This chapter provides an overview of special collectives management and discusses how to:
Manage displaced people and expatriates.
Manage scholarship holders.
Manage preretired employees.
Manage professionals.
Special collectives are groups of people who require different payroll treatment because they have a special labor relation with the company for which they work. Companies consider the cost related to these people as personnel expenses. PeopleSoft Enterprise Global Payroll for Spain considers individuals in the following groups to be special collectives:
Displaced persons and expatriates
Scholarship holders
Preretired
Professionals
PeopleSoft Enterprise Global Payroll for Spain provides functionality to manage the relationship between companies and these groups. This includes functionality to manage payments, social security contributions, taxation, and reporting for each of the special collective types.
This section provides an overview of displaced and expatriate employee management and discusses how to:
Maintain displaced and expatriate employees.
Maintain IRNR tax review information.
Review accumulated IRNR tax data.
Create the Model 216 file.
Create the Model 296 file.
Displaced and expatriate employees are workers that are transferred to another country for a period of time. These types of workers can include foreign people working in Spain and Spanish people working abroad. Specifically, a displaced employee is an employee who is temporarily transferred to another country to attend to company business for a period of time less than or equal to one year. An expatriate employee is an employee who is transferred to another country to attend to company business for a period of time greater than one year.
PeopleSoft Enterprise Global Payroll for Spain provides functionality to manage displaced and expatriate employees. This functionality includes management of social security contributions, taxes, and affected legal documents. Because an employee's payroll conditions can change when affected by transnational geographic mobility, PeopleSoft Enterprise Global Payroll for Spain provides solutions for various payroll conditions.
PeopleSoft Enterprise Global Payroll for Spain also provides the IRPF Tax Data Review ESP component (GPES_TAX2_RSLT) that enables you to view tax data that the payroll process generates for displaced employees that are considered resident workers. The system includes these employees in common tax reports, Model 111/110 and Model 190 reports, and pension plan reporting functionality for creating the Model 345 report. For those displaced employees who are considered non-resident workers for taxes purposes, the system calculates IRNR. You can use the IRNR Tax Data Review ESP component to review this IRNR data. The official reports that affect these employees are Model 216 and Model 296.
See Also
Reviewing Accumulated IRPF Tax Data
Generating the Model 345 File Report
Page Name |
Definition Name |
Navigation |
Usage |
GPES_TAX_LOCATN2 |
Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Taxes, Fiscal Territories ESP, Calculation Data |
Define the withholding percentage for nonresidents for each fiscal territory. |
|
GPES_EXPATR_MOB |
Global Payroll & Absence Mgmt, Payee Data, Taxes, Maintain Tax Data ESP, Transnational Mobility |
Indicate whether employees are affected by transnational mobility. If so, also indicate whether the employee receives compensation, pays taxes, and contributes to social security. |
|
GPES_EXPT_RSLT |
Global Payroll & Absence Mgmt, Taxes, IRNR Tax Data Review ESP, IRNR Tax Review |
View the impuesto de la renta de no residentes (IRNR) tax data for nonresident employees whom the payroll process generates and adjust data manually as necessary. The system uses this data for IRNR tax documents. |
|
GPES_EXPT_AC_VW |
Global Payroll & Absence Mgmt, Taxes, IRNR Tax Data Review ESP, Accumulated Values |
Review online the accumulated tax data that the payroll process calculates for IRNR tax reporting. The system uses this data when you generate IRNR annual tax reports. |
|
GPES_TAX2_RSLT |
Global Payroll & Absence Mgmt, Taxes, IRPF Tax Data Review ESP, IRPF Tax Review |
Review online the monthly tax data that the payroll process calculates for IRPF tax reporting. You can also adjust the calculated income and withholding amounts. For contingent workers or persons of interest, you can insert new rows of data for each specific job and salary type that a person might have. You can enter IRPF tax data for any person who is not processed through payroll. The system uses this data when you generate IRPF tax reports. |
|
GPES_RC_TAX_216 |
Global Payroll & Absence Mgmt, Taxes, Create 216 Model File ESP, Create 216 Model File ESP |
Create the Model 216 report file. This report is a summary of the monthly or quarterly IRNR nonresident income tax data. Companies with nonresident employees must submit this report monthly or quarterly to tax authorities. |
|
GPES_RC_TAX_190 |
Global Payroll & Absence Mgmt, Year-End Processing, Create 296 Model File ESP, Create 296 Model File ESP |
Create the Model 296 report file for expatriate nonresidents. This report is a summary of the annual IRNR nonresident income tax data. Companies with nonresident employees must submit this report annually to tax authorities. |
|
GPES_PP_EMPL_ASS |
Click the Employees link on the Create 296 Model File ESP page. |
Select the employees whom the system will process. Use this page only if you process a complimentary type of statement. |
To manage displaced and expatriate employees:
Define the withholding percentage for nonresidents for each fiscal territory in the Non-resident Withholding field on the Calculation Data page of the Fiscal Territories ESP component.
