Managing Social Security Calculation

This chapter provides an overview of social security benefits and social security absence days count, and describes how to:

• Calculate benefits.

• Trigger benefits.

• Review social security contribution data.

• Run social security TC reports.

• View delivered benefit calculation elements.

Understanding Social Security Benefits

This section discusses Spanish social security benefits and calculation of benefits.

Benefit Types

Employees in Spain are eligible to receive the following types of benefits:

• Temporary Disability Benefits for Common Sickness and Non-Industrial Accidents (IT) and Extended IT (IT PRORROGADA).

  IT (Incapacidad Temporal) benefits are available to employees who have contributed to social security at least 180 days in the last five years before the leave date.

• Disability Benefits Due to Work Related Injuries (AT & EP) and Extended AT & EP (AT/EP PRORROGADA).

  AT & EP (Accidentes de Trabajo y Enfermedades Professionales) benefits are available to workers who have suffered workplace injuries.

• Maternity/Paternity

  These benefits are available to employees who have contributed to social security at least 180 days in the last five years before the date of birth. Because the legal benefits are paid entirely by Social Security, the payment amounts are not calculated by PeopleSoft Enterprise Global Payroll for Spain. However, the system does calculate the common contingencies (CC) and professional contingencies (CP) bases for the days that employees are absent for maternity or pregnancy risk. These bases are required to calculate complementary benefits that are paid by the employer.

• Risk During Pregnancy or Lactancy:

  These benefits are available to any active employee. Because the legal benefits are paid entirely by Social Security, the payment amounts are not calculated by PeopleSoft Enterprise Global Payroll for Spain. However, the system does calculate the common contingencies (CC) and professional contingencies (CP) bases for the days that employees are absent for risk during pregnancy or lactancy. These bases are required to calculate complementary benefits that are paid by the employer.

Legal and Complementary Benefits

Two types of benefits exist:

• Legal benefits known as Subsidio IT and Subsidio AT.

• Complementary benefits paid by the employer known as the Prestación Complementaria IT, Prestación Complementaria AT, Prestación Complementaria MT, and Prestación Complementaria RE.

Note. Employer complementary benefits are defined on the Complementary Benefit page. The system automatically calculates the portion of the benefits that is the legal benefits, Subsidio, and the portion that is paid by the employer, Prestación Complementaria.

For maternity/paternity or risk during pregnancy or lactancy benefits, the system calculates two elements - Subsidio MT and Subsidio RE - as part of the complementary benefits calculation.

See Defining Complementary Benefits.

Bases (Base Reguladora Diaria)

In PeopleSoft Enterprise Global Payroll for Spain, daily legal social security benefits are calculated as a percentage of a daily benefits base (Base Reguladora Diaria or BRD). The daily bases are derived from the CC and CP funding bases for social security for previous months and divided by the contributing days in that period. This table identifies the social security funding base from which the daily base for each benefit is derived:

Note. You can override these BRD values.

See Overriding BRDs and Relapse Days for Absence Events.

The system calculates the BRD for part-time employees differently. Instead of using the social security base of the previous month it uses the average of the three or twelve months—depending on the absence—prior to the begin date of the absence.

Normally the system calculates the BRD by dividing the bases of the corresponding period of time by the contributing days in that period. In the case of absences for which the benefit is paid directly by Social Security (maternity, paternity, risk during pregnancy or lactancy, and extended IT and AT/EP), the requirement is to include calendar days when calculating those benefits for employees with an assigned schedule (irregular part-time employees).

Note. The variable CLI VR MET CLC BRD determines from which contracts the system retrieves contribution data when calculating BRD. When CLI VR MET CLC BRD has its default value of 1, the system retrieves contribution data across all contracts. If you change the value of CLI VR MET CLC BRD to any value other than 1, the system retrieves contribution data for only a payee's most recent contract.

The variable CLI VR OPC CLC BRD determines if the system counts periods affected by certain absences when calculating BRD. For the default value, A, the system includes days and bases of unpaid personal leave in the BRD calculation. For any other values, the system does not include days and bases of unpaid personal leave in the BRD calculation.

