required Post-Payroll Processes ..............................................................56

Calculate Prepayments .............................................................................................................. 56

Archive Periodic Payroll Results ................................................................................................ 57

Payments Processing and Payslip .............................................................59

Payments Processing ................................................................................................................ 59

Generate Cheque Payments .....................................................................62

Payslip .......................................................................................................64

Configuring the Payslip to Show Hours...................................................................................... 66

Employer Payment Summary Process ...................................................................................... 68

Full Payment Submission Process Incorporating EYU

process from 2019-2020 ............................................................................75

Balances .................................................................................................................................... 75

Full Payment Submission (FPS) Breakdown to Smaller Files.................................................... 77

Differences between EYU and FPS style files ........................................................................... 79

Process Execution ..................................................................................................................... 79

Retry FPS Process .................................................................................................................... 83

Retry FPS for Errored Records .................................................................................................. 83

Retry FPS for Completed Records ............................................................................................ 84

Full Payment Submission (FPS) and HMRC Submission Deadlines ......................................... 85

FPS Process Updates Employee Calculation Card when there is a

payment after the P45 is issued ................................................................................................. 85

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NINO Verification Request Process ...........................................................87

Incoming XML Messages Retrieval Process..............................................90

HMRC Incoming Data Retrieval Process ...................................................92

Load HMRC XML File Process ..................................................................95

Outgoing XML Messages Submission to HMRC

Process ......................................................................................................97

HMRC File Submission Process ..............................................................100

P11D XML Submission ............................................................................109

HMRC FILE submission and Retrieval Processes

using a Third Party ...................................................................................110

P45 Generation ........................................................................................111

Start of Year Flows and NI Category Update ...........................................115

Tax Code Uplift ........................................................................................118

NI Category Update Archive Process ......................................................121

End of Year Flows: P60 Generation.........................................................124

P60 Selective Print...................................................................................126

P11D Generation .....................................................................................129

Access P60 (and P11D) Direct End-of-Year ............................................130

Gender Pay Gap Report ..........................................................................131

Statutory Deductions Balance Adjustments .............................................134

Assumptions ............................................................................................................................ 134

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 Prerequisites ............................................................................................................................ 134

Creating Balance Adjustments................................................................................................. 134

Elements Used ........................................................................................................................ 135

Rolling Back Balance Adjustments .......................................................................................... 139

Creating New Flows based on Predefined Flows for the UK ................................................... 139

Element Allocation ...................................................................................140

Setting up Element Allocation .................................................................................................. 140

Assigning the Time Definition to Elements............................................................................... 141

Assigning Balance Dimension to Balances .............................................................................. 142

Element Allocation Formula (Example) .................................................................................... 142

Element Allocation – Frequently Asked Questions .................................................................. 143

HDL to Load Data in Repository of Calculation

Information ...............................................................................................145

Common Lookups Customization Level...................................................146

Late Hire and Calculation of the National Insurance

Deduction .................................................................................................147

Costing the NI Employee Element at the Payroll Level ............................150

Conclusion ...............................................................................................151

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INTRODUCTION

This paper identifies and describes payroll setup tasks for Oracle Fusion Human Capital Management (HCM)
for the United Kingdom (UK). Using this whitepaper, the implementation team can understand and setup these:

» UK-specific payroll data that needs to be provided.

» UK Statutory Deductions calculations and set up needed at implementation level.
» UK-specific predefined balances and how these can be fed by customer specific elements.
» The base set up that needs to be done to execute a UK payroll and prepare the payment file and payslip.
» The post-payroll processes that can be executed for the UK.
» UK predefined setup for Statement of Earnings (SOE) online results viewing and impact on customer created
balances.
» UK predefined process for Start of Year, Tax Code Uplift, and P6/P6B/P9 processing, EAS, FPS and EPS

Flexfields described in this document are Developer Descriptive Flexfields (DDF) that must not be customized
at an implementation level. Customer Descriptive Flexfields (DFF) are the fields delivered by the product that
are meant to be used for customization during implementation.

This documentation may also be beneficial to end users who run application processes after implementation.

This document should not be considered a comprehensive guide for payroll implementations. The focus of this
document is UK-specific processes and information. For information about generic tasks, the implementation
team should refer to the documentation listed in the Other Information Sources.

Before running payroll for the UK, Human Resources needs to be implemented for the country itself. For this
task refer to the HR Implementation and Functional Considerations whitepaper.

Other Information Sources

Oracle Fusion Workforce Deployment Implementation Guide:

http://docs.oracle.com/cd/E28271_01/fusionapps.1111/e20379/toc.htm

Oracle Fusion HCM (UK): HR Implementation and Functional Considerations Guide:

https://support.oracle.com/epmos/faces/DocumentDisplay?id=1531728.1

Oracle Fusion Global Payroll User Guide:

http://www.oracle.com/technetwork/fusion-apps/payrolluserguider4-1873385.pdf

Document Updates

This document is based on the most current application release as of the document’s publication date. Content is updated as
needed only to reflect major changes to existing features or when significant new features are added to the UK localization.

8 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
For this reason, it is possible that some minor UI differences may exist between the version being implemented and the
version described in this document.

9 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
PAYROLL DATA

Person and Employment Payroll Data

For a person to be processed in payroll a payroll relationship must be defined for the same. This section describes specific
requirements for the UK in terms of payroll relationships including the UK-specific information needed for payroll that must be
captured in the employment and payroll relationship data structures.

Payroll Relationships and Assignments

Payroll Relationship represents the relationship of the person with the payroll statutory unit (PSU). This varies from country to
country, but essentially no balance aggregation is performed above this level for a person.

Each country defines the person types for which a payroll relationship is created. In general, to be processed in payroll, a
person must have a person type of Employee, Contingent Worker or Beneficiary.

In the UK, the payroll relationship type of Standard is used for person types Employee, Pensioner, Volunteer and Non-Worker
paid.

The payroll relationship type of Element Entries Only is created for person types of Non-Worker Unpaid, Pending Worker,
Pending Worker as Contingent worker, Pending Worker as Employee, and Contingent Worker.

For the UK, a single payroll relationship is created per relationship type. In the case of rehire, the employee is treated as a
new employee and gets a new payroll relationship. However, in the case that a person is hired the day after their previous
termination date, the previous payroll relationship is used for the new work relationship. This is useful in the case of fixed term
contract employees having back to back periods of service, where they effectively have not left employment.

For the UK, the payroll relationship rule Continuous (C) is predefined.
Note: You can find the predefined data for legislation rules in the Oracle_Fusion_HRMS_UK_Payroll_Data.xls on My
Oracle Support (MOS).
UK has a requirement to handle multiple assignments within a legal employer. A person may have multiple assignments
within different assignments. Possible valid combinations are:
» 1 Payroll Relationship – 1 Assignment
» 1 Payroll Relationship – n Assignments
National Insurance (NI) deductions are calculated at the NI component level. Earnings related to National Insurance are
considered at the assignment-level, but only for those earnings associated to the particular NI category.

There is no UK-specific data capture at the payroll relationship level.

CONTRACT DATA

There is no UK-specific data capture at the contract level.

Calculation Cards
Calculation cards functionality is used to capture data needed for payroll processing that cannot be captured in global fields.
These cards are used to capture data at the organization level as well as the employment level.

The UK localization provides no predefined cards at PSU or tax reporting unit (TRU) levels.

At the person level, there is one predefined card which is the Statutory Deductions calculation card.

The flexfield structure used to store information entered in the calculation cards is described in
Oracle_Fusion_HRMS_UK_Payroll_Data.xls on My Oracle Support (MOS).

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STATUTORY DEDUCTIONS CALCULATION CARD

One Statutory Deductions calculation card must be created for each employee, and for each TRU to which the employer
reports that employee’s data. For instance, if an employee reports to two distinct TRUs, then two Statutory Deductions
Calculation cards are required, one for each TRU.
Note: On any effective date, there cannot be more than one Statutory Deductions calculation cards for the same
payroll relationship associated to the same TRU.
The Statutory Deductions calculation card has three deduction components:

1. Aggregation Information

This component records the NI aggregation information for this payroll relationship and TRU card
combination, for the employee. This information is not specific to any NI category that the employee uses.

This component corresponds to the Tax and NI payroll deduction element, defined at the legislative level.
When a person is given a Statutory Deductions calculation card, the Aggregation Information calculation
component will create a corresponding element entry for the employee, to process the Statutory Deductions
for the card.

Additional Statutory Deductions calculation cards for the same employee (for different TRUs) will create
additional element entries for the employee.

Additional data is held in the component details within the flexfield structure
HRX_GB_AGGREGATION_INFO. See the UK Payroll Data.xls document for details (MOS).

2. NI

This component records to which NI category or categories this payroll relationship and TRU combination
may contribute.

Within this component you must record the NI category (for example NI A), and the Pension Basis (for
example Not Contracted Out). This is the only data to be captured for the NI category.

This data is captured at the component level. There is no data captured at the Component Details level.

You can set up additional NI categories if the employee contributes to more than one NI category.

3. Taxes (PAYE)

This component records data relating to the deduction of PAYE for the employee and TRU card
combination.

The PAYE component defines the calculation breakdown level for payroll processing. Thus, if a person has
more than one PAYE component, a separate gross-to-net calculation will be executed for each one, and
hence a separate payslip will be issued as well.

The Reference for the PAYE component is the HMRC Payroll ID. This is the unique identifier that you use to
identify this employment relationship with HMRC and id used in RTI reporting. It is generated automatically
and cannot be edited. There are several benefits to identifying the employment using the HMRC Payroll ID:

1. This is a system generated value and cannot be changed

2. This value is unique, no other person or employment will have this HMRC Payroll ID

3. This value is in the incoming P6/P9 data set, and is used to identify the employment

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 If an employee has more than one tax code, in which case not all taxes are aggregated together for tax
calculation purposes, then you can create more PAYE components, each identified with its own unique
HMRC Payroll ID.

The Calculation Card Components Details records further information for this PAYE component, for instance
the Tax Code (for example 785L) and the tax Basis (for example Cumulative).

Additional data is held in the component details within the flexfield structure HRX_GB_PAYE. See the UK
Payroll Data.xls document for details. (MOS)

4. If you are migrating an employee’s record to Oracle HCM, and the employee was both terminated and reported as
such in the legacy FPS submission, then these flexfield segments on the PAYE flex field must be populated:

– DATE_LEFT_REPORTED_HMRC: To hold the date already reported by the legacy FPS submission.
Fusion will report this termination date in any future FPS submissions as necessary.

– DATE_LEFT_FILED_PA: set to a notional value of -1.

Note: these fields should not be populated by data migration if Fusion FPS will be the first FPS reporting the
termination, in which case, the fusion FPS process will populate these field values.
5. Additional PAYE Component Details: There are additional Component Details under the PAYE component. These
are used to record:

– RTI Expatriate Notification within flex Structure: HRX_GB_EXPATRIATE

– RTI New Starter Information within flex Structure: HRX_GB_NEW_STARTER

– RTI Pension Notification within flex Structure: HRX_GB_PENSIONER

For more information, see the UK Payroll Data.xls document for details (MOS).

If you are migrating an employee’s record to Oracle HCM, rather than hiring a new employee, you do not need to create an
RTI New Starter flexfield structure, nor report this as a new starter to HMRC through the FPS.

To suppress the new starter declaration in the FPS (as it was submitted via a legacy system), set the following values in the
GB_PAYE component:
» EMPLOYMENT_FILED_HMRC (DIR_INFORMATION_CHAR21) = Y - This indicates the record is already filed with
HMRC. If you leave this blank, the FPS process will populate this when filing the employment with HMRC. If you roll back
that FPS, this record will revert to being blank.
» EMPLOYMENT_FILED_HMRC_PA (DIR_INFORMATION_NUMBER4) = -1.This indicates that the filing of the new starter
record cannot be rolled back (as it’s already filed via the legacy system). If you leave this blank, the FPS process will
populate this when filing the employment with HMRC. If you roll back that FPS, this record will revert to being blank.
»
During migration, the GB_PAYE field PREV_HMRC_PAYROLL_ID (DIR_INFORMATION_CHAR20) is used to hold the
previous HMRC Payroll ID as defined by the legacy system. This value is sent to HMRC through the first FPS, when the FPS
is submitted with the setting Report HMRC Payroll ID Migration Change. This is sent to ensure that the new and the old
HMRC Payroll IDs are associated by HMRC to identify the same employment record. It is important to note that you can only
load this value into the flexfield using the HDL.
Note: There are other flex structures available, which were relevant before RTI was implemented. These old
structures are disabled and should not be used.

Associating the Statutory Deductions Calculation Card to a TRU

You must indicate the TRU to which all the components calculated within the Statutory Deductions calculation card will report.

12 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
To associate the Statutory Deductions calculation card to a TRU, use the Associations link in the Calculation Card Overview
pane. Associate the card to the TRU, and specify the correct Effective Date.

Associating a PAYE Component to an Earning or a Set of Earnings

You must indicate which of the employee’s earnings are to be reported, and to which PAYE component. Do this using the
Associations link in the Calculation Card Overview pane. Use the Association Details to associate an assignment (or Term, if
you are using the 3 tier model), and therefore all earnings associated to that assignment or term, with a PAYE component.

Add as many rows as there are distinct assignments whose earnings should be considered when calculating tax for this PAYE
component.

If the employee has more than one PAYE component under this Statutory Deductions calculation card, add additional rows to
indicate which assignments should be considered for these additional PAYE components.

All assignments that are attached to the same PAYE component will be aggregated for tax; in this way both aggregated and
non-aggregated PAYE deductions are supported.

Note: You cannot associate the same earnings at the same effective date, with more than one PAYE component.

Associating an NI Component to an Earning or a Set of Earnings

You must indicate which of the employee’s earnings are subject to which NI Calculation Component. The NI Calculation
component defines the NI Category, so effectively you are indicating which earnings are subject to which NI category.

Do this using the Associations link in the Calculation Card Overview pane. Use the Association Details to associate a Term
(and therefore all earnings associated to that term or assignments under that term) with a NI Calculation Component.

The NI Calculation component is identified by both its NI Category and its Pension Basis attributes.

Add as many rows as there are distinct assignments whose earnings should be considered when calculating National
Insurance for this NI Calculation component.

If the employee has more than one calculation component (NI Category and Pension Basis) under this Statutory Deductions
calculation card, add additional rows to indicate which assignments should be considered for these additional calculation
components.

Note: You cannot associate the same earnings at the same effective date, with more than one NI component. You cannot
associate two assignments to two different NI categories, if those assignments belong to the same assignments, because the
actual relationship to the NI category is from the term, not the assignment.

To enter this information:

1. Sign in to the Oracle Fusion application using a role that has the profile of a payroll manager:

2. Select My Client Groups -> Payroll from the Navigator.

3. Select Manage Calculation Cards:

13 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 4. Search for the person, as at the correct affective date.

5. Search for the ‘Statutory Deductions’ card, as at the correct effective date, and click on the statutory Deductions link.
Note: If no card exists, create the Statutory Deductions calculation card manually.
6. Enter the basic details for the TRU, PAYE and NI information:

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 7. To enter additional National Insurance information, click on the National Insurance Link:

15 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 Note: There are no further details associated to this NI component. When loading historic data, if the NI Category is
such that a SCON is required, then the SCON should be loaded into the record, date effectively, for the whole tax
year.
8. To record which assignments are associated with this NI category, click Add on the assignments area and add all the
required assignment associations.
9. Save your work. Go back to the Statutory Deductions Page, and Click the Pay as You Earn link. Add any additional
information here. There are several sections of data:
Basic Info:

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 Reporting Data:

P45 Information:

Filing Status:

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 Assignments:

10. To record which assignments are associated with this NI category, click Add on the assignments area and add all the
required assignment associations. Save your work.

Note: There may be more than one PAYE card component, and more than one NI Category. Ensure each
assignment (and therefore all its earnings) are associated to both one PAYE component, and one NI category as
at any one effective date.

Statutory Deductions Card – Reporting to New PAYE Reference

It may happen that HMRC instructs you to start reporting some of your employee population under a new PAYE Scheme
reference from the next tax year.

You cannot update a calculation card to associate it to a different TRU. So, you must:

» Create a new TRU referring to the new PAYE reference

» Date effectively end date the association of the assignments from the original card.
» Date effectively associate the assignments to the new card.
This triggers a P45 from the old TRU.

However, if HMRC instructs that you to report all of your employees that are currently reported under one PAYE reference to
another PAYE reference from the start of the next tax year, then you can update the TRU’s registration information, effective
from the start of the tax year.

National Insurance Calculation

National Insurance (NI) is paid by most employees in the UK up to state pension age.

The deduction is based on the person’s earnings for National Insurance purposes. This is calculated and held in the balance
‘NIable Pay’.

Non Self-employed employees pay Class 1 National Insurance Contributions. The deduction is calculated in bands, these
being:

» Lower Earnings Limit (LEL)

» No contribution due on earnings below this limit
» Primary Threshold (PT)
» Currently no contribution is due on earnings between the LEL and the PT
» Upper Accrual Point (UAP)
» Currently earnings between the PT and the UAP are subject to deductions

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» Upper Earnings Limit (UEL)
» Currently employee’s earnings between the UAP and the UEL are subject to deductions
» Above Upper Earnings limit
» Currently these earnings are subject to deductions, depending upon the NI category.

