This chapter discusses:
Global Payroll for Spain.
Global Payroll for Spain business processes.
Delivered elements for Spain.
Element naming conventions in Spain.
Viewing delivered elements for Spain.
Global Payroll for Spain is a country extension of the core Global Payroll application. It provides you with the payroll rules, elements, and absence processes needed to run a Spanish payroll.
Global Payroll for Spain supports these business processes:
Basic and non-basic earnings.
Global Payroll for Spain enables you to process basic and non-basic earnings, such as base salary, seniority, complements (transportation, languages, nocturnal expenses, and festivities), and non-salary earnings (pernocta and dietas). You can also create your own earning types and modify calculation rules for delivered earnings.
Extra periods.
In Global Payroll for Spain, you can define the details for the extra period payments as part of defining labor agreement information. You can define when extra periods are paid, the earnings that contribute towards the extra period payment, and the percentage of each contributing earning that is included in the payment.
Other deductions.
Other deductions, such as union fees and garnishments, are managed by Global Payroll for Spain as part of the payroll process.
See Paying Union Fees.
Overtime.
Global Payroll for Spain enables you to pay overtime hours. Each organization can specify the annual, monthly, or weekly worked hours based on the maximum legal number of hours established by the Spanish government. Overtime (horas extra)occurs when an eligible payee works more than the specified number of hours. In this case, the employer should pay a surcharge on the extra time worked.
See Paying Overtime.
Loans and advances.
Global Payroll for Spain enables you to process loans and advance payments made to employees through the payroll.
Social Security contributions and benefits.
Global Payroll for Spain calculates the employer and employee contributions, the employer reductions, and generates data for the social security reports TC1 and TC2. It includes functionality to handle social security funding base calculation for employees with multiple jobs or employed as trainees and apprentices.
Global Payroll for Spain also enables you to track the disability status of employees and transmit the data to Social Security using an electronic medical report file with an .FDI extension.
IRPF calculation.
In Spain, the IRPF calculation varies according to the fiscal territory to which the employee reports. Global Payroll for Spain delivers taxation rates for all the Spanish fiscal territories and the tax calculation process handles calculations for all these fiscal territories. Global Payroll for Spain also provides you with a mechanism to produce the Model 111, Model 190, and Model 110 reports for all territories.
See Calculating Taxes.
Absences.
Global Payroll for Spain delivers predefined rules for processing absences due to vacation, illness, maternity, work accidents, and other reasons. You can easily modify many of these rules to reflect absence policies that are specific to your organization or to labor agreements that may be in effect for your employees.
Termination pay.
With Global Payroll for Spain, termination pay is calculated with the payroll, and includes the regular salary, extra periods, unused vacation days, and unpaid overtime. The final payment also takes into account any outstanding loans and advances, severance payment, pre-advice days non fulfilled, and job litigation salaries.
Payslips.
Global Payroll for Spain enables you to generate payslips that you can adapt to display exactly the information that you require. You also decide how you want to display retro calculations and extra period payments.
See Setting Up Payslips.
Banking.
With Global Payroll for Spain, you can define the banks your organization uses to make payroll payments, as well as the personal banking information required to make these payments effective. This also includes IBAN information, if needed. You can distribute net pay between different banks and bank branches and different beneficiaries. Global Payroll for Spain supports the CSB34 format for completing bank transfers, and includes reports that enable you to check stored bank information, as well as completed or pending transfers.
Pension plans.
Global Payroll for Spain provides functionality that supports the both individual and collective pension plans. You can create pension plans, assign them to employees, and generate reports that include pension plan payroll results data, such as the Model 345.
Special collectives.
Global Payroll for Spain provides functionality to manage the relationship between companies the following special collective groups: displaced persons and expatriates, scholarship holders, pre-retired, and professionals. This includes functionality to manage payments, social security contributions, taxation, and reporting for each of the special collective types.
