PeopleSoft Enterprise Global Payroll for Spain 9.1 PeopleBook

Understanding Nonbasic Earnings

This chapter discusses:

Nonbasic earnings.
Complements.
Nonsalary earnings.
Salary in kind.
Processing nonbasic earnings.
Viewing nonbasic earning delivered elements.
Modifying delivered nonbasic earnings accrual.

Nonbasic Earnings

In PeopleSoft Enterprise Global Payroll for Spain, two types of earnings exist: basic earnings and nonbasic earnings. Nonbasic earnings are earnings that are paid infrequently, can be fixed or varied amounts, and can not be included in an employee's annual income. The list of nonbasic earnings includes complements, nonsalary earnings, and salary in kind. Examples are pay for holiday work, reimbursements for business travel expenses, and special interest rates for loans.

See Also

Working with Loans and Advances

Defining Earning and Deduction Elements

Complements

This section discusses:

Complement earnings.
Work completed complements.
Company situation complements.

Complement Earnings

Complements complete the final gross pay for an employee or group of employees. They can be calculated as a flat amount or as a formula.

All of the complements discussed in this section are treated the same way during the payroll calculation process. They all accumulate their values to salary earnings, taxable base, and the employee's social security contribution base.

Three types of complement earnings exist:

Personal conditions.
Work completed.
Company's situation and results.

PeopleSoft Enterprise Global Payroll for Spain provides the complements listed subsequently for positive input only. They are not mentioned in the labor agreement component and are not associated with any calculations. You must attach any calculation rules.

Note. Complements for personal conditions are considered basic earnings and are discussed in another chapter in this PeopleBook.

See Also

Complements

Work Completed Complements

Work completed complements are based on the special requirements of a particular job. Typical work complements include nighttime complements and toxicity or hazard complements.

Generally this type of compensation is a percentage of the salary base. Sometimes it can be calculated as a formula depending on the number of hours worked under those conditions. The elements used for this type of earning are variables.

The rules for nighttime, holiday, and toxicity or hazard complements are based on labor agreements and are subject to change. For example, a new labor agreement may enlarge the time frame of the nighttime complement.

Nighttime Complement

Work performed between the hours of 22:00 and 06:00 is considered nighttime work and must be compensated at a higher rate than normal.

Typically, the calculation rule for the nighttime complement is either a flat amount for each day worked in that timetable or a rate based on a regular hourly value.

For a flat amount, the number of days worked is multiplied by the flat amount defined in the labor agreement. For example, if the flat amount is 20 EUR and the number of late nights worked is four, then a total of 80 EUR is the nighttime complement.

Holiday Complement

If employees work during a holiday, they get some additional compensation. Labor agreements usually specify the amounts to be paid for working on Sundays or on holidays. You can calculate an employee's holiday complement by multiplying the special rate by the number of holidays worked.

Toxicity or Hazard Complement

An employee who works with hazardous or toxic materials or who has a dangerous job gets a hazard complement. The details of the hazard complement are in the labor agreement.

Only the actual days worked in these conditions are paid with this complement.

The calculation rule for the hazard complement element is similar to the nighttime complement—either a Flat amount or the Base time Percentage formula applies.

Note. PeopleSoft Enterprise Global Payroll for Spain delivers these work-completed complements (such as the nighttime, holiday, and toxicity or hazard complements) as sample data. Enter the value as positive input for every period. You can also modify the calculation rules to fit your company's needs.

Complementary Hours for Part-time Payees

A part-time payee can work hours in addition to the amount specified in a labor contract. The system considers these additional hours as complementary instead of overtime if they:

Apply only to an unlimited part-time contract with distributed activity or nonconcentrated schedules. This excludes unlimited discontinuous part-time payees, part-time payees with limited contracts, and unlimited part-time payees with concentrated schedules.
Are the result of an agreement between the company and payee as part of the contract.
Do not exceed 15% of the scheduled hours specified in the contract.

Note. This percentage can be increased through a labor agreement but it can never be higher than 60%.