Employers also pay NI contributions, and these are in similar bands:

» Lower Earnings Limit (LEL)

» No contribution due on earnings below this limit
» Secondary Threshold (ST)
» No contribution due on earnings below this limit
» Upper Accrual Point (UAP)
» Currently earnings between the ST and the UAP are subject to deductions
» Currently earnings between the UAP and the UEL are subject to deductions
» Above Upper Earnings limit
» Currently these earnings are subject to deductions.
Note: Additionally, NI contribution rebates are given, depending upon the NI category and earnings bands.

There are variances in the deduction rate for different NI categories, and rebates of contributions for some categories.

The application will calculate the earnings in each band, for both employer and employee, and the deduction due from each
component band. All these values are recorded in run results and balances against the employee.

There are many component formulas that constitute the NI and PAYE calculation. The primary formula that initiates the
calculation is NI AutoIndirect.

If necessary, these formulas and the associated NI band values are updated by the UK localization team in response to the
statutory or budgetary changes.

See the UK Payroll Data on My Oracle Support (MOS) for all the predefined balances in the application.

National Insurance Deductions

The National Insurance contribution is calculated through the deduction group National Insurance that is part of deduction
group Social Insurance (National Insurance). Calculations are done through the element Tax and NI.

To view details on deduction groups, deductions and elements:

1. Sign in to the Oracle Fusion application using a role and navigate to Setup and Maintenance.

2. Search for and open the Payroll Calculation Information task:

3. Search for the short name : GB_NI

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 4. Search for the short name: GB_PAYE to see similar PAYE information.

Legislative Repository for Deduction Information

Parameters used in the calculation of National Insurance are stored in the legislative repository for deduction information.
These parameters are predefined by the UK localization and cannot be modified in the implementation phase.

To view predefined parameters:

1. Expand Related elements -> Tax and NI -> Calculation Factors

20 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 2. Click on the Range Values. Details of the calculation factors are displayed:

Note: the actual values for the employee’s payroll relationship for this range item are calculated during the payroll run.

Tax Calculation
The tax component in the UK is referred to as PAYE (Pay As You Earn).

The deduction is based on the person’s earnings for tax purposes. This is calculated and held in the balance ‘Taxable Pay’.
(There are also balances for Post P45 taxable pay and Share Related Taxable Pay).
Note: These bands and values vary over time and with budget or other government announcements; Fusion
applications will update the values to be consistent with the legislation.
Some allowances are given to employees, to exempt some of their earnings from tax, for example a personal allowance. This
is converted to a tax code by HMRC, and is stored in the PAYE component as the Tax Code on the Statutory Deductions
calculation card.

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An employment may be either taxed on a Cumulative basis, or a non-cumulative basis.

A cumulative basis means that tax is calculated taking into account the whole tax year’s earnings, personal allowance and
payments made to date in the tax year.

A non-cumulative basis is also referred to as a Week 1 / Month 1 basis, and this means that the tax is calculated as if it were
the first period in the tax year, but based on the earnings for this pay period.

Tax Deductions
The Tax deduction is calculated through the deduction group Taxes. Calculations are initiated through the element Tax and
NI. To view details on deduction groups, deductions and elements:

1. Sign in to the Oracle Fusion application using a role and navigate to Setup and Maintenance.

2. Search for and open the Payroll Calculation Information task:

3. Search for the short name : GB_PAYE

Legislative Repository for Deduction Information

The parameters used in the calculation of PAYE are stored in the legislative repository for deduction information. These
parameters are predefined by the UK localization and cannot be modified in the implementation phase.

To view predefined parameters:

1. Expand Related elements -> PAYE -> Calculation Factors

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.

2. By clicking on Range Values, details of the calculation factors are displayed:

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ELEMENTS

Elements are the building blocks of payroll and benefits. There is no limit to the number of elements that can be defined.
Policies or business rules that govern the allocation of these elements to workers can be specified at the element level.

Elements can represent:

» Earnings, such as salary, wages, and bonuses

» Compensation, such as employee stock purchase and insurance plans
» Absences from work
» Tangible items distributed to persons, such as tools, uniforms, mobile phones, or computers
» Statutory deductions, such as employee taxes and social insurance (National Insurance)
» Voluntary deductions, such as loans
» Involuntary deductions, such as court orders, as well as pre-tax deductions
» Employer taxes and other employer liabilities
Elements are grouped into primary classifications, such as Earnings and Voluntary Deductions. In a human resources
department, you can use the primary classifications to identify groups of elements for information and analysis purposes. In a
payroll department, the classifications control processing, including the sequence in which elements are processed and the
balances they feed.

Oracle Fusion supplies many predefined elements (that cannot be modified at the implementation level), while additional
elements can be generated, defining certain types of compensation and payroll elements through templates.

Element templates include the elements, balances, balance feeds, and formulas required for payroll processing. Templates
have various rules associated with them which will be used to create data based on certain criteria. The template engine will
get the values for the rules from the template and process the predefined template structure to create appropriate data that is
required.

Element Classifications
Global Payroll has defined a set of primary classifications and the UK localization has selected the ones that are applicable for
the country.

Additionally a set of secondary classifications and subclassifications have been defined specifically by the localization.

» Secondary classifications are used in the element template process to drive the questionnaire and also to create the
element with the needed characteristics.
» Subclassifications are used to control balance feeds and identify a subtype of the particular classification.
All the classifications predefined for the UK are listed in the Oracle_Fusion_HRMS_UK_Payroll_Data.xls on My Oracle
Support (MOS)

PRIMARY CLASSIFICATIONS

The following primary classifications are enabled for the UK localization:

» Information
» Balance Initialization
» Direct Payments
» Employer Charges
» Employer Taxes
» Involuntary Deductions
» Pre-Statutory Deductions :

24 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 » Note: To Benefit from the delivered functionality, use the seeded secondary classifications when creating elements
of this type:
o Additional Pension contributions Pre-Statutory
o Pension Plan Pre-Statutory
» National Insurance Deductions
» Regular Earnings
» Irregular Earnings
» PAYE Deductions
» Voluntary Deductions
» Note: To Benefit from the delivered functionality, use the seeded secondary classifications when creating elements
of this type:
o Additional Pension contributions After Tax
o Pension Plan After Tax.
» Taxable Benefits in Kind :
» Note: Use the seeded elements only, for P11D processing.
» Absences
In the implementation phase, when creating an element through element template functionality, you are prompted to select
the primary classification for that element and this drives the questionnaire to use and also the characteristics of the element
that will be created.

Note: When processing Irregular Earnings for an employee who has already been terminated, the NI calculation basis for NI
Employee calculations will always be processed as a weekly earnings period.

SECONDARY CLASSIFICATIONS

Secondary classifications are connected to primary classifications.

SUBCLASSIFICATIONS

You can see the sub-classifications defined in the document : Oracle_Fusion_HRMS_UK_Payroll_Data.xls on My Oracle
Support (MOS). The document states whether or not the sub-classification is automatically created for an element that has it’s
primary classification. If a sub-classification is not created by default for your element:

1. Navigate to Setup and Maintenance -> Elements. Search for your element and click on the link to open it.

2. Navigate to Subclassification Rules, and add the sub-classifications required.

3. Save your changes

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REVIEWING CLASSIFICATIONS

1. Navigate to Setup and Maintenance -> Element Classifications.

2. Select the appropriate Legislative Data Group (LDG) and view all the primary classifications defined for the legislation
connected to the selected legislative data group.

3. Select a specific classification to view secondary classifications and subclassifications defined for the primary
classification. E.g. here is the Regular Earnings sub-classifications:

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27 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
ELEMENT TEMPLATES

There are no UK-specific element templates available currently.

Availability of Element Template Functionality Based on Product License

The availability of features in element templates depends on the type of license you have.

HR-Only: As an HR-only customer, you get access to the basic version of the element templates. You use these templates
create the element and you must create the input values, formulas, balances to meet your business requirements.

Payroll Interface: As a payroll interface customer, you get access to a number of payroll features not available to an HR-only
customer. This includes access to the full earnings element that will create the element, input values, formulas, balances.
These earnings elements can be processed through the calculation to Gross process which is also available to Payroll
Interface customers. Any other type of element, such as deductions, is created using the basic version of the element
templates and you must create the input values, formulas, balances.

Payroll: A payroll customer gets access to the full set of earning and deduction templates. These templates create the
element, input values, formulas, balances.

Note: If you want to use an element in the payroll process, then the element must be created after the payroll license is set.
This creates the full set of data needed for payroll processing, such as element definition, input values, balances, formulas. If
payroll license is set after the element is created the above data will not be created.

Following is the process to set up licenses:

1. Navigate to Setup and Maintenance -> Define features by Country or Territory, Search for the GB legislation code.

2. Select Payroll License to decide Payroll License parameter name and edit it. Change the appropriate license value.
You can enter following values:

• Human Resources on None – This must be set when the customer is having an HR only license.

• Payroll Interface - This must be set when the customer is having HR only and payroll interface license.

• Payroll – This must be set when the customer is having both HR and Payroll licenses.

PROCESS CONFIGURATION GROUPS

Use these when submitting a payroll flow or report.
1. Login as a user with payroll Administrator rights

2. Navigate to Setup and Maintenance -> Manage Payroll Process Configuration.

3. Create a Configuration Group that suites your needs for your processing, and enter the appropriate over ride values:

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 4. Save your work.

Salary Basis and Additional Allowance Elements

Earnings, such as salary basis and compensation elements can be created using templates.

The following steps show how to create a regular earnings element for basic salary.

1. Navigate to Setup and Maintenance -> Manage elements.

2. On the Create Element window, select the LDG and a primary classification. Click Continue:

3. Complete the fields at the top of the Create Element page, and then click Next through all the pages to answer all the
questions. Verify the information and click Submit to create the new element:

4. On the Element Summary page, provide additional information as needed, such as input values, processing rules. It is
very important to create eligibility for your element. To do this, Highlight Element Eligibility in the Navigator, and
Actions->Create element eligibility. Enter an eligibility name, and save your work:

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 5. Repeat this process to create a set of elements to support your business needs. For example, you might create
another element for an additional allowance. Use the Element Overview panel to navigate through the setup pages.

CREATION OF ELEMENT ELIGIBILITY

Note: Eligibility must also be created for the predefined for the Tax and NI element, as well as any other created elements.

Proration
In scenarios where an employee has a mid-period change, for example, changing earnings or the start or end of employment
period during a month, a set of elements must be prorated.

PRORATING EARNINGS

When creating an element through element template you must consider if the element must be prorated for mid-period events.
The behavior of the element is managed in the first stage by answering the question related to proration contained in the
questionnaire.

» If you select No, mid-period changes will not affect the calculated value of the element.
» If you select Yes, the template prompts you to enter the Proration Group. The mid-period changes may now potentially
affect the calculated value of the element.
For elements enabled for proration the template associates by default the global standard proration formula:

Proration formula GLB_EARN_PRORATION uses natural day’s proration. For example, in case of hire or termination in the
course of the month, it uses as proration factor:

» Employment days in the period or calendar days in the period

To meet different business requirements, implementation teams can create your own specific proration formula and attach it
to the elements that follow these business requirements.

The events that trigger the proration calculation are identified through the selected proration group.

1. Log in with a Payroll Manager role to Setup and Maintenance, Navigate to the Manage Payroll Event Groups

2. Search for and select your LDG. This shows the display for the Entry Changes for Proration event group:

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 3. View the changes that trigger proration. No specific event group is predefined for the UK. Additional event groups can
be added during implementation, if required.

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BALANCES

Payroll balances show the accumulation of values over a period of time. The values can be currency, hours, or any other
numeric value. Most of the required balances are predefined and additional balances are created automatically when creating
elements. Implementation teams can edit the definition of these generated balances, or create additional balances for
calculations or reporting.

When a balance definition (balance type) is created, balance category and a unit of measure can be selected. Each balance
definition is grouped in a predefined balance category for quicker processing. Balance categories are legislation-specific and
cannot be modified.

Each balance can have multiple dimensions, which define the specific value to be retrieved. Balance dimensions are
predefined and typically combine these components:

» Time span, such as run, period to date, or fiscal year to date

» Employment relationship level, either assignment, or payroll relationship
» Context, required for some balances only, such as TRU, element, or payroll
When a specific balance dimension is linked to a balance type, this results in creating a defined balance. The value assigned
to a balance during processing is determined by balance feeds defined for the balance.

The balance feeds are classified as follows:

» Balance Feeds by Element: Indicates one or more element input values to add or subtract from a balance. If a balance is
fed by a single element, it is called a primary balance.
» Balance Feeds by Classification: Indicates that all elements belonging to a specific classification will feed that balance.
Any type of classification can be used to feed the balance but it is to be remarked that if a primary classification is added as
a balance feed, the children of this classification from the secondary or subclassifications cannot be added. Also, you
cannot use both secondary classifications and subclassifications in the same balance feed.
Balances are important for reporting because in most of the reports balances represent the values that are displayed in the
output. Balances can be aggregated (through balance attributes) in balance groups and balance groups are the entities that
are used by payroll reports to identify the balances to be included in specific sections of the report.

A set of balance definitions are provided by global payroll, but localizations have a predefined set of definitions in addition to
global data.

The predefined data for the UK relates to the following balance definitions:

» Balance Categories (enabling of global categories)

» Balance Types
» Balance Dimensions and Usages (enabling of global dimensions)
» Defined Balances
» Balance Groups and Attributes

PREDEFINED BALANCES DEFINITIONS FOR THE UK

This section describes the predefined balance definitions for the UK and related tasks for implementation.

You can find a detailed list of balances definitions predefined for the UK in the UK balances spreadsheet on My Oracle
Support (MOS).

BALANCE CATEGORIES

The following global categories are enabled for the UK:

You can find a detailed list of balances definitions predefined for the UK in the UK balances spreadsheet on My Oracle
Support (MOS).

32 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
Note: When creating a new balance in implementation phase, it must be associated to one of the predefined categories and
categories cannot be added or modified in implementation phase.

Balance Types
The balance types predefined by UK localization are listed in the UK Balances Spreadsheet: on My Oracle Support (MOS).

This section describes the balances that affect payroll calculation and that are likely to be fed by elements created in the
implementation phase.

A separate section is dedicated to the net pay balance due to its impact on the payment process.

GROSS

The Balance Gross Earnings collects all the gross earnings applicable for the UK and is fed by 2 primary classifications:

» Regular Earnings
» Irregular Earnings
All elements created at the implementation level with these primary classifications feed this balance.

SOCIAL INSURANCE (NATIONAL INSURANCE)

The Balance Subject to Social Insurance collects all the earnings that are liable to Social Insurance and fed by
subclassification Subject to Social Insurance. This subclassification is associated by default to earnings with primary
classification Standard Earnings and Information and so all elements created in the implementation phase with these primary
classifications feeds this balance.

NET PAY BALANCE

A net pay balance, named Net Pay, is predefined for the UK, and no additional setup is required during the implementation
phase.

To view the Nat Pay balance:

1. Login to Setup and Maintenance, Manage Balances, and search within your LDG.

2. Click on e.g. Net Pay to see the feeds:

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BALANCE DIMENSIONS AND DEFINED BALANCES

The balance dimensions enabled for the UK are listed in the UK Balances Spreadsheet on My Oracle Support (MOS).

As per employment model, balances are maintained at all four levels, that is:

» Payroll Relationship
» Payroll Terms
» Payroll Assignment
» Group levels
The only dimensions that can be selected when creating a balance in the implementation phase are dimensions enabled by
UK localization.

Combining balance types and enabled dimensions, a set of defined balances are delivered for the UK (listed in the UK
Balances Spreadsheet on My Oracle Support (MOS).

BALANCE GROUPS AND ATTRIBUTES

The Balance Groups group balances together. In the UK localization, they are used mainly for reporting or online viewing
purposes, to identify balances that must be considered in specific sections. The way these balance groups are used in
specific features, such as Statement of Earnings (SOE) are detailed in the sections describing the features in detail.
The connection between defined balances and balance groups is managed through balance attributes.

34 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
The balance attributes can either be:
» Created automatically through a defaulting mechanism depending on balance category and dimension
» Predefined by localization
The UK Balances spreadsheet and the UK Payroll Data spreadsheet contain information on:

» Defaulting criteria
» Attributes predefined by UK localization
When a balance that meets defaulting criteria is created in implementation phase the related attribute is automatically
associated to the defined balance.

Defaulting criteria and attributes cannot be added or modified in the implementation phase.

Balance Groups can be restricted for a specific localization, so that only balances of certain dimensions or categories are
associated with a Balance Group. This is done through data that is predefined in the Pay Balance Usage Items table.

Balances and Statement of Earnings

The online Statement of Earnings (SOE) is a feature within payroll that allows the end-user to view all the relevant
information for an individual employee payroll run or a prepayment in a single place so that the results can be easily viewed
and verified.

This typically covers personal information, employment information, payroll information, absence information, run results,
messages and balances.

The SOE feature is part of the global product and has been customized to meet country specific requirements.

The scope of this document is not to describe overall usage of the feature but to explain:

» Criteria that drives the inclusion of specific balances in certain sections (the ones that contain balances results) of the SOE
» Predefined data for the SOE for the UK localization
» How you can include user-defined balances in SOE

STATEMENT OF EARNINGS SECTIONS AND RELATED BALANCES

Payroll results are displayed in the SOE in several sections.

The following are the sections populated by balance results and for each section the balance groups and related attributes
connected to the section are listed.

