Understanding Specific Contracts

This chapter provides an overview of specific contracts and discusses:

Note. PeopleSoft delivers a query that you can run to view the names of all delivered elements designed for France. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 9.0 PeopleBook.

See Also

Understanding How to View Delivered Elements

Click to jump to parent topicUnderstanding Specific Contracts

Specific contracts confer exemptions from social contributions. They are usually set up between an employer and a government department or between an employer and payee, subject to controls from the DDTE. PeopleSoft delivers rules for common exemptions for professionalization contracts, apprentice contracts, trainee contracts, fixed-term contracts, other specific exempted contracts, and specific categories of payees.

Contracts affect areas of the payroll process in addition to the calculation of social contributions. For example, there may be unique earnings for payees with specific types of contracts, and payees with certain contracts may not be included in the employee headcount.

Note. Global Payroll for France delivers earnings for certain categories of payees. These earnings are described in subsequent sections of this chapter.

Important! Sometimes the information needed to determine a contract employee's social contribution is not available from PeopleSoft Enterprise Human Resources. In these cases, the formula SIT FM assigns a default value. During the implementation of your system, you can create fields to manage the values not currently provided by PeopleSoft Enterprise Human Resources and you can create any needed elements (arrays, for example) to update the formula SIT FM.

See Also

SIT FM Formulas

Click to jump to parent topicProfessionalization Contracts

PeopleSoft Global Payroll for France doesn't provide rules for calculating compensation for payees with professionalization contracts; however, PeopleSoft does provide rules to manage minimum wage levels, social security contribution exemptions, and other conditions related to the professionalization contract.

This section provides an overview of the professionalization contract and discusses elements used to define professionalization contract rules.

Click to jump to top of pageClick to jump to parent topicOverview of Professionalization Contract

PeopleSoft Global Payroll for France delivers a number of rules to manage minimum salary requirements and contribution exemptions for payees with professionalization contracts, including:

Note. All rules related to the professionalization contract have an effective date of 1 October 2004.

Note. The professionalization contract replaces the qualification, orientation, and adaptation contract rules delivered in earlier versions of Global Payroll for France.

Click to jump to top of pageClick to jump to parent topicElements Used to Define Professionalization Contract Rules

This section discusses:

Delivered Elements for Minimum Wage (SMIC) Controls

The percentage of the minimum wage (SMIC) that a payee is entitled to receive varies by age and educational level.

PeopleSoft delivers the bracket GEN BR SMIC PROF to return the applicable SMIC percentage based on age.

PeopleSoft delivers the bracket GEN BR NIVEAU ETUD to return an additional SMIC percentage based on educational level.

Note. You should review the information in this bracket and, if necessary, modify the additional SMIC percentage based on educational level to reflect the rules in effect in your organization.

The system adds the percentages returned by these brackets to calculate the minimum percentage that the payee should receive.

See Brackets for Professionalization Contract Minimum Wage (SMIC) Controls.

Delivered Elements to Limit Benefits in Kind

PeopleSoft delivers a variable—IND VR AN COEF—to store the maximum percentage of a payee's compensation that can be comprised of benefits in kind. The value of this variable is set to .75 by the formula APP FM INIT for all payees with a professionalization contract.

PeopleSoft uses the formula APP FM BASE to put payments in error when the percentage of a payee's compensation consisting of payments in kind exceeds 75%. It does this by adding all payments in kind, and then dividing the resulting sum by all payments in kind plus any monetary compensation stored in the accumulator APP AC SAL ESP SG. If the resulting quotient is greater than .75, the formula puts the payment in error.

Delivered Elements to Generate Age Limit Warnings

PeopleSoft uses the formula APP FM INIT to generate a warning message when a payee 26 years of age or older and less than age 45 has been granted a professionalization contract. This message appears in the Payee Messages component.

Delivered Elements to Prevent Overextension of the Professionalization Contract

PeopleSoft delivers the formula GEN FM DT FIN PROF to prevent the conditions of the professionalization period from extending beyond the contract end date. This formula compares the value of the system element CONTRACT EX END DT—which contains the expected contract end date from the Contract Status/Content page—to the current date. If the two dates are not equal, and the segment end date for the calculation period is greater than the expected contract end date, the formula assigns a value of 1 (true) to the variable GEN VR FIN CT PROF. Otherwise, the value of the variable is 0 (false).

The value of this variable (GEN VR FIN CT PROF) is then “read” by a second formula, APP FM INIT. This formula determines if the variable is equal to 1 (true). If so, it generates a warning message that the professionalization contract should be terminated.