With complementary benefits, employers can select from the following bases:

• Social security common contingencies base.

• Employees' gross daily salary.

• Any other user-defined daily accumulator.

You specify the base for complementary benefits on the Complementary Benefit page.

Percentages

The percentages used to calculate benefits are set both by the government (in the case of legally mandated benefits) and by employers (in the case of complementary benefits). The percentages used to calculate the IT benefit (Subsidio IT) vary depending on the number of days that the employee is on leave, while the amount of the AT and EP benefit (Subsidio AT) is currently set at 75 percent of the daily base (the Base Reguladora Diaria) for each day of leave. Maternity/paternity is paid at 100 percent of the daily base (Base Reguladora Diaria), and risk during pregnancy or lactancy is also paid at 100 percent.

Rounding

The variable SS VR OPCALC SUBSD determines how the system rounds IT benefit amounts:

These two calculation methods can produce slightly different values, so choose the one that works best for your business process.

Pago Delegado

Pago Delegado refers to the system whereby an employer pays IT or AT benefits to an employee, but is later reimbursed for these payments by Social Security. That is, the company acts as the direct provider of benefits and is later repaid. In the case of IT, the employer can reimburse, as pago delegado, the social security benefits from the 16^th day of sickness. In the case of AT, the employer has the right to reimburse from the first day of sickness. This reimbursement isn't a real refund, but rather a discount of the total amount to pay through the social security TCs.

Social Security Benefits in the Pay Process Flow

This diagram illustrates how benefits processing, from the entering of absence data and resolving of benefits during the payroll process that yield the benefit amounts, fits into the overall pay process flow of PeopleSoft Enterprise Global Payroll for Spain.

Benefits in the pay process flow for PeopleSoft Enterprise Global Payroll for Spain

As shown in the diagram, benefits preparation takes place during absence processing. The absence processing calculates the daily benefits base (Base Reguladora Diaria), the percentages to apply to the base, and the number of days that the employee is on each type of leave. Then, during the payroll process, the benefits setup in absences are resolved.

See Also

Calculating Benefits

Setting Up Social Security Contributions

Defining Complementary Benefits

Understanding Social Security Absence Days Count

PeopleSoft Enterprise Global Payroll for Spain counts absence days to report to Social Security in cases of sickness, industrial or professional accident, maternity/paternity, or risk during pregnancy or lactancy using the following counters:

The system uses these counters along with the AUS FM DIAS formula for the calculation of an employee's social security contribution base, social security compensation, social security benefits, and company complementary benefits.

Day Counts for Social Security Contribution Base

The system counts Social Security base days for Social Security absences in two segments: healthy days and sick days.

To count the number of healthy days, the system uses the Workdays Counter.

To counter the number of sick days, the system uses the Sick Days Counter. The Sick Days Counter determines the sick days by calculating the difference between the days by frequency and the work days. Thus:

Sick Days Counter = Days by Frequency – Number of Workdays

The days by frequency are the days considered for contribution purposes depending on whether the count is for employees with a daily salary basis or a monthly salary basis. For employees with a daily salary basis, the system uses the actual number of calendar days in the month. For the employees with the monthly salary basis, the system uses 30 days regardless of the actual number of calendar days in the month.

Note. Note these two exceptions regarding the sick days count for employees with a monthly salary base because of the set 30 days. First, if an employee has a full month of absences in February the system adds either one or two sick days depending on the number of days in February for that year. Second, if an employee has one absence in a 31 day month, the system counts 30 healthy days and 0 sick days.

Day Counts for Social Security Benefits

When counting compensation days for Social Security benefits, the system uses the Benefits Days Counter. In this case, the counter considers natural sick days. It counts the exact number of calendar days, including holidays, vacation days, and weekends.

Note. The system does not adjust this counter to 30 days. It always uses the exact number of calendar days in the month. Thus, the benefits days for a whole month of sickness in February or a month with 31 days is equal to the exact number of calendar days.