QUICK REFERENCE SUMMARY

This section is additionally split, the following two contain data retrieved from balance results:
» Gross to Net: This tab includes results for balances (defined balances) connected to balance group:
GLB_SUMMARY_GROSS_TO_NET_BALANCE_GROUP that is connected to attribute
GLB_SUMMARY_GROSS_TO_NET_ATTRIBUTE
» Information: This tab includes results for defined balances connected to balance group:
GLB_SUMMARY_INFORMATION_BALANCE_GROUP that is connected to attribute
GLB_SUMMARY_INFORMATION_ATTRIBUTE

EARNINGS

This section includes results for defined balances connected to balance group: GLB_SOE_EARNINGS_BALANCE_GROUP
that is connected to attributes:

» GLB_EARNINGS_ATTRIBUTE
» GLB_SUPPLEMENTAL_EARNINGS_ATTRIBUTE

35 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
» GLB_TAXABLE_BENEFITS_ATTRIBUTE

DEDUCTIONS

This section includes results for defined balances connected to balance group: GLB_DEDUCTIONS_BALANCE_GROUP that
is connected to attributes:
» GLB_PRE_STAT_DEDUCTIONS_ATTRIBUTE
» GLB_INVOLUNTARY_DEDUCTIONS_ATTRIBUTE
» GLB_VOLUNTARY_DEDUCTIONS_ATTRIBUTE
» GLB_TAX_DEDUCTIONS_ATTRIBUTE
» GLB_SOCIAL_INSURANCE_DEDUCTIONS_ATTRIBUTE

INFORMATION

This section includes results for defined balances connected to balance group: GLB_INFORMATION_BALANCE_GROUP
that is connected to attribute GLB_INFORMATION_ATTRIBUTE

EMPLOYER CONTRIBUTIONS

This section includes results for defined balances connected to balance group:
GLB_SOE_EMPLOYER_CHARGES_BALANCE_GROUP that is connected to attributes:

» GLB_EMPLOYER_TAXES_ATTRIBUTE
» GLB_EMPLOYER_CHARGES_ATTRIBUTE

DIRECT PAYMENTS

This section includes results for defined balances connected to balance group:
GLB_DIRECT_PAYMENTS_BALANCE_GROUP that is connected to attribute GLB_DIRECT_PAYMENTS_ATTRIBUTE

TAXABLE BENEFITS

This section includes results for defined balances connected to balance group:
GLB_TAXABLE_BENEFITS_BALANCE_GROUP that is connected to attribute GLB_TAXABLE_BENEFITS_ATTRIBUTE

PREDEFINED STATEMENT OF EARNINGS DATA FOR THE UK

The UK localization uses the global balance groups for SOE and consequently the global attributes.

To display balances predefined by UK localization in sections where attributes are not generated by default, predefined
assignment of attributes to a set of defined balances are delivered for the UK localization.

The complete list of UK delivered associations between defined balances and attributes is contained in the UK Balances
Spreadsheet on My Oracle Support (MOS).

For the UK, the following connections are defined between balances and sections of SOE report.

GROSS TO NET SUMMARY

» Earnings
» Employee Social Insurance (National Insurance)
» Involuntary Deductions
» Net Pay
» Voluntary Deductions

36 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
INFORMATION SUMMARY
» Contributory Salary
» Leave Without Pay
» Subject to Social Insurance (National Insurance)

INFORMATION
» Employee Social Insurance (National Insurance) Adjustment
» Employee Social Insurance (National Insurance) Arrears
» Employer Social Insurance (National Insurance) Adjustment
Attributes cannot be created or modified in the implementation phase.

USER-DEFINED BALANCES AND STATEMENT OF EARNINGS

When you need to create a defined balance with a specific balance category that is mapped in the balance attributes
defaulting setup, then an attribute is associated to the defined balance. This occurs also for balances created using template.
If that attribute is connected to a balance group that is displayed in a section of SOE, then also the balance you defined is
viewable in SOE.

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PAYROLL SETUP

Before processing payroll or post payroll processes a set of base tasks must be performed by the implementation team to
define basic structures such as:
» Banks and Bank Accounts
» Organization Payment Methods
» Consolidation Groups
» Payroll Definitions
» Salary Basis
» Compensation Elements

Payments Setup
To process payments, a payment method must be assigned to a payee. Setup of banks and branches must be done before
entering bank accounts and payment methods for the payee.

No banks or branches are predefined for the UK. Banks and branches must be defined during implementation. This can be
done manually, by entering the banks and branches in the application, or it can be done in a mass upload process.

BANKS AND BRANCHES

To define banks:

1. Sign in to the application, navigate to the Setup and Maintenance, and open Manage Banks.

2. Enter your Bank detail, and save your work:

3. Click on Create Branch to add branches to this bank.

BANK ACCOUNTS

Once banks and branches are set up, you can define the bank accounts for the organization. Normally, implementation teams
set up bank accounts that are used at an organizational level, such as the source bank accounts for payments, rather than
bank accounts at the individual payee level.

To define bank accounts:

3. From within Manage Bank Branches, click on Create Account.

4. Enter your account information:

38 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
Note: If you want to use this bank account for processing payments related to payroll, select the Payroll option in the Account
Use field. The only Legal Entities that can be selected are the ones that have been assigned to a Primary Ledger. Assignment
can be done in task Assign Legal Entities:

ORGANIZATION PAYMENT METHODS

After setting up banks, you can define the payment methods that can be used within the organization itself.

No organization payment methods are predefined for the UK. Implementation teams must create the ones applicable to the
enterprise.

To define organization payment methods:

1. Navigate to Setup and Maintenance and open Manage Organization Payment Methods.

2. Enter the required information for all the payment types (BACS, Cheque) that you require.

39 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
Note: The source bank needs to be specified as the source of funds for this payment type.
Note: UK supports the following Payment Types: Cheque and BACS.

CONSOLIDATION GROUPS AND PAYROLL DEFINITIONS

Consolidation groups and payroll definitions must be set up before running a payroll.

CONSOLIDATION GROUPS

Consolidation groups are used within the organization to enable grouping of different payrolls for reporting purposes. No
consolidation groups are predefined for the UK. If you are creating payroll definitions for the implementation, you must define
at least one consolidation group first, since it is mandatory information for payroll definitions.

To set up consolidation groups:

1. Sign in to the application and navigate to Setup and Maintenance.

2. Select Manage Consolidation Groups in the implementation project task list.

3. On the Manage Consolidation Groups page, click Add Row.

4. Enter a name and select the LDG. Description is optional, but useful to provide.

40 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 5. Click Save.

Payroll Definitions
Payroll definitions contain calendar and offset information that determine when payments are calculated and paid. Using
payroll definitions, you can specify payment frequency, processing schedule, and other parameters for a particular payroll.
Payroll period types, such as weekly or monthly, determine the interval at which you pay employees. UK employees are
typically paid monthly.

Each payroll definition can be associated with only one payroll period type, and you must set up at least one payroll definition
for each payroll period type that you use to pay employees. When you create a payroll definition, the complete payroll
schedule is automatically generated, based on the selected payroll period type, any offsets or calendar adjustments, and the
number of years that you specify. Once you have saved a payroll definition, you can assign employees to it on the Manage
Payroll Relationships page.

Before you can create a payroll definition, you must have already defined the LDG and consolidation group.

No payroll definitions are predefined for the UK.

To set up payroll definitions:

1. Navigate to Setup and Maintenance and open Manage Payroll Definitions.

2. Click Create and enter your LDG.

3. On the Create Payroll page, enter the required information, and save your work:

41 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
Consider the following while managing payroll definitions:
» You must select an existing consolidation group.
» A Default Payment Method must be selected in order to be able to run the prepayment process. This cannot be of the
EFT payment type (i.e, cannot be BACS).
» Click Add Row in the Valid Payment Methods to add an organization payment method to use as the default, plus any
additional payment methods that are valid for this payroll. You can select any organization payment method defined
for the LDG that is linked to this payroll definition.
» Number of Years: number of years for which payroll calendars are created starting from the First Period End Date
» Offset Details: used to determine the key dates within the monthly payroll process.
Note: Date paid is used in the EFT file.
Note: to modify any one of the defaulted dates, the payroll definition that has been created must be updated after it is saved:

42 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 4. Click Next, and then finalize the creation of the payroll definition by clicking on Submit.

5. Note: The taxation period used in any payroll run is derived from the regular process date from the payroll calendar. However, this date (effective date) can
be overwritten.

43 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
HIRE AN EMPLOYEE AND RUN PAYROLL: W ORKED EXAMPLE

This section provides an overview of the hiring process for a UK employee and running a payroll for the same. More
information on the New Hire task can be found in the Oracle Fusion HCM (UK): HR Implementation and Functional
Considerations

Hire an Employee
To perform tasks related to person and employee management, you can sing in using a role connected to a user, such as
Human Resource Specialist. The new hire process is the first task in the workforce lifecycle.

To hire an employee:

1. Navigate to My Team -> New Person -> Hire an Employee

2. On the Identification page, provide the required information:

3. Click through all the subsequent pages, adding the data as required.

4. Review and press submit to save your work.

Note: The Date of Birth is mandatory for UK payroll.

Note: Gender is mandatory, and at this time can only be ‘M’ (Male) or ‘F’ (Female) for payroll processing. This is in
accordance with the current legislation.

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Note: You can specify the payroll, and the TRU in the hire flow.

AUTOMATIC CREATION OF A STATUTORY DEDUCTIONS CALCULATION CARD

The New Hire process creates Statutory Deductions calculation card automatically, provided the following conditions are met:

» If the Payroll Product Usage for GB is set to either ‘Payroll’ or ‘Payroll Interface’
» If there is element eligibility created for the ‘Tax and NI’ element, for the Legislative Data Group you are hiring into.
» If you have not disabled the auto card creation feature – refer to the Oracle Fusion HCM (United Kingdom) HR
Implementation Functional Considerations Guide.
Note: If there is no element eligibility available, an error will be raised in the hire process.

Additionally:

» If you specify the TRU in the hire flow, the associations between this Statutory Deductions calculation card and the TRU will
be similarly created for you, and also the associations between the newly created assignment and both the PAYE and NI
components.
» The Tax Reporting Unit must be registered with the ‘United Kingdom HMRC’ Jurisdiction. See the LINK to document – UK
HR Setup White Paper.

ASSIGN ADDITIONAL INFORMATION

Now that the employee has been hired a set of data needs to be assigned to the employee in order to be processed and paid.

Basic information to be assigned is:

» Remuneration Information
» Calculation Cards
» Personal Payment Method

CALCULATION CARDS

For payroll to be processed for a UK employee, the Statutory Deductions calculation card must be present. This card is
automatically generated upon hire, as long as the selected payroll product usage for the GB localization is either ‘Payroll’ or
‘Payroll Interface’.

To view, edit and create calculation cards:

1. Navigate to My Client Groups -> Payroll -> Manage Calculation Cards.

2. Search for your person as at the correct effective date.

3. If the conditions above are met, and similar conditions for PAE, you will see the cards created:

4. Enter the cards individually to verify that the data meets your requirements.

45 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
PERSONAL PAYMENT METHOD

Once banks and branches have been defined and a payroll definition has been assigned to the employee, you can add
payment methods to the employee record.

To assign personal payment methods:

1. Navigate to My Client Groups -> Payroll -> Manage Personal Payment Methods

2. Search for your person. Click Create and add a Personal payment Method.

3. On the Manage Personal Payment Methods page, click Create.

4. On the Personal Payment Method page, select the Organization Payment Method for this employee:

Note: If the payment type is BACS, you must add a bank account and provide banking details.

46 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
Note: An employee can have multiple payment methods. Use the Payment Amount Type and Percentage fields to manage
distribution across different payment methods.

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PENSIONS AUTOMATIC ENROLMENT MULTIPLE UPDATES PROCESS

You can run the Pensions Automatic Enrolment Multiple Updates process if you have already passed the staging date, to
enable pension earnings assessments.

The flow pattern contains tasks that assesses all employees on the given payroll for the selected payroll period will:

» Make updates to their Pension Assessor component

» Complete any membership changes to the qualifying schemes
» Produce an audit report and employee letters based on the changes which have occurred
» Roll back the payroll run from the first task to complete the assessment
This flow is independent of the main payroll run. The assessments are done early in the payroll cycle so that consequent
actions, such as communications with the employee for opting in and opting out decisions can be made before the main
payroll run cycle.

Note: For more information on the setup and processing, refer to Oracle Fusion HCM (UK): Pensions Automatic Enrolment
(PAE) implementation whitepaper on My Oracle Support (MOS).

Process Execution

1. Select the Submit a Payroll Flow task in the Regulatory and Tax Reporting or Payroll Checklist work area.

2. Select the LDG for which the process is to be run and flow pattern with name Pensions Automatic Enrolment
Assessment Multiple Updates Process:

3. Enter the required parameters to be used to run the process:

48 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 Complete the field as described below:

» Payroll Flow: Identifier for the process that is being run. You have to enter a unique value each time the process is
executed
» Payroll: LOV of Payroll names within the LDG
» Payroll Period: LOV of payroll periods within the payroll selected
» Consolidation Group: LOV of available Consolidation Groups
» Run Type: LOV of available Run Types
» Payroll Relationship Group: LOV of payroll relationship based Object Groups
» Element Group: LOV of element groups
» Process Configuration Group: LOV of available Process Configuration Groups
» Correspondence Date: Date in which the letters will be stamped as created
4. Click on Next thrice.

5. Click Submit.

6. Click on OK and View Checklist:

49 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
» Payroll Assessment Run task will run a payroll run for the selected payroll and payroll period from the flow submission.
» Pension Assessor Multiple Updates task will use the run results from the Payroll Assessment Run task to update
employee’s Pension Assessment component and carry out membership changes to Qualifying Pension Schemes.
» Errors and Warnings Report task will list any errors and warnings produced by the above two processes.
» Run Pensions Automatic Enrolment Report task produces audit reports for the Employee Notification letters:

The output is split into different sets of data, depending upon the update made to the person.

If any of the tasks fail before the final task of Payroll Assessment Roll Back has completed then a manual rollback of the
Payroll Assessment Run must be completed, as this will have generated run results which will impact any future payroll runs
regardless of whether they are for a pension assessment run or not.

Employee Notification Letters

To generate the letters to the employees:

1. Select the Submit a Process or report Flow task in the Regulatory and Tax Reporting or Payroll Checklist work area.

2. Select the LDG for which the process is to be run and flow pattern with name Generate Pensions Automatic
Enrolment Reports Process:

50 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 3. Enter the parameters to be used in the process:

Complete the field as described below:

» Payroll Flow: Identifier for the process that is being run. You have to enter a unique value each time the process is
executed
» Original Pensions Automatic Enrolment Flow Name: LOV of available PAE Flow names
3. Click Submit.

4. Click OK and View Checklist

5. When the process completes, click Go To Task -> Actions -> View Results to see the output:

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All employee letters in Fusion are shipped as templates for which customers are required to make use of the BIP
customization functionality to adapt the letters for their own needs. The reason that only templates are supplied is that the
content of the letters will alter for each individual customer to match their own requirements.

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PAYROLL VALIDATION ARCHIVE REPORT

Run the Payroll Validation Archive Report to validate the data that will be used in the payroll run. The purpose of the report is
to highlight any potential errors or warnings in the payroll run, so that you can address the issues and make corrections, if
required, before the actual production payroll run.

1. Select the Submit a Process or Report task in the Payroll Calculation work area.

2. Select the LDG for which the payroll is to be calculated and flow pattern Payroll Validation Archive Report:

3. Enter the parameters to run the report:

» Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is executed.
You can use any format to describe the payroll flow.
» Effective Date: Date to run the report from.
» Payroll: Payroll definition for which payroll is being run.
» Employee Set: To conditionally report on a sub set of employees
» Process Configuration Group: List of Action Parameter Groups
4. Click Submit.

Review Report Output

You can review the report output once the process is completed successfully:

5. Click Go to Task and Actions -> View Results.

6. Click PVR Report.xls to see the output:

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Run Payroll and Review Results
Now that you have entered the basic information, you can run payroll and review the related results. This section describes
the minimum data required to run payroll, more detail on payroll process can be found in the global guides.

Payroll Run
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting Area work area.

2. Select the LDG for which the report is to be run and flow pattern Calculate Payroll.

3. Enter the parameters to run the report:

» Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is executed.
You can choose any format to describe the payroll flow.
» Payroll: Payroll definition for which payroll is being run.
» Payroll Period: Period for which payroll is calculated. For the UK, the period is always monthly.
» Run type: Optionally, the report can be run for a specific establishment.
4. Click on Next thrice and Submit the process.

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Review Payroll Results
You can review the payroll results once the process is completed successfully:

To review payroll results:

1. Select the Submit a Process or Report task in the Payroll Calculation work area.

2. Filter the results using the appropriate parameters such as for example the Payroll Name (Payroll Definition):

3. Select the desired row and review the results using SOE:

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Notes

» The income subject to social insurance (National Insurance) consists of the two earnings that were assigned to the
employee through the remuneration definition.
» Deductions are driven by the social insurance calculation cards. When the exception type Employee pays both
contributions is selected, both the employee and employer contributions are discounted from Net Pay.

REQUIRED POST-PAYROLL PROCESSES

Once payroll has been executed a set of mandatory post payroll processes:

» Calculate Prepayments
» Archive Periodic Payroll Results
These are needed as prerequisites to run the set of post payroll processes such as payments, payslip and regulatory
reporting.