Important! By default, the value of the system element CONTRACT EX END DT is the same as the expected end date specified on the Contract Status/Content page. If the end date on Contract Status/Content page is incorrect, you can override the value of the system element with the correct end date. To do this, enter positive input at the payee level.

Click to jump to parent topicApprentices

This section discusses:

See Also

Defining Bracket Elements

Defining Variable Elements

Bracket for Specific Contract Compensation Scale

Click to jump to top of pageClick to jump to parent topicApprentice Contracts

Apprentices, by law, may not earn less than a set percentage of the SMIC (legal minimum salary). The percentage depends on the age of the apprentice and the year of the contract. You enter the apprentice’s salary and a control checks whether the earning is below the legal minimum. If this is the case, the system generates a warning message.

The bracket APP BR REMUN stores the minimum percentages to apply to the SMIC according to the year of contract and the age of the payee. The appropriate percentage is retrieved and checked with the standard SMIC control.

The age of the payee is calculated using the payee date of birth in PERSONAL_DATA. The year of the contract is calculated using the contract begin date in the contract data.

This table lists the minimum percentages that apply for each year of the apprenticeship in the different age ranges:

Year of contract

Percentage of the SMIC for apprentices under 18

Percentage of the SMIC for apprentices between 18 and 20

Percentage of the SMIC or of the conventional salary for apprentices over 21

1st year

25 %

41 %

53 %

2nd year

37 %

49 %

61 %

3rd year

53 %

65 %

78 %

Note. The system does not calculate the minimum salary; it does check that the salary you entered is greater than the minimum required by law. Because the system does not manage the conventional salary (that is, the minimum salary required by the collective agreement) for apprentices over the age of 21, the system applies the percentages in the previous table on the SMIC only.

Click to jump to top of pageClick to jump to parent topicApprenticeship Period

The normal length of an apprenticeship is two years. However, in some circumstances, this may be extended to three years. In this case, use the variable GEN VR ANC REINT to subtract or add a period of time from the contract begin date to compensate for the extension of the apprenticeship period.

There may be times when you need to modify the number of years for a contract calculated between the contract begin date and the first day of the period. You can override the variable GEN VR ANC REINT by the number of days to add or subtract for the calculation of the year of the contract.

Click to jump to top of pageClick to jump to parent topicURSSAF Contributions

Payees are assigned to a particular contribution class (régime) that determines their URSSAF contributions. Apprentices in organizations with more than ten payees have a specific contribution class of their own—régime code 128.

The funding base percentage for apprentices is a lump-sum amount determined by the government. This percentage varies according to the age of the payee and the year of the contract. The bracket APP BR BASE stores the lump-sum funding base in euros. You should update this bracket to comply with the law and to meet your particular needs.

For organizations with less than ten payees, neither employer nor payee is liable to pay URSSAF contributions for apprentices. No régime code is entered and no deductions are made.

The lump-sum funding base calculated for apprentices is not used in the base for the ceiling regularization. The contributions are paid each month based on the lump-sum funding base. If an apprentice ends his apprenticeship contract and continues his work for the same organization under a new contract type, the salaries he received during his apprenticeship contract won’t be used in the annual ceiling regularization.

See Also

Defining URSSAF Contributions

Defining Bracket Elements

Defining Variable Elements

Click to jump to top of pageClick to jump to parent topicASSEDIC Contributions

In organizations with less than ten payees, neither employer nor payee is required to pay ASSEDIC contributions for apprentices. No deductions are triggered.

In organizations with more than ten payees, ASSEDIC deductions are triggered, but they are subject to a generation control. Payee contributions are not triggered if the payee is an apprentice. No controls are provided for the employer’s contribution.

Note. The system checks the contract type to determine whether a payee is an apprentice. Therefore, during setup, it is important to update the contract type with the correct value.

Click to jump to top of pageClick to jump to parent topicLevies

Levy deductions are not triggered for apprentices in organizations with less than ten payees.

For organizations with more than ten payees, these deductions are triggered. There are no CSG and CRDS deductions for apprentices.

The funding base percentage for apprentices is a lump-sum amount determined by the government. This percentage varies according to the age of the payee and the year of the contract. The bracket APP BR BASE stores the lump-sum funding base in euros. You should update this bracket to comply with the law and to meet your business requirements.

See Also

URSSAF Contributions

Click to jump to top of pageClick to jump to parent topicARRCO/AGIRC Contributions

Payees do not pay ARRCO/AGIRC contributions if they are apprentices. And if a payee is an apprentice, the ARRCO/AGIRC employer’s contributions are due only if the organization has more than ten payees and these contributions are triggered.