Set up transnational mobility details for the employee on the Transnational Mobility page of the Maintain Tax Data ESP component.
Assign the appropriate earning and deduction elements to the employee through the Element Assignment By Payee page.
Run the payroll process.
Review the IRNR tax data for nonresidents through the IRNR Tax Review page and make adjustments if necessary.
If the displaced employee is considered a resident for taxes purposes, you need to use the IRPF Tax data review page.
Create the IRNR tax document Model 216 for nonresidents monthly or quarterly using the Create 216 Model File ESP page (or corresponding Model 111/110 for residents).
Create the IRNR tax document Model 296 for nonresidents annually using the Create 296 Model File ESP page (or corresponding Model 190 for residents).
See Also
Reviewing Monthly IRPF Tax Data
Access the IRNR Tax Review page (Global Payroll & Absence Mgmt, Taxes, IRNR Tax Data Review ESP, IRNR Tax Review).
When you run the payroll process, it stores the required statutory IRNR tax report information for nonresidents in the GPES_EXPT_RSLT table. You can use this page to view and adjust the IRNR tax data for specific employees. The report generation processes consider the values on this page when you generate the Model 216, Model 296, and Tax Deduction reports.
Note. If the displaced person is considered a resident, the payroll process calculates regular IRPF taxes. You report IRPF taxes through the Model 110, Model 111, and Model 190 reports.
Search Criteria
Upon accessing the page, select the company, fiscal territory, year, and month for which you want to view or adjust IRNR tax data. Enter the employee ID to narrow the search results. Click the Search button to retrieve the employees based on the search criteria. The system displays employees with IRNR tax data that meet your search criteria.
Earned Income
Use the fields on this tab to review IRNR tax-related data for nonresidents. This tab shows the information that the payroll process generates for each employee that meets your search criteria.
Adjust
Use the fields on this tab to adjust IRNR tax data for an employee. This tab shows the same fields as the Earned Income tab but the fields are editable. The system differentiates between the data that the payroll process generates and the data that you enter manually.
Adding IRNR Tax Data Manually
The IRNR Tax Review page enables you to add tax data for payees manually by using the Add a new row button. You would typically do this for payees who are paid through an external system outside of PeopleSoft Global Payroll for Spain, but who you want included in monthly and yearly tax reports.
You can also add IRNR data rows for payees processed by PeopleSoft Global Payroll for Spain to capture income for different perception key and subkey combinations. You can only do this for payees who belong to a calendar group that has been finalized.
You can delete rows only for manually added IRPF data. You cannot delete data rows that are the result of a PeopleSoft Global Payroll for Spain payroll run.
Access the IRNR Tax Data Review ESP - Accumulated Values page (Global Payroll & Absence Mgmt, Taxes, IRNR Tax Data Review ESP, Accumulated Values).
Review the sum of each of the IRNR tax data values for the selected calendar year from January 1 through the selected month. The system displays the data by employee, key, and subkey. If you are viewing accumulated data for December, the December data is the same as the fiscal year data that gets included in the Model 296 file.
Note. You cannot make adjustments to accumulated values. You can make adjustments only for specific months, and this in turn affects the accumulated values.
Access the Create 216 Model File ESP page (Global Payroll & Absence Mgmt, Taxes, Create 216 Model File ESP, Create 216 Model File ESP).
Enter the report parameters. Then click Run to launch the GPES_TAX_216 Application Engine process to generate the Model 216 file report for nonresident income tax reporting. The process retrieves data for the affected employees from the GPES_EXPT_RSLT table. The report includes the summarized deductions for affected employees within a period of one month or three months, depending on your runtime parameters.