Calculate Prepayments
To run the calculate prepayments process:

1. Select the Submit a Process or Report task in the Payment Distribution work area

2. Select the LDG for which the process is being run and flow pattern Calculate Prepayments.

3. Enter the parameters to run the report:

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 Complete the fields as described below:
» Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is executed.
You can choose any format to describe the payroll flow.
» Payroll: Payroll definition for which payroll is to be run.
» Process Start Date: Start date of the process for which the prepayment is run.
» Note: To ensure all balance adjustments are taken into account in the FPS, the Process Start Date should always be
the first day of the tax year (6-Apr), every time this prepayment process is run for employee processing.
» Note: When reconciling the FPS audit report with, for example, the GTN report, remember that the GTN is run for a
period and the FPS is run for a prepayment, and therefore these may not reconcile. They should reconcile if the
prepayment covers only 1 run in the period.
» Process End Date: End date of the process for which the prepayment is run.
» Note: To ensure FPS can process these payment correctly, the Process End Date must be in the same tax year as
the effective date of the payroll process.
4. Click on Next.

5. Click Next.

6. Submit the process.

7. Verify that the process runs successfully.

8. View the results under View Person Process Results

Archive Periodic Payroll Results

To run the calculate prepayments process:

1. Select the Submit a Process or Report task in the Payment Distribution work area.

2. Select the LDG for which the process is to be run and flow pattern Archive Periodic Payroll Results.

3. Enter the parameters to be used to run the report:

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 4. Complete the fields as described below:
» Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is executed.
You can choose any format to describe the payroll flow.
» Payroll: Payroll definition for which payroll is to be run.
» Process Start Date: Start date of the process for which the prepayment is run.
» Process End Date: End date of the process for which the prepayment is run.
5. Click on Next twice, and Submit the process.

6. Verify the results after the process has run successfully:

7. Review the results at the person level:

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PAYMENTS PROCESSING AND PAYSLIP

Once payroll has been executed a set of post-payroll processes must be accomplished. Two basic post-payroll processes are:
» Payments processing
» Payslip
This section describes the following:

» The predefined data to meet the UK-specific business requirements.

» The process to generate the report outputs.
» A sample output of the reports.

Payments Processing
Oracle Cloud HCM Global Payroll provides a global process that generates .XML file containing data generated by payroll that
is relevant for payments processing. For the UK, a predefined e-text template in Oracle Business Intelligence Publisher is
available, which generates an EFT file from the XML. The EFT file has the structure predefined BACS for the UK.

To generate the EFT file, no setup is required in the implementation phase.

REPORT EXECUTION

1. Select the Submit a Process or Report task in the Payment Distribution work area

2. Select the LDG for which the process is to be run and flow pattern Make EFT Payments:

3. Enter the parameters to be used to run the report:

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 Complete the fields as described below:
» Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is executed.
You can choose any format to describe the payroll flow.
» BACS submission Serial Number: This is a number that appears in the BACS file, which shows the number of
attempts to submit this BACS file. It defaults to zero in the BACS file, and you can enter up to a 6 digit number.
» Payroll: Payroll definition for which payroll is to be run.
» Process Start Date: Start date of the process for which the prepayment is run.
» Process End Date: End date of the process for which the prepayment is run.
» Organization Payment Method: Process the employees with the selected organization payment method.
» Payment Source : This will restrict the EFT file to contain only those employee payments that are calculated to be
paid from the given payment source
» Overriding Payment Date: To change the payment date that appears in the UI, enter the date in this field.
» Note: This is not the same as the date on which payments are made. For more information, see BACS Processing
Date.
» BACS Processing Date: Set this date to 3 working days before you require the payments to be received in the
destination bank accounts.
4. Submit the process.

5. Verify that process runs to success and go to task to view results:

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 6. To view the results, click Actions-View Results:

Note: Two outputs are produced, the BACS file and a BACS Audit report. Select the generated file to view the output.
Once the payment process is executed for a person for a specific period, the person will not be selected if the process is
rerun. To rerun the payment for an already processed person, the whole execution needs to be rolled back.

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GENERATE CHEQUE PAYMENTS

The global Generate Cheque Payments process generates an XML output. This XML output will contain the data that is to be
printed on the cheque template.

For the UK, a Rich Text Format (RTF) template in BIP is predefined to generate a printout from the XML to preprinted
cheques. The Generate Cheque Payments report has a predefined structure.

The cheque will contain the following information:

» Employee Name
» Cheque Date
» Cheque Number
» Net pay in numbers and letters.
To generate the cheque payments, no set up is required in the implementation phase.

Report Execution

1. Select the Submit a Process or Report task in the Payment Distribution work area

2. Select the LDG for which the process is to be run and flow pattern Generate Check Payments.

3. Enter the parameters to run the report:

Complete the fields as described below:

» Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is executed.
You can choose any format to describe the payroll flow.
» Payroll: Payroll definition for which payroll is being run.
» Process Start Date: Start date of the process for which the prepayment is run.
» Process End Date: End date of the process for which the prepayment is run.
» Organization Payment Method: Process the employees with the selected Organization Payment Method OPM.
» Start Check Number: This is for auditing, key in the lowest cheque number that you are printing in this batch.
4. Click on Next thrice and Submit the process.

5. Verify that process runs to success and go to task to view results:

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 6. View the results:

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PAYSLIP

You can generate a payslip for each payment made for an employee for a given pay period, after successfully completing the
Event Archive for Payroll and Generate Cheque Payments or Direct Deposit processes. Information such as Employee
Details, Payroll Information, Earnings, and Payment Methods are displayed in the payslip.

The payslip consists of the following regions:

» An Identifying Header
» Employer Information
» Tax Details
» Pay Period
» Earnings
» Direct Payments
» PAYE and NI
» Pre-statutory Deductions
» Other Deductions
» Summary
» Net Pay Distribution
» Balances

PAYSLIP REGIONS

This section describes in detail the content of each region and what you can set up in the implementation phase.

An Identifying Header

» HMRC Payroll ID – This uniquely identifies the employment relationship with the employee, and is the same identifier used
to identify the employment to HMRC.
» Employee Name
» Employee Address
» Person Number
» Payroll Relationship Number
» NI Number
Employer Information

This region displays personal details of the Employee. This is predefined and the following details are displayed in this region:
» Employer Name
» Employer PAYE Reference that this employment uses to report to HMRC
» Employee Address
» HMRC office Name
» HMRC Office Phone
» HMRC Address
Tax Details

This region takes its data from the Calculation Card for PAYE, for the identifying HMRC Payroll ID.

This is predefined and the following details are displayed in this region:
» Tax Code
» Tax Basis
» Previous Taxable Pay

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» Previous Tax Paid
No setup can be done on this region in implementation phase.

Pay Period

This region displays the period dates for this payslip.

This is predefined and the following details are displayed in this region:
» Period Type
» Period Start Date
» Period End Date
» Period Number. This is the Statutory Period Number.
No setup can be done on this region in implementation phase.

Earnings

This region contains all the elements paid to the employee.

» Elements having the following primary classifications are considered to be payments:

» Regular Earnings
» Irregular Earnings
For each element, whose calculation value is different from zero, amount and description are printed in the payslip.

Any element, created at implementation phase, and having the above primary classifications is included in this region.

Direct Payments

This region contains only elements from the primary classification Direct Payments.

For each element, whose calculation value is not zero, the amount and description are printed in the payslip.

Any element, created at implementation phase, and having the above primary classifications is included in this region.

PAYE and NI

This region contains details about the PAYE and NI contributions made.

This is predefined and the following details are displayed in this region:

» PAYE, For this Run, and YTD

» NI contribution, for this run and YTD, for each NI category used.
No setup can be done on this region in implementation phase.

Pre-Statutory Deductions

This region contains only elements in the primary classification ‘Pre-statutory Deductions’.

For each element, whose calculation value is not zero, the amount and description are printed in the payslip.

Any element, created at implementation phase, and having the above primary classifications is included in this region.

Other Deductions

Currently this region is not supported in this release.

Summary

This is predefined and the following details are displayed in this region:
» Gross Earnings

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» Total Deductions
» Net Pay
Net Pay Distribution

This is predefined and the following details are displayed in this region:
» Payment Type (his can be BACS or Cheque)
» Bank Name
» Sort code
» Account Number
» Currency
» Payment Amount
No setup can be done on this region in implementation phase.

Balances

This is predefined and the following Run, Period to Date, and Year to Date balances are displayed in this region:

» Gross Earnings
» NIable Pay
» PAYE
» Taxable Pay
No setup can be done on this region in implementation phase.

Configuring the Payslip to Show Hours

You can show the employee’s hours on the payslip, to meet the legislative requirement. You can do this by:

» Using the standard earnings element hours functionality

» Overriding the default hours calculated
» Providing your own calculation for the hours worked.
To use the standard earnings element functionality, when you create an earnings element using the element template, be
sure to select the ‘Hours * rate’ Calculation rule. This will create an input of hours that will automatically be fed to a balance
that will have a balance category of hours, and be shown on the payslip with the associated earrings.

To create your own calculation for the hours:

1. Create a balance with a balance category of hours

2. For the Unit of Measure select 'Hour in decimal format, 3 places'

3. Attach these dimensions to the balance:

a. Relationship Tax Unit Run

b. Relationship Tax Unit Tax Year to Date

c. Payroll Relationship, Tax Reporting Unit, Payslip

4. Create an element that calculates the hours worked, and feeds the balance

5. Edit the payslip template to show the hours balance in the hours region.
Note: There can be more than 1 balance of this type; the hours region of the payslip can show many balances, for
example:

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 DESCRIPTION CURRENT YEAR TO
DATE
Regular Hours 35.00 140.00
Overtime Hours 5.00 20.00

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 Employer Payment Summary Process
You run the Employer Payment Summary Process at the end of every statutory month to send information to HMRC about
any adjustments that must be made against the employer’s Tax and NI liabilities due to the statutory payments made to the
employees.

The process will produce an XML file to be sent to HMRC using the Outgoing XML Message submission to HMRC process.

Process Setup

The process should be run with an action parameter group, with 2 action parameters set:
» Multithreaded XML generation set to N
» Threads set to 1 :

Process Execution

7. Select the Submit a Process or Report task in the Regulatory and Tax Reporting or Payroll Checklist work area.

8. Select the LDG for which the process is to be run and flow pattern according to the applicable Tax Year:

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 9. Enter the parameters to run the process, using a process configuration group with the correct parameter values:

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 10. Complete the fields as described below:
» Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is executed.
You can choose any format to describe the payroll flow.
» Payroll Statutory Unit: LOV of PSU’s within the LDG.
» Tax Reporting Unit: LOV of TRU’s attached to selected PSU
» Note: If you are generating the final submission for the tax year, then this is a mandatory parameter
» EPS Date: LOV of statutory month end dates in the tax year.
» Submission Type: Select Test or Live.
o Live: Selecting this archives data and generates the reports. Except for EPS Date parameter value of 5 April, you
cannot archive or report on a tax reporting unit on another EPS date, if that tax reporting unit has already been

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 included in an earlier Live EPS process on the same EPS date. You must rollback the earlier live EPS process to
re-archive or report the data for that tax reporting unit again.
o Test: Selecting this completes archive and generates the reports. You can run EPS in test mode multiple times
for any EPS date.
Note: Only LIVE files can be sent to HMRC using the Outgoing XML Message submission to HMRC process. You should
run a TEST run, examine it for errors and completeness, and only proceed to a LIVE run when any issues are resolved.

» Final Submission: ‘Yes’ or ‘No’

» Date Scheme Ceased: Calendar popup
» Process Configuration Group: List of Action Parameter Groups
11. Click on Next and Submit the process.

12. Click on OK and View Checklist

13. Verify that the summary results are correct. To do this, click View Employer Payment Summary Results.

14. There are 2 records to consider :

a. ‘EPS Original Summary of Payments’ – this holds the original values that will be reported if you enter no
overrides in the ‘EPS Output Summary of Payments’ record.

b. ‘EPS Output Summary of Payments’ record – use this to overwrite the original values, should you need to.

15. Click EPS Output Summary of Payments:

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 16. Edit the values to make amendments, if any:

17. In the above example, the CIS Deduction suffered YTD value is entered. Click Save and Close.

18. To continue, return to the flow window.

19. Navigate to the Payroll Flow Checklist tab, click View Employer Payment Summary Results task.

20. Click Actions menu and select Mark as Complete:

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73 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 21. The flow produces completes:

22. Click on the Generate Employer Payment Summary Audit Report to view the audit report, and click on Generate
Employer Payment summary XML, to view the XML.

Note: If the TEST EPS file is correct, the process should be rolled back and a LIVE EPS file produced. Only a LIVE
EPS file can be transmitted to HMRC using the Outgoing XML Messages submission process.

23. To see the process log, click on the green tick showing the elapsed time for the process.

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 FULL PAYMENT SUBMISSION PROCESS INCORPORATING EYU PROCESS FROM 2019-2020

Employers must submit a Full Payment Submission (FPS) every time a payment is made to their employees. The FPS
covers all payments regardless of the method of payment (such as BACS, cheque) and year to date figures.

The FPS contains all the payments data for all the employees in the relevant period as well as the year-to-date figures for
those payments. This information is used by HMRC to update their records for the employees on an ongoing basis
ensuring that the data they hold is as accurate as possible.

If there are no payments made to any employee in any one period for a TRU, then an FPS is not required, however, an
Employer Payments Summary (EPS) must be submitted with ‘no payment made’ indicator for such periods, as this informs
HMRC not to expect an FPS for this TRU for this period.

If supplementary runs are made in a period, care must be taken to adjust the payment date in the FPS so that the later
payment is not reported with the original run’s payment date, and thus it may attract a fine from HMRC. To avoid this, refer
to Document: Doc ID 2251027.1

The process will generate an XML file to be sent to HMRC using the Outgoing XML Message submission to HMRC
process.

The process also generates an FPS Audit Report with the output file name FPS_AUDIT_Report.csv.txt.
To view the file directly in a spreadsheet format (for example, MS Excel), you can first save it as FPS_AUDIT_Report.csv
from the Application output results window (without the .txt extension in the name). When you open it using File Manager,
the file is automatically recognized as a CSV format and opened in MS Excel. This displays the values in their individual
columns with the correct headers.

From Tax Year to April 2020, the FPS process is also used to generate Earlier Year Update (EYU) submissions.
Consequently, you can only use the EYU process for tax years up to and including the tax year 2018-2019. From tax year
2019-2020 you must use the FPS process to submit any prior year submissions.

To summarise:

Tax Year In Year Submission Prior Year Submission

17-18 FPS for tax year ending 2018 EYU for tax year ending 2018

18-19 FPS for tax year ending 2019 EYU for tax year ending 2019

19-20 FPS for tax year ending 2020 FPS for tax year ending 2020

20-21 FPS for tax year ending 2021 FPS for tax year ending 2021

To allow for this, HMRC have removed the restriction that FPS files had to be submitted on or before the 19th of April, for
submissions relating to the previous tax year.

Balances
Balances reported in the Full Payment Submission process and that may require initialization:

Base Balance Name Balance Name

ORA_HRX_GB_CAR_BEN_ANNUAL Car Benefit Annual Amount
ORA_HRX_GB_CAR_FUEL_CHRG_ANNUAL Car Fuel Benefit Charge Annual Amount

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 Base Balance Name Balance Name
Direct Payments Total Direct Payments
GB_ADDITIONAL_STATUTORY_PATERNITY_PAY Additional Statutory Paternity Pay
GB_BENEFITS_TAXED_VIA_PAYROLL Benefits Taxed through Payroll
GB_EARNINGS_FREE_OF_TAX_AND_NI Earnings Free of Tax and NI
GB_EARNINGS_FREE_OF_TAX_AND_NI Earnings Free of Tax and NI
GB_NON_TAXABLE_ITEMS_SUBJECT_TO_NIC Non-Taxable Items Subject to NIC
GB_ORDINARY_STATUTORY_PATERNITY_PAY Statutory Paternity Pay Birth
GB_PAYE PAYE
GB_POST_TAX_PENSION_CONTRIBUTIONS Post Tax Pension Contributions
GB_PRE_TAX_DEDUCTIONS Pre-Tax Deductions
GB_PRE_TAX_PENSION_CONTRIBUTIONS Pre-Tax Pension Contributions
GB_SHARED_PARENTAL_PAY_ADOPTION Shared Parental Pay Adoption
GB_SHARED_PARENTAL_PAY_BIRTH Shared Parental Pay Birth
GB_STATUTORY_ADOPTION_PAY Statutory Adoption Pay
GB_STATUTORY_MATERNITY_PAY Statutory Maternity Pay
GB_STATUTORY_PATERNITY_PAY_ADOPTION Statutory Paternity Pay Adoption
GB_STATUTORY_SICK_PAY Statutory Sick Pay
GB_STUDENTLOAN Student Loan
GB_TAXABLE_PAY Taxable Pay
GB_TRIVIAL_COMMUTATION_TYPE_A Trivial Commutation Type A
GB_TRIVIAL_COMMUTATION_TYPE_B Trivial Commutation Type B
GB_TRIVIAL_COMMUTATION_TYPE_C Trivial Commutation Type C
Gross Pay Gross Pay
ORA_HRX_GB_FOREIGN_TAX_RELIEF Foreign Tax Credit Relief
ORA_HRX_GB_NI_ER_PAY_BILL_AL Employer Pay Bill for Apprenticeship Levy
ORA_HRX_GB_NON_TAX_FXDD_PAYMENT Non-Taxable Flexible Drawdown Payment
ORA_HRX_GB_NON_TAX_PEN_DEATH_BEN_PAYMENT Non-Taxable Pension Death Benefit Payment
ORA_HRX_GB_POSTGRADUATE_LOAN Postgraduate Loan
ORA_HRX_GB_TAX_FXDD_PAYMENT Taxable Flexible Drawdown Payment
ORA_HRX_GB_TAX_PEN_DEATH_BEN_PAYMENT Taxable Pension Death Benefit Payment
Total Deductions Total Deductions
GB_NIABLE_PAY NIable Pay
GB_NI_CAT_ABLE NIable by Category
GB_NI_EMPLOYEE NI Employee
GB_NI_EMPLOYER NI Employer
GB_NI_LEL NI LEL
GB_NI_PT NI PT
GB_NI_UAP NI UAP
GB_NI_UEL NI UEL

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 Base Balance Name Balance Name
ORA_HRX_GB_NI_PREV_PRD_NIABLE_EARNINGS_BY_CAT NIable Previous Period Earnings by Category

Full Payment Submission (FPS) Breakdown to Smaller Files

You can create smaller files from Full Payment Submission (FPS) to aid the reconciliation of FPS submissions. To do this,
you can create a lookup of Unique IDs and use this at the tax reporting unit (TRU) level to enable FPS to process separate
files for groups of employees.