Day Counts for Company Complementary Benefits

When calculating company complementary benefits, the system uses the Benefits Days Counter. To perform the calculation, the system:

• Calculates the target gross to pay the employee based on the complementary benefits setup data at the labor agreement level.

• Makes an adjustment to avoid paying employee's a higher gross for months with sickness compared to a regular month without absences.

• Makes an adjustment for certain rules to ensure that employees with a monthly salary basis are paid for exactly 30 days when absent the entire month, regardless of the actual calendar days.

• Converts the complementary benefit for day 31 into a negative amount to absorb the Social Security benefit for that day when the employee is on a monthly salary basis.

  Note. The system performs this conversion only if the final complementary benefit is greater than or equal to zero.

• Converts the complementary benefit for day 28 and 29 of February into a positive amount to adjust the Social Security benefit for those days when the employee is paid on a monthly salary basis.

Examples

If an employee with a monthly salary basis starts a common sickness (IT) absence on January 11:

• Days by frequency = 30 (just for being a monthly employee and active the whole month)

• Workdays Counter = 10 (exact number of workdays in that month)

• Sick Days Counter = Days by frequency – Worked days = 30 – 10 = 20

• Benefits Days Counter = Sick days = 21 (exact number of calendar days with sickness, from the 11^th to the 31^st)

If an employee with a daily salary basis starts a common sickness (IT) absence on January 11:

• Days by frequency = 31 (just for being a daily employee and active the whole month)

• Workdays Counter = 10 (exact number of worked days in that month)

• Sick Days Counter = Days by frequency – Worked days = natural sick days = January 11 to January 31 = 21

• Benefits Days Counter = Sick days = 21 (exact number of calendar days with sickness, from the 11^th to the 31^st)

If an employee with a monthly salary basis starts a common sickness (IT) absence on February 11:

• Days by frequency = 30 (just for being a monthly employee and active the whole month)

• Workdays Counter = 10 (exact number of worked days in that month)

• Sick Days Counter = Days by frequency – Worked days = 30 – 10 = 20

• Benefits Days Counter = 18 days (exact number of calendar days with sickness, from the 11^th to the 28^th)

• Complementary Benefits Days = natural sick days + 2 (The system extends complementary benefits 2 more days using the payment percentage assigned to day 28).

If an absence due to sickness starts on the last day of a month with 31 calendar days for an employee with a monthly salary basis:

• Workdays counter = 30 days (the exact working days as healthy days).

• Sick days counter = Days by frequency – Worked days = 30 – 30= 0

• Benefits days counter = 1 day (exact number of calendar days with sickness)

Note. If the absence day is a relapse day or is the last day of an absence that started in the previous month, the Social Security report shows 30 contributed days in the healthy segment (worked segment) but also shows another segment, called the DAT segment, to reflect the compensation (reduction related to Pago Delgado). The system cannot show more than 30 contributed days (sum of the healthy and sick segments) in the report. If such a case occurs, you cannot manage the discount in the FAN file. Your company instead needs to ask for reimbursement of that amount from Social Security. No direct way is available to discount that one day with Pago Delgado from Social Security.

If an absence due to sickness starts the last day of the month with 28 calendar days for an employee with a daily salary basis:

• The system calculates 27 days for the healthy days segment of the employee's Social Security contribution base and 3 days for the sick days segment.

• The system calculates the Social Security Benefit counter as 1 day.

Calculating Benefits

This section provides an overview of benefits calculation and discusses how to:

• Calculate legal benefits.

• Calculate complementary benefits.

Understanding Benefits Calculation

When payees are on temporary disability leave (IT), they are eligible for these benefits:

• The legally mandated benefit (Subsidio).

  PeopleSoft Enterprise Global Payroll for Spain calculates legal benefits by multiplying the employee's daily base (Base Reguladora Diaria) by the number of leave days, and then applying a percentage to this base. The percent applied varies according to the benefit being calculated and the number of days the employee is on leave.