Click to jump to top of pageClick to jump to parent topicContingency Funds

Contingency fund contributions follow the same rules as for ARRCO/AGIRC. For organizations with more than ten payees, there is only a single contribution from the employer. For organizations with less than ten payees, no contribution is triggered.

Click to jump to top of pageClick to jump to parent topicCounting Employees

Apprentices are not included in the head count of employees. This may have an impact on contributions that depend on the number of employees in the organization (that is, more or less than ten).

See Also

Counting Employees

Click to jump to parent topicTrainees

This section discusses:

Warning! The tax rules described in this section are scheduled to be updated after the release of PeopleSoft Enterprise Global Payroll for France version 9.0. For information about these tax updates, review the additional documentation for Global Payroll for France on Customer Connection.

Click to jump to top of pageClick to jump to parent topicTrainee Contracts

Trainees are identified using the formula SIT FM STG URSSAF. If this formula retrieves the value GP TRUE (1), the payee is considered a trainee. If this formula retrieves the value GP FALSE (0), the payee is not considered a trainee.

Trainees are not covered by a work contract because they are not classified as salaried employees.

The training establishment may or may not be covered for work accident insurance (RT), and the training may or may not be mandatory. Both of these factors affect the trainees’ earnings and contributions.

PeopleSoft delivers different earnings to identify whether the establishment is covered for work accident insurance.

Click to jump to top of pageClick to jump to parent topicEarnings

This table lists the earnings that PeopleSoft delivers for the different classes of trainee:

Earning

Description

STG OBL AT

For trainees undergoing mandatory training with AT coverage.

STG OBL NAT

For trainees undergoing mandatory training without AT coverage.

STG NOBL

For trainees undergoing non-mandatory training.

These earning are automatically segmented and prorated when they are assigned to payees on the Element Assignment by Payee or Payee Assignment by Element pages and the assignment period covers only a portion of the pay period.

See Payee Overrides and Segmentation.

All of these earnings add to the accumulator GEN AC BRUT SG. The delivered rules compare these earnings to the minimum salary or relevant percentage of the minimum salary.

PeopleSoft delivers variables specifically for trainees that you may need to define by entering supporting element overrides. There are two types of variables:

This table lists the variables and explains how to use them:

Variable

Description

GEN VR STAG NB M

Used to indicate the period that an allowance covers. The default value is 1, which means that compensation is paid each month. Override this variable if you pay trainees for multiple months in only one payroll. In such cases, the system needs to control that this compensation falls within the legal limits multiplied by the number of months.

For example, if a trainee stays with an organization for two months for mandatory training and the trainee is paid at the end of the two month period, you must override GEN VR STAG NB M with 2 to ensure that the system correctly calculates the contributions.

GEN VR STG NSIR

Used to indicate whether the training lasts more or less than three months. This information is used to determine whether the compensation paid to the trainee is subject to income tax (that is, whether the accumulator GEN AC NET FISCAL is populated by the compensation amount).

For mandatory training with a duration of three months or less, the variable is set to 1 (this is the default value). If you want to indicate that the training lasts more than three months, override the variable GEN VR STAG NSIR by assigning the value zero (0) or by using the variable GP FALSE.

GEN VR STG O AT

Used to indicate mandatory training with work accident coverage for trainees who don't receive compensation.

GEN VR STG ONAT

Used to indicate mandatory training without work accident coverage for trainees who don't receive compensation.

GEN VR STG NOBL

Used to indicate non-mandatory training for trainees who don't receive compensation.

Click to jump to top of pageClick to jump to parent topicSocial Security Contributions

All trainees are subject to URSSAF, transportation, and CSG/CRDS contributions. URSSAF contributions are based on régime codes, but for trainees it is not necessary to enter the code. The system assigns the correct régime code based on such factors as the trainee's compensation level, whether training is mandatory or non-mandatory, and the work accident coverage.

Trainees are not subject to contributions for ASSEDIC, ARRCO/AGIRC, contingency funds, training tax, or levies.

Initially, the system triggers all contribution deductions. Then, a generation control for each contribution checks whether the payee is a trainee. Payment is not processed for contributions that do not apply to trainees. Transportation contributions are triggered by checking whether URSSAF contributions are being paid, because both have the same conditions of eligibility.