Global Payroll defines each business process for Spain in terms of delivered elements and rules. Some of these elements and rules are specifically designed to meet legal requirements, while others support common or customary payroll practices.
This section discusses:
Delivered element creation.
Element ownership and maintenance.
All of the elements that are delivered as part of the country extension were created by using the core application, the same application that you use to create additional elements and (in many cases) to configure existing elements that are delivered as part of Global Payroll. Because the tools that are needed to redefine or create new payroll elements are fully documented in the core application PeopleBook, this information does not appear here. Instead, we briefly review the relationship between the core application (which contains the tools that you need to define your own elements) and the country extensions (which contain country-specific rules and elements that Global Payroll for Spain defines).
The core application:
Consists of a payroll rules engine.
The payroll rules engine is a flexible tool that enables you to define the rules of a payroll system and to run payroll and absence calculations. Global Payroll does not embed payroll-specific logic or computations in application code. Instead, it specifies all business application logic (such as earnings, deductions, absences, and accumulators) in terms of payroll rules. Global Payroll enables you to enter and maintain payroll rules through a set of pages and offers comprehensive features that enable you to work in your preferred language or currency.
Provides a payroll processing framework.
The payroll processing framework provides a flexible way to define and run payroll and absence processing flows (such as calendars, run types, pay periods, and process lists).
Country extensions:
Are built using the core application.
Consist of statutory and customary objects (country-specific payroll rules, elements, payroll processes, reports, pages, and self-service applications).
This section describes the PeopleSoft approach to element ownership and what this means for the maintenance of Spanish payroll rules. This information helps clarify which parts of the system you might be required to maintain, what you can modify, and what parts of the system you cannot change.
Element Ownership in Global Payroll
There are five types of element ownership in Global Payroll :
PS Delivered/Maintained |
Elements that are delivered and maintained on an ongoing basis by PeopleSoft. |
PS Delivered/Not Maintained |
Elements delivered by PeopleSoft that must be maintained by the customer. This type of element ownership consists primarily of either customary (non-statutory) rules or statutory elements that customers might want to define according to a different interpretation of the rules. Although PeopleSoft might occasionally update elements that are defined as PS Delivered/Not Maintained, you are not required to apply these updates. |
Customer Maintained |
Elements that are created and maintained by the organization. PeopleSoft does not deliver rules defined as Customer Maintained. |
PS Delivered/Customer Modified |
Elements that are originally PS Delivered/Maintained over which the customer decides to take control (this change is irreversible). |
PS Delivered/Maintained/ Secure |
Delivered elements that the customer can never modify or control. |
Element Ownership in Global Payroll for Spain
Of the five ownership types described here, only these two are used to define Spanish elements:
PS Delivered/Maintained.
PS Delivered/Not Maintained.
Although Global Payroll for Spain delivers some elements as PS Delivered/Maintained, the large majority of elements are designated PS Delivered/Not Maintained. This enables you to modify, update, and reconfigure delivered elements to meet your own unique requirements.
Note. In general, Global Payroll for Spain uses the ownership category PS Delivered/Not Maintained except where the modification
of an element might interfere with calculations designed to satisfy strict legal requirements. The value of this approach
is evident in the setup of delivered accumulators. Because balance accumulators (for example, those storing taxable gross
on a year-to-date basis) must be set up to comply with legal requirements for reporting taxes and contributions, Global Payroll
for Spain defines them as PS Delivered/Maintained (meaning you cannot modify or directly add new elements to them). However,
you can add new elements to these accumulators using delivered specific segment accumulators, which serve as the basic entry
point into the system and are not maintained by PeopleSoft.
Global Payroll for Spain delivers these customer-oriented segment accumulators using the CLI AC NAME naming convention. Therefore,
when you define a new earning or deduction, you can assign the element to a segment accumulator (CLI), and the segment accumulator
automatically contributes to the correct balance accumulators.