• A complementary benefit (Prestación Complementaria) defined by the employer. The calculation for complementary benefits depends on the base that you selected on the Complementary Benefits page.

Calculating Legal Benefits

The legal benefit is calculated by earning elements with a calculation rule of Unit x Rate x Percent. The correct percent varies depending on the benefit type and day of the leave (see tables in this section). The rate is the daily base for IT, AT, or maternity or risk during pregnancy that is taken from the previous period to the begin date of the absence. For new employees hired during the month, the system calculates a theoretical daily base that would apply if the employee had worked for the whole month. The unit is the number of days that the employee is on leave and must be entered on the Absence Event Entry page.

Note. For IT benefits, employees are eligible only when they have contributed to Social Security for at least 180 days in the past five years. The person who enters the absence event must validate that the employee is eligible for the benefit. If an employee is not eligible for the benefit, select the Lacking Period Indicator check box on the Additional Data page of the Absence Event ESP (GPES_ABS_EVENT) component so that the system does not pay the benefit.

IT Legal Benefit

For temporary disability leave (IT), the legally mandated benefit is defined as a percentage of the benefits base—with the percentage varying according to the number of days the employee is on leave. The current percentages (and the benefits base to which the percentages are applied) are shown in this table:

Two benefit phases exist. From day 4 to day 15 of the benefit, the employer is responsible for making payments to the employee. Beginning with day 16 and continuing to day 180, Social Security subsidizes the benefit. Although the company serves as the direct provider of the benefit during the entire benefit period, Social Security reimburses the company for any payments made after day 15 under a system known as Pago Delegado. This table shows who is responsible for the benefit paid during each phase:

If the IT absence continues after 540 days it can be extended by Social Security. If that happens, enter an end date for the first IT event, and enter a new row for absence event IT PRORROGADA with an original begin date that is the same begin date as the original IT event. This benefit is paid directly by Social Security.

AT Legal Benefit

For employees on disability leave for work-related injury, the current legally mandated benefit is defined as 75 percent of the benefits base throughout the entire benefit period. The current percentage, as well as the benefits base to which the percentage is to be applied, are shown in this table:

By law, the Mutual Insurance Company is responsible for paying the AT benefit through the entire benefit period. Although the company acts as the direct provider of the benefit, Social Security reimburses the company for any payments made under a system known as Pago Delegado. This table shows who is responsible for the benefits paid:

If the AT/EP absence continues after 540 days it can be extended by Social Security. If that happens, enter an end date for the first AT/EP event, and enter a new row for absence event AT/EP PRORROGADA with an original begin date that is the same begin date as the original AT/EP event. This benefit is paid directly by Social Security.

Maternity/Paternity Leave and Risk During Pregnancy or Lactancy Legal Benefits

Maternity and pregnancy risk benefits consist of 100 percent of the daily regulatory base: CC for maternity/paternity and CP for risk during pregnancy or lactancy. Social Security is responsible for paying benefits beginning with the first day of leave. As a consequence, this benefit is not processed by PeopleSoft Enterprise Global Payroll for Spain and these benefits never appear on the payslip. However, the system calculates legal benefits to calculate the complementary benefits for maternity and risk during pregnancy that are defined on the Complementary Benefits page.

This table summarizes the benefit amount and benefit period for maternity:

This table summarizes the benefit amount and benefit period for pregnancy risk:

Part-time Maternity and Paternity

Maternity and paternity leave can be taken on a part-time basis in which an employee works part of the day and is absent for the other part. For part-time maternity and paternity, you enter MATERNIDAD PARCIAL or PATERNIDAD PARCIAL absence events. In addition, you need to enter the number of partial hours for the absence events. If an absence starts or ends in the middle of the month it will cause an element segmentation of the payroll calculation.

Special Maternity Leave Benefits

There are two special cases that affect maternity leave benefits:

• The birth, adoption, or foster care of two or more children simultaneously.

• A working mother does not comply with the minimal contribution period.