For the state territory, the process generates a flat file that you can electronically import into the official program provided by the tax authorities. The process also generates a free-format file that contains a readable summary of the information that you need to report. You can use this file as a reference when entering reporting data on the official website of the historical territory. The file name that the process generates for historical territories is the file name that you specify plus the letter S at the end.
Report Request Parameters
Period |
Select whether to include monthly or quarterly data in the file. Depending on your selection, the system displays either the Month field or Quarter field for you to select the specific value. |
Company |
Select the name of the company from which you want to gather data to include in the file. |
Fiscal Territory |
Select the fiscal territory for which you are generating the model file. The system prompts you to select from the available tax locations. Based on your selection, the process properly formats the files that it generates for the state or historical territory. |
Calendar Year |
Select the calendar year for which you are generating the model file. |
Month or Quarter |
Select the month or quarter for which you want to gather data for the report within the selected calendar year. The system displays the appropriate field depending on the type of period that you select. |
File Path |
Enter the path where you want the process to store the model file. |
File Name |
Enter the name of the file that you want the process to use for the model file. The system stores the data in text (.txt) format. |
Comments |
Enter any additional comments about the report for information purposes. |
Complementary Declaration
Related ID Number |
Enter the identification number of the report for which you are processing a complementary report. |
Sender Data
Use this group box to enter contact data for the company that is sending the information.
Person ID |
Enter the ID of the person who is sending the file. |
Contact Name and Contact Phone |
Enter the name and contact phone number of the person who is sending the file. |
See Also
Generating the Model 345 File Report
Access the Create 296 Model File ESP page (Global Payroll & Absence Mgmt, Year-End Processing, Create 296 Model File ESP, Create 296 Model File ESP).
Enter the report parameters. Then click Run to run the GPES_TAX_296 Application Engine process to generate the Model 296 file report for nonresident income tax reporting. The process retrieves data for the affected employees from the GPES_EXPT_RSLT table.
The process generates a flat file that you can electronically import into the official program provided by the tax authorities. The process uses different formats for the file depending on the selected fiscal territory.
Report Request Parameters
Fiscal Territory |
Select the fiscal territory for which you are generating the model file. The system prompts you to select from the available tax locations. Based on your selection, the process properly formats the files that it generates for the state or historical territory. Note. If you select the HE (State Fiscal Territory) value in this field, the Sender Data group box becomes unavailable. |
Calendar Year |
Select the calendar year for which you are generating the model file. |
Device CD |
Select a device CD of CD-R or Electronic. |
File Path |
Enter the path where you want the process to store the model file. |
File Name |
Enter the file name that you want the process to use for the model file. The system stores the file in text (.txt) format. |
Sender Data
Companies can manage their own tax reporting or give that responsibility to another company. In cases in which one company is sending information for other companies, use this group box to enter contact data for the company that is sending the information. Then use the Contact Data tab in the Companies to Process group box to enter the contact information that is specific to each company. If you are sending data for your own company only, leave this group box blank and enter contact information only in the Contact Data tab.
Company |
Enter the name of the company that is sending the model file. |
Person ID |
Enter the ID of the person who is sending the model file. |
Name and Contact Phone |
Enter the name and contact number of the person who is sending the model file. |
Companies to Process - Reporting Type
Company |
Select the companies for which you are sending the model file. The process creates a report for each company that you specify. |
Description |
The system displays the name of the selected company. |
ID Number |
Enables you to manually enter the Número Identificativo de la Declaración for the report. |
Type of Statement |
Select the type of model statement that you want to generate. Values are:
|
Related ID Number |
The system displays this field when the statement type is either Comple (complement) or Substitute. Enter the ID of the previously generated model file that you want to complement or substitute with new data. |
Employee |
Click to access the Employees to Process page, where you can select the employees for the system to process. The system displays this link only if you process a complimentary type of statement. When you access the Employees to Process page, use the EmplID field to select the employees whom you want to include in the model file. The system enables you to select only the employees who are in the related reporting table for the selected year. |
Companies to Process - Contact Data
Use this tab to enter the contact information for each of the companies for which you are sending the model file.
Employee ID |
Enter the ID of the person who is the contact for the model file at the company. |
Contact Name |
Enter the name of the person who is the contact for the model file at the company. |
Contact Phone |
Enter the contact number of the person who is the contact for the model file at the company. |
This section describes the earning elements and deduction elements that are delivered as part of the special collective management functionality.
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.