This table lists the different contributions that are due for mandatory training:

Description

Social Security Contributions: Payee’s Part

Social Security Contributions: Employer’s Part

CSG / CRDS

Compensation ≤ 30% of the SMIC: AT risk covered

Not Liable

Not Liable

Not Liable

Compensation ≤ 30% of the SMIC: AT risk not covered

Not Liable

Liable for 25% of the SMIC

Not Liable

Compensation > 30% of the SMIC: AT risk covered

Liable

Liable except for AT deduction

Liable

Compensation > 30% of the SMIC

AT risk not covered

Liable

Liable

Liable

Some contributions can be paid on 25 percent of the SMIC even if the payee doesn’t receive any compensation.

This table presents the different contributions that are due for non-mandatory training:

Description

Social Security contributions: Payee’s Part

Social Security contributions: Employer’s Part

CSG / CRDS

Training not compensated

No Contributions

Liable on 25% of the SMIC

No Contributions

Training compensated: compensation ≤ 25% of the SMIC

Not Liable

Liable on 25% of the SMIC + benefits in kind

Not Liable

Training compensated: compensation ≥ 25% of the SMIC

Liable

Liable

Liable

In this case, AT contributions are paid when the employer contributes on 25 percent of the SMIC or on the complete compensation.

Click to jump to top of pageClick to jump to parent topicTrainee Examples

This section discusses the following examples of trainee earnings and contributions:

Example 1: Mandatory Training, Four Months, with Insurance

Suppose that a payee is taking mandatory training and is covered for work accident insurance by the employer. Training lasts for four months and the payment is 152 euros per month. To process this trainee:

Example 2: Mandatory Training, Five Months, No Compensation or Insurance

Suppose that a payee is taking mandatory training and is not covered for work accident insurance by the employer. Training lasts for five months and there is no payment.

To process this trainee, you would update the variable GEN VR STG ONAT to 1 (TRUE). In this case, the employer is liable for some contributions. These are calculated on 25 percent of the SMIC. There are no CSG/GRDS contributions.

Because there is no compensation, it is not necessary to update any earnings or deductions. The result of the process is that there are no payee contributions.

Click to jump to parent topicQualification Contracts

This section discusses:

Warning! The qualification contract discussed in this section has been replaced by the professionalization contract for new contract employees. However, some qualification contracts may still be in effect if they were established shortly before the implementation of the new professionalization contract; for this reason, the delivered rules for qualification contracts have not been inactivated. However, if you attempt to assign a qualification contract to an employee on the Contract Data component in PeopleSoft Human Resources, you will receive a warning message.

Click to jump to top of pageClick to jump to parent topicQualification Contracts

The qualification contract is for payees between the ages of 16 and 26. It allows the payee periods of study as part of a sandwich course (formation en alternance). It is a fixed-term contract for a period between six months and two years. It does not give entitlement to an end-of-contract allowance.

Global Payroll for France checks that the contract does not exceed two years and displays an error message if it exceeds this limit.

Note. Global Payroll for France does not manage adult qualification contracts for payees over the age of 26.

See Also

Understanding Allowances

Click to jump to top of pageClick to jump to parent topicRemuneration

Global Payroll for France does not calculate any base salary earnings because this information is retrieved from PeopleSoft Enterprise Human Resources data. Therefore, the earning for the qualification contract, which is based on a percentage of the SMIC, is not calculated.

This table lists the minimum percentage of the SMIC that applies for each age range and year of contract:

Age

Remuneration 1st year of contract

Remuneration 2nd year of contract

< 18

30% of the SMIC

45% of the SMIC

≥ 18 and < 21

50% of the SMIC

60% of the SMIC

≥ 21

65%*

75%*

* Percentage of the SMIC or of the minimum conventional salary corresponding to the job held.

Note. A warning message appears if the base salary is less than the minimum salary defined by law. The system does not determine whether the salary is over the conventional salary for apprenticeship contracts because the system does not manage the conventional salary.

Click to jump to top of pageClick to jump to parent topicContributions

If payees are on a qualification contract, there are employers’ exemptions on illness, maternity, disability, death and the old age deductions, and on some URSSAF contributions.

The exemption is applied to the part of the salary that does not exceed the SMIC. The part greater than the SMIC is then liable for all contributions.

To manage qualification contracts, assign the contract type QUA and social security code 914 to eligible payees on the Contract Type/Clauses page in PeopleSoft Human Resources.

Note. In Alsace-Moselle, use social security code 915 instead of 914.

The limit for the contribution exemption is equal to the hourly SMIC value multiplied by the number of paid hours, that is, standard hours − absences + additional hours (without supplementary hours).

Global Payroll for France uses the bracket APP BR REMUN to return values for the qualification contract.

