Setting Up Benefits in Kind

Taxable benefits in kind must be considered as taxable income, but are not paid as part of the salary. Oracle HRMS supports the calculation of the monetary value of the following non-monetary benefits in kind:

  1. Create the necessary legal employers and local units.

    See: Setting Up Finnish Organizations

  2. Ensure that all benefits in kind elements have the primary classification as Benefits in Kind. You must exclude all benefits in kind elements from the Pay Separately and Process Alone run types and you should define these elements with Termination as Final Close.

    See: Defining an Element

  3. Set up the employee's car benefit, if necessary, through the vehicle repository. You can also use the predefined elements to enter car benefits information.

    See: Vehicle Repository

    See: Predefined Elements

  4. Select the benefit type through the Further Element Information descriptive flexfield, if you are entering information for other employee benefits. You use this information to report on benefits that have no tax implications.

    Note: If you need to report on different benefits, then you can use the following balance categories to create the elements and balances for your benefits in kind.

    • Finnish Other Benefits

    • Finnish Stock Options Benefit

    • Finnish Mortgage Benefit

    • Finnish Housing Benefit

    See: Defining User Balances

  5. Add the balance dimension PER_LE_EMPLTYPE_TAXCAT_YTD to the balances you create.

  6. Link the elements to your payroll.

    See: Defining Element Links

  7. Link the required elements to the employee's assignment.

    See: Making Manual Element Entries