Earning Elements
This table describes the delivered earning elements associated with the management of displaced employees:
Earning Element |
Description |
DEV SS EXPTR |
Stores the amount paid by the employee if the employee has a special agreement with the company to pay social security contributions and get reimbursed for these contributions by the company. You can include this element through the Job Compensation page by using the rate code EXCOSS. See Segmentation Triggers with Earning and Deduction Assignments. |
DIETA EXPTR |
Earning for nonresident maintenance expenses for expatriates. This element stores the amount to pay as income. 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. The assignment period must cover only a portion of the pay period and you must have defined the corresponding segmentation trigger. See Segmentation Triggers with Earning and Deduction Assignments. |
DIETAEX EXPT |
Earning for nonresident maintenance expenses for expatriates. This element stores the excess amount that can be contributed for maintenance expenses. |
PRNCTA EXPTR |
Earning for nonresident night expenses for expatriates. This element stores the amount to pay as income. 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. You must have the assignment period cover only a portion of the pay period and you must have defined the corresponding trigger. See Segmentation Triggers with Earning and Deduction Assignments. |
PRNCTAEX EXP |
Earning for nonresident night expenses for expatriates. This element stores the excess amount that can be contributed for night expenses. |
SALARIO EXNT |
Earning for salary income earned while working abroad. You assign this earning as positive input or through earning and deduction assignment. If the income for this earning meets the IRPF legal requirements of Article 7.p, the system considers it tax free up to a certain annual amount. The system reports income from this earning for tax purposes under the perception key and subkey L15. |
Deduction Elements
This table describes the delivered deduction elements associated with special collective management:
Deduction Element |
Description |
DD COMP EXPT |
Retrieves the value of the net payment, and then uses this amount to force the payment to zero when the Pay Compensation check box on the Transnational Mobility page is deselected. |
DIETAEXX EXP |
Deduction for nonresident maintenance expenses for expatriates. This element stores the excess amount that can be contributed for maintenance expenses to balance the value of DIETAEX EXPT. |
PRNTAEXX EXP |
Deduction for nonresident night expenses for expatriates. Stores the excess amount that can be contributed for night expenses to balance the value of PRNTAEX EXP. |
See Also
Understanding How to View Delivered Elements
This section provides an overview of scholarship holder management and discusses how to:
Manage fellowship scholarship holders.
Review delivered earnings elements.
A scholarship holder is a person who works for a company to acquire experience and professional training under a special labor relation with the company. Scholarship holders can work for a company with a research fellowship, without a research fellowship, or through a separate entity such as an educational center or foundation.
Scholarship holders with fellowships have a unique contractual relation with the company and require special treatment with respect to IRPF taxes and social security contributions. The amounts companies pay to fellowship scholarship holders are not considered salary and are free of IRPF taxation. However, companies must declare this information in IRPF tax reports. PeopleSoft Enterprise Global Payroll for Spain enables you to declare this mandatory information in the Model 110, Model 111, Model 190, and Tax Deduction reports. Regarding social security contributions, PeopleSoft Enterprise Global Payroll for Spain provides the necessary contribution ID as part of the social security scheme to account for fellowship scholarship holders. The scheme ID is 0111 and the social security contribution ID is 008. The contribution is maintained on the Contribution page of the Social Security Scheme Table component. You need to identify this employee as an Intern in the Empl Class field on the Job Information page.
Note. You can sometimes apply certain social security reductions for this collective (CD24, Bonificación i+d+I) for fellowship scholarship holders.
To manage scholarship holders without fellowships, you can set up these persons as normal employees with a special contract type of practice or training. No additional setup or processing is required.
In the last case, to manage scholarship holders from a separate entity, you can handle these persons the same way that you would handle persons that another company provides as professionals.
Page Name |
Definition Name |
Navigation |
Usage |
JOB_DATA_JOBCODE |
Workforce Administration, Job Information, Job Data, Job Information |
Enter information about a person's job, including status, employee class, shift, or standard hours. |
|
CONTRACT1 |
Workforce Administration, Job Information, Contract Administration, Update Contracts, Contract Status/Content |
Add or update basic information about the contract between your organization and a worker, including the contract duration, type, content, and contribution ID. You must have previously set up contract template IDs on the Contract Template Table page. |
|
JOB_DATA3 |
|
Update a person's compensation information. |
|
GP_ED_PYE |
Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, Element Assignment By Payee, Element Assignment By Payee |
By payee, assign specific earning and deduction elements. |
To manage fellowship scholarship holders:
Set the Empl Class (employee class) field value to Intern on the Job Information page.