See Also

Defining URSSAF Contributions

Click to jump to top of pageClick to jump to parent topicOther Considerations

Payees with qualification contracts are not included in the organization head count. They are not included in the social and fiscal staff limits (seuils d’effectif fiscal et social), with the exception of the work accident rate.

Click to jump to top of pageClick to jump to parent topicQualification Contract Example

Suppose that a payee is on a qualification contract, the payee's salary is 3811 euros, and the payee is paid for 150 hours per month. The system calculates the contributions as follows:

See Also

Defining URSSAF Contributions

Bracket for Specific Contract Compensation Scale

Click to jump to parent topicOrientation Contracts

This section discusses:

Warning! The orientation contract discussed in this section has been replaced by the professionalization contract for new contract employees. However, some orientation contracts may still be in effect if they were established shortly before the implementation of the new professionalization contract; for this reason, the delivered rules for orientation contracts have not been inactivated. However, if you attempt to assign an orientation contract to an employee on the Contract Data component in PeopleSoft Human Resources, you will receive a warning message.

Click to jump to top of pageClick to jump to parent topicOrientation Contracts

The orientation contract is available to payees between the ages of 16 and 26 years old. It is a fixed-term contract for no more than six months. The duration may be extended to a maximum of nine months for people under the age of 22 who do not have any qualifications. There is no control on the contract duration because this duration has no impact on the compensation. Compensation is based on a percentage of the SMIC according to the payee’s age.

Click to jump to top of pageClick to jump to parent topicRemuneration

The minimum remuneration depends on the age of the payee. In case of a change of age, the new percentage is applied the first day of the month following the birthday. This table lists the minimum salaries for payees with an orientation contract:

Age

Remuneration

< 18

30% of the SMIC

≥ 18 and < 21

50% of the SMIC

≥ 21

65% of the SMIC

Click to jump to top of pageClick to jump to parent topicContributions

There is a reduction in the employers’ social security contributions during the orientation contract. The contributions exempted are the illness, maternity, disability, death, and old age deductions. These exemptions are not submitted to limits and are managed by assigning the contract type ORI and social security code 386 to eligible payees on the Contract Type/Clauses page in PeopleSoft Human Resources.

Note. In Alsace-Moselle, use social security code 387 instead of 386.

Global Payroll for France uses the bracket APP BR REMUN to return values for the orientation contract.

See Also

Bracket for Specific Contract Compensation Scale

Click to jump to top of pageClick to jump to parent topicOther Considerations

Payees with orientation contracts are not included in the organization head count. They are not included in the social and fiscal staff limits (seuils d’effectif fiscal et social) with the exception of the work accident rate.

The training periods are paid and are included in the working time of the payees. No end-of-contract allowances are due when the contracts end.

The rules for benefits-in-kind are the same as for apprentices.

See Also

Understanding Allowances

Apprentices

Click to jump to parent topicAdaptation Contracts

This section discusses:

Warning! The adaptation contract discussed in this section has been replaced by the professionalization contract for new contract employees. However, some adaptation contracts may still be in effect if they were established shortly before the implementation of the new professionalization contract; for this reason, the delivered rules for adaptation contracts have not been inactivated. However, if you attempt to assign an adaptation contract to an employee on the Contract Data component in PeopleSoft Human Resources, you will receive a warning message.

Click to jump to top of pageClick to jump to parent topicAdaptation Contracts

The adaptation contract helps payees between the ages of 16 and 26 adapt themselves to their jobs by providing special training periods.

The contract may or may not run for a fixed term. No end-of-contract allowance is paid at the end of a fixed-term adaptation contract. The duration of a fixed-term adaptation contract is between six months and one year. After two years, payees on an adaptation contract without a fixed term are classified as regular employees.

There are two values in the Contract Type table for adaptation contract:

There are no exemptions on contributions for adaptation contracts.

Click to jump to top of pageClick to jump to parent topicRemuneration

For contracts of both fixed and unfixed terms, remuneration is equal to 80 percent of the conventional minimum salary for the job and may not be less than the SMIC. The only control is a check that the salary is not less than the SMIC.

For payees under the age of 18, the minimum salary is based on a percentage of the SMIC.

There is no control to check whether the remuneration is equal to 80 percent of the SMIC.

Click to jump to top of pageClick to jump to parent topicCounting Employees

People on adaptation contracts are not included in the organization head count.

For fixed-term contracts, the end-of-contract allowance is not due.

See Also

Understanding Allowances

Click to jump to parent topicWork Initiative Contracts(Contrat Initiative Emploi)

This section discusses:

Click to jump to top of pageClick to jump to parent topicWork Initiative Contracts

The Contrat Initiative Emploi (CIE) helps unemployed people return to work. The payees eligible for this contract must meet certain requirements. Depending on the situation of the payee, the employer is entitled to help and exemptions from contributions.

