Working with KUG

This chapter provides an overview of KUG and KUG processing, and discusses how to:

Click to jump to parent topicUnderstanding KUG

When employers must close down part or all of their operations because no work is available, KUG (Kurzarbeitergeld) insurance funds are provided for a set period of time by the Bundesagentur für Arbeit (BfA) to prevent permanent terminations or factory closure. KUG funds paid by the BfA cover part of the difference between the normal pay (Solltengeld) and the actual pay (Istentgelt) for employees. In addition the employer alone has to pay social insurance contributions for a fictive amount based on the difference.

KUG grants are paid by the BfA for a set period of time. Your organization must apply to the BfA for a KUG grant. When the BfA approves the grant, you receive a grant number (Stammnummer) and beginning and ending dates for the grant period (Gewährungszeitraum).

Click to jump to parent topicProcessing KUG

This section discusses how to set up KUG processing.

You set up KUG processing as follows:

  1. For each employee, enter a KUG benefit group and KUG benefit step on the Tax Card Data page (Global Payroll, Payee Data, Taxes, Maintain Tax Data DEU, Tax Card Data).

  2. Apply for a KUG grant.

  3. Enter the KUG grant number (Stammnummer) and beginning and end dates (Gewährungszeitraum) on the KUG Setup page (Set Up HRMS, Product Related, Global Payroll, Framework, Organizational, Department DEU, KUG Setup).

  4. For each employee, enter KUG time using the KUG absence element (DE_AB_M90).

  5. If KUG and sick time overlap in a KUG period, enter both absences. The system determines if sick time is paid for by the BfA or by health insurance.

Click to jump to top of pageClick to jump to parent topicPages Used to Set Up KUG Processing

Page Name

Object Name

Navigation

Usage

Tax Card Data

GPDE_TX_DATA2

Global Payroll, Payee Data, Taxes, Maintain Tax Data DEU, Tax Card Data

Enter tax card data for an employee.

KUG Setup

GPDE_AL_DEPT4

Set Up HRMS, Product Related, Global Payroll, Framework, Organizational, Department DEU, KUG Setup

Enter serial number and beginning and ending dates for KUG grant.

Click to jump to top of pageClick to jump to parent topicSetting Up KUG Processing

Access the KUG Setup page.

Begin Date and End Date

Beginning and ending dates for the KUG grant period (Gewährungszeitraum). These dates are provided by the Bundesagentur für Arbeit.

KUG Ident Number BA

Grant number (Stammnummer) for the KUG grant. This number is provided by the Bundesagentur für Arbeit.

Click to jump to parent topicViewing Delivered KUG Elements

This section discusses:

Click to jump to top of pageClick to jump to parent topicDelivered KUG Earnings

Global Payroll for Germany uses these earnings to calculate payments for KUG:

Earnings

Description

DE_KU_EKKUG

Pay reduction by KUG.

DE_KU_HKGBA

KUG hours with amount of KUG BA.

DE_KU_HKGKK

KUG hours KG with amount of KUG KK.

DE_KU_HKUG

Normal KUG hours.

DE_KU_KUG

KUG pay.

DE_KU_KUGKK

Sick pay (KG) with the amount of KUG payable by health insurance.

DE_KU_NEBEN

KUG other employer payments.

Click to jump to top of pageClick to jump to parent topicDelivered KUG Absence Takes

Global Payroll for Germany uses this absence element to calculate payments for KUG:

Absence

Description

DE_AB_M90

KUG absence hours.

Click to jump to top of pageClick to jump to parent topicDelivered KUG Accumulators

Global Payroll for Germany uses these customer-maintained accumulators to support calculation of KUG payments:

Accumulator

Description

DE_KU_K_BASISK

KUG reducible pay. Includes all earnings affected by KUG reduction, such as salary. Does not include one-time payments or overtime (Mehrarbeit).

DE_KU_K_BASISM

KUG overtime pay. Includes all overtime pay (Mehrarbeit). Does not include one-time payments.

DE_KU_K_BASISN

KUG nonreducible pay. Includes all employer contributions to capital accumulation (VWL) or moneyworth advantage (GWV, geldwerter Vorteil, Sachbezüge). Does not include one-time payments or overtime (Mehrarbeit).

DE_KU_K_NEBENE

Other employer pay. Pay received from other must be added to the actual pay (Istentgelt); this reduces the difference for the KUG payments. This earning is for positive input only and does not appear in accumulators other than KUG.

DE_KU_K_REDUCT

KUG payment reduction. Payment reduction for KUG reasons. You can override the payment reduction with this accumulator. The elements in the PeopleSoft-delivered accumulator must first be disabled, for example by removing them from the element group.

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