Set the Special Labor Relationship field value to Fellow Scholarship Holder on the Job Information page.
Enter values for the rate code BECAIN (scholarship holder) on the Compensation page.
Set the Scheme ID field value to 0111 on the Contract Status/Content page.
Set the Social Security Contribution field value to 008 (fellowship scholarship holder) on the Contract Status/Content page.
To override compensation entered through the rate code BECAIN in step 4 or to enter additional compensation for scholarship holders, assign the earning BECA INVESTGCN on the Element Assignment By Payee page.
To enter expenses for the scholarship holder, assign the earning GASTOS BECA on the Element Assignment By Payee page.
Process payroll.
Generate the affected reports monthly, quarterly, or yearly as required.
This table describes the earning elements that are delivered as part of the scholarship holder functionality:
Earning Element |
Description |
BECA INVESTGCN |
Income of scholarship holder with research fellowship. You can include this earning through the Job Compensation page by using the rate code BECAIN. This earning is free of taxation and is not considered salary. The earning amounts, although not taxable, are included in IRPF tax reports Model 110, Model 111, and Model 190 under the corresponding perception key and subkey. |
GASTOS BECA |
Other earnings of fellowship scholarship holder such as travel expenses, maintenance, and so on. The earnings amounts, although not taxable, are included in IRPF tax reports Model 110, Model 111, and Model 190 under the corresponding perception key and subkey. |
These elements are automatically segmented and prorated when one is assigned to a payee on the Element Assignment by Payee or Payee Assignment by Element page. The assignment period must cover only a portion of the pay period and you must have defined the corresponding segmentation trigger.
See Also
Segmentation Triggers with Earning and Deduction Assignments
Preretired employees are employees who have partially or completely ended their labor relations with a company but voluntarily maintain a special contractual relation with the company until legal retirement termination.
This section provides overviews of preretirement and gradual and flexible retirement and discusses how to:
Assign preretirement.
Assign gradual and flexible retirement.
Review delivered earning and deduction elements.
Preretirement is when employees who have not fulfilled the requirements for normal or anticipated retirement make an agreement with the company. Because preretired employees are not active in the company, the company does not have to pay social security for them.
An employee and a company can agree to a preretirement plan. These agreements are specific to each particular employee. PeopleSoft Enterprise Global Payroll for Spain includes functionality to manage the following preretirement plan scenarios:
The company terminates the employee but pays the employee the agreed-upon amount until the employee reaches the retirement age of 65.
The company agrees to pay a supplemental amount to the employee as a supplemental unemployment benefit or subsidy.
The employee continues to contribute to social security to maintain privileges, and the company reimburses the employee for this amount.
Companies can classify these amounts as regular or nonregular income depending on each particular situation. PeopleSoft Enterprise Global Payroll for Spain provides payroll elements for each of these three scenarios for both regular pay and nonregular pay. These elements store the agreed amount to pay to the preretired employee, taking the agreed upon amount from the Compensation page. As regular income, employees pay IRPF taxes as they normally do. As nonregular income, the payroll system applies a reduction of 40% to the IRPF tax base.
Gradual and flexible retirement offers employees a way to make the transition from working life to retirement by reducing the employee labor contract from full-time to part-time. As employees fulfill all conditions for retirement or preretirement, these employees continue working with a part-time contract and reduced salary as long as they still receive a pension subsidy. This reduction in hours can be between 25% and 85%, thus reducing the employee's salary by the same percentage. This enables the employee to continue receiving a partial retirement pension for the remaining working years until retirement age. Gradual and flexible retirement is regulated by law and promoted by government with special treatment of contributions to social security for employer and employee (reductions, exoneration of quotas, and so on) depending on the age of employee.
Employees have two options:
Partial Retirement: The employee can initiate partial retirement simultaneously with a part-time contract after the employee is 60 years old.
For partial retirement before an employee reaches 65 years of age, the company establishes a relief contract with another employee to cover the percentage of work affected by the partial retirement.
Flexible retirement: When the employee starts receiving his or her retirement pension, the employee can work on a part-time contract basis with the retirement pension reduced according to the percentage of hours worked.