Company Situation Complements

Company situation complements are typically related to company profits and incentives and are more subjective than other complements. Sometimes, a labor agreement details these complements for a company's general objectives. Other times, these complements are addressed in a company or employee contract.

The values of these complements are variable and are currently entered into the system by positive input.

Profit Participants Complement

This complement depends on the company's earnings results. It can be defined annually or monthly, for example, depending on the company.

Incentives Complement

The incentive policy must be defined at the beginning of the period that the company considers a measure to appoint different milestones.

The complement can be defined as a total amount when the whole objective is achieved.

For example, a company's goal is to produce 10 million screws within a defined time period. The production of 10 million screws would grant the entire incentive complement. No incentive complement is supplied for missing the production goal.

The complement can also be defined as a percentage dependent upon the grade of achievement.

In our example, assume that the incentive complement is in direct proportion to the number of screws produced. The production of 9 million screws would yield 90 percent of the incentive complement.

You must manually record the incentive amounts into the system using positive input.

Nonsalary Earnings

This section discusses:

Nonsalary earning calculation.
Travel expense earnings.
Dietas earnings.

Nonsalary Earning Calculation

Nonsalary earnings are exempt from taxes and social security contributions in certain situations. Because of this, the system handles nonsalary earnings differently, depending on their amounts.

Each earning has a statutory maximum daily amount exempt from tax and social security contributions, which varies by fiscal territory. Update these rates using the Fiscal Territories component.

See Calculating Taxes.

Any reimbursement over the statutory maximum is subject to taxes and Social Security contributions. Likewise, the entire amount must be accumulated over total earnings, but only the amounts in excess of the statutory maximum must be accumulated over the taxable and social security base.

You calculate these earnings by entering the number of days and the total amount of the complement in the amount through positive input.

As a result of the calculation, PeopleSoft Enterprise Global Payroll for Spain provides three different elements for every nonsalary earning:

One earning: Represents the total amount that the employee receives.
One earning (the name includes the letters EX): Represents the amount that exceeds the maximum taxable exempted.
One deduction (the name includes the letter EXX): Represents the amount that exceeds the maximum taxable exempted.

Setting Up Statutory Rates

Travel Expense Earnings

Travel expenses are compensations for trips, displacements, and general traveling expenses. PeopleSoft Enterprise Global Payroll for Spain delivers a mileage earning and accounts for its tax and Social Security deductions in excess of the statutory rate.

Dietas Earnings

Dietas is compensation that reimburses expenses resulting from business trips. They include these delivered earnings:

DIETA EXPTR (expatriate traveling maintenance).
DIETA INT (international traveling maintenance).
DIETA LCL (domestic traveling maintenance).
DIET VLO EXP (expatriate traveling maintenance for flight assistants)
DIET VLO INT (international traveling maintenance for flight assistants).
DIET VLO LCL (domestic traveling maintenance for flight assistants).
PRNCTA EXP (expatriate overnight stay).
PRNCTA INT (international overnight stay).
PRNCTA LCL (domestic overnight stay).

Reviewing and Updating System Information

Salary In Kind

Salary in kind are goods or services provided for the employee at a rate lower than the market price. PeopleSoft Enterprise Global Payroll for Spain delivers a low interest loan benefit and life insurance as not passed on, and company car as passed on.

Although salary in kind is fully taxable, it may contribute fully or only partially to the Social Security base depending on its source. When a company provides salary in kind as part of normal labor agreement or contract agreement, the salary in kind contributes fully to the Social Security base. If, however, the company provides salary in kind voluntarily then a certain amount of it is exempt from contributing to the Social Security base.

To determine whether voluntary salary in kind is exempt, compare the sum of all the earnings considered as salary in kind to 20 percent of the IPREM (Indicador Público de Renta de Efectos Múltiples), which is a statutory rate published by the government each year. If the sum of all a payee's earnings does not exceed 20 percent of the professional minimum salary, not all of the salary in kind contributes to the Social Security bases. Any earnings in excess of 20 percent of the IPREM contribute fully to the Social Security base. When a payee receives more than one earning that is considered salary in kind, you must calculate the individual excess for each earning in proportion to its value.

