PeopleSoft Enterprise Global Payroll for Switzerland 9.1 PeopleBook

Setting Up FAKs

This chapter provides an overview of Familienausgleichskasse (FAK) and discusses how to enter FAK data.

Understanding FAKs

An FAK is a family allowance agency that pays monthly contributions towards family allowances, such as child allowances and maternity benefits.

Employers must be affiliated with an FAK unless they have special dispensation. The FAK is generally the same agency that is used to deduct AHV/ALV contributions. Employers are entitled to special dispensation when belonging to an FAK provided that they have a recognized contract of employment.

FAK benefits depend on the canton in which an employer is located. If an employer is affiliated with an FAK, they must transfer a certain percentage of an employee's total contribution to AHV to the FAK.

FAK Processing Structure

The system processes FAK data in three parts: initialization, calculation, and refund administration.

Initialization

During the initialization step, the system determines which canton rules to apply for a payee. Section CH_FK_INIT performs these actions:

Reads Canton from the Location table (GP_LOCATION_TBL).
Reads the tax location from the Swiss Location table (PS_LOCATION_CHE).
Reads Canton from the Child Allowance Data table (PS_GPCH_CA_DATA1).
Decides which Canton value to apply to FAK calculation using the FAK/CA Canton EE override formula (CH_FK_FO002).
Prepares the FAK Canton information using the initiate read of FK_FAK_STX for FAK formula (CH_FK_AR004_IN_FK).

Calculation

During the calculation step, the system computes the following earning, accumulators, and deductions:

Element	Element Type	Description	Calculation Rule
CH_FK_02	Accumulator	FAK Base	AHV Wage (CH_AH_D11_BASE) + Customer Entry (CH_FK_C02) + FAK Base Correction (CH_FK_M02).
CH_FK_M02	Deduction	FAK Base Correction	Base (Payee Level) * Percent (100).
CH_FK_D10	Deduction	FAK Contribution EE	Base (Accumulator CH_FK_02) * Percent (0.3).
CH_FK_D11	Deduction	FAK Contribution	Base (Accumulator CH_FK_02) * Percent (CH_FK_PCT).
CH_FK_D00	Accumulator	FAK Debt	Family Allowance Total (CH_CA_ALL) + Custom Entry (CH_FK_CD00) — FAK Contribution (CH_FK_D11).
CH_RP_FKD00	Earning	FAK Saldo (copy of CH_FK_D00)	Amount (Accumulator CH_FK_D00).
CH_FK_D12	Deduction	FAK Compensation	Base (Accumulator CH_FK_02) * Percent (0.01).
CH_FK_D13	Deduction	FAK Additional VS	Base (Accumulator CH_FK_02) * Percent (0.015).

Refund Administration

During this step, the system determines calculation amounts. Section CH_TX_S4000 performs these actions:

Applies additional employer FAK contributions for payees in Neuenburg and Zug by using deduction CH_FK_D21.
Prepares the source tax canton information using formula CH_FK_AR004_IN_TX.
Places the FAK default data and source tax refund percentages into array CH_FK_AR001.
Calculates the tax refund for administrators (accumulator CH_TX_D11).

Viewing Delivered Elements

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Switzerland. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 9.1 PeopleBook.

Entering FAK Data

This section discusses how to enter FAK data.

Page Used to Enter FAK Data

Page Name	Definition Name	Navigation	Usage
FAK/SourceTax(Company) CHE	GPCH_TX_FAK_STAX	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Taxes, FAK/SourceTax(Company) CHE, FAK/SourceTax(Company) CHE	Enter the company-specific FAK and source tax data that is allocated to your company by the cantons.

Entering FAK Data

Access the FAK/SourceTax(Company) CHE page [Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Taxes, FAK/SourceTax(Company) CHE, FAK/SourceTax(Company) CHE].

Note. The fields on this page enable you to combine the XML for various cantons into one provider - FAK (FAK Provider) - LAW (LAW Provider).

Use this page to record FAK and source tax data, which including source tax and FAK numbers, which are allocated to your company by the cantons. These fields enable you to combine the XML for various cantons into one provider – FAK (FAK Provider) - LAW (LAW Provider).

Source Tax Data

Tax Nbr (tax number)	Enter the number assigned to your company by your canton's tax office.
Source Tax Language	Select a language for the canton source tax report. This option allows you to print the tax report for each canton in a different language. If there is no value in this field all the reports will print in the default language. The available options are: German, French, and Italian.
FAK Number	Enter the number that has been assigned to your company by the FAK. For XML Global Payroll for Switzerland uses the FAK Number from the CHE Company. Note. The system uses the language for the canton. This is important if you run reports for several cantons at once, where the language selection on the run control is not sufficient.
Percent	Enter the current contribution rate that employers must make to the FAK for each canton, expressed as a percentage. Note. If there is no value in this field, the system doesn't support payments to the FAK in that canton.
LAW Provider	Select the company which generates the taxes.
FAK Provider.	Select the agency that is paying the monthly contributions towards family allowances, such as child allowances and maternity benefits.
FAK Fee NE/ZG	Enter the FAK fee that is levied by the Neuenburg or Zug cantons if your company is located in either of these cantons with special laws.
Tax Month and Tax Quarter	Select to enable monthly and/or quarterly source tax report generation for a canton.

Note. PeopleSoft doesn't maintain the data on this page, because it contains information about the tax ID and FAK number, which the government assigns to your company.

Running the FAK Contributions Report

This section discusses how to run the FAK contributions report.

Page Used to Run the FAK Contributions Report

Page Name	Definition Name	Navigation	Usage
FAK Contributions Report CHE	GPCH_RC_AL04	Global Payroll & Absence Mgmt, Authority Correspondence, FAK Contributions Report CHE, FAK Contributions Report CHE	This report generates using the base elements—housing, maternity, child, and training allowances (for both full-time and part-time employees)—that are predefined in the database.

Running the FAK Contributions Report

Access the FAK Contributions Report CHE page (Global Payroll & Absence Mgmt, Authority Correspondence, FAK Contributions Report CHE, FAK Contributions Report CHE).

Run the FAK Contributions Report each month to list employee and employer FAK contributions.

This report is generated using the base elements—housing, maternity, child, and training allowances (for both full-time and part-time employees)—that are predefined in the database.

Canton	Select a canton (optional).
Revision List	This version of the list displays all details needed for FAK review.
Delivery List	This version of the list eliminates some details that don't need to be reported to the Ausgleichskasse, such as employees without children. The AHV-Lohn for employees appears as zero.

Note. The yearly report as shown is substituted by the XMLP through the dashboard. For most of the cantons, the monthly report is substituted for AKB (Ausgleichskase Banken), the biggest provider. For other providers and cantons, however, it remains supported for a period of time.