In cases in which an extension of working life exists, companies can benefit from some social security contribution reductions that they must assign to eligible employees. These extensions of working life pertain to (a) employees over 65 with at least 35 contributing years or (b) employees over 60 with at least 5 seniority years.
Employees Over 65 with 35 Contributed Years
Employees older than 65 are exempt from contributing to social security except for the temporary disability part within the common contingencies. The social security agency defines this part to be 0.28% for the employee and 1.42% for the employer over the common contingencies base.
Companies must report this situation to the social security agency using the FAN file. Specifically, the company must report the employee and employer contributions as if no reductions applied and also report the employee and employer reductions.
PeopleSoft Enterprise Global Payroll for Spain provides the necessary contribution ID as part of the social security scheme to account for active employees age 65 or older. The scheme ID is 0111 and the social security contribution ID is 007. The contribution is maintained on the Contribution page of the Social Security Scheme Table component.
In addition to the social security contribution ID for employees who are age 65 or older, you need to define a reduction ID that defines the correct reduction amount on the Reduction Data page of the Reductions ESP component.
To calculate the reduction percentage, you must use the following equation:
Total Common Contingency Percentage – (Employee Common Contingency Percentage + Employer Common Contingency Percentage) ÷ Total Common Contingency Percentage = Percentage to Reduce
Thus, using the values stated previously from the social security agency, the Percentage to Reduce value for common contingency is:
28.3% - (0.28% + 1.42%) / 28.3% = 93.992932
The payroll process and FAN file generation process take into account the new contribution data and reduction data for active employees with part-time status who are age 65 or older. The FAN file generation process also accounts for the reductions in social security contributions.
Employees Over 60 with 5 Seniority Years
For employees over age 60 with 5 seniority years in the company, the employer can reduce the quota to pay to social security. Employers can apply this reduction to common contingencies contributions except in the case of temporary disability. The current percentage reduction is 50% for the first 12-month period and increases by 10% at the beginning of each subsequent 12-month period until reaching 100%.
You need to define a reduction ID to manage this type of reduction to social security contributions through the Reduction Data page of the Reductions ESP component.
To determine the Percentage to Reduce value for the each period of common contingencies without including temporary disability, you must use the following equations:
(Common Contingencies Percentage – Temporary Disability Percentage) * Reduction Percentage = Reduced Common Contingencies Percentage
Reduced Common Contingencies Percentage / Common Contingencies Percentage = Percentage to Reduce
For example:
Common Contingencies = 23.6%
Temporary Disability = 1.42%
Reduction Percentage = 50%
(23.6% - 1.42%) * 50% = 11.09%
11.09 % / 23.6% = 46.991525%
You must perform these calculations for each common contingency period within the reduction ID. The payroll process and FAN file generation process take into account the contribution data and reduction data. These processes also account for the reductions in social security contributions.
Page Name |
Definition Name |
Navigation |
Usage |
JOB_DATA1 |
|
Update position and location information for a person's job. |
|
JOB_DATA3 |
|
Update a person's compensation information. |
|
GP_ED_PYE |
Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, Element Assignment By Payee |
By payee, assign specific earning and deduction elements. |
|
CONTRACT2 |
Workforce Administration, Job Information, Contract Administration, Update Contracts, Contract Type/Clauses |
Add or update any special contract clause information to the standard contract language for this worker. |
|
CONTRACT1 |
Workforce Administration, Job Information, Contract Administration, Update Contracts, Contract Status/Content |
Add or update basic information about the contract between your organization and a worker, including the contract duration, type, and content. You must have previously set up contract template IDs on the Contract Template Table page. You can also enter the reduction information for the employee. |
To manage preretirement:
Terminate the employee with pay by assigning the Termination With Pay value in the Action/Reason field on the Work Location page of the Job Data component.
Assign the agreed-upon compensation amount to the employee in the Pay Components group box on the Compensation page. Select the rate code, compensation rate, currency, and frequency of the compensation. For preretired regular income, select the PREJUB, PJCOSS, and PJDSEM rate codes. For preretired nonregular income, select the PJJUBI, PJCSSI, and PJDSMI rate codes.