This table contains an element-by-element description of the Global Payroll for Spain approach to element ownership and maintenance:
Element Type |
Ownership |
Exceptions |
Earnings |
PS Delivered/Not Maintained |
Social security benefits. |
Deduction |
PS Delivered/Not Maintained |
Taxes (IRPF) and social security deductions. |
Variable |
PS Delivered/Not Maintained |
Variables used in social security or tax calculations. |
Bracket |
PS Delivered/Maintained |
None |
Accumulator |
PS Delivered/Not Maintained for segment accumulators. Delivered/Maintained otherwise. |
In the tax and social security areas, PeopleSoft delivers the balance accumulators as PS Delivered/Maintained, but the segment accumulators as PS Delivered/Not Maintained. |
Element Group |
PS Delivered/Not Maintained |
None |
Process List |
PS Delivered/Not Maintained |
None |
Section |
PS Delivered/Not Maintained |
None |
Formula |
PS Delivered/Not Maintained, but this varies by functional area |
Almost all formulas used in social security or tax calculations are defined as PS Delivered/Maintained. Otherwise, formulas are defined as PS Delivered/Not Maintained. |
Array |
PS Delivered/Not Maintained |
Arrays used in social security or tax calculations are defined as PS Delivered/Maintained. |
Writable Array |
PS Delivered/Not Maintained |
Writable arrays used in social security or tax calculations are defined as PS Delivered/Maintained. |
Historical Rule |
PS Delivered/Not Maintained |
Historical Rules used for Social Security calculations or tax calculations |
Generation Control |
PS Delivered/Not Maintained |
None |
Understanding the naming convention that is developed for PeopleSoft-delivered elements can help you determine the element type, the functional area it serves, and how it is used.
This section discusses:
Naming conventions.
Functional area codes.
Element type codes (PIN_TYPE).
This section discusses:
Primary elements.
Supporting elements.
Additional clues to the use of Spanish elements.
Component names (suffixes).
Primary Elements
Primary elements (such as earnings, deductions, absence take, and absence entitlement elements) do not contain functional area codes or element type codes in their names. Primary elements have names that identify their functions and element types without the use of additional codes. For example, the name of the earning element SALARIO BASE identifies this element as a base salary element.
Supporting Elements
For supporting elements (such as variables, formulas, dates, and durations), PeopleSoft uses this naming convention: FFF TT NAME.
FFF: Functional area code.
TT: Type of supporting element.
NAME: Based on a term in Spanish and provides a further means of identifying the element.
For example, in the tax array TAX AR ING A EST:
TAX represents the functional area (taxes).
AR represents the element type (array).
ING A EST (ingresos anuales estimados) represents a further means of identifying the element.
Note. This naming convention applies to these element types: accumulators, arrays, brackets, counts, dates, durations, formulas, rate codes, variables, historical rules, fictitious calculation rules, proration rules, rounding rules, writable arrays, and generation control conditions as well as sections and element groups.
Additional Clues to the Use of Spanish Elements
Many Spanish elements contain abbreviations that provide clues to their use in the system (beyond those provided by the functional area codes or element type codes). For example, these duration elements have been defined for Spain: GEN DR PERIODO D, GEN DR PERIODO M, and GEN DR PERIODO A. While the functional area code GEN indicates that these elements are used across various functional areas (they have general relevance), and the element type code DR identifies them as duration elements, the abbreviations D, M, and A provide additional clues to how each element measures time. The duration element GEN DR PERIODO D measures time in days(dias) , hence the D in the element’s name. Likewise, the code M reveals that the element GEN DR PERIODO M measures time in months (meses). As you become more familiar with the payroll rules created for Spain, these abbreviations will help you to further identify and understand the role played by each element.
This table lists the most common abbreviations used in the names of Spanish elements.