FPS output for a single TRU can be broken down into smaller files by using the 'Unique Part Identifier' parameter when
running the Full Payment Submission (FPS) process.

To enable this features:

1. Search for and select the Manage Common Lookups task from the Setup and Maintenance work area.

2. Set up a user-level lookup type for Unique IDs. The lookup type must have the keyword "UNIQUE_ID" in its
name. The Module must be GB Organizations Setup:

3. Use the Manage Legal Reporting Unit HCM Information task to enter the lookup type name at the TRU-level. You
can do this in Unique ID List field under the UK Tax Reporting Unit Details:

4. Click Save.

5. Search for and select the task Manage Calculation Cards. Select the employee and Statutory Deductions card.

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 6. To assign a TRU Unique ID to employees, click Associations.

7. Click Edit -> Correct to create an association for the Unique ID required from the lookup list. Select the relevant
TRU and enter the Unique ID:

8. Click OK.

9. Click Save and Close.

This controls the batch or unique ID in which the employee is reported.

Processing Rules

The Unique Part Identifier parameter on the FPS process allows users to specify the Unique ID for which they want to run
the process. The list displays the unique IDs that have been setup for the TRU. It also includes a special reserved input
value called Unassigned unique ID, which is used to include all employees who do not have a specific Unique ID entered
on their statutory deductions card's association with the TRU.
» If you do not set the unique ID list at the TRU level as at the effective date, the FPS produces output for the whole TRU
in a single file. You cannot select a unique ID unless it is setup at the TRU-level.
» If the lookup is set at the TRU level and a value is not selected for the Unique ID, the FPS produces output for the whole
TRU in a single file.
» If the lookup is set at the TRU level and a value is selected for the Unique ID, the FPS produces output for that specific
unique ID in a single file.
The prepayment parameter refers to the value selected in the 'Unique Part Identifier' parameter. It limits the prepayments
that can be selected to those containing employees with the specified unique part ID (through statutory deductions card's
association with the TRU).

A prepayment can also include employees who are assigned to different Unique IDs. Thus, once a Live mode FPS is run
for a specific Unique ID and prepayment combination on a subsequent FPS run, the list of values for the unique part
identifier filters that combination. Thus only if a different Unique ID (which has not been processed already) is selected, the
prepayment is available for selection again.

This process can be repeated for all unique IDs in order to fully complete FPS runs for the prepayment.

If there are remaining employees in the prepayment who do not have a Unique ID assigned on their statutory deductions
cards, you can include them by selecting the special unassigned unique ID value in the unique part identifier parameter.

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 Differences between EYU and FPS style files
If FPS is submitted for a previous tax year, that is, it is acting as the EYU, it will:

If it’s reporting a real payment for the previous year, it will send the Payment Date, PTD values, and leaving date if
applicable

If it’s reporting just a late Balance adjustment, it will report YTD values, but not PTD values. It will also report the
payment date as the latest date that the record was reported previously in that previous tax year via the FPS. .
This is for both terminated and non-terminated employees.

All changes during that chosen tax year are reported, regardless of whether or not they are active as at the end of
the tax year.

The EYU process reports the delta values. However, this is not a part of the specification for FPS, so, these delta
values are no longer reported in the EYU style of FPS.

Process Execution
1. Select the Submit a flow in the Payroll work areas

2. Select the LDG for which the process is to be run and flow pattern according to the applicable Tax Year:

3.

4. Enter the parameters to be used to run the process:

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 » Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is executed.
You can choose any format to describe the payroll flow.
» Payroll Statutory Unit: LOV of PSU’s within the LDG.
• Note: If you are generating the final submission for the tax year, then this is a mandatory parameter.
» Tax Reporting Unit: LOV of TRU’s attached to selected PSU.

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 » Unique Part Identifier: Specify the unique part ID, if you are generating the FPS file in sub files. This flow will
include only those employees whose statutory deduction component is associated to this Unique Part, using the
TRU association.
» Payroll: LOV of Payrolls within the LDG.
» Prepayment: List of prepayments for the payroll that have not been processed by a live FPS
o Note: This is no longer mandatory.
 FPS Style : You must select the prepayment you are reporting
 EYU style: If the EYU is reporting paid (and unpaid) balance adjustments, you must select the prepayment.
If the EYU is reporting only unpaid balance adjustments, do not select any prepayment.
» Previous Year Adjustment :
 FPS Style : Select No
 EYU Style: select Yes
» Submission Type: Test or Live
o Note: Only Live files can be sent to HMRC using the outgoing XML Message submission to HMRC process.
You should perform a Test run and examine it for errors and completeness. Proceed to a Live run only when
all issues are resolved.
» Report HMRC Payroll ID Migration Change: Yes or No
» Final Submission:
• Yes – for ceased scheme
• Yes – for year
• No
» Date Scheme Ceased: Select date from the calendar
» Process Configuration Group: List of Action Parameter Groups
» Late PAYE Reporting Reason:
• A - Notional payment: Payment to Expat by third party or overseas employer
• B - Notional payment: Employment related security
• C - Notional payment: Other
» Payroll Relationship Group: List of Payroll Relationship Groups. Used to limit the employees that should be
included in a Test mode FPS run. Note, this cannot be used with a Live Submission Type.
You can run the FPS process in 2 submission type modes as described below:
» Live
• It archives the data, generates the reports and updates some data to their default values or mark them as sent so
that they are not sent again.
• If the process is run in this mode for a prepayment without the tax reporting unit, the user cannot run FPS for that
prepayment again (that is, it will not show up in the Prepayment parameter LOV).
• If the process is run in this mode with the tax reporting unit parameter for a prepayment, the user can run FPS for
that prepayment again only if they specify a different tax reporting unit in the parameters.
• Running the process in Live mode means a payroll relationship group cannot be used.
Note: The Live FPS process updates the PAYE card component to indicate that reporting has been completed and
hence will not be reported again. Even though it is possible to roll back a live submission, the recommended
approach is to first produce a TEST file, and examine it for errors, and only create a LIVE file when no errors
are produced from the test file.
» Test
• Completes an archive and generates the reports but does not update any data.
• Running the process in test mode for a prepayment has no effect on the prepayment parameter LOV.
• Running the process in Test mode means a payroll relationship group can be used.
5. Submit the process.

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 6. Verify that the Run Full Payment Submission task runs to success.

7. Click on the Run Errors and Warnings Report to view the report output:

8. Expand the Output and Log Files to access the report. You can either directly click the icon or download the file.
Note: This text file is a comma separated (CSV) file, which you can save and open in a compatible application and
view as a spreadsheet.

If there are any errors, correct them until the Errors and Warnings Report shows no errors. See below for retrying the
FPS process.

9. To view the FPS Audit Report, and the XML that will be sent to HMRC, Click on the Run Full Payment Submission
link. Expand the Output and Log Files to access the report. You can either directly click the icon or download the file:

a. FPS_AUDIT_Report.csv.txt: An audit report of the FPS file. Save this as a .csv file to view it as a
spreadsheet.

b. FPS20_XML.xml. An XML file when produced as a LIVE file will be transmitted to HMRC using the Outgoing
XML Messages submission process.

HMRC accepts Test in Live files having termination dates that do not exceed the end of the related Tax Year plus 1 day.
However, HMRC only accepts Live files having termination dates of up to 30 days in the future.

Accordingly, the FPS Test file generation process will not error if termination dates do not exceed the end of the Related
Tax Year plus 1. To avoid errors in the Live file generation process, the process will not report the termination dates in the
FPS file that are after the latest Date Earned for the employee’s payroll runs being reported in that FPS file.

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 Retry FPS Process
There are three scenarios where you may want to rerun the generation of an FPS file:
1. When the FPS has reported errors for one or more individuals in the Errors and Warnings report
2. When there are no errors reported in the Errors and Warnings report but you know you have to correct some data for
one or more individuals, and will need to re-run the FPS
3. Both the above scenarios.
You can do this in two ways:
» Rollback the FPS, correct the data, and submit a new FPS flow.
» Using the existing flow, mark for retry the individuals to reprocess, correct the data, and then retry the original flow. The
advantage of this is that if you have a large volume of data in your FPS file, the retry approach will be more performant.

Retry FPS for Errored Records

Let’s take an example that the FPS generation flow contains errors, then the checklist would also have an errored
Run Full Payment Submission task.

To rectify this, you must first correct the data for the individual or individuals in error. Here’s how you can do this:

1. In the Checklist flow, highlight the ‘Run Errors and Warnings Report’ and click Actions. Select Mark as Incomplete.

2. Refresh the page. You will see that the Run Errors and Warnings Report now has a status of ‘Incomplete’.

3. Highlight the Run Full Payment Submission task, click Actions and select Mark As Complete:

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 This regenerates the FPS for the errored records. This would include any individuals that had not originally errored but you
had subsequently marked them for retry.

4. Refresh the page to see that the FPS flow is now complete and your corrections to the individual records are
successful.

Retry FPS for Completed Records

In the above example, even though the process completed successfully, you may have changes required to one or more
individuals that would necessitate a regeneration of the FPS.

1. To rectify this, you must first correct the data for the individual or individuals you wish to update.

2. In the Checklist flow, highlight the ‘Run Full Payment Submission’ and click ‘Go to Task’.

3. Search for the individual you wish to mark for retry. Click Actions- and select Mark for retry for the individual:

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 4. Refresh the page to ensure the individual is marked for retry:

5. In the checklist view for the flow, mark the Run Errors and Warnings Report as Incomplete.

6. Select Run Full Payment Submission task and ‘Mark as Complete’. This regenerates the full FPS file.

Full Payment Submission (FPS) and HMRC Submission Deadlines

HMRC only allow normal FPS submissions within a certain time frame. See the HMRC web pages for details.
If you make a submission after the deadline without a valid late reporting reason, you may see the submission rejected
with this reason:
3001: The submission of this document has failed due to departmental specific business logic in the Body tag.

7806: This submission cannot be accepted as it does not fall within the eligible filing period

To address this, add the late reporting reason into the employee’s PAYE component, in the field ‘Late PAYE Reporting
Reason’, and re-run the FPS.

FPS Process Updates Employee Calculation Card when there is a payment after the P45 is issued
The Full Payment Summary (FPS) process can automatically update the tax code and the tax basis to the same values
used during the Pay AS You Earn (PAYE) calculation of a payment, when a payment is made after employee termination
and a P45 has been issued.

You can configure this in the organization Statutory Deductions and Reporting calculation card by selecting the check box
Enable FPS to update tax code if payment after P45. For more details, see the whitepaper Oracle Fusion HCM (UK): HR
Implementation and Functional Considerations on My Oracle Support (MOS).

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 The FPS process automatically updates the tax code and the tax basis to the same values used during the PAYE
calculation of a payment.

Only a Live FPS will update the calculation card. The calculation card PAYE record is updated as at the effective date of
the payroll run that this FPS is reporting. If there are additional future dated calculation card PAYE records for the
employee, all such future dated records are updated with the new tax code and tax basis.

The application reverses the changes for the tax code and the tax basis to their original values, if you perform the FPS
rollback. However, you can't do this once the FPS is submitted.

Note: The FPS only performs the calculation card update if a P45 exists for the employee, or, a P45 was issued manually.
There should have been a QuickPay or payroll run after the P45 action or the P45 Manual Issue Date.

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 NINO VERIFICATION REQUEST PROCESS

Employers can generate a NINO Verification Request (NVREQ) file to be sent to HMRC. This is a mechanism to request
verification and possible corrections of National Insurance Numbers (NINO) for employee. You can use the Outgoing XML
Messages submission to HMRC Process to submit this file to HMRC.

HMRC sends a response that is NINO Verification Reply (NVREP). Use the HMRC Incoming Data Retrieval process to
fetch the NVREP. This process corrects the NI numbers where necessary.

The process will generate an XML format report for transmission to HMRC, and an Audit Report.

Process Execution

1. Select Submit a Process or Report task in the Regulatory and Tax Reporting or Checklist work areas

2. Select the relevant LDG.

3. Select the flow pattern NINO Verification Request.

4. Enter the parameters to be used to run the process:

» Payroll Flow: Identifier for the process. You can enter a value each time the process is executed. You can choose
any format to describe the payroll flow.
» Payroll Statutory Unit: LOV of PSU’s within the LDG.
» Tax Reporting Unit: TRUs for the selected PSU.
» Employee Display Name: Use this if you want to run the NVREQ for a specific employee.
» Effective Date: Enter the date when you want to generate this data.
» Submission Type: Test or Live

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 Note: You can only submit Live files to HMRC.
» Process Configuration Group: LOV of available Process Configuration Groups
5. Submit the process.
6. Click OK and View Checklist.
7. Verify that the task runs successfully. Click Go to Task to view results:

8. Click on the Errors and Warnings report Go To Task first, to ensure the process was successful and review any
errors

Note: The Errors and Warnings report output text file is a comma separated file, so, you may prefer to view it in a
spreadsheet application.

9. Click on the Actions -> View Results

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 10. Click on the report and examine it for errors.

Note: if an employee’s gender is missing from the employee record, you will see an error like this on the report:

If there are errors reported, you should correct the data, and re-generate the NVREQ file so that there are no errors
reported.

You can then view the output from the Run Nino Verification Request Go to Task link. Click Actions -> View Results. This
opens a dialog where you can view the 2 outputs produced:

1. A .PDF audit report, detailing the employees to be sent to HMRC

2. An XML file

If the data is correct the process can be run as a LIVE submission, so that it can subsequently be sent to HMRC using the
HMRC file Submission Process.

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 INCOMING XML MESSAGES RETRIEVAL PROCESS

To retrieve XML format messages made available by HMRC on their Data Provisioning Service (DPS) and load
this data to update the employee records, use the following processes:

– HMRC Data Retrieval Process to connect to DPS to check for data available for download, retrieve data and
store it within HCM Cloud ready to be loaded.

– Load HMRC XML File to load the data received from HMRC into HCM Cloud and process it.

You can retrieve the following incoming XML message types using the retrieve process:

– NINO Verification Reply

– P6 or P6B

– P9

– Student Loan Start Notice (SL1)

– Student Loan End Notice (SL2)

– Postgraduate Loan Start Notice (PGL1)

– Postgraduate Loan Stop Notice (PGL2)

Prerequisites

Before you start using those processes for incoming retrieval, you must set up the tax reporting unit (TRU) related
information. On the Legal Reporting Unit HCM Information, set the following attributes:

» Enter the employer RTI credentials

» Sender ID
» Authentication Value
» For each of the supported processes, you must set a current GOT number (high watermark). They indicate the number
of records already retrieved from DPS. You only need to set those indicators once so that the retrieval knows what data
to retrieve the first time it is run. On an ongoing basis, this information is maintained by the retrieval process itself.
» P6 Highest Index Retrieved
» P9 Highest Index Retrieved
» SL1 Highest Index Retrieved
» SL2 Highest Index Retrieved
» RTI Highest Index Retrieved (for NVREP)
» PGL1 Highest Index Retrieved (For Post Graduate Loan Start notice)
» PGL2 Highest Index Retrieved (For Post Graduate Loan Stop notice)

To set those attributes, follow these steps:

1. From Setup and Maintenance, search for Define Legal Reporting Units for Human Capital Management
2. Set the Scope to the TRU you wish to update under Manage Legal Reporting Unit
3. Select Manage Legal Reporting Unit HCM Information
4. Select UK Tax Reporting Unit Details

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 5. Under UK TRU RTI Information, provide the relevant authenfication details as well as the highest index retrieved
for each of the different types of messages.

Note: if you set the highest Index Retrieved to 0, the process will retrieve all the messages available from
DPS.

6. Click Submit.

In the example displayed in the above screen, when the HMRC Incoming Data Retrieval process runs for P6, P9, SL1, SL2,
PGL1 and PGL2, it retrieves all the messages available on the DPS. When running for NVREP, it will only retrieve from
message 3326 onwards as the RTI Highest Index Retrieved is set to 3325.

The process uploads the data to UCM as an encrypted file, and subsequently data is loaded into the relevant tables using
HCM Data Loader.