For multiple simultaneous births, adoptions or foster care, the payee is eligible for a special subsidy for each additional child after the first. The amount of the subsidy for each additional child is the same as it is for the first child (100% BRD) and is paid in one lump sum six weeks after the birth or adoption. To indicate that a payee is eligible for the multiple maternity subsidy, select MLT in the Absence Reason field and enter the number of children on the Additional Data page of the Absence Event ESP (GPES_ABS_EVENT) component.

For working mothers who do not comply with the minimal contribution period, the system pays a subsidy of either 100% IPREM (Indicador Público de Renta de Efectos Múltiples) or 100% BRD, whichever is smaller. The duration of this subsidy is 42 natural days from the birth. To indicate that a working mother should receive this subsidy, select the Lacking Period Indicator check box on the Additional Data page of the Absence Event ESP (GPES_ABS_EVENT) component.

Note. For both special maternity leave benefits, the corresponding absence take is still MATERNIDAD.

See Recording FDI Medical Report Data for Absence Events.

Calculating Complementary Benefits

To define complementary benefits (Prestaciónes Complementarias), set up the following items on the Complementary Benefits page:

• Funding Base used to calculate complementary benefits. This could be:

  • Social Security Common Contingencies or Professional Contingencies base. This is the default base.

  • Employee's gross daily salary.

  • Any other daily accumulator that you have defined.

• Absence period.

• Total percentage to be paid for each period.

The complementary benefit uses an earning element with a calculation rule of Unit x Rate x Percent. The correct percent is retrieved by a formula based on the benefit percentages defined on the Complementary Benefits page. The rate is the daily base for IT, AT, and maternity or risk during pregnancy, which is either based on the previous period without absence (if the default base is used) or another base defined on the Complementary Benefits page. The unit is the number of days that the employee is on leave and must be entered on the Absence Event Entry page.

Then another earning (PRSTCN CMPIT, PRSTCN CMPAT, PRSTCN CMPMT, or PRSTCN CMPRE) gets the difference between the previous earning and the value corresponding to the Subsidio IT, Subsidio AT, Subsidio MT, or Subsidio RE.

See Also

Entering Updating, and Voiding Absence Events

Working with Absence Rules

Defining Complementary Benefits

Triggering Benefits

PeopleSoft Enterprise Global Payroll for Spain triggers social security benefits when you enter a qualifying absence on the Absence Event Entry page and the Lacking Period Indicator check box is deselected on the Additional Data page.

See Also

Entering Updating, and Voiding Absence Events

Working with Absence Rules

Reviewing Social Security Contribution Data

This section provides an overview of FAN file data review and discusses how to:

• View social security contribution report data.

• View social security contribution details.

Understanding FAN File Data Review

PeopleSoft Enterprise Global Payroll for Spain enables you to view the social security contribution data that the FAN file contains to ensure that the collected data is correct. You can view the data for multiple employees within a specific company for a specified period and payment type through the Collective Report ESP component. Or you can view data for individual employees for a specific time period through the Individual Report ESP component. You can view data only through these components. If you need to modify data, you must recalculate the data by running the payroll process again.

Pages Used to Review Social Security Contribution Data

Viewing Social Security Contribution Report Data

Access the Collective Report ESP page or the Individual Report ESP page (Global Payroll & Absence Mgmt, Social Security / Insurance, Collective Report ESP, Collective Report ESP).

Search Criteria

Detail of Payees (DAT Segment) - Main Data

Use this grid to review the social security contribution data that appears in the DAT (data) segment of the FAN file for the employees that meet your search criteria. The Main Data tab displays the primary social security contribution information that is relevant to each of the employees. If multiple segments exist for the same employee, the system displays each segment on a different row.

Detail of Payees (DAT Segment) - Indicators

Use the Indicators tab of this grid to view additional employee information that appears in special situations on the DAT segment of the FAN file.