There are two values in the Contract Type table used to identify the CIE contract:

Click to jump to top of pageClick to jump to parent topicCIE and Return-to-Work Contracts (Contrat de Retour à l’Emploi)

Before the CIE contract was created, there was a similar contract that helped the unemployed return to work called the Contrat de Retour à l’Emploi (CRE). When the CIE was introduced, many payees continued to work under old CRE contracts. Payees who are still working with CRE contracts follow the same rules as payees under CIE. The only difference is the social security code used to manage the URSSAF contributions for these two contracts.

For the CRE, the social security code used is code 944 (945 for Alsace-Moselle) and is applied to payees over 50 years of age and unemployed for more than one year when they signed their contracts. For the CIE, two social security codes may be used: 956 for general cases or 960 for contracts concluded with people over 50 years of age (957 and 961 for Alsace-Moselle).

Click to jump to top of pageClick to jump to parent topicFixed and Unfixed Term Contracts

The CIE may be a fixed-term contract (IND) or a contract without term (INE). CDD contracts are for a minimum of 12 months and a maximum of 24 months.

At the end of the CDD, the payee is not eligible for the end-of-contract allowance.

See Also

Understanding Allowances

Click to jump to top of pageClick to jump to parent topicContributions

Employers hiring people under CIE are entitled to exemption from social security contributions for illness, maternity, disability, death, and old age deductions. The exemption is applied to the part of the salary that does not exceed the SMIC. The part greater than the SMIC is then subject to the normal contributions based on the associated régime.

To manage work initiative contracts, assign the contract type IND or INE and social security code 956 (for normal cases) or 960 (for those over 50) to eligible payees on the Contract Type/Clauses page in PeopleSoft Human Resources.

Note. In Alsace-Moselle, use social security codes 957 and 961 instead.

The limit for the contribution exemption is equal to the hourly SMIC value multiplied by the number of paid hours.

For the CDD, the exemption is granted for a maximum of 24 months. For the CDI, the exemption is granted for 24 months. For payees over 50 years of age and some other specific categories, the exemptions are granted for the complete duration of their contracts.

At the end of the two years exemption limit, you must modify the social security codes at the payee level for payees under 50 years of age. Payees who were over 50 years of age when their contracts were signed are still entitled to exemptions after two years, so you do not need to change their codes.

See Also

Defining URSSAF Contributions

Click to jump to top of pageClick to jump to parent topicCounting Employees

Payees with CIE contracts are not included in the organization head count, except for the valuation of the work accident rate made by Social Security. Payees with fixed-term contracts are not counted until the end of the contract. Payees without fixed-term contracts are not counted for two years after the hiring date.

The system does not count payees with the contract types INE or IND. Payees without fixed-term contracts are not counted in the staff of the organization until their contract type value equals CDI. The system does not check whether the contracts last more than two years.

Click to jump to parent topicSpecial Part-Time Contracts

Special part-time contracts may be agreed upon between an employer and some government departments (URSSAF and DDTE). They are not work contracts. The payee and the employer are bound by a part-time employment contract that allows the employer some exemptions from contributions.

Social security for illness, age, family allowances, and work accidents are reduced by 30 percent. The deductions are granted for payees whose theoretical working week is between 18 and 32 hours. These limits may be expressed in monthly or yearly values. The calculation of the limits in yearly values is subordinate to a work time reduction agreement.

To manage special part-time contracts, assign the social security code 392 to eligible payees on the Contract Type/Clauses page in PeopleSoft Human Resources.

Note. In Alsace-Moselle, use social security code 393 instead of 392.

It is your responsibility to ensure that the hours worked are within the 18 to 32-hour limit.

Important! Exemptions for part-time contracts are no longer in effect and social security codes 392 and 393 should no longer be assigned to payees.

See Also

Defining URSSAF Contributions

Click to jump to parent topicFixed-Term Contracts

This section discusses:

See Also

Defining Levies

Understanding Allowances

Setting Up and Generating Wage Certificates

Click to jump to top of pageClick to jump to parent topicFixed-Term Contracts

The fixed-term contract (or CDD) is for a duration specified in advance. The standard work contract in France is the contract without term (CDI), and the CDD is regarded as an exception. The CDD is limited to specific cases determined by law.

The fixed-term contract is liable for the same contributions as a contract without a fixed term. In general, the following applies to fixed-term contracts:

Click to jump to top of pageClick to jump to parent topicFixed-Term Contracts for Students

A special fixed-term contract exists for students. The only difference between a student contract and a regular CDD contract is that there is no allowance paid at the end of the contract.