To do this, the user must have the role Human Capital Management Integration Specialist
(ORA_HRC_HUMAN_CAPITAL_MANAGEMENT_INTEGRATION_SPECIALIST_JOB) assigned. This ensures that the
upload to UCM is successful with the following privileges:
» HRC_LOAD_HCM_DATA_PRIV
» HRC_TRANSFER_HCM_FILE_AND_IMPORT_PRIV
» HCM_DATALOADER_IMPORT_RWD
Additionally, to ensure the fetched files are encrypted and successfully stored in UCM, you must setup a security certificate
and a PGP public key. For more information, see the note UK Legislation- HMRC Retrieval Issue Completes, But UCM
Data Is Not Created (Doc ID 2478242.1) on MOS.

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 HMRC INCOMING DATA RETRIEVAL PROCESS

The HMRC incoming data retrieval process enables you to retrieve and store the incoming messages made
available on DPS. This process performs the following tasks:

» Establishes a connection with the HMRC service and verifies credentials

» A security token is received which is valid for 4 hours during which time communication can be made without having
to establish a new connection
» Sends a request for any new data available for download on DPS
» Receives XML data and stores it in UCM, ready to be processed by the Load HMRC XML File process

To run the process:

1. From the Checklist or Regulatory and Tax Reporting Work Area, select Submit a Process or Report.
2. Select the Legislative Data Group.
3. Select HMRC Data Retrieval Process.
4. Enter the parameters:

5. Enter a flow name

6. Select the Payroll Statutory Unit
7. Select the Tax Reporting Unit – this is a mandatory field as the retrieval is done by PAYE reference
8. Select the File Type – this is a mandatory parameter, as only messages of the same type can be retrieved
together.
9. Enter a Payroll Configuration group. You do not need to provide one unless you want to override the volume of
data retrieved. Refer to Controlling the Volume of Data to Retrieve.

Viewing the Data Received

This data is now secured in UCM, and stored as encrypted.

Controlling the Data Volume to Receive

You can control the retrieval of data in terms of how many records should be retrieved each time or the number of
iterations the process performs to fetch the data before it consolidates it into a single file for uploading. You can do
this by setting the two new action parameters in the Manage Payroll Configuration Process:

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 6. Number of incoming records from HMRC: Indicate the number of records the process should fetch from the
HMRC each time.

If you do not provide the parameters, HMRC has their own default numbers that will be used. At the time of
writing, the HMRC defaults are in the table below. By Default Fusion will fetch 10 iterations of the data in a loop,
and write the record set as XML into UCM.

HMRC Maximum records per Maximum (default) records

Data Type
fetch in 1 UCM file
P6 and P9 1,500 15,000
SL1, SL2, PGL1 and PGL2 2,000 20,000
RTI (for NINO Verification 500 5,000
Reply)
7. Number of times records fetched before upload: Indicate the number of iterations (performed in a loop) to fetch
records from the HMRC before consolidating the data into a single file for upload. The Fusion Default is 10, so,
using only the defaults, and assuming there is enough data on the HMRC server to fetch, the maximum number
of records that will be written to 1 UCM file, for a P6 fetch, would be 15,000 records (1,500 * 10 iterations).
If there is further data to fetch, the process will continue, and write further files to UCM as required.

To override those default parameters you must create your own process configuration group:

1. From Setup and Maintenance work area, search for task Manage Payroll Process Configuration.
2. Create and give the configuration group a name.
3. Search for the newly created configuration group.
4. Under Configuration Group Details, select Create.
5. In the Parameter Name dropdown, select Number of Incoming Records from HMRC and set the Override value.
6. Create another row for the second parameter: Number of times records fetched before upload and set the
Override value.

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 Note: The HMRC maximum cannot be increased using these parameters; it can only be decreased.

When running the retrieval process, select the newly created configuration group as parameter.

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 LOAD HMRC XML FILE PROCESS

The Load HMRC XML File process loads the records fetched from HMRC by the retrieval process and performs
the following steps:

» Load the fetched records from HMRC into the interface tables
» Validate the data within the message type against the data in the application
» Produce an audit report showing validation failures
» Generate the HDL file with the validated data
» Load the HDL file to update the application data

To run the process:

1. From the Checklist work area, select Submit a Payroll Flow.

2. Select the Legislative Data Group.
3. Select Load HMRC XML File Process.
4. Enter the parameters:

5. Enter a flow name.

6. Select the Payroll Statutory Unit.
7. Select the Tax Reporting Unit – this is a mandatory field as the upload is done by PAYE reference.
8. Select the File Type – this is a mandatory parameter, as only messages of the same type can be uploaded
together:

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 In the Content ID field, it is recommended not to enter a value. By default, the process selects the oldest unprocessed file
stored on UCM. This ensure that files are uploaded in the sequence in which they were received. Use the Content ID only
in case you need to force any file to re-load. Otherwise, it is recommended to allow the application to use the default
content ID to load.
Note: Ensure that you run the Load HMRC XML File process for each file generated by the retrieval process. For
example, if the retrieval process generated 3 files, the upload process needs to be run 3 times, once for each
file.

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 OUTGOING XML MESSAGES SUBMISSION TO HMRC PROCESS

From April 2018, HMRC requires you to submit RTI messages in XML format using web services. This includes messages
for prior tax years, that is, FPS, EYU, and EPS.

The payroll application supports the generation of XML for the following processes for the current and upcoming tax years:

Message Tax Year

EPS From 16-17 onwards

FPS From 17-18, onwards (supporting the current tax year only)

EYU From 15-16, onwards

P11D From 17-18, onwards (supporting the current tax year only)

NINO Verification Request All tax years (does not vary by tax year)

You can submit these messages either by using a third-party provider or Oracle Fusion HRMS.

HMRC also accepts XML submissions as either as a Live file, or as a Test-In-Live file. Both these submission types are
supported.

Before you attempt to submit the XML file to HMRC, (NVREQ, EPS, FPS, or EYU file), ensure that the XML file you are
sending was generated with the following:

» Submission type Live

» TRU parameter
» No errors reported by the process
Configure an Action Parameter Group

This is an optional step. You may need an action parameter group for seeing a detailed log. The action parameter groups
should contain 3 settings.

To setup an action parameter group to send XML files to HMRC:

1. Navigate to the Setup and Maintenance work area and select the Manage Payroll Process Configuration task.

2. Add a new Configuration Group. You can enter a name, for example, DOC_HMRC_XML.

3. Edit the Logging Category and set it to G.

4. Override the Threads parameter and set it to 1.

5. Set the Multithreaded XML generation to N.

6. Click Save.

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 8. Set the Sender ID and the Authentication Value to the values provided to you by HMRC when you registered for
Internet Filing. These would be the same values as were setup when configuring the TRU for Incoming XML
messages:

Note: The TRU is already configured at this stage. For the selected TRU, you must configure the PAYE reference
and the Employer Accounts Office Reference Number.

Recommended Process Flow

The following is the recommended process flow:

Step Action Reason

1 Generate a Test XML file Check it for errors and make any corrections
necessary.

2 Rollback the Test XML file. This clears the archive.

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 3 Repeat steps 1 and 2 Do this until the archive reports no errors.

4 Generate a LIVE XML file Only a Live XML file can be submitted to
HMRC

5 Submit the XML file to HMRC as a Test-In- Check for Errors

Live Submission

6 – If Step 5 had data errors Rollback step 5. The data in the original XML file must be
Rollback Step 4, or, Mark for Retry the corrected.
actions in the FPS file (see Retry FPS HMRC accept Test In Live files having
Process, above) termination dates up to 365 days into the
Correct the data future. However, HMRC only accept Live files
having termination dates up to 30 days in the
If rolling back the FPS, start from Step 1 future. Accordingly, the FPS Test In Live file
If retrying the FPS, retry it, then start from generation process will not error if
step 5 termination dates are within the 365 day
period, however, the Live file generation
process will error if termination dates are
Note: Test In Live and Live submission
greater than the 30 day period. Hence, you
differences for FPS only
may see errors in a Live generation, not
encountered for the same data used to
generate a Test file. Note that the Live file
will raise warnings if there are termination
dates greater than the 30 day limit in the file,
for you to take any corrective action as
required before generating and submitting
the file.

7 Submit the XML file to HMRC as a Live As the data was accepted in Step 5 as Test-
Submission In-Live, you can submit it again as Live, as
this is not a new XML file, but identical
(except for various attributes in the XML
indicating if it’s a Test or Live file
submission).

8 Inspect and keep the success message from This is required for auditing purposes.
HMRC.

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 HMRC FILE SUBMISSION PROCESS

This section describes how you can submit the XML file to HMRC as a Test-in-Live submission. To do this:

1. Select the flow HMRC file Submission Process from the Checklist Work Area for your LDG:

2. Click Next.

Note: The example below is for an NVREQ submission, however the process would be identical for the other file types.

3. Enter the following parameters:

» Enter a flow name

» Select the Payroll Statutory Unit
» Select the Tax Reporting Unit – this is a mandatory field as the submission is done by PAYE reference
» Select the Flow pattern - le Type of file you are submitting.
» Select the actual flow name of the flow you used to create the Live XML file.
» Select the submission type. Only submit a Live submission, if the prior test submission for this flow was received
successfully by HMRC.
» Process Configuration group: enter the payroll configuration group previously created.

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 4. Click Next.

5. Submit the flow.

6. Refresh the view until the submission completes.

7. Click Send HMRC XML Data and Go to Task:

Note: There is always only one record associated with the transmission. This is because the transmission is designed to be
controlled with 1 archive action.

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 8. Click Actions menu and View Results:

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 9. Click the File name to view the XML returned from HMRC. The following is a sample of a TEST submission
response:

The correlation ID is highlighted in the above example. If you have errors in the test submission, you must resolve the
errors and perform a new Test submission. If you have no errors in the test submission, you can repeat the process as a
Live submission. In this case, you do not need to regenerate the XML file (for example, the NVREQ file). The same file is
used for both Test-in-Live and Live submissions. The following is an example of HMRC response for a Live submission
(with some truncated elements):
Note: The IRMark is present in base-32. This is the equivalent of the Base-64 IRMark that was sent to HMRC.

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 HMRC recommends you keep this receipt (of the Live submission) as proof of successful submission.

The following table summarizes the steps within the HMRC File Submission Process:

Step Process or User Action Error / Action

1 Process Action No errors expected at this stage

Perform ZIP compression of part of
the file (all file types except EPS and
NVREQ) and update the XML file
2 Process Action No errors expected at this stage
Calculate the IRMark. This is a
checksum value calculated using the
algorithm specified by HMRC. Update
the XML file with this value.
3 Process Action No errors expected at this stage
If the Submission type is Test, update
the file class element with the suffix :
‘--TIL’

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 4 Process Action If there is no internet connection
Submit the file to the HMRC gateway. available, or if there is some HMRC
Receive a Correlation ID as the gateway / system / processing error,
response. the archive Object Action will be in an
Store the Correlation ID for future use. error status.
No correlation ID will be received or
stored in this case.
The connection error is reported in the
UI.
5 – If step 4 errored User Action: If errors are still received, repeat this
Rollback step 4, and re-submit. step until it succeeds (i.e. when
internet connectivity is restored).
6 Process Action If there is no internet connection
Poll the HMRC gateway, using the available, or, if HMRC backend
Correlation ID. departmental data validation errors
Repeat this step, using the received were received, the archive Object
polling interval (usually 10 seconds) Action will be in an error status and
until a Success or a Fail message is the polling will stop.
received.
The process halts after the 20th
iteration if HMRC repeatedly reports
that they have not yet finished
processing the data. In this case the
Object Action is errored.
7 – If step 6 has errors User Action: If errors are still received, repeat this
Rollback step 4, and re-submit. step until it succeeds (i.e. when
internet connectivity is restored).
8 – If step 6 returned a Success XML Process Action This is required for auditing purposes.
message from HMRC Store the returned XML response from
HMRC.
Call HMRC’s Delete Response
service, to remove this Correlation ID.
User Action:
Store the success XML safely for
auditing purposes.
This is the end of the flow.
9 – If step 6 returned an Error XML Process Action The Object action will be in an error
response from HMRC Error the Object Action. status.
Call HMRC’s Delete Response The error messages / numbers /
service, to remove this Correlation ID. locations are extracted and placed in
Remove the Correlation ID from the pay_message_lines).
Archive.
User Action If logging was enabled then the whole
Examine the Error response. error xml would be written to the log
If this was a Test or Live submission: file.
- Rollback the archive Note : If logging wasn't turned on
- Rollback the file (example, the FPS) originally, then turned on prior to a
- Correct the underlying data and retry in order to get the whole error
repeat from step 1. xml, then that would effectively
submit it afresh and a new correlation
Note: If there was an issue with the ID obtained, owing to the original one
HMRC servers at the time of the Live being removed and the delete request
submission (for example, the servers being sent. This assumes a
were not available or not responding), configuration group had been used
and you wish to retry the same originally, and logging added to that
submission flow, do Actions->Retry, group.
to retry this flow.

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 Otherwise, if you wish to use a new
flow to do the submission, roll back
the original submission flow first.
Viewing the Errors

This section details how to view any errors received from HMRC. To do this:

1. Click Go To Task in the task window:

2. Click the ‘Error Messages’ link:

3. You can review the errors in the window. Click on the spreadsheet icon to review the output in a spreadsheet:

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 4. Click View Log icon:

This displays a window where you can expand the collapsed Process IDs to view the individual logs.

5. Examine the log for errors. The log file (usually the last one) will contain the full XML response, similar to the one
below:

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 Note: The XML is only available in the log if logging is enabled for your action parameter group.
In this case, you must resolve the issue and perform a new submission Test_in_Live submission mode until the submission
is successfully received by HMRC. You can then do a Live submission with the same source XML file.

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 P11D XML SUBMISSION

The HMRC support for P11D is slightly different as there is no Test-In-Live support for P11D.

To enable you to test the submission before submitting it to HMRC, select Test as the submission type in the HMRC File
Submission process flow. The process deliberately adds additional data into the generated XML that will cause the
submission to fail. This allows you to examine the smaller ‘test’ files with no danger of that file being accepted by HMRC as
the actual submission.

If you use the test submission type, the error file is displayed as follows:

ge:Location[contains(.,'ThisIsASubstituteTILforOracleFusionHCM')] or
ge:Location='/hd:GovTalkMessage[1]/hd:Body[1]/exb:IRenvelope[1]/exb:IRheader[1]/exb:
Sender[1]')]]|//ge:Error[not(ge:Text[contains(.,'ThisIsASubstituteTILforOracleFusion
HCM')] or ge:Location[contains(.,'ThisIsASubstituteTILforOracleFusionHCM')] or
ge:Location='/hd:GovTalkMessage[1]/hd:Body[1]/exb:IRenvelope[1]/exb:IRheader[1]/exb:
Sender[1]')]"), containing:

1 <Type>business</Type><Number>3001</Number><Text>The submission of this document has failed due to

departmental specific business logic in the Body tag.</Text>

2 <Type>schema-validation</Type><Number>6010</Number><Text>Your submission is not in the correct format - please

contact your software supplier and quote Error Code 6010.</Text><Location>P11D</Location>

It also contains any other genuine errors produced by the file, which you can correct when you examine the test file.

However, if you use the Live submission type, the process does not insert anything to deliberately force the submission to
fail. Any errors you see from a Live submission must be addressed.

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 HMRC FILE SUBMISSION AND RETRIEVAL PROCESSES USING A THIRD PARTY

Oracle Fusion HCM fully supports both sending and receiving of XML data. However, if you wish to use a third party to do
either of these processes, the steps are listed here.

Outgoing Files
You would have to generate the XML file using the FPS / EPS / EYU / NVREQ / P11D flow, open it in view results,
download it, and pass it to the third party.

The third party would have to:

» Add the --TIL flag to send it as a test in live file (files are live by default)
» Calculate the checksum (IRMARK) and add it into the xml (HMRC provide instructions for this task)
» Zip the part of the XML that can be zipped (if wanted, this is not a mandatory step

Note: The customer needs to manage this process manually. The Live Fusion submission process locks the archive
(so that it can’t be rolled back); this won’t be done if the customer didn’t run the HMC file submission process.
Incoming Files

You would be given the XML from the third party. You would then have to:

» Upload it to the UCM, and get the UCM ID

» Run the HMRC Incoming Data Retrieval Process flow, specifying the UCM ID (therefore, not using the defaulting
functionality that defaults the next available UCM ID to be uploaded)
Note: The customer would have to ensure that they load the files in order of receipt (recommended) and they would have
to manually manage this process.

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 P45 GENERATION

Setup and Configuration

A P45 is generated for the UK Employees upon termination or after you end-date or delete the assignments associated with
the PAYE component.

Under the PAYE component, the P45 Action denotes the period to generate the P45.

It will generate a P45 for employees that:

» Are terminated, have a payroll run on or after the termination date, and have a P45 Action set accordingly.
» Are terminated, have a payroll run in the period prior to the termination date, and have a P45 Action set accordingly.
» Are not terminated but have no associations to one or more of their PAYE components.
The P45 Actions are recorded in the employee’s PAYE component:

» Do not issue: Do not issue P45 for this employee

» Issue when final pay in previous period: Issue P45 based on the latest payroll run before the termination date.
Note: This final payroll run must be in the tax year
» Issue When final pay on or after termination: Issue P45 based on the payroll which runs on or after the termination
date.
» Manual issue: P45 is produced and given to employee manually. In this case Fusion will not produce a P45
Note: When you hire an employee with automatic card creation option enabled, the value that this field defaults to
can be specified at both the Legal Employer and TRU levels. For more information, see the Oracle Fusion
HCM (UK): HR Implementation and Functional Considerations whitepaper on My Oracle Support (MOS).
A PAYE component is also considered for a P45 process if the assignments that are associated are either end dated or
deleted. This is referred to as a Mini Termination.

