6 Replies Latest reply: Nov 21, 2012 8:21 AM by 892288 RSS

    Mid Month Transfer Issue in Payroll

    Gaurav Bhardwaj
      Hello All
      Good Day!

      We have two payrolls defined, Payroll A and Payroll B and both has separate Legal entity but Business Group for both Payroll is same. We are having an issue when employee transfers from Payroll A to B or vice versa as mentioned below :

      1) Lets assume Employee transfers from Payroll A to Payroll B as on 17 Oct 2012.
      2) As Business Group is same , employee remain in the same BG.
      3) So we tried to terminate the employee as on 17-Oct-2012 and re-hired as on 18-Oct-2012 in the Payroll B. We need two IRP5 (tax certificate) so we need to terminate the employee from one payroll and reinstate in new payroll.
      4)) We have most of the recurring element configured to Terminate as Last Standard Process so all the recurring elements ended as on 31-Oct-2012, i think this should have been Actual Termination Date but as Payroll is running from last 2 years so this will be too big to change now.
      5) Now when we process the payroll as on 31-Oct-2012, employee got full month salary in Payroll A which is not correct as employee worked up to 17-Oct-2012.
      6) To avoid full month Salary, we changed the Last Standard Process to 17-Oct-2012 so all elements ended as on 17-Oct-2012 but now when we process the payroll as on 31-Oct-2012, employee is getting picked up but no element processed and no balance generated. Don’t know why ?

      Could you please provide your input as what is the best practice to handle this mid month transfer ?

      Thanks
      Gaurav
        • 1. Re: Mid Month Transfer Issue in Payroll
          Vigneswar Battu
          Hi Gaurav,

          For such cases, have all the termination dates -
          ATD, LSPD & FCD as the same 17-Oct-2012 and process quick-pay on 17-Oct-2012.(You cannot process the month-end payroll for this person as the person is not visible to the payroll process at that date)

          Then re-hire the person into the new payroll on 18-Oct-2012, which should be treated exactly as a new-hire.

          Hope that solves your issue.

          Cheers,
          Vignesh
          • 2. Re: Mid Month Transfer Issue in Payroll
            Gaurav Bhardwaj
            Hi Vignesh
            Thanks for the response!

            Sorry i forgot to mention that this is working as expected for Quick pay, but we are trying to avoid the Quick pay as it happens fo many employees within a month and there are many reports/interface where we don’t consider Quick Pay so we want to avoid it.

            So is there a way to process the employee through regular payroll?

            Thanks
            Gaurav
            • 3. Re: Mid Month Transfer Issue in Payroll
              Vigneswar Battu
              You'll have to work with 2 employments in such a case.
              Have the first assignment in Payroll-1 till the end of month - 31-Oct-2012
              Create a second assignment from 18-Oct-2012.

              I cannot think of another way of doing it.
              • 4. Re: Mid Month Transfer Issue in Payroll
                User360228
                Hello

                As you want write the proration in the formula so that the Salary is calculated according to proration .So that you can hire same employee in payroll B.





                Thanks
                Bindu
                • 5. Re: Mid Month Transfer Issue in Payroll
                  975131
                  Hi, Gaurav..
                  6) To avoid full month Salary, we changed the Last Standard Process to 17-Oct-2012 so all elements ended as on 17-Oct-2012 but now when we process the payroll as on 31-Oct-2012, employee is getting picked up but no element processed and no balance generated. Don’t know why ?
                  =>I guess.. The "Final Process Date" set as 31-Oct-2012 when you end this employee, isn't it?
                  Actual Termination Date will let person end at this date, that's mean person record's effective_end_date will equal to the Actual Termination Date and create a new person record after Actual Termination Date.
                  Last Standard Process Date let all elements ended as this date.
                  Final Process Date means you can process payroll run before this date, and the assignment record's effective_end_date will equal to Final Process Date. That's why your payroll run includes this person. There's no elements because all elements ended on 17-Oct-2012, system doesn't get any element on 31-Oct-2012.

                  Best Regards,
                  Changhua
                  • 6. Re: Mid Month Transfer Issue in Payroll
                    892288
                    Hi ,

                    I tested this issue with the below steps and got the desired result

                    1) Terminate assignment as on 16-Nov-2012

                    2) Create assignment with new payroll as on 16-Nov-2012

                    3) Give the salary and rotation plan to new assignment

                    4) Add any one non recurring element to terninated assignment like back dated payment with value as zero

                    5) Now run the Quick pay or payrol for these 2 assignments

                    6) Terminated assignment will pay for 01- nov 2012 to 15-Nov-2012 and Active assignment will get payment from 16 to 30th November

                    7) As of 16-Nov-2012 switch the primary flags of employees

                    8) from 16 Nov new assignment will be active with same employee number

                    9) take care about Tax issues for this new assignment

                    This will solve the issue