Use the same contract type for current CDDs as for fixed-term contracts for students. To prevent the payment of the end-of-contract allowance, you must create a contract type value for this kind of contract. Then update the bracket IND BR DT SPEC by indicating a different allowance entitlements for this kind of contract. In this case, the variable IND VR DP IFC populated by this bracket must be set to zero to avoid the triggering of the end-of-contract allowance.

See Also

Understanding Allowances

Click to jump to top of pageClick to jump to parent topicSeasonal and Custom Contracts

Some special CDD contracts are defined for seasonal activity, and some custom contracts are defined for special industries, such as show business. As with fixed-term contracts for students, there is no end-of-contract allowance paid.

The triggering of the end-of-contract allowance should be prevented. Human Resources provides as sample data the value Seasonal Contract in the Contract Type table. But you must update the bracket IND BR DT SPEC to manage this case.

See Also

Understanding Allowances

Click to jump to parent topicSpecific Categories of Payees

This section discusses specific categories of payees that have special rules applied to their contributions:

Click to jump to top of pageClick to jump to parent topicPayees Under 18

There is a different minimum wage (SMIC) for payees under the age of 18 who have spent less than six months with their employers. They may earn 80 percent of the SMIC if they are under 17 years of age and 90 percent of the SMIC if they are between the ages of 17 and 18.

Global Payroll for France checks the age of the payee, and if it is below 18, the system checks that the earning is not below the statutory percentage of the SMIC.

Click to jump to top of pageClick to jump to parent topicAssignees

Payees are classified as assignees in Human Resources if they are assigned to another organization (secondee) and work outside of France. To classify a payee, enter Assignee in the Employee Class field. When you do this, the system updates the formula SIT FM DETACHE used by the rules.

Secondees pay the same contributions as other payees, except for the AGIRC contribution for managers and the CSG/CRDS contribution.

A situation has been created to allow a payee’s salary to be treated as an expatriate and to allow a secondee to opt out of ARRCO/AGIRC contributions.

The formula SIT FM DETACHE AGI triggers the contributions for expatriate secondees. By default, this formula is equal to GP TRUE, which means that the payee pays ARRCO/AGIRC contributions. If the payee is considered an expatriate by the ARRCO/AGIRC, update this formula to GP FALSE (or 0), and the retirement contributions aren’t triggered.

If the secondee is fiscally domiciled out of France, the secondee does not have to pay the CSG/CRDS contributions. You must override the formula SIT FM DOMICILE FR with GP FALSE to indicate that the payee is not domiciled in France and does not have to pay CSG/CRDS contributions.

Click to jump to top of pageClick to jump to parent topicOrganization Managers or Officials

The formula SIT FM MANDATAIRE is used to identify organization managers. The formula SIT FM MANDATAIRE is equal to True (1) if the field Employee Professional Status in Contract Data information is equal to Company Officer.

The formula SIT FM MANDAT RETR is used for ARRCO/AGIRC contributions. You must manage the formula SIT FM MANDAT RETR. If the condition in the formula SIT FM MANDAT RETR is TRUE, retirement contributions are triggered. SIT FM MANDAT RETR is used to trigger the retirement contributions when a payee is an organization officer. By default, this formula is equal to GP TRUE, which means that the retirement contributions are triggered. You can override this formula to avoid calculating the retirement contributions. Payees are classified as non-managers by default (condition FALSE, value zero). You can change this value to classify a payee as a organization official. Organization officials are not liable to ASSEDIC contributions. The formula SIT FM MANDATAIRE is used to trigger ASSEDIC.

If an organization manager is not affiliated with URSSAF, set up your own rules to manage the situation. If the manager is affiliated with URSSAF, enter the régime code.

There is no ceiling proration for managers who are classified as part-time employees or who work for multiple employers. The formula SIT FM MANDATAIRE is used to avoid triggering the ceiling proration. By default, the formula retrieves the value GP FALSE; you can override this formula with GP TRUE if a payee is an organization officer.

Organization managers are not classified as employees and do not have any contract data. This means that they cannot be assigned URSSAF régime codes in the usual way. There is a contract type called No work contract, which is assigned to managers to allow régime codes to be assigned.

See Also

Defining URSSAF Contributions

Click to jump to top of pageClick to jump to parent topicDoctors

The situation formula SIT FM DOCTEUR has the default value FALSE. You can override it at the payee level to indicate that a payee is a doctor.

