In addition to integrating Oracle HCM Cloud with ADP to better manage the Affordable Care Act reporting requirements as discussed in a previous post, there are other ways businesses can configure the software to better manage various payroll functions.
Emtec has built specific accelerators designed to extend Oracle’s guidance about local employer tax configurations and how to pay terminated employees. These two configurations, which can be set up quickly in an organization’s Oracle HCM Cloud system, are the most common requests we receive.
Oracle HCM Cloud accelerators for management
There’s a few areas of the country, including five cities in Colorado and New York, as well as the cities of San Francisco and St. Louis, that require employers to manage additional employer payroll taxes. Even if businesses aren’t located in these areas, they may have employees who work remotely or travel to clients in these areas that are subject to the taxes.
As they are not applicable nationwide, Oracle considers them as courtesy taxes and has referenced them in an addendum to their document with examples of how they should be applied within cloud payroll. But with Emtec’s accelerator, an organization doesn’t have to initiate the calculations for these taxes any longer. Instead, they have a new element that automatically drives the calculations for employees living or working in these areas.
The acclerator does so by looking at the jurisdiction of where the employee is located and then calculating these taxes along with standard taxes for those who are affected by these laws. The end calculations are then put into the employee’s payroll record.
Emtec’s accelerator enables businesses to manually override the tax rate if these states or cities change their tax rates, which would then take effect right away. Additional functionality to calculate workers’ compensation for employees in these areas is in development and will be released shortly.
Paying terminated employees using Oracle HCM Cloud accelerators
Another Emtec accelerator is focused around enabling the software to correctly pay terminated employees. There are a few instances where organizations must facilitate this type of payroll function, such as for severance, or outstanding commission payments.
Oracle does provide guidance on how to use the statuses it offers in the system for this type of payroll function, but Emtec has built an accelerator to help provide some working scenarios on how to use them.
If an organization has the accelerator, they can create such payments by selecting an action within the buildout that categorizes the change they are making and it will offer them the next steps they should take to facilitate it.
It’s not exactly a means to an end for this type of payroll function, but it enhances the current system functionality and helps users resolve these issues and payments quickly. Emtec now offers documentation about the accelerators after every implementation and has written white papers about how to use them.
If your organization has these challenges and wants to learn more about enhancements to your Oracle HCM Cloud system to better facilitate these payments, contact us today.