Wednesday, March 21, 2012

To GP or not to GP, that is the question!

One of the most prevalent configurations in a combined Time and Labor/Absence Management implementation is to have payroll processed by a third party vendor. So, in this configuration Time and Labor and Absence Management will be processed in PeopleSoft, while payroll will be handled by a third party payroll system. For the sake of argument, let's assume that the Workforce Administration related data is passed to the payroll vendor using a custom process. The question we are discussing in this post is, what should be the Pay System chosen for assignment in Job data for employees in such a configuration? Should we assign Payroll Interface as the Pay System or should it be Global Payroll?
Common wisdom might suggest to use Payroll Interface, as the customer is not implementing PeopleSoft Global Payroll per se. But, our recommendation is to use 'Global Payroll' as the Pay System in Job data for employees. The reason behind this is many folds:
1. It eliminates the need for extra configurations to get Payroll Interface up and running.
2. Assignment of paygroup at Job data level becomes much easier as extra fields related to Payroll Interface paygroup need not be populated.
3. Integration between Absence Management and Time and Labor is possible only with pay systems of Global Payroll and Payroll for North America. Probably this is one of the most compelling reasons to choose Global Payroll as the pay system in such a configuration.

So, we strongly recommend implementations to use Global Payroll as the pay system of employees in Job data in configurations with T&L and Absence Management implemented in PeopleSoft and payroll housed outside PeopleSoft and not utilising the PI engine to send workforce administration/benefits data to the payroll vendor.

This post is authored by HRoi Consulting - The PeopleSoft Time and Attendance experts.

1 comment:

GP said...

Hello Jiju,

We are using Payroll Interface for third party payroll system. How can we implement Labor Distribution Process in this scenario?

Appreciate your help.