How to Process Asia Payroll With Oracle

In recent years, a lot of APAC business have been migrating from the legacy system Oracle Peoplesoft to Oracle Fusion or Oracle HCM Cloud as part of upgrading and transforming their HR function and leveraging Oracle HCM Cloud’s enhanced transparency, scalability, employee experience and operational efficiency. However, one key challenge HR teams in Asia or APAC face is that Oracle HCM Cloud does not natively support payroll in Asia or APAC.

In this blog, we help you understand how Oracle and payroll systems are most effective when integrated – unlocking new levels of performance for businesses.

How Do You Process Your Asia Payroll With Oracle?

Oracle users commonly use one of the following options:

1. Purchasing a distinct payroll system based in Asia, and then integrating it with Oracle to manage payroll services in-house. This tends to be a relatively slow and expensive approach to delivering payroll particularly if you have a ‘long tail’ population of employees in APAC (eg, low headcounts in a few locations across APAC).
   
   
2. Using a payroll outsourcing provider to integrate with Oracle HCM and process payroll. This option is quick and cost-efficient.

Using a payroll service company with Oracle enables HR teams to leverage the payroll service company’s existing technology and experience developing Oracle integrations and their ability to cover multiple countries with one payroll solution. If you opt for processing payroll in-house without an Oracle HCM based payroll, you may need to acquire or tailor various payroll systems to accommodate the requirements of multiple countries.

How Do Payroll Providers Integrate With Oracle?

Clients using Oracle will typically use one of the following options for integrating Oracle with their Asia payroll:

1. Automated File transfer or Application Programming Interfaces (API) based payroll integration –

A proficient payroll services provider will possess an integration tool featuring universal file formats built upon prior integration experiences. To ensure security and data precision, this integration method is often fully automated. Payroll-related data seamlessly moves from Oracle into the payroll company’s system either through file transfer or by the payroll company retrieving information from Oracle using RESTful APIs or SOAP APIs:

• RESTful APIs: Many modern HCM and payroll systems offer RESTful APIs for real-time data exchange. While APIs provide a more secure and efficient data transfer method compared to file-based integration, they may require a higher degree of technical expertise and longer setup.
  
  
• SOAP APIs: In certain cases, older systems still employ SOAP (Simple Object Access Protocol) APIs for integration, although this is less common in contemporary scenarios.

2. File-Based Integration –

• CSV/Excel Files: This method is straightforward and commonly used, involving the export of data from one system as a CSV or Excel file, which is then imported into the other system. It suits smaller to medium-sized organisations with infrequent data transfers.
  
  
• Flat Files: Like CSV files, flat files present data in a structured format with fixed-length fields or delimiters, suitable for bulk data transfers between systems.

3. Middleware Integration – 

Enterprise clients frequently rely on existing integration software or Integration Platform as a Service (iPaas) solutions like Mulesoft, Boomi, Microsoft, etc. Middleware solutions, such as Enterprise Service Bus (ESB) or iPaas, act as intermediaries between HCM and payroll systems. They offer pre-built connectors or customised integration workflows to facilitate smooth data exchange between the two systems.

In simpler terms, when an Oracle client makes a change that affects a payroll calculation, the updated information is transmitted from Oracle to the payroll company’s system prior to payroll processing.

Benefits of sticking to manual files:

• While manual files may offer short-term cost savings compared to developing a point-to-point integration, payroll service companies often charge an additional service fee each month due to the manual work required for remapping and importing manual files. In summary, manual file handling is typically more expensive in the long run and may be susceptible to human errors.

In short, manual file handling is typically more expensive in the long-run and potentially be prone to human error. As such, it is generally used when the number of employee headcount is low.

Key Benefits of Developing / Having an Integration Tool:

• Efficiency – Information can be seamlessly channelled to the payroll services company’s rule-based engine, streamlining complex payroll calculations. Automated payroll processing eliminates the need for staff to manually provide monthly payroll variance data in specific formats to the payroll services company.
  
  
• Data Accuracy – Effective integration is the top method for ensuring accurate and timely payment to a large workforce. With all data sourced directly from a single, reliable point, it results in more precise payroll, minimising human errors. A swifter payroll process is achieved by processing payroll based on nearly real-time data.
  
  
• Compliance – An integrated system plays a vital role in ensuring compliance with employment laws, tax regulations, and reporting requirements. This is accomplished by maintaining consistent and up-to-date data across both systems. For instance, when it comes to compensating terminated employees within a 7-day timeframe, integrating your HCM systems ensures that your payroll teams receive immediate notifications of terminations, eliminating the need to wait for a specific cut-off date.
  
  
• Reporting and Analytics – The combined data from both systems enables enhanced reporting and data analysis, providing HR and finance departments with a broader information base to make more informed decisions.
  
  
• Better payroll controls – Integration strengthens internal controls by reducing the potential for manual data manipulation and establishing robust payroll workflows through automation. This serves as a safeguard against incorrect payroll processing due to human errors or fraudulent activities.

Read also: Workday Payroll Integration in Asia: A Comprehensive Guide

Choosing a Payroll Outsourcing Provider in Asia

It’s important to do your homework and ensure your payroll plans and model is future-proof when choosing a payroll provider in Asia. In addition to your usual due diligence questions, payroll-specific questions you should ask include:

It’s important to do your homework and ensure your payroll plans and model is future-proof when choosing a payroll provider in Asia. In addition to your usual due diligence questions, payroll-specific questions you should ask include:

• Oracle integration – Can the payroll establish integration with Oracle? What aspects of the integration will be within their scope of responsibility?
  
  
• Regional footprint – What is the extent of the payroll outsourcing provider’s regional coverage? Are they equipped to support your operations in most of the countries where your employees are located?
  
  
• In-country support – If our HR team or employees have inquiries, who will be available to assist? Is the support provided in-country, or is it outsourced to more cost-effective locations like India or the Philippines? Can you meet with someone in person for urgent matters?
  
  
• Hosting and security – Will the payroll provider pass the audit conducted by our information security team? How secure is the data, and is it compliant with GDPR regulations? Does the provider possess security accreditations like ISO27001?
  
  
• Value added services – Does the payroll outsourcing company offer supplementary HR services, such as Employer of Record (EOR) solutions, recruitment assistance, or support with employment visa applications?

Choosing a payroll provider is a crucial element of your HCM implementation, and finding the right partner will be instrumental in achieving your HR transformation goals.

Read also: How To Process Asia Payroll With SuccessFactors

Interested in integrating Oracle with payroll?

Links International specialises in streamlining HR processes in Asia, offering 100% in-country managed payroll, leave, and benefits services. As a prominent Payroll Outsourcing Provider in Asia, Links delivers entirely in-country service, highly integrated solutions, and user-friendly payroll technology.

Links One, a multi-country payroll solution, is tailored for Asia-based businesses, making it possible for clients undergoing digital transformation to seamlessly integrate a single payroll solution with Oracle, ensuring the longevity of their payroll solutions. Explore how you can modernise your HR operations with Links International – contact us today!

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• In-House vs. Payroll Outsourcing: Which One is Best for Your Business?

Links International is an industry leader in innovative HR outsourcing with services such as payroll outsourcing, visa application, Employer of Record (EOR), recruitment and more! We also offer a line of industry-leading HR tech solutions including Links One, our regional payroll solution, and Links Integration Hub.