Or, assign the employee the required payroll elements for preretired regular income or nonregular income using the Element Assignment By Payee page. For preretired regular income, assign the employee the following payroll elements: PREJUBILACN earning (equivalent to rate code PREJUB), DEV SS PREJ earning (equivalent to rate code PJCOSS), and BNF DESEMP deduction (equivalent to rate code PJDESM). For preretired nonregular income, assign the employee the following payroll elements: PREJUBILACN I earning (equivalent to rate code PJJUBI), DEV SS PREJ I earning (equivalent to rate code PJCSSI), and BNF DESEMP deduction (equivalent to rate code PJDSMI).
Calculate payroll.
The payroll process calculates the regular income payment as PREJUBILACN + DEV SS PREJ - BNF DESEMP. The process pays this amount as regular income and pays taxes normally. Contributions to social security are zero.
The payroll process calculates the nonregular income payment as PREJUBILACN I + DEV SS PREJ I - BNF DESEMP I. The process pays this amount as nonregular income and reduces the tax base by 40%. Contributions to social security are zero.
Generate the affected reports monthly, quarterly, or yearly as required.
To assign an employee gradual or flexible retirement:
Access the Job Data component (Workforce Administration, Job Information, Job Data, Job Information).
Reduce the employee's contract from full-time to part-time by setting the Full/Part field value to Part Time.
This effectively reduces the employee's salary by the same percentage.
Reduce the contribution to social security by assigning the employee to the necessary Social Security Contribution and Reduction IDs on the Contract Status/Content page (Workforce Administration, Job Information, Contract Administration, Update Contracts).
Your selections for these fields depend on whether the employ is over 65 with at least 35 contributing years or the employee is over 60 with at least 5 seniority years.
Calculate payroll.
If the employee is over 65 with at least 35 contributing years and you assign the corresponding reduction, the payroll process reduces the social security contributions for both the employee and the employer, paying only for temporary disability. The percentage for the employee is 0.28% and the percentage for the employer is 1.42%, as defined by currently applicable laws.
If the employee is over 60 with at least 5 years seniority, the payroll process reduces the social security contribution percentage for the employer according to the period in which the employee falls within the reduction ID definition.
Generate the affected reports monthly, quarterly, or yearly as required.
This section describes the earning elements and deduction elements that are delivered as part of the preretirement functionality.
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.
Earning Elements
This table describes the delivered earning elements associated with preretirement:
Earning Element |
Description |
DEV SS PREJ |
Reimbursement of the amount paid as regular income by employee to the social security administration to maintain his or her privileges. 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. The assignment period must cover only a portion of the pay period and you must have created the corresponding segmentation trigger. See Segmentation Triggers with Earning and Deduction Assignments. |
PREJBILACN I |
Gross amount for nonregular income that the company and employee agree upon as a preretirement benefit. |
PREJUBILACN |
Gross amount for regular income that the company and employee agree upon as a preretirement benefit. 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. The assignment period must cover only a portion of the pay period and you must have created the corresponding segmentation trigger. See Segmentation Triggers with Earning and Deduction Assignments. |
DEV SS PRJ I |
Reimbursement of the amount paid as nonregular income by employee to the social security administration to maintain his or her privileges. |
Deduction Elements
This table describes the delivered deduction elements associated with preretirement:
Deduction Element |
Description |
BNF DESEMP |
Amount deducted as regular income from employee payroll for unemployment benefits or subsidy. |
BNF DESEMP I |
Amount deducted as nonregular income from employee payroll for unemployment benefits or subsidy. |
See Also
Understanding How to View Delivered Elements
This section provides an overview of the professionals management business process and discusses how to:
Manage data for professionals.
Maintain perception keys.
Maintain IRPF tax review information.
Professionals are persons who provide a company a service without a labor contract. Professionals are contingent workers, not employees. PeopleSoft Enterprise Global Payroll for Spain assumes that you do not process their payments through payroll. Instead, the professional provides the company with a bill. The company must pay the professional's bill and withhold a percentage of IRPF tax from the amount paid to the professional. The withholding percentage for IRPF taxes depends on the perception key and subkey that defines the services offered by the professional. The company does not have to contribute to social security for the professional.
Through the IRPF Tax Review ESP component you can enter the amount paid to the professional and the withholding amount applied. You can also specify the perception key and subkey to identify the work that the professional provides. The report generation processes consider the values that you enter on this page when you generate the Model 110 report, the Model 111 report, the Model 190 report, the individual professional's Tax Deduction report, and the Tax Deduction report.