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 1. Select the Manage Calculation Cards task for a specific person in the Payroll Calculations work area.

2. Select the Statutory Deductions card for the person.

3. Select the Associations tab:

4. Select the assignment and click Delete.

Note: Once the employee is terminated from the system (complete or mini termination), complete the following
steps to generate the P45.
Generating the P45 and Audit Reports

1. Navigate to the Regulatory and Tax work area from the Navigator:

2. Select Submit a Process or report.

3. Select a Legislative Data Group, which will refresh the list of flow patterns to select from.

4. Select the P45 Process flow pattern.

5. Click Next

6. Enter the required parameters and click on Next until reaching the submission page, then click Submit:

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 » Payroll Flow This is used to uniquely identify this flow submission.
» Payroll Statutory Unit The legal entity for which the process is to be run.
» Tax Reporting Unit The legal reporting unit for which the process is to run.
» Start Date: The date on or after which the employees terminated are considered.
» Effective Date: The date on or before which the employees terminated are considered and the P45 issue date.
» Submission type:
• Live: P45 is generated and updates are made in the system.
• Test: P45 is generated and updates are not saved in the system.
» Payroll: A list of payrolls.
If specified, the process will only consider employees for P45 if they have at least 1 PAYE component associated to this
payroll.

7. When the Confirmation dialogue is displayed, click OK and View Checklist:

The page will refresh and display all the tasks which will be executed during the flow. When all tasks are completed,
click on Go to Task on the Run P45 Process line to see what has been produced:

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 5. Click on Process and reports and then click on View results. There are 3 files generated:

» P45_3PART_PLAIN.pdf - for printing on the plain paper as it has its own boilerplate
» P45_3PART.pdf - for pre-printed paper; this PDF does not have any boilerplate
» P45_Audit.pdf - it has the list of employees whose P45 is generated.
Note: When the P45 process in run in Live mode, the P45 filed date is displayed against the PAYE component in
Manage Calculation Cards.
If you load the termination data using the HDL, the application will now also (subject to the other constraints) raise a P45.

The P45 contains a Tax Week or Tax Month value. This value is determined from the period in which the relevant PAYE
balances were last modified and the P45 Action setting. It is therefore not necessarily related to the latest payroll run that
was completed for the employee.
Note: When you perform a reverse termination for an employee, it is recommended to first rollback the P45 process
for the relevant PAYE components. The Reverse Termination flow does not invoke the P45 rollback process.

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 START OF YEAR FLOW S AND NI CATEGORY UPDATE

This process should be run at the start of each tax year in order to clear down any non-zero values for previously captured
P45 figures and to reset the tax basis to cumulative.

It will update employees who, as at the start of the tax year, meet any of these conditions:

» has a non-cumulative tax basis

» has non-zero P11 Previous Taxable Pay
» has non-zero P11 Previous Tax Paid
The process will set the P11 values above to 0, and set the Tax Basis to Cumulative, effective from the 6th of April.

Additionally, for audit purposes:

» The Authority field will be set to P9X
» The Authority Date will be set to 6-April of the tax year being processed
» The Last Update Process will be set to one of:
» Cleardown (if no changes already existed on the 6th April for this record)
» Cleardown Uplifted (if the Tax Code Uplift Archive process has already run as at the 6th April for this employee)
» Cleardown with Effective Date Change (if the tax code / tax basis / P11 figures had been changed as at the 6th April,
but not through the Tax Code Uplift Archive process)
To run this process:
1. Navigate to the Payroll Checklist from the Navigator:

2. Select Submit a Process or report.

3. Select a Legislative Data Group, which will refresh the list of flow patterns to select from.

4. Select the Start of Year Archive Process flow pattern.

8. Click Next

9. Enter the required parameters and click on Next until reaching the submission page, then click Submit:

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 » Payroll Flow This is used to uniquely identify this flow submission.
» Payroll Statutory Unit The legal entity for which the process is to be run.
» Tax Reporting Unit The legal reporting unit for which the process is to run.
» Year This is the start of the tax year for which this process will be run.
» Submission Type
» Test – the audit report is produced but updates are not committed to the database.
» Live – the audit report is produced and updates are committed to the database.
» Process Configuration Group: LOV of available Process Configuration Groups
10. When the Confirmation dialogue is displayed, click OK and View Checklist:

The page will refresh and display all the tasks which will be executed during the flow. When all tasks are completed,
click on Go to Task on the Run Start of Year Archive line to see what has been updated:

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 11. Click on the Actions->View Results, then click on ‘Start of Year Archive Report.txt’ to see the audit report:

12. The report is produced as a .csv format, so this can be opened in a spreadsheet application. It contains the previous
and updated values for the employee records.

13. To view the Errors and Warnings report, click the Go to Task icon on the ‘Run Errors and Warnings Report’ task.

14. Click Actions.

15. Select View Results, and then open the link ‘Errors And Warnings Report’. Any errors raised during the Start of Year
Process are reported here.

16. View the actual data updated by verifying the PAYE component in the calculation card for a specific person using
Manage Calculation Cards task.
Note: Updates are only made if the Start of Year process is submitted with a ‘Live’ Submission Type.

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 TAX CODE UPLIFT

You can run this process at any time during the tax year in order to uplift tax code values.

It will update employees who meet the criteria specified by the submission parameters.

It will add a numeric value to the numeric component of a tax code, for example, it could add 10 to the tax code S920L, to
produce S930L.

Additionally, for audit purposes:

» The Authority field will be set to P9X (if the update is on the 6th of April), or P7X otherwise.
» The Authority Date will be set to 6-April (for P9X) or the effective date (for P7X)
» The Last Update Process will be set to one of:
• Uplifted (if run before the Start of Year Process, or if run mid-year)
• Cleardown Uplifted (if the Start of Year Process has already run as at the 6th April for this employee)
To run this process:

1. Navigate to the Payroll Checklist from the Navigator:

2. Select Submit a Process or report.

3. Select a Legislative Data Group, which will refresh the list of flow patterns to select from.

4. Select the Tax Code Uplift Archive Process flow pattern.

5. Enter the required parameters and click on Next until reaching the submission page, then click Submit:

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 » Payroll Flow: This is used to uniquely identify this flow submission.
» Payroll Statutory Unit: The legal entity for which the process is to be run.
» Tax Reporting Unit: The legal reporting unit for which the process is to run.
» Effective Date: This is the effective date for which this process will be run and the uplift applied.
» Suffix: The suffix value of all those tax codes to be uplifted.
» Uplift Value: The value by which each tax code should be uplifted.
» Submission Type
• Test – the audit report is produced but updates are not committed to the database.
• Live – the audit report is produced and updates are committed to the database.
The page will refresh and display all the tasks which will be executed during the flow.

6. When all tasks are completed, click on Go to Task on the Run Tax Code Uplift Archive line to see what has been
updated:

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 7. Click on Actions->View Results, then click on ‘Tax Code Uplift Archive Report.txt’ to see the audit report:

8. The report is produced as a .csv format, so this can be opened in a spreadsheet application. It contains the previous
and updated Tax Code values for the employee records.

9. To view the Errors and Warnings report, click on the ‘Go-to-Task’ on the ‘Run Errors and Warnings Report’ task,
again click Actions-View Results, and then open the link ‘Errors and Warnings Report’. Should there have been any
errors raised during the Tax Code Uplift Archive Process, they are be reported here.

10. View the actual data updated by verifying the PAYE component in the calculation card for a specific person using
Manage Calculation Cards task.
Note: Updates are only made if the Tax Code Uplift Archive Process is submitted with a ‘Live’ Submission Type.

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NI CATEGORY UPDATE ARCHIVE PROCESS

This process can be run at any point in time during the tax year in order to:
» Update employees who are approaching their 21st Birthday on NI category M, updating to NI Category A
» Update employees who are approaching their 21st Birthday on NI category Z, updating to NI Category J
» Update employees who are approaching their 25th Birthday on NI category H, updating to NI Category A
» Update employees who are approaching their State Pension Age, on any category other than X, updating to NI Category C.
Note, this also updates the Certificate to be ‘Age to be Verified’.
Note: If there are future dated changes to the employee record, no updates are made but an error is raised.

To run this process:

1. Navigate to the Payroll Checklist from the Navigator:

2. Select Submit a Process or report.

3. Select a Legislative Data Group, which will refresh the list of flow patterns to select from.

4. Select the NI Category Update Archive Process flow pattern.

5. Click Next

6. Enter the required parameters and click on Next until reaching the submission page, then click Submit:

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 » Payroll Flow This is used to uniquely identify this flow submission.
» Payroll Statutory Unit The legal entity for which the process is to be run.
» Tax Reporting Unit The legal reporting unit for which the process is to run.
» Effective Date This is the date at which the employee records will be considered.
» Submission Type
 Test – the audit report is produced but updates are not committed to the database.
 Live – the audit report is produced and updates are committed to the database.
» Process Configuration Group: LOV of available Process Configuration Groups
7. When the Confirmation dialogue is displayed, click OK and View Checklist:

The page will refresh and display all the tasks which will be executed during the flow. When all tasks are completed,
click on Go to Task on the Run NI Category Update Archive to see what has been updated:

8. Click on the Actions->View Results, then click on ‘NI Category archive Update Report.txt’ to see the audit report:

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 9. The report is produced as a .csv format, so this can be opened in a spreadsheet application. It contains the previous
and updated values for the employee records.

10. To view the Errors and Warnings report, click on the ‘Go-to-Task’ on the ‘Run Errors and Warnings Report’ task,
again click Actions-View Results, and then open the link ‘Errors and Warnings Report’. Should there have been any
errors raised during the NI Category Update Archive Process, they are be reported here.

11. View the actual data updated by verifying the NI component in the calculation card for a specific person using
Manage Calculation Cards task.
Note: Updates are only made if the NI Category Archive Update process is submitted with a ‘Live’ Submission
Type.

You may find that there is no data in the report, even though there were records created and visible under ‘Process
Results’. For performance reasons, the process operates in two phases. The first phase determines a set of employees
who may be eligible for a NI category update, and the second phase determines from this list exactly which records need
updating. Because the State Pension age is now a variable based on Sex and Date of Birth, this is a more efficient solution.
Therefore, if no records appear in the final report, it simply means that no records need updating as at the effective date.

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 END OF YEAR FLOW S: P60 GENERATION

You can run this process at the end of each tax year in order to produce the P60 reports. These output types are
supported:
» Online eP60
» HMRC Single Sheet Portrait
» P60 Substitute Self Seal LE(P)
» P60 Plain Paper Substitute
To run the P60 Report:

1. Select the Submit a Payroll Flow in the Regulatory and Tax Reporting work area.

2. Select the LDG for which the process is to be run.

3. Click Next

4. Enter the required parameters and click on Next until reaching the submission page, then click Submit:

5.

» Payroll Flow This is used to uniquely identify this flow submission.

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 » Date in Tax Year Pick any date in the tax year in which the P60s are to be produced.
» Payroll Statutory Unit LOV of PSUs within the LDG.
» Tax Reporting Unit LOV of TRUs attached to the selected PSU.
» Replacement Yes – to generate a replacement for a previously produced P60. For example, to take
into account P60 Balance adjustments. This produces Plain Paper and Document of Record output only.
» Paper P60 for Leavers after Tax Year End
• Yes – Overrides the delivery preference of on-line, to force the production of a paper P60 for employees who have
left after the P60 tax year. This is useful for employees who have no access to on-line documents after termination.
• No – honours the delivery preferences for the P60 output
» Employee Set To conditionally print a set of employees only. Usually used with Replacement.
» P60 Template Choose the template to print. Leaving this blank produces the Plain Paper output.
» Process Configuration Group List of Action Parameter Groups.
6. When the Confirmation dialogue is displayed, click OK and View Checklist.

The page will refresh and stop at the P60 Output Verification task. You have to verify the output and restart the flow
before the P60s are produced.

7. To verify the output, click on the Go to Task of the Run End of Year P60 Archive and select Actions->View Results:

8.

9. Open the output as a .csv file into a spreadsheet to verify the output. If the output is not as expected, rollback the
process and fix the underlying issue.

10. If the output is as expected, return to the task list and select the P60 Output Verification task. Use Actions->Mark as
complete to allow the flow to continue.

11. The flow will continue to completion. Click on the Go to Task on the Run End of Year P60 Report task:

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 12. Click on View Output:

13. Open the PDF to review the P60 outputs.

14. To view the eP60s go to Person Management, Manage Document records to view the output.
Note: The P60 (and any other output, for example, P11D output, if you are also producing this) is produced in
accordance with the document Delivery preferences.

P60 SELECTIVE PRINT

You can run this process when you want to reprint previously produced P60s. This includes both the reprinting of original
P60s, where there has been no subsequent replacements produced, and the reprinting of P60s that have had subsequent
replacement P60s already produced.

This process produces the Plain Paper output only.

For employees whose P60 is also a replacement, the text ‘Replacement Copy’ will be printed in the top right of the P60.

For employees whose P60 is not a replacement, the text ‘Copy’ will be printed in the top right of the P60.

1. Select the Submit a Payroll Flow in the Regulatory and Tax Reporting work area.

2. Select the LDG for which the process is to be run.

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3. Click Next

4. Enter the required parameters and click on Next until reaching the submission page, then click Submit:

» Payroll Flow This is used to uniquely identify this flow submission.

» Date in Tax Year Pick any date in the tax year in which the P60s are to be produced.
» Payroll Statutory Unit LOV of PSUs within the LDG.
» Sort Sequence Choose a sort sequence for the P60 output.
» Print selection set To limit the output to a selection of employees.
Note: The Batch Name must only contain values a-z, A-Z, 0-9 or _.
5. When the Confirmation dialogue is displayed, click OK and View Checklist

6. Click on the Go to Task of the Run End of Year P60 Report:

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7. Click on Actions, View Results:

8. Open the PDF to view and print the output.

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P11D GENERATION

For more information on P11D generation, see the whitepaper Processing Benefits-in-Kind and P11D Reporting (Doc ID
2393233.1) on MOS.

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ACCESS P60 (AND P11D) DIRECT END-OF-YEAR

Employers can provide links to their employees to directly link to the Document Records that holds the employee’s P60s and
P11Ds. To do this, use the following link:

https://<env_url>/fndSetup/faces/deeplink?objType=DOCUMENT_RECORDS

The employee can login using the provided link and view the following screen that contains their P60 form:

To view or download the document, click the link in Attachments.

Note: The P11D is only available in this view from April 2019.

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GENDER PAY GAP REPORT

The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 requires employers with at least 250 employees to
publish annual information to show whether there is a difference in the average pay of their male and female employees.

Large Public Sector organizations are required to publish details of their Gender Pay gaps to ensure parity with the private
and voluntary sectors.

To assist in Gender Pay Gap Reporting, the payroll application provides an extract containing all relevant data required to
calculate the Gender Pay Gap Reporting figures.

The process extracts raw data into a CSV file format. You can run the report between 31st March and 5th April of a given year.

Reported Information

The following information will be extracted for all active employees of a selected PSU / TRU:

» Payroll Statutory Unit

» Tax Reporting Unit
» Snapshot Date
» Assignment Number
» National Insurance Number
» Employee Name
» Gender
» Position Code
» Position Name
» Job Code
» Job Name
» Grade Ladder
» Grade
» Standard Working Hours
» Working Hours Frequency
» Full Time Equivalent (FTE)
» Annualized Full-Time Salary for Assignment
» Ordinary Pay PTD for Assignment
» Bonus Pay Tax YTD for Assignment
Balance Feeds

In order to store Period to Date Ordinary Pay and Year to Date Bonus Pay, two new balances are available. The individual
elements that feed into the Oracle delivered balances must be setup at implementation level. No element classification feeds
are delivered.

The predefined balances are:

» Gender Pay Gap Reporting Ordinary Pay: GB_GPGR_OPAY
» Gender Pay Gap Reporting Bonus Pay: GB_GPGR_BPAY
Reference Payroll Period Results

You can run the report for snapshot dates 31-Mar (public sector) or 05-Apr (private sector) of the selected snapshot year (later
than or equal to 2017).

In order to fetch payroll information, a payroll run with a payroll period comprising the snapshot date must have been
completed before submitting the report. The payroll run for this period is Relevant Pay Period Run.

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The report uses the following balances stored in the Relevant Pay Period Run:
2. Ordinary Pay: Period to Date Balances
3. Bonus Pay:
a. If Period Payment Date < April 6th: Bonus Pay Current Year YTD Balance
b. If Period Payment Date >= April 6th: Bonus Pay Last Year YTD Balance
You can run this report multiple times without a need to rollback any process, and the report will reflect the balance values as
per the latest execution.

Process Execution

1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting or Payroll Checklist work area.