Strike	Indicates whether the period has been affected by a strike.
Multiple Job	Indicates that the employee has multiple jobs.
Legal Custody	Indicates that an absence or work schedule reduction exists due to child care (maternity, paternity, or legal custody).
Monthly as Daily	Indicates that although the employee has a social security work group that is daily, the employee is contributing as a monthly employee.
No Salary	Indicates that the period is not a paid period.
Contract Less Than 7 Days	A letter C in this column indicates that a surcharge was added because the employee had a contract with a duration of fewer than 7 days. This indicator appears only if the contract was temporary (not regular) and did not have a contract type of 410 or 510 (interim).
Others	Indicates other indicators that are not listed in the grid. Possible values are: I: Deferred IT R: Working reduction due to partial unemployment P: Massive layoff, partial unemployment period T: Massive layoff, unemployment period

Viewing Social Security Contribution Details

Access the Collective Report ESP - Details page or the Individual Report ESP - Details page (Global Payroll & Absence Mgmt, Social Security / Insurance, Collective Report ESP, click the Details link).

Contributions

Compensations and Deductions

Reporting Contracts Fewer Than 7 Days

This section provides an overview of management of contracts that are fewer than 7 days and discusses how to:

• Exclude interim contracts fewer than 7 days.

• Update relationship type for contracts fewer than 7 days.

• Review modifications to pages affected by contracts fewer than 7 days.

Understanding the Management of Contracts Fewer Than Seven Days

In accordance with the specifications of Additional Provision Six of Law 12/200, an employer's common contingencies quota for Social Security must increase by a fixed percentage, as determined by INSS, for employees whose contracts are temporary and have an effective duration of fewer than seven days. The increase to the common contingencies quota at the time of publication is currently 36 percent. The system stores the value of this percentage increase in the SS VR PCT 7D variable. Employers must include data reflecting this increased common contingencies quota when reporting to Social Security through the RED system FAN File and the TC1 Report.

To determine the effective duration of an employee's contract, the system uses the contract begin date and contract end date on the Contract Status/Content page of the Update Contracts component. When a contract has a duration of fewer than 7 days, the system assigns a value to the SS VR CONTR 7D FLG variable to indicate this fact.

For employees with contracts fewer than seven days, select Temporary in the Regular/Temporary field on the Job Information page of the Job component. There are some contracts that are not affected by special extra contribution even if they last less than 7 days, for example, interim contracts 410/510 . Those contracts are identified in the bracket SS BR CNT <7D.

The RED system FAN File and TC1 Report reflect data related to employee contracts that have an effective duration of fewer than 7 days. The TC1 Report includes related key, base, percentage, and quota data under the Other Concepts key. The FAN File includes the additional quota in the line EDTCA11 under the Other Concepts key and updates the amount for line EDTT10 accordingly.

Updating Relationship Type for Contracts Fewer Than 7 Days

Contracts with a duration of less than 1 year have a minimum tax percentage equal to 2 %. Therefore, for contracts fewer than 7 days you must update the employee's tax data relationship type to ensure this minimum tax percentage.

To update an employee's relationship type for contracts with a duration of fewer than 7 days:

1. Select Global Payroll & Absence Mgmt, Payee Data, Maintain Tax Data ESP, Maintain Tax Data.

2. Enter a Relationship Type field value equal to 2 - Less 1 Year Relationship in the Payee Data group box.

Running Social Security TC Reports

This section provides an overview of social security TC reports and discusses how to:

• Define FAN payment overrides.

• Override complementary liquidation types.

• Create FAN files.

• Process TCs.

Understanding Social Security Reports

PeopleSoft Enterprise Global Payroll for Spain delivers two TC reports for social security:

• TC1.

  The TC1 report provides a summary of the totals for all Social Security bases, contributions, benefits to refund, reductions, and discounts referred to for employees included in an employer Social Security number.

• TC2.

  The TC2 report provides a list of employees included in an employer Social Security number with their respective Social Security bases, contributions, benefits to refund, reductions, and discounts.

In summary, the TC2 report is a list of employees with their respective Social Security bases and contributions and the TC1 report is a summary of the TC2 report.