The different types of salary in kind earnings include housing loans with an interest rate below the legal interest rate, cars, insurance contributions, and contributions to pension plans, for example.

The withholdings for salary in kind can be paid by the employer (withholdings in kind not passed on) or by the employee (withholdings in kind passed on). If it is passed on, the withholding is discounted in the payroll for the employee as a tax deduction (deduction in kind). If it is not passed on, the employer will pay the deduction to the tax institution.

Note. The tax percentage to be applied over the nonexempted amount will be the same as the IRPF tax percentage.

See Also

Working with Loans and Advances

Processing Nonbasic Earnings

Nonbasic earnings are contained in three sections:

GEN SE DEV VARBL:

Includes complements, such as nighttime complements, holiday complements, toxicity or hazard complements, overtime, profit participants complements, and incentive complements.
GEN SE DEV OTROS:

Includes dietas, overnight stay, mileage earnings and salary in kind.
AYP SE DEDUCCIONES:

Includes loans and advances.

All of these earnings are included in the payroll calculation (GEN PR CALC NOM) but not in the extra period calculation (XTR PR PAGA EXTRA) because they are not paid as part of an extra period processing.

Note. Basic earnings and various other complements are included in a section called GEN SE DEV BASICOS.

Paying Overtime

Defining Earning and Deduction Elements

Viewing Nonbasic Earning Delivered Elements

This section discusses:

Delivered nonbasic earnings.
Delivered deductions.
Delivered accumulators for nonbasic earnings.

Delivered Nonbasic Earnings

This table lists the elements for nonbasic earnings:

Earning Element	Description
ACCIONES CIA	Company stocks: Value assigned through the Stock Options ESP component (Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, Stock Options ESP). See Managing Stock Option Income.
COCHE CIA	Company car: Use this earning to enter the monetary value of a company car.
DEV ADELANTO	Salary advance: Contains the amount to be paid to the employee as advance payment, which the employee must pay back through later payrolls. Custom field 5 contains the label DEV ADLNTO. Processed only for the last segment in the period. No retro calculation.
DEV PRESTAMO	Loan: Value assigned through the Request Advances/Loans component (Global Payroll & Absence Mgmt, Payee Data, Loans, Request Advances/Loans ESP).
DIETA EXPTR	Expatriates traveling maintenance: Value assigned by positive input. Units must be specified for the number of days and the total amount.
DIETA INT	International traveling maintenance: Value assigned by positive input. Units must be specified for the number of days and the total amount.
DIETA LCL	Domestic traveling maintenance: Value assigned by positive input. Units must be specified for the number of days and the total amount.
DIET VLO EXP	Expatriates traveling maintenance for flight assistants: Value assigned by positive input. Units must be specified for the number of days and the total amount.
DIET VLO INT	International traveling maintenance for flight assistants: Value assigned by positive input. Units must be specified for the number of days and the total amount.
DIET VLO LCL	Domestic traveling maintenance for flight assistants: Value assigned by positive input. Units must be specified for the number of days and the total amount.
DIETAEX EXPT	Expatriate maintenance taxable excess: Customer field 5 contains the label DIETAEX EXP.
DIETAEX INT	International maintenance taxable excess: Customer field 5 contains the label DIETAEX INT.
DIETAEX LCL	Domestic maintenance taxable excess: Customer field 5 contains the label DIETAEX LCL.
FESTIVIDAD	Holiday complement: Value assigned by positive input. This element is automatically segmented and prorated when assigned to a payee 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 Segmentation Triggers with Earning and Deduction Assignments. See Proration and Segmentation.
GASTOS BECAS	Scholarship holder expenses earning related to scholarship holders.
HRS COMPL	Complementary hours: Value assigned by positive input. When assigning this earning, you can enter either Unit and Rate, or Unit and Amount. You must enter a Unit value for this earning to calculate correctly. Payroll processing and FAN file generation reflect complementary hours assignments, but complementary hours do not impact TC1 reports.
INCENTIVOS	Incentives complement: Value assigned by positive input. This element is automatically segmented and prorated when assigned to a payee on the Element Assignment by Payee or Payee Assignment by Element page and the assignment period covers only a portion of the pay period. See Segmentation Triggers with Earning and Deduction Assignments. See Proration and Segmentation.
KILOMETRAJE	Mileage: Value assigned by positive input. Units must be specified for the number of miles and the total amount.
KLMTRJEEX	Mileage taxable excess: Customer field 5 contains the label KLMTRJEEX.
NOCTURNIDAD	Nighttime complement: Value assigned by positive input. This element is automatically segmented and prorated when assigned to a payee on the Element Assignment by Payee or Payee Assignment by Element page and the assignment period covers only a portion of the pay period. See Segmentation Triggers with Earning and Deduction Assignments. See Proration and Segmentation.
PRNCTA EXPTR	Expatriate overnight stay: Value assigned by positive input. Units must be specified for the number of days and the total amount.
PRNCTA INT	International overnight stay: Value assigned by positive input. Units must be specified for the number of days and the total amount.
PRNCTA LCL	Domestic overnight stay: Value assigned by positive input. Units must be specified for the number of days and the total amount.
PRNCTAEX EXP	Expatriate overnight stay excess: Customer field 5 contains the label PRNCTAEX EXP.
PRNCTAEX INT	International overnight stay taxable excess: Customer field 5 contains label PRNCTAEX INT.
PRNCTAEX LCL	Domestic overnight stay excess: Customer field 5 contains the label PRNCTAEX LCL.
PRSTMO EX	In Kind loan taxable excess: Customer field 5 contains the label PRSTMO EX.
PRTCPCN BEN	Profit participation compliment: Value assigned by positive input. This element is automatically segmented and prorated when it is assigned to a payee on the Element Assignment by Payee or Payee Assignment by Element page and the assignment period covers only a portion of the pay period. See Segmentation Triggers with Earning and Deduction Assignments. See Proration and Segmentation.
RDTO IRREGUL	Irregular income.
RDTO IRR 50	Irregular income affected by 50% reduction. This earning corresponds to income accrued in more than five years.
RDTO IRR 50D	Irregular income affected by 50% reduction. This earning is used in the Navarra historical territory. It corresponds to income that has been derived from disability benefits.
RDTO IRR 70	Irregular income affected by 70% reduction. This earning is used in the Navarra historical territory. It corresponds to income that has been derived from death benefits.
SALARIO EXNT	Salary income due work abroad. Value assigned by positive input. This type of income is tax exempt up to a yearly ceiling. The system excludes the exempt amount from the monthly tax base and the yearly estimated tax base used during IRPF percentage calculation.
SEGURO VIDA	Life insurance. Value assigned by positive input or earning and deduction assignment.
TOXICIDAD	Toxicity or hazard complement: Value assigned by positive input. This element is automatically segmented and prorated when it is assigned to a payee on the Element Assignment by Payee or Payee Assignment by Element page and the assignment period covers only a portion of the pay period. See Segmentation Triggers with Earning and Deduction Assignments. See Proration and Segmentation.

See Also

Viewing Delivered Tax Elements

Delivered Deductions

This table lists the deduction elements:

Deduction Element	Description
DIETAEXX EXP	Expatriate maintenance taxable excess: Value assigned by EX FM EXCESO CALC as an offset of DIETAEX EXP.
DIETAEXX INT	International maintenance taxable excess: Value assigned by EX FM EXCESO CALC as an offset of DIETAEX INT.
DIETAEXX LCL	Domestic maintenance taxable excess: Value assigned by EX FM EXCESO CALC as an offset of DIETAEX LCL.
DIETXX V EXP	Expatriate maintenance taxable excess for flight assistants: Value assigned by EX FM EXCESO CALC as an offset of DIETAEX EXP.
DIETXX V INT	International maintenance taxable excess for flight assistants: Value assigned by EX FM EXCESO CALC as an offset of DIETAEX INT.
DIETXX V LCL	Domestic maintenance taxable excess for flight assistants: Value assigned by EX FM EXCESO CALC as an offset of DIETAEX LCL.
KLMTRJEEXX	Mileage taxable excess: Value assigned by EX FM EXCESO CALC as an offset of KLMTRJEEX.
PRNCTAEXXINT	International overnight stay taxable excess: Value assigned by EX FM EXCESO CALC as an offset of PRNCTAEX INT.
PRNCTAEXXLCL	Domestic overnight stay taxable excess: Value assigned by EX FM EXCESO CALC as an offset of PRNCTAEX LCL.
PRNTAEXX EXP	Expatriate overnight stay taxable excess: Value assigned by EX FM EXCESO CALC as an offset of PRNCTAEX EXP.
PRSTMO EXX	In kind loan taxable excess: Value assigned by EX FM EXCESO CALC as an offset of PRSTMO EX.

Delivered Accumulators for Nonbasic Earnings

When you create a new nonbasic earning, you need to define the accumulators to which the earning contributes. This table lists the customary accumulators to which a new nonbasic earning might contribute:

Functional Category	Accumulator Name	Description
Compensation	CLI AC SAL BRUTO	Custom gross salary.
Taxes	CLI AC ING VR1 S CLI AC ING VR2 S CLI AC ING VR3 S	Custom variable taxable base. Add elements here that correspond to variable compensation that pays taxes. Select the right accumulator based on the method that you want to use for an earning when calculating the estimated tax base.
Taxes	CLI AC RDTO IRREG CLI AC RDTO IRR50 CLI AC RDTO IRR50D CLI AC RDTO IRR70D	Custom nonregular income. Add elements here that correspond to employee compensation accrued later than two years ago. Select the correct accumulator depending on the reduction percentage that applies to the specific earning (40%, 50%, or 70%).
Taxes	CLI AC ING SPC REP	Employee taxable in kind salary. Add elements here that correspond to employee salary in kind for which the taxable part is going to be paid by the employee.
Taxes	CLI AC ING SPC NRE	Taxable in kind salary. Add elements here that correspond to the employee salary in kind for which the taxable part is going to be paid by the employer. Note. You will add the nonbasic earning to only one of these tax-related accumulators, not all of them.
Social security	CLI AC BASE SS M	Social security monthly base.
	CLI AC SPC EXNT SS	In kind salary with social security exemption. Add elements here that correspond to voluntary in kind salary that may be eligible for a Social Security exemption (20%IMPREM).

Note. 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 9.1 PeopleBook.

Modifying Delivered Nonbasic Earnings Accrual

There are certain delivered nonbasic earnings such as INCENTIVOS and PRTCPCN BEN that you can modify to accrue over more than one month to prevent the Social Security contributions for those earnings from surpassing the maximum ceiling during the payment month. This section provides an overview of this modification process and discusses how to view compensation accrued over more than one month.

Earnings Modification

To modify nonbasic earnings to accrue over more than one month:

Add the post process formula SS FM BSE CNTB F on the Calculation page for the earning.
Remove the contribution base accumulator (SS AC BSE M S) on the Accumulator page for the earning.
On the Rounding/Proration page, add the proration rule GEN PO DIAS SLICE to the earning.
On the Earnings Name page, select the Payee check box in the Override Levels group box for the earning. This enables you to assign the earnings to payees using the Element Assignment by Payee (GP_ED_PYE) or One Time (Positive Input) (GP_PI_MNL_ERNDED) component.
Add a unique value in Field 5 on the Element Name - Custom Fields page. This helps to differentiate nonbasic earnings that accrue over more than one month.

The variable CLI VR M PRORRATEO determines the number of months used to distribute the Social Security contributions for the earning. You set the value for this variable when you assign the associated earning using the Element Assignment by Payee or One Time (Positive Input) components.