When you override the formula to be TRUE, you are indicating that the payee is a doctor and that no ceiling proration (for part-time or multiple employers) should be applied to the ceilings. The URSSAF régime class to enter for a doctor is 336, or 337 for a doctor in Alsace-Moselle.

Click to jump to parent topicBrackets for Specific Contracts

This section discusses:

See Also

Defining Bracket Elements

Defining Variable Elements

Click to jump to top of pageClick to jump to parent topicBrackets for Professionalization Contract Minimum Wage (SMIC) Controls

The bracket GEN BR SMIC PROF returns the applicable SMIC percentage based on age. The payee's age is contained in the element GEN DR AGE ANNEES, which functions as the search key.

The bracket GEN BR NIVEAU ETUD returns an additional SMIC percentage based on educational level. The payee's educational level is contained in the system element HI EDUC LV, which functions as the search key.

Global Payroll uses the formula APP FM INIT to add the two percentages returned by these brackets to calculate the minimum SMIC percentage due to the payee. For example, if the percentage returned by the bracket GEN BR SMIC PROF is 55%, and the percentage returned by the bracket GEN BR NIVEAU ETUD is 10%, the formula calculates a minimum compensation level of 65% of SMIC.

This table lists the values in the bracket GEN BR SMIC PROF delivered with Global Payroll for France:

GEN DR AGE ANNEES (Key)

GEN BR SMIC PROF (Return as of October 1, 2004)

21

55

26

70

99

100

This table lists the values in the bracket GEN BR NIVEAU ETUD delivered with Global Payroll for France:

HI EDUC LV (Key)

GEN BR NIVEAU ETUD (Return as of October 1, 2004)

A

0

B

0

C

0

D

0

E

0

F

10

G

10

H

10

I

10

J

10

K

10

L

10

Note. You should review the information in this bracket and, if necessary, modify the additional SMIC percentage based on educational level to reflect the rules in effect in your organization.

Click to jump to top of pageClick to jump to parent topicBracket for Specific Contract Compensation Scale

The bracket APP BR REMUN returns values for the specific contract compensation scale. It returns values for the apprenticeship contract and also for the qualification and orientation contract. The keys for this bracket are CONTRACT TYPE and APP VR ANNEE CONT, and the return column is APP BR REMUN. The variables APP VR REM-21 and APP VR REM+21 are populated based on the key as follows:

It’s important that you understand the definition of this bracket because PeopleSoft delivers, but does not maintain, this bracket. You must maintain this bracket to ensure that your setup functions properly.

This table lists the sample values delivered with Global Payroll for France:

CONTRACT TYPE (Key)

APP VR ANNEE CONT (Key)

APP BR REMUN (Return)

APP VR REM-21 (Variable)

APP VR REM+21 (Variable)

APP

1

25

41

53

APP

2

37

49

61

APP

3

53

65

78

QUA

1

30

50

65

QUA

2

40

60

75

ORI

 

30

50

65

Click to jump to top of pageClick to jump to parent topicBracket for Specific Contract Contribution Bases

The bracket APP BR BASE returns values for specific contract wages contribution bases. The key for this bracket is APP VR % BASE, and the return column is APP BR BASE. The variable APP VR BASE EUR is populated based on the key.

It’s important that you understand the definition of this bracket because PeopleSoft delivers, but does not maintain, the bracket. You must maintain this bracket to ensure that your setup functions properly.

This table lists the sample values in the bracket delivered with Global Payroll for France:

APP VR % BASE (Key)

APP BR BASE (Return as of January 1, 2001)

14

147

26

273

29

304

30

315

Note. The bracket APP BR BASE retrieves the lump sum funding base in euros.

The value returned by the bracket APP BR REMUN is used to determine if the minimum salary is correctly applied to the apprentice. This value is also used as the funding base for all the contributions paid. This value is calculated for a payee who is present for the entire month. The apprentice funding base is prorated depending on the number of days present during the period and depending on the paid hours of the payee.

If you don’t want to apply this last proration or if you want to apply a different proration, modify the formula APP FM PRORAT BASE (defined as Customer Maintained) that is used to prorate the apprentice funding base following the number of paid hours.

Click to jump to parent topicSIT FM Formulas

PeopleSoft Enterprise Human Resources tables provide some of the data needed by Global Payroll for France and other data is provided by Global Payroll tables. Sometimes, however, the information needed to verify a particular situation does not exist in the tables. For such instances, PeopleSoft delivers formulas with the prefix SIT that you can update to meet the specific needs of your organization. PeopleSoft does not maintain these formulas.

You can update these formulas in one of two ways: