Maintain Individual Package {FPRI-9}

This option may be used to maintain structured salary packages and allows users to view the effect of different package options on the salary of an employee or a prospective employee.

The typical scenario is where a tax structures salary package is offered to an employee, and the employee has the privilege to decide on the components of the package and the size of each component, bearing in mind that the total cost to company amount is fixed. The employee may then liaise with the payroll office, using this option to advise the effect of including or excluding package components or increasing or decreasing the size of each component.

Once satisfied, program allows the user to automatically apply the selected package components and their sizes to the salary of the employee as individual earnings or deductions.

It is also possible to follow a two-step approach whereby one user may use this option to request changes to the package of a personnel member and another user may then approve (apply) the requested changes - refer to the "Request"- and "Apply Pack" - command buttons in Block 4 on the "Calculations" - tab

We advise the following implementation of tax structured salary packages to optimally use this option:

The full "Cost to Company" amount is contained in the salary notch. (Refer to Individual Salary Details {FPRI-2}).
In the Global Earning/Deduction Detail, the salary notch (full Cost-to-Company) is given to the person as an earning.
The full notch value is then deducted, and the salary components is given to the person as earnings using a percentage of the salary notch. For each individual, the different percentage values are set-up as Individual Earnings {FPRI-2}.

Pre-requisites to use this option:

Although the calculation done by this option will include all the relevant earnings and deductions, block 3 (Package Specific Earnings/Deductions) will only display the earnings and deductions of the different salary package components to enable the user to see the components without having to scan through the full set of earnings or deductions for the employee. To indicate the salary package components,

Create an E/D Group in the Management Report Structure {FPRC-7} with the package component earnings
Indicate the E/D Group in the System Operational Definition Parameter "PG - E/D Group for Individual Package" for Subsystem "PR" in the General System Operational Definitions {GCS2-11}
Note that changes may only be made to Earnings or Deductions where the calculations method are "1 - Percentage of Level Total", "3 - Advised Amount" or "6 - Percentage of E/D"

To use the option experiment with salary options for a new candidate for employment (e.g. the person is not an employee), the system needs an arbitrary post to do the calculations. Indicate the post to use with the System Operational Definition Parameter "PP - Post for Individual Package" for Subsystem "PR" in the General System Operational Definitions {GCS2-11}

Fields in the option:

Tab page 1 - Block 1: Salary Package Structure

Processing Rules for this Block

To use the option to view the salary of an employee, enter the personnel number of the employee and the Payroll Cycle to be used. (The other fields in the block will not be navigable and will be populated with existing details from the system)
To use the option to view the possible salary of a new candidate, enter personnel number 0, and the relevant values in the following fields: Payroll Cycle, Salary Notch, Birth Date, Bonus Month, Tax on Bonus and Medical Aid Dependants

Note that if a personnel number was already used in this option, the personnel number should be queried instead of entered. The information in the other navigable fields may then be updated if required.

Field	Type & Length	Description
Personnel No	N9	Note: If a salary package is calculated for a personnel number for the first time, the personnel number should be entered here. If a salary package is calculated for the same number again, the personnel number cannot be entered, the record must be queried. Personnel number 0 may be used for dummy package trials, for instance in the case of an potential employee that needs to see what his remuneration package will look like, should he accept an job offer.
Name	A40	The Surname, Title and Initials of the Person will display (For personnel number of 0, the Surname, Title and Initials may be entered here and will be used when a pro-forma payslip is produced by the program)
Pay Frequency	A1	This is fixed on Monthly
Payroll Cycle	YYYYMM	The salary will be calculated for the cycle entered here.
From date	DD-MON-YYYY	This field displays the start date of the specific payroll cycle.
To Date	DD-MON-YYYY	This field displays the end date of the specific payroll cycle.
Appointment Type	N4	For existing personnel members, the appointment type of the person in the Payroll Cycle will display, for personnel number 0, the Appointment Type to be used should be entered
Appointment type Description	A40	This is a display field only.
Salary Notch	N11	For existing personnel members, the Salary Notch in the Payroll Cycle will display, for personnel number 0, the Salary Notch to be used should be entered
Request last 12 Months	N3	This is a display field that will display the number of times a request was generated to change the salary package in the last 12 months. Refer to the "Request" - command button in tab-page 2 for more information.
Last Package change	DD-M0N-YYYY	This is the last date that changes to the salary package was applied. Refer to the "Apply Pack" - command button in tab-page 2 for more information.
Birth Date	DD-MON-YYYY	For existing personnel members, the Birth Date will display, for personnel number 0, the Birth Date to be used should be entered
Bonus Month	N2	For existing personnel members, the Bonus Month will display, for personnel number 0, the Bonus Month to be used should be entered
Tax on Bonus	A1	For existing personnel members, the Tax on Bonus indicator will display, for personnel number 0, the Tax on Bonus value to be used should be indicated.
Medical aid Dependants		For existing personnel members, the existing information will be used, for personnel number 0, enter the values to be used.
Adult	N2
Child	N2
Other	N2
Load Funds	Command Button	For existing Personnel, all Pension Funds {PAOP-5} and Medical Aid / Group Insurance or Other Funds {PAOP-4} to which the person is linked will be loaded for use in Block 2 "Exclusion/Inclusion of Membership of Funds". (This is a mandatory step before salaries may be calculated for the person) Command buttons will only execute if the focus is in the same block as the command button. (I.e. the button will not execute if the user worked in block 2, and clicked on the button without navigating back to block 1 using the "Previous Block" command)
Load ED's	Command Button	For existing Personnel, all the Earnings or Deductions, where the Earning- or Deduction will be used in the calculation of the salary of the person, and where the Earning or Deduction is linked to the E/D Group indicated in the System Operational Definition Parameter "PG - E/D Group for Individual Package" for Subsystem "PR", will be loaded into Block 3 "Package Specific E/D's". For personnel number 0, this will only include Earnings or Deductions linked to the entered Appointment Type in the Global Earning/Deduction Detail {FPRG-7}. If a request for changes to a package of a personnel member exists, with no record that the request was applied, this button will be disabled in order to display the Earnings or Deductions as per the request. This is to ensure that all changes can be viewed and or changed without being overwritten..

Example:

Tab Page 1 - Block 2: Exclusion/Inclusion of Membership of Funds

In this block the user needs to indicate whether specific fund codes that is linked to the person should be excluded in the calculation of the package or not. This will not, however change any of the existing data in the personnel system.

New fund records may be created here and it will only be used by this program for calculation purposes.

Field	Type & Length	Description
Fund	A4	Fund codes that is linked to a person, or that must be taken into account when calculating package values.
Fund Description	A40	This is a display field only.
Fund Type	A1	This is a display field only, that displays the type and description
MSA Level	N5.2	This field must be used to indicate the correct savings levels for new age medical aid funds.
Include	A1	(Y)es or (N)o, this indicator determines whether a fund is taken into account when a package calculation is done.

Example:

Tab Page 2 : Package Specific Earnings or Deductions

E/D Code amounts and percentages may be changed here to view the effect on a specific package, the changes will only become effective once the "Apply Pack" option in block 4 is executed.

Field	Type & Length	Description
ED Code	A4	Only Earning- or Deduction codes that is linked to the specific appointment type of the person and that is linked to the package maintenance group will be loaded here. The field is not updateable
E/D	A1	This field indicates whether it is an Earning or a Deduction. The field is not updateable
Method	A1	This field displays the specific calculation method of the Earning or Deduction. The field is not updateable
Level	N2	This field indicate the salary level (order) in which the specific Earning or Deduction will be used in the salary calculation. The field is not updateable
E/D Description	A40	This field display the description of the ED code. The field is not updateable
Amount	N15.2	This field only contains amount values for calculation method "3 - Advised Amount" If the calculation method is "3 - Advised Amount", the advised amount may be updated here.
Calc %	N3.3	This field contains percentage values for calculation methods "1 - Percentage of Salary Level" and "6 - Percentage of E/D" If the calculation method is "1 - Percentage of Salary Level" or "6 - Percentage of E/D", the percentage may be updated here
Changed	A1	(Y/N), As soon as an amount or a percentage changes this field will change from "N" to "Y". The field is not updateable

Example:

Tab Page 2 : Calculation of Package

Processing Rules for this Block (delete if not applicable).

Field	Type & Length	Description
Calculate	Command Button	If this button is selected, the program will perform a pro-forma salary calculation for the cycle entered in Tab Page 1, Block 1, incorporating the changes that was done in the "Exclusion/Inclusion of Membership of Funds" and "Package Specific Earnings/Deductions". The proforma may then be viewed. Apart from the pro-forma, the program will also perform a "dummy" salary calculation for the person for the next 11 months to obtain yearly salary figures with the difference that any future notch record for the person entered in the Fixed Salary Detail {FPRI-1} will be ignored. Note that details like Earnings/Deductions, Funds Membership or Dependents for the personnel member with a start date later than the end of the cycle in block 1 will be included in the figures calculated for the next 11 months and the figure may be influenced by a resignation for the personnel member during the next 11 months. Command buttons will only execute if the focus is in the same block as the command button.
Nett Pay	N17.2	This field will display the nett pay calculated in the proforma (after calculate was executed) The value in this field applies only to the cycle entered in Tab Page 1, Block 1
Cost to Company	N17.2	This field will display the total value of Earnings and Deductions for the person, where Include in Stats Gross is set to "Y"es for the Earning or Deduction in "Earning /Deduction Types {FPRG-6}} (after calculate was executed) The value in this field applies only to the cycle entered in Tab Page 1, Block 1
Request	Command Button	If this button is selected further changes to the salary package of the personnel member through this screen will not be possible, unless the package is applied. (See the next command button) a record will be written to the event log file with a type "D - Package Requests" which will indicate that a request exists to apply changes to the salary package. This button will be inactive unless the user is linked to the restriction "PSAL - Salary Package Overrides" in Maintain User Restrictions {PAMT-1},
Apply Pack	Command Button	If this button is selected the changes to the Advised Amounts and Percentages, made in block 3, will be written to the Individual Earnings/Deduction {FPRI-2} to be effective from the Payroll Cycle as set in Block 1 a record will be written to the event log file with a type "E - Package Changes Applied" to indicate that changes to the package was applied. This button will be inactive if the user is linked to the restriction "PSAL - Salary Package Overrides" in Maintain User Restrictions {PAMT-1}.
Annual Notch	N17.2	For existing personnel member, the field will display the annual notch as it exists in the "Salary Notch Record" - tab of the Fixed Salary Detail {FPRI-1}. For personnel number 0, the salary notch as entered in Page 1, Block 1 will display.
Annual Cost to Company	N17.2	This field displays the sum of Earnings and Deductions for the pro-forma calculation as well as the calculated values for the next 11 months. Only Earnings and Deductions where the field "Include for Cost to Company" in Earning/Deduction Types {FPRG-6} is set to (Y)es will be included.
Under/Over	N17.2	This field displays the difference between the Annual Notch and the Annual Cost to Company. If the Annual Notch value is the lesser value of the two, the amount will be displayed in brackets to indicate that the package set up exceeds the allowable annual cost to company package value. If this amount is displayed without brackets the package setup is less than the allowable annual cost to company package value. The ideal is that this field display a zero value (Under circumstances where the notch is used as a "Cost to Company" figure)
Annual Bonus	N17.2	This field will display the value of any Earning with Calculation Method "2 - Bonus" for the pro-forma or the following 11 months..
Resignation Date	DD-MON-YYYY	The resignation of the person will be displayed here.

Example:

Block 5: Proforma

This block display all payroll transactions calculated by the proforma.

Field	Type & Length	Description
Level	N2	This field display the salary level of the transaction.
Calc	N12	This field will display the calculation method used for the calculation of the transaction.
Method	A40	This field displays calculation method description.
Earning/Deduction	A4	This field display the E/D Code used for the transaction.
	A1	This field will indicate whether the E/D code is an Earning or a Deduction.
	A40	This field will display the E/D Code description
Inc Cost to comp	A1	This field will indicate whether the specific ED code was included for the calculation of the annual cost to company.
Amount	N17.2	This field will display the amount calculated for the transaction.

Example:

Block 1: Event Logfile

Only types "D - Package Requests" and "E - Package Changes applied" for the personnel member in Tab page 1 - Block 1 will be displayed in this screen.

Type "E - Package Changes applied" records may never be deleted as it serves as a log file to indicate which user applied changes to the salary package for a specific personnel member.
Type "D - Package Request" records may only be deleted if no type "E - Package Changes applied" record exists for the same person with a greater transaction date.
This log file will also control whether the "Load ED's" button on block 1 is disabled or not.

If the latest record for a person is a type "D - Package Request" record, changes in the "Salary Package Structure"- and "Calculations" - tabs will not be allowed.

No records may be created manually on this screen.

Field	Type & Length	Description
Event Type	A1	Event Type.
Event Description	A30	Event Description.
Cycle	(YYYYMM)	Pay cycle for which event occurred.
Calc No	N1	Calculation number for which event occurred.
Calc Seq	N2	Calculation sequence for which event occurred.
Pay Date	N1	Pay date number, using ACB's "One day Service".
Personnel Number	N9	Personnel number of the person for whom the event occurred.
Pay Freq	A1	Pay Frequency Indicator.
Date and Time	(DD-MON-YYYY HH24MISS)	Date and time when event occurred.
User	A8	The user who Executed the event.

Example:

Processing Rules
	No special processing rules

Date	System Version	By Whom	Job	Description
21-Sep-2007	v01.0.0.0	Allie de Nysschen	t138228	New Development.
18-Aug-2009	v01.0.0.1	Allie de Nysschen	t159532	Calculate annual cost to company and compare with annual notch values.