Abbreviations Used in Global Payroll for Spain |
English |
A |
Years or annual |
BS |
Base |
CC |
Common contingencies |
CP |
Professional contingencies |
CT |
Tax quota |
D |
Days |
DD |
Deductions |
DEV |
Earnings |
DIN |
Income |
EX |
Exempt |
M |
Months or monthly |
MN |
Minimum |
MX |
Maximum |
N |
Number and negation |
S |
Segment |
SPC |
In kind |
T |
Total and quarterly |
TP |
Ceiling |
U |
Unit |
Component Names (Suffixes)
In Global Payroll for Spain, suffixes are used to name the components of earnings and deduction elements. For example, when you create an earning, deduction, or absence element in Global Payroll, you must define the components that make up the element, such as base, rate, unit, and percentage. The system automatically generates the components and accumulators for the element based on the calculation rule or accumulator periods that are used. The system also names the components and accumulators by appending a suffix to the element’s name.
For example, suppose that you define the earning element named EARN1 with this calculation rule:
EARN1 = Rate × Unit
The system automatically creates two additional elements for the components in the calculation rule:
Rate element: EARN1_RATE.
Unit element: EARN1_UNIT.
The system creates suffixes to name the components of the element (_RATE and _UNIT).
In Global Payroll for Spain, all components and accumulators have:
Country: ESP
Separator: _
In Global Payroll, all suffixes fall into one of these types:
Separator.
Earnings or deductions component suffixes.
Earnings or deductions accumulator suffixes.
Deduction arrears component suffixes.
Deduction arrears accumulator suffixes.
Absence entitlement component suffixes.
Absence entitlement accumulator suffixes.
To view all of the suffixes defined for Spain, use the Element Suffixes component in Global Payroll .
See Defining General Element Information.
For some elements, you need to use a functional area in the naming convention. The three digit functional area codes are used in naming conventions to identify the functional area where the element is being used.
This table contains the functional area codes used in the names of Spanish elements:
Functional Area |
Description |
AJB |
Gross to net |
AJN |
Net to gross |
ANT |
Seniority |
AUS |
Absences |
AYP |
Loans and advances |
CLI |
Customer-oriented accumulators |
FNQ |
Termination |
GEN |
General (multiple areas) |
RTR |
Retroactivity |
SIN |
Unions |
SS |
Social security |
TAX |
Taxes |
XTR |
Extra period |
DEV |
Devengos (earnings) |
DD |
Deduction |
EXP |
Expatriates |
LIQ |
Liquidation |
PP |
Pension plans |
This table contains codes for all of the element types. Because not all element types are delivered for Spain, not all of these codes appear in the names of Spanish elements:
Element Type |
Description |
AE |
Absence entitlement |
AT |
Absence take |
AC |
Accumulator |
AR |
Array |
AA |
Auto assigned |
BR |
Bracket |
CT |
Count |
DT |
Date |
DD |
Deduction |
DR |
Duration |
ER |
Earning |
EG |
Element group |
EM |
Error message |
FC |
Fictitious calculation |
FM |
Formula |
GC |
Generation control |
HR |
Historical rule |
PR |
Process |
PO |
Proration rule |
RC |
Rate code |
RR |
Rounding rule |
SE |
Section |
SY |
System element |
VR |
Variable |
WA |
Writable array |
PeopleSoft Enterprise Global Payroll for Spain generates a large amount of result data. To keep the amount of saved data manageable, you should periodically archive it. PeopleSoft Enterprise PeopleTools delivers an archiving tool called the Data Archive Manager. To aid you in archiving your result data using the Data Archive Manager, PeopleSoft Enterprise Global Payroll for Spain delivers a predefined archive object (GPES_RSLT_ARCHIVE) and an archive template (GPESRSLT). The delivered archive template uses queries that select data by calendar group ID (CAL_RUN_ID field).
Note. Please use extreme caution when making changes to delivered archive objects, queries, or templates. Any modifications can result in the loss of important data.
See Archiving Data.
The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Spain. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 9.0 PeopleBook.
See Also
Understanding How to View Delivered Elements