Two steps involved in generating these reports:

1. Data Preparation: To prepare data for the reports, the social security section SS SE PREPARAR TC runs the formula SS FM TC WA during payroll process. That sends data to the writable array SS TC WA during the regular payroll process. This writable array stores data in record GPES_SSTC_RSLT for use in the TC reporting process.

2. Reporting Process: To generate the reports, the reporting process reads the data in the writable array (see step 1).

See Defining Writable Array Elements.

Liquidation Types

PeopleSoft Global Payroll for Spain manages the following liquidation types during FAN reporting:

• L00: Regular liquidation.

• L02: Complementary liquidation due to litigation salaries.

• L03: Complementary liquidation due to retroactive calculation without surcharge.

• L04: Negative complementary liquidation due to retroactive calculation with surcharge.

  Note. This type of liquidation results from Social Security benefits or reductions that were originally reported incorrectly.

• L09: Complementary liquidation due to retroactive calculation with surcharge.

• L13: Liquidation of contributions due to vacation paid at termination.

The default liquidation type for FAN report retroactive payments is L03. The FAN Payment Override ESP (GPES_PMTRTO_DEF) and Create FAN Pymt. Overrides ESP (GPES_PMTRTR_OVR) components enable you to override the liquidation type with enhanced flexibility.

You can use the Fan Payment Override ESP (GPES_PMTRTO_DEF) component to indicate that a certain liquidation is being processed out of date. Legal requirement dictate that in this case a company cannot benefit from reductions and cannot request a refund for the money they paid as PAGO DELEGADO. Therefore, if you set up a specific run to be out of date through this component, payroll processing does not generate those lines in the TC result record. The system keeps calculating the company paid benefits (PAGO DELEGADO) and social security reductions. Accumulators for these benefits store values regardless of whether a payment is in period or out of period. In the case of retroactivity, previous values are required. If the system didn't calculate accumulators, the previous values would be 0, and the deltas would be wrong. The system also contains a set of accumulators that store values in cases of payment out of period, with the negative delta values for social security benefits. You should consider all of these accumulators when setting up General Ledger. For example, to store PAGO DELEGADO for IT, we have both SS AC PGO DLGDO PI and SS AC PD IT N PLZO, which stores values when the calculation is out of date.

Pages Used to Run Social Security TC Reports

Defining FAN Payment Overrides

Access the FAN Payment Override ESP page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security/Insurance, FAN Payment Override ESP).

Use this page to define a set of parameters by which you can override liquidation types. By creating your own Override IDs, you can define any level of setup to specify the type of complementary reporting that you need to run.

Overriding Liquidation Types

Access the Create FAN Pymt. Overrides ESP page (Global Payroll & Absence Mgmt, Social Security/Insurance, Create FAN Pymt. Overrides ESP, Create FAN Pymt. Overrides ESP).

Override Definition

After selecting values in the Override Definition group box fields, click Refresh to populate the Override Data group box with fields.

Override Data

The fields that appear in this group box are the ones that are defined for the Override ID you selected in the Override Definition group box. Use these fields to determine the subset of payees whose liquidation types will be overridden with the value you selected in the Payment Type field.

Creating FAN Files

Access the Create FAN File ESP page (Global Payroll & Absence Mgmt, Social Security/Insurance, Create FAN File ESP, Create FAN File ESP).