2. Select the LDG for which the process is to be run and flow pattern Run UK Gender Pay Gap Report:

3. Enter the parameters to be used to run the process:

3. Complete the fields as described below:

» Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is executed. You
can choose any format to describe the payroll flow.
» Payroll Statutory Unit: Select the PSU among the ones belonging to the LDG.
» Tax Reporting Unit: Select the Tax Reporting Unit within the PSU. This is an optional parameter. If no value is entered
for Tax Reporting Unit, the report fetches the information for employees of all tax reporting units within the PSU.
» Snapshot Day: Select either 31-Mar or 05-Apr. The report can be run for 31-March (Public Sector companies) or 5-
April (Private Sector companies) of given year.
» Snapshot Year: Select the year to which the report refers (note that only years starting from 2017.
4. Click Next thrice.
5. Submit the process.
6. Click OK and View Checklist.
7. Click Go to Task to view results:

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 8. Select Action View Results:

9. A file in .txt format is produced with the following format:

This file is comma delimited and can be imported in Excel in order to analyze the data according to business requirements.

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 STATUTORY DEDUCTIONS BALANCE ADJUSTMENTS

You can perform statutory balance adjustment to:

» Correct the entries from the Load Initial Balances process that were processed during the conversion
» Load initial balances for an employee who is transferred from some other payroll system to Oracle Global Payroll
application
» Correct balances that were calculated incorrectly due to incorrect tax code or incorrect NI category
To process statutory balances adjustments, run the Adjust Individual Balances task in the Payroll Calculation work area.
Note: Balance adjustments bypass system validation. You must ensure that the correct value is used in the
adjustment.

Assumptions
The following are beyond the scope of this document and are assumed to be complete and accurate:
» Organization setup is complete
» Employee has been created and payroll is attached
» Statutory Deduction card has been setup with PAYE and NI component associated to assignment

Prerequisites
You must create element eligibility for the following elements:

» NI Employee Adjustment
» NI Employer Adjustment
» PAYE Adjustment

Creating Balance Adjustments

To use the Adjust Individual Balance task:

1. Navigate to the Payroll Calculation work area.

2. Under Person, select Adjust Individual Balances

3. Enter the search criteria.

4. Click Search.

5. Select the employee name in the Search Results to navigate to the Adjust Individual Balances page.

6. Enter the appropriate effective date (if not populated from previous screen).

7. Select the appropriate element to adjust (see Elements Used for more information).

134 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 8. Select the assignment number:

9. Enter the appropriate balance adjustments in the Adjustment Values.

10. Under the Costing and Payment Details, select the appropriate options based on your organizational needs.

– Select Yes for Include adjustment in payment balance for the adjustment to result in a refunded or deducted payment
that is processed by the payment process.

– Select Yes for Include adjustment in costing process to calculate the costing details of an individual balance
adjustment as soon as you process the balance adjustment

– The default on both options is No.

11. Click Submit.

12. Click OK.

Elements Used
You can use the following elements to adjust statutory balances:
PAYE Adjustment – This has the following enterable inputs
i. Pay Value
ii. Taxable Pay after P45
iii. PAYE after P45
iv. Tax code
v. Tax Basis
vi. Previous Pay
vii. Previous Tax
Input What to enter? Balance Feeds (+ positive feeds, -
negative feeds)

Pay Value PAYE deduction value • +Total PAYE

135 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 • +PAYE

• +Total Deductions

• -Attachable Earnings

• -Net

• -Net Pay

• -Total Pay

Taxable Pay after P45 Taxable pay for employee with a • +Taxable Pay After P45
P45 issued.

Use this only if entering adjustment

for employee with P45 issued.

PAYE after P45 PAYE for employee with a P45 • + PAYE After P45
issued.

Use this only if entering adjustment

for employee with P45 issued.

NI Employee Adjustment – This has the following user enterable inputs:

– Category

– Pension

– NIable LEL

– NIable LEL Calculation

– NIable PT

– NIable UEL

– NIable AUEL

– NIable

– Pay Value

– NI Employee UEL

– NI Employee AUEL

– Director

136 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 Input What to enter? Balance Feeds (+ positive feeds, -
negative feeds)

Category NI Category. This is balance context

Pension Pension Basis This is balance context

NIable LEL NI LEL value. • + NI LEL

Enter 0 if NIable if less than NI LEL.

For example, if NI LEL Monthly
threshold is 485 and NIable is 1000,
enter 485. If NIable is 300, enter 0.

NIable LEL Calculation NI LEL value. • +NI LEL for Calculation

For example, if NI LEL Monthly

threshold is 485 and NIable is 1000,
enter 485. If NIable is 300, enter
300.

NIable PT NIable earnings that falls between • +NI PT

NI LEL and NI PT threshold.

NIable UAP 0 • +NI UAP

This is no longer in use.

NIable UEL NIable earnings that falls between • +NI UEL

NI PT and NI UEL threshold

NIable AUEL NIable earnings above NI UEL • +NI AUEL

threshold

NIable NIable value • +NIable by Category

Pay Value NI Employee deduction value • +Total Deductions

• +Total NI

• +NI Employee

• -Net

• -Net Pay

• -Total Pay

• -Attachable Earnings

137 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 NI Employee UAP 0 • +NI Employee UAP

This is no longer in use.

NI Employee UEL NI Employee deduction calculated • +NI Employee UEL

at UEL entered above

NI Employee AUEL NI Employee deduction calculated • +NI Employee AUEL

at AUEL entered above.

NI Employee Notional 0 • +NI Employee Notional

This is no longer in use.

Director Yes – to adjust balance for This is balance context

employee classified as Director for
NI calculation purpose.

NI Employer Adjustment: This has user enterable inputs:

– Category

– Pension

– NIable ST

– NIable UST

– NIable UST UEL

– NIable AUST

– NIable AUST UEL

– Pay Value

– Employer Pay Bill Amount for Apprenticeship Levy

– Director

Input What to enter? Balance Feeds (+ positive feeds, -

negative feeds)

Category NI Category. This is balance context

Pension Pension Basis This is balance context

NIable ST NIable earnings falls between NI • +NI ST

LEL and NI ST threshold

NIable UST NIable earnings falls between NI ST • +NI UST

and NI UST threshold

138 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 NIable UST UEL NIable earnings falls between NI • +NI UET UEL
UST and NI UEL threshold

NIable AUST NIable earnings falls between NI ST • +NI AUST

and AUST threshold.

For NI Category H only.

NIable AUST UEL NIable earnings falls between NI • +NI AUST UEL
AUST and NI UEL threshold.

For NI Category H only.

Pay Value NI Employer deduction value • +Total Employer Taxes

• +NI Employee

Employer Pay Bill Amount for NIable value if not excluded from • + Employer Pay Bill for
Apprenticeship Levy Apprenticeship Levy Apprenticeship Levy

Director Yes – to adjust balance for This is balance context

employee classified as Director for
NI calculation purpose.

Rolling Back Balance Adjustments

If you need to correct or remove a balance adjustment, you must roll back the adjustment process. This can be done through
the either the View Person Process Results or View Payroll Process Results tasks.

Creating New Flows based on Predefined Flows for the UK

You can create your own flows based on the flow patterns delivered specifically for the UK, Ensure that you include all
necessary prerequisite tasks, for example, if you include an archive report, you must first include the archive process.

139 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
ELEMENT ALLOCATION

The salient features of element allocation are as follows:

• It can breakdown results into more granular time periods, for example, lunar into weekly values
• Time definitions define the period basis

• Associate Time Definition to the element using Frequency in the Element Type page

• Proration formula captures allocation rules for the element

• Global Payroll calculation breaks down earnings based on time definition and proration rules

Setting up Element Allocation

Enabling element allocation involves two steps:

– Creating a time definition

– Assigning that time definition to an element

CREATING A TIME DEFINITION

Time definition controls the element allocation period:

1. Select > Payroll Calculation > Manage Time Definitions > Create Time Definition.

2. Select the LDG from the list.

3. Select a type of Static Time Definition.

4. Enter the name of the time definition.

5. Enter the short name of the time definition.

6. Select the Period Basis.

7. Enter the number of years for the time period in the Number of Years field. The application generates time periods for
the number of years as of the first period start date.

8. Enter a start date for the time period in the First Period Start Date field

9. Select Element Allocation in the Usages Available.

140 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 10. Click on Next.

11. Click Generate Time Periods in the Allocation Periods so that the time periods are created.

12. Submit.

Assigning the Time Definition to Elements

The time definition created should be associated with the element. Additionally, a further attribute of the Element Type (Called
Time_Definition_Type) need to hold the single character value ‘S’.

It is not currently possible to update these 2 values using the UI, so, this has to be done using HDL.

Here is an example HDL file:

METADATA|PayrollElementDefinition|ElementCode|LegislativeDataGroupName|FrequencyId|Tim
eDefinitionType|EffectiveStartDate|EffectiveEndDate

MERGE|PayrollElementDefinition|DOC_Earnings|ZHRX-UK-
Recognition|300100181787813|S|2019/01/01|4712/12/31

In this example,

The name of the Earnings element to be updated is ‘DOC_Earnings’

The name of the LDG holding the Earnings and Time definition is ‘ZHRX-UK-Recognition’

The ID of the Time Definition is 300100181787813. You can get this ID from this SQL:

SELECT

ptd.definition_name, ptd.time_definition_id time_definition_id, 'S'

TimeDefinitionType

FROM

141 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 pay_time_definitions ptd,

per_legislative_data_groups_tl ldg

WHERE

ptd.definition_name = 'DOC_Time_Definition'

AND ldg.legislative_data_group_id = ptd.legislative_data_group_id

and ldg.name = 'ZHRX-UK-Recognition'

and ldg.language = 'US';

You can go to the Element type Navigator to check the Frequency field is populated with the Time Definition:

Note: The Time Definition Type is not currently available in the UI.

Assigning Balance Dimension to Balances

Link the _REL_BD_TDPTD balance dimensions to the balances fed by the element allocation enabled elements.

Element Allocation Formula (Example)

The logic for allocation is written in the formula of type Payroll Run Proration. Following is the sample Formula for prorating
the monthly earnings into weekly earnings.

default for prorate_start is '0001/01/01 00:00:00' (date)

1. inputs are prorate_start (date),
2. pay_value (number)

142 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
3. p1 = 0.10
4. p2 = 0.20
5. p3 = 0.30
6. p4 = 0.35
7. p5 = 0.05
8. l_pay_value = 0
9. wom = 1
10. wom = to_number(TO_CHAR(prorate_start,'W'))
11.
12. temp = PAY_INTERNAL_LOG_WRITE('$# L_WOM : ' + to_char(wom))
13.
14. IF wom = 1 THEN
15. ( l_pay_value = p1*pay_value)
16. ELSE IF wom = 2 THEN
17. ( l_pay_value = p2*pay_value)
18. ELSE IF wom = 3 THEN
19. ( l_pay_value = p3*pay_value)
20. ELSE IF wom = 4 THEN
21. ( l_pay_value = p4*pay_value)
22. ELSE
23. ( l_pay_value = p5*pay_value)
24. temp = PAY_INTERNAL_LOG_WRITE('$# PAY VALUE : ' + to_char(l_pay_value))
25. pay_value= l_pay_value
26. return pay_value

Element Allocation – Frequently Asked Questions

1. Can element allocation be enabled for both recurring and non-recurring elements?

Both non-recurring and recurring elements can be enabled for element allocation. Non-recurring elements need not
have proration formula attached. The creation date (effective_start_date) of the element entry of the nonrecurring
element determines the period or week.

2. How to retrieve the time_definition_id to set the context?

There are multiple ways to retrieve the time_definition_id to set the context:

– Hard code the time_definition_id in the formula where the weekly values are being retrieved

– Associate the element with the time_definition_id to which the formula where the weekly values are being
retrieved is linked

2. Does element allocation enabled elements allow for retrospective changes?

Yes. For retropay, nonrecurring elements should be created for the retro elements and attached to the base element
(time definition enabled) in element definition. When you run retropay, the application generates the retro elements for
the correct weekly dates. Retro elements must feed the weekly balances used to hold average weekly earnings. Also

143 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 retro elements must have processing priority lower than the element which is going to retrieve the weekly average
values.

3. Can element allocation be enabled for Information elements?

Yes.

4. Does Balance Initialization work for element allocation enabled elements?

Balance Initialization will not work for element allocation enabled elements due to lack of support for
_REL_BD_TDPTD and _ASG_TU_BD_TD_RUN dimensions.

5. Does Balance Adjustment work for element allocation enabled elements?

Balance Adjustment will work via batch balance adjustment for element allocation enabled elements.

6. How can I retrieve the weekly values in the formula for the balances fed by element allocation enabled elements?

a. The processing priority of the element associated to the calling formula should be lower than the element
allocation enabled elements.
b. The element associated to the calling formula should be element allocation enabled with the same time
definition ID. This is to ensure that the context for the time definition is set automatically in the associated
formula.
c. Use the following sample formula code to retrieve weekly values:
CHANGE_CONTEXTS(BALANCE_DATE=<BALANCE_DATE>)

l_value = SAMPLE_GROSS_EARNINGS_REL_BD_TDPTD

<BALANCE_DATE> identifies the period for the value is being retrieved.

7. How can certain weeks be excluded from the 12-weekly average if the requirement is to have a 12 weekly average?

It may be necessary to look back more than 12-weekly in order to build up a 12-weekly value, skipping certain weeks
due to business requirements such as absences. Your custom formula may include the logic to loop through each
relevant week and determine if appropriate to retrieve the weekly average earnings for that week. If not, skip the week
and step back a further week until you have retrieved a full 12 weeks values to obtain the average.

144 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
HDL TO LOAD DATA IN REPOSITORY OF CALCULATION INFORMATION

The HCM Data Loaded (HDL) is the supported interface to load data into the repository of calculation information.
Consequently, the previous solution of using the Payroll Batch Loader to invoke the Create Statutory Deductions Card, is no
longer supported. The HDL solution provides a much richer set of support for the calculation information data.

For more information, see HCM Data Loader: Loading Calculation Cards for United Kingdom (Document 2098480.1 ) and
Loading Balance Adjustments for the United Kingdom Using HCM Data Loader (Document 2595986.1) on My Oracle Support
(MOS).

145 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
COMMON LOOKUPS CUSTOMIZATION LEVEL

The customization level of the following common lookups has been modified from Extensible to User.
3. CONTACT
4. MAR_STATUS
5. PER_HIGHEST_EDUCATION_LEVEL
6. PER_NATIONAL_IDENTIFIER_TYPE
7. PER_ETHNICITY
8. PER_VISA_PERMIT_TYPE

Caution: Don’t update, modify, or delete the delivered lookup values.

146 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
LATE HIRE AND CALCULATION OF THE NATIONAL INSURANCE DEDUCTION
This section covers employees who are hired late in the payroll cycle and they cannot be included in the usual payroll run for
that period. Their first payroll run and payment is in the next period.
The previous releases of the NI calculation calculated the NI deduction for multiple periods by assuming that the NIAble value
is split equally across the periods. This was managed using an attribute of the NI Aggregation Information component Number
of Periods.
This is now enhanced so that the actual earnings for the earlier period can be calculated exactly for NI purposes.
This can be done in in two ways, either by a Manually Fed Balance, or an Automated Balance Feed.
Manually Fed Balance
1. Create a new non-recurring element type, of classification Earnings or Information, with a priority less than the ‘Tax
and NI Information’ element.
2. This element should have one input value, which feeds the balance ‘NIAble Previous Period Earnings’ (base name:
“ORA_HRX_GB_NI_PREV_PRD_NIABLE_EARNINGS”.
3. To display the input on the SOE, give the input a ‘Special Purpose’ of ‘Primary output value’.
4. When you have a late starter that needs to have NI calculated in the next period, enter into the new element the
value of the earnings subject to NI.
When the NI calculation is run for the first time, it checks the value in this balance. If the value is not 0, the process calculates
NI separately.
Note: The result of the two periods is combined into the result values of the NI Employee (Pay Value) and NI
Employer (Pay Value) results. You should not feed this balance, if the payment is to be made in period 1, that is,
if the previous earnings were earned in the prior tax year.
Automated Balance Feed
Note: This can only be used in conjunction with additional setup provided by Global Payroll.

1. The Earnings element must have retro enabled:

2. Create a non-recurring Information element. This must be at the same level as the earnings element, i.e.
Assignment.
3. Make sure the processing priority of the information element is lower than 5000, that is, 2500

4. Create a new input for information element

147 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 5. Create new balance feed for the balance NIable Previous Period Earnings

6. Create a new Fast Formula of type Oracle Payroll

148 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
 Line 1 and 10 refer to database item generated from the retro element’s input. Change this to match your
own retro element name.

7. Add Status Processing Rule and Formula Result Rules for earnings retro element.

8. The status processing rule will use formula created in step 6 and formula result rule will return result to the
information element created in step 2.

149 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
COSTING THE NI EMPLOYEE ELEMENT AT THE PAYROLL LEVEL
You may wish to cost the NI Employee element at the payroll level. If so, please follow the guidance in in this
document: 2172879.1

If you want to separate for example weekly and monthly costing by separate payrolls, you need to create separate
information elements for each.

150 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
CONCLUSION

This document has provided a set of information useful for anyone implementing or using Oracle Fusion Human Capital
Management Payroll for United Kingdom. In order to verify that all the tasks needed in an Oracle Fusion Human Capital
Management implementation have been performed, we recommend referring to the documents mentioned in the Other
Information Sources.

151 W HITE PAPER / Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
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The Open Group. 0120
White Paper Oracle Fusion HCM (UK): Payroll Implementation and Functional Considerations
January 2020
Author: Henry Winsor
Contributing Authors: [OPTIONAL]