Earnings Behavior

The assigned earning behaves differently in the case of segmentation depending on which component you use to assign it. If you use the Element Assignment by Payee component, the system calculates the earning in every slice or segment with a prorated value. The system calculates Social Security contributions according to each of these values. If you use the One Time (Positive Input) component, the system calculates the earning only once and does not prorate the value. The system calculates Social Security contributions based on that calculated value.

Compensation Process Flow

Regardless of the component you use to assign the modified earning, the process flow for compensation accrued in more than one month is the same. The payee receives the total amount of the assigned earning in the payment month. The system calculates the monthly portion of the earning applicable to contribution base calculation by dividing the total amount by the number of months entered (the entered value of CLI VR M PRORRATEO). The pending base is the total amount minus the calculated monthly portion. In subsequent months, the system retrieves the data for the previous month. The pending base retrieved from the previous month becomes the new total amount. The system then subtracts the monthly portion from the new total amount to calculate a new pending base for the next month.

The payroll results for compensation accrued over more than one month depend on two factors: process month and payee situation.

In the payment month, if the payee is sick, the pending base is the total amount minus the monthly base corresponding to contribution days (healthy days). The monthly contributing base corresponds to healthy days.
In subsequent months:
- If the payee does not contribution in the process month, the system stores a row equal to the previous one with one less number of months and with a total amount equal to the pending amount from the previous month.
- If the payee is sick, the pending base is the total amount minus the monthly base corresponding to contribution days (healthy and sick days). The monthly contributing base corresponds to healthy days.
- In the case of a termination, the system uses the total pending amount at the time of termination to calculate the contribution base. The pending amount is equal to zero in subsequent months in the case of a rehire.

Pages Used to Modify Delivered Nonbasic Earnings Accrual

Page Name	Definition Name	Navigation	Usage
Earnings Name	GP_PIN	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Payroll Elements, Earnings, Earnings Name	Name the element and define its basic parameters.
Earnings - Calculation	GP_ERN_DED_CALC	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Payroll Elements, Earnings, Calculation	Define calculation rules for an earning element.
Earnings - Rounding/Proration	GP_ERN_DED_RND	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Payroll Elements, Earnings, Rounding/Proration	Specify rounding and proration options for the components of an earning element.
Earnings - Accumulators	GP_ERN_DED_AC_ADDL	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Payroll Elements, Earnings, Accumulators	Indicate the accumulators (already defined in the system) to which the earning element contributes.
Element Assignment By Payee	GP_ED_PYE	Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, Element Assignment By Payee	By payee, view and update earning and deduction assignments, or disable earning/deduction assignments.
One Time (Positive Input)	GP_PI_MNL_ERNDED	Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, One Time (Positive Input), One Time (Positive Input)	Enter positive input for one payee. (You select the employee ID, pay group, and calendar to access this page.)
Comp. Accrued >1 Month ESP (compensation accrued over more than one month)	GPES_FUT_CNTRB	Global Payroll & Absence Mgmt, Payee Data, Social Security/Insurance, Comp. Accrued >1 Month ESP, Comp. Accrued >1 Month ESP	View compensation accrued over more than one month.

See Also

Defining Earning Elements

Viewing Compensation Accrued over More than One Month

Access the Comp. Accrued >1 Month ESP (compensation accrued over more than one month) page (Global Payroll & Absence Mgmt, Payee Data, Social Security/Insurance, Comp. Accrued >1 Month ESP, Comp. Accrued >1 Month ESP).

Year From and Year To

Enter the range of years over which you want to view compensation.

Month From and Month To

Enter the range of months over which you want to view compensation.

Search

Click to display compensation accrual information for the year and month range you specified.

Details of Payee (Contribution)

This group box displays detailed information about accrued compensation for the payee. You can modify the amounts in the Amount to contribute and Pending to contribute fields.

Year From and Year To	Enter the range of years over which you want to view compensation.
Month From and Month To	Enter the range of months over which you want to view compensation.
Search	Click to display compensation accrual information for the year and month range you specified.