Company	Enter the company for which the FAN file is created.
Year/Month	Enter the date parameters for the FAN file.
Split Retro Payments	Select to split the FAN file for L03 liquidation month by month. Note. This is similar to what Social Security requires for L09.
Payment Type	Select the payment type for the report that you want to generate for a specific month for the Employer Social Security numbers that are selected. Values are: Full: Includes everything that was calculated in the month: regular contributions, contributions due to vacations, litigation salaries, and retroactivity. If you select this value, the Complementary FAN Surcharge % field becomes available. Litigation Salary: Runs the report for deltas due to the litigation process. This is a legal process for resolving disputes between employers and terminated employees. Until this process is resolved, salary paid to the employee is identified as tramitation salary and employers must indicate in the TC1 report that the contributions are made during the tramitation period. Regular and Vacations: Includes the regular payroll and the contributions due for vacations that are paid at termination. Retroactivity w/Surcharge: Runs the report for the deltas detected in previous months due to retroactivity, and includes a surcharge. If you select this value, the Complementary FAN Surcharge % field becomes available and required. Retroactivity wo/Surcharge: Runs the report for the deltas detected in previous months due to retroactivity, but does not include a surcharge. Vacations: Include the contributions due for vacations that are paid at termination.
Complementary FAN Surcharge %	Enter the complementary FAN surcharge percentage based on Social Security regulations. The FAN file generation process applies this percentage to the final amount for retro liquidations affected by surcharge: L09, L02 for previous months, L04, and L13 linked to retro months.
Overdue Payment	Select to indicate that the payment is overdue. When you select this check box, the system excludes the CD lines in the FAN file that correspond to social security reductions and company paid benefits (PAGO DELEGADO). In addition, to facilitate the reconciliation with PeopleSoft General Ledger, the system identifies the excluded lines in the social security result record. The FAN generation process updates the field GPES_SSTC_EXCL_FAN in this record to 01 for excluded lines. Note. When you select this check box, the Overdue Payment Surcharge % field becomes available and required.
Overdue Payment Surcharge %	Enter the overdue payment surcharge based on Social Security regulations. The FAN file generation process applies this percentage to the final amount, affecting liquidation types L00, L03, L02, and L13 that are linked to the current period.
Mathematical Validation	Select if you want the system to perform mathematical validation and update the results based on the value you enter in the Validation Tolerance field. By default, the payroll process calculates and rounds to two decimal places for the contribution bases, employer contributions, and employee contributions for each employee. The FAN file generation process sums each base for all employees and sums each contribution for all employees separately. This calculation does not always match the result of multiplying the base by its contribution percentage and then rounding the final result to two decimal places. Mathematical validation enables you to check the FAN file records EDTCA01, EDTCA02, EDTCA11, EDTCA50, EDTCA57, EDTBA10 and EDTBA11 for total contribution aggregated amounts. If you select the Mathematical Validation check box and there is a delta between the sum of the employee/employer contributions and the result of multiplying the base by the contribution percentage is higher than the validation tolerance you specify, the system issues a warning message and overrides the aggregated contribution amount with the one calculated in FAN file.
Validation Tolerance	Enter the amount that you want the system to consider as maximum tolerance for mathematical validation. This field accepts values greater than or equal to 0, but it represents an absolute value.
File Path	Enter the directory in which to store the FAN file.
File Name	Enter the file name to be sent to Social Security. The file name needs to comply with the legal requirements. The file naming requirements state that the file extension must be .FAN and the file name must have 8 characters. The system will check whether the file name follows the naming conventions, and show an error message if it's not named correctly.

Social Security Numbers to Process

The fields in this group box are similar to the fields on the TC1 Report ESP page and are defined on the TC1 Report ESP page.

See Processing TCs.

See Also

Understanding Self-Insurance Collaboration Management

Processing TCs

Access the TC1 Report ESP page (Global Payroll & Absence Mgmt, Social Security/Insurance, TC1 Report ESP, TC1 Report ESP).

Report Request Parameters

CCC Data Tab

The system populates this group box when you click the Load Data button.

TC1 Messages Tab and Additional Messages Tab

Access the TC1 Messages and Additional Messages tabs.

See Also

Understanding Self-Insurance Collaboration Management

Viewing Delivered Benefit Calculation Elements

This table lists the earnings elements that are used to calculate an employee's total benefit amount.

This table lists the earnings elements that are used to calculate an employee's benefit amount when the employee receives benefits from a self-insurance company:

Note. When defining payslips and reports, be sure to account for these earnings where applicable.

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 thePeopleSoft Enterprise Global Payroll 9.1 PeopleBook.

See Understanding How to View Delivered Elements.