Page Name |
Definition Name |
Navigation |
Usage |
GPES_PERCEP_KEY |
Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Taxes, Perception Keys ESP |
Maintain perception (income) key and subkey data for tax models. A subkey, together with a key, identifies the kind of job that a professional or other type of employee provides to a company. |
|
PERSONAL_DATA4 |
Workforce Administration, Personal Information, Biographical, Add a Person, Organizational Relationships |
Select an organizational relationship and checklist to create for this person. |
|
GPES_TAX2_RSLT |
Global Payroll & Absence Mgmt, Taxes, IRPF Tax Data Review ESP, IRPF Tax Review |
Enter and maintain the earning income and tax results adjustments for professionals (or other types of employees) for whom you did not calculate payroll. |
To manage data for professionals:
Maintain perception key and subkey values through the Perception Keys ESP component.
Add the professional into the system through the Add a Person component, identifying the person's organizational relationship as a professional by selecting the Contingent Worker check box on the Organizational Relationships page.
A professional is a contingent worker or a person who provides services to the organization and who does not have a legal employee relationship with the organization.
See Creating Organizational Relationships and Maintaining Checklists.
Enter the perception key, subkey, amount paid, and withholding amounts for the professional for a specific fiscal territory and month on the IRPF Tax Review page.
Generate the affected reports monthly, quarterly, or yearly as required.
Access the Perception Keys ESP page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Taxes, Perception Keys ESP).
Model File and Key |
The system displays the selected model file and perception key combination. |
Description |
Enter or maintain the description of the perception key for the specified model file. |
Subkey and Description |
Enter or maintain the perception subkey value and its related description. |
Oracle delivers as system data the following perception key and subkey data for the 190, 296, and 345 tax models:
Model File |
Key |
Description |
Subkey |
Description |
190 |
A |
Employees under labor contract. |
Not applicable |
Not applicable |
190 |
F |
Earnings from courses, conferences, colloquia, or seminars or from literary, scientific, or artistic productions for which the payee cedes rights. |
01 |
Literary, scientific, or artistic earnings not exempt from taxation. |
190 |
F |
Same as above. |
02 |
All other perceptions under key F. |
190 |
G |
Earnings as economic compensation for professional services. |
01 |
For perceptions for which the deduction to apply is the general rule established in Article 93.1 of IPRF Law. |
190 |
G |
Same as above. |
02 |
For specific percentage to apply in case of special and detailed activity in law. Representative of Tabacalera (tobacco company), insurance representative, and so on. |
190 |
G |
Same as above. |
03 |
For perceptions with a reduced percentage to apply according to Art. 93.1 of IRPF law. Deductions are for taxpayers who start their professional activity in the period declared and the next two periods. |
190 |
L |
Exempt rents and travel or maintenance expenses. |
01 |
Travel and maintenance expenses exempt from taxation, according Article 8 of Tax regulation. |
190 |
L |
Same as above. |
05 |
Severance pay exempt according to Article 7a of tax law and Article 1 of regulation. |
190 |
L |
Same as above. |
10 |
Exempt earnings for scholarship holders according to Article 7 j of tax law. |
190 |
L |
Same as above. |
15 |
Income due work abroad (article 7p). |
190 |
L |
Same as above. |
20 |
Other |
190 |
M |
Job Income eligible for 33rd America's Cup reduction |
Not applicable |
Not applicable |
296 |
T |
Job rents. |
1 |
Withholding applied to general type. |
296 |
T |
Same as above. |
3 |
Intern exemption. |
345 |
C |
Promoter contributions to pensions plan. |
1 |
In charge to employee. |
Access the IRPF Tax Review page (Global Payroll & Absence Mgmt, Taxes, IRPF Tax Data Review ESP, IRPF Tax Review).
Search Criteria
Upon accessing the page, select the company, fiscal territory, year, and month for which you want to enter data for professionals. To search for professionals only, select the Contingent Worker value in the Org Relation (organization relationship) field. Enter the employee ID to narrow the search results. These filters facilitate budget management and tracing of professional services within a company. Click the Search button to retrieve the professionals based on the search criteria. The system displays a grid with fields that are relevant only to professionals.
Detail of Payees - Adjust
Use this tab to enter amounts for the professional for the selected fiscal period and month. This tab shows the same fields as the earned Income tab but the fields are editable. The system differentiates between the data that the payroll process generates and the data that you enter manually.
See Also
Viewing IRPF Tax Calculation Results