PeopleSoft Enterprise Global Payroll for China 9.1 PeopleBook

Setting Up Public Housing Fund and Social Insurance Contributions

This chapter provides an overview of Public Housing Fund and Social Insurance (PHF/SI) contributions and discusses how to:

Define Public Housing Fund and Social Insurance registration.
Assign and disable Public Housing Fund and Social Insurance deductions.

Understanding Public Housing Fund and Social Insurance Contributions

The Public Housing Fund and Social Insurance (PHF/SI) are statutory deductions to which both employees and employers contribute, although not all of them are mandatory in each area. They are:

Public Housing Fund
Voluntary Public Housing Fund
Basic pension insurance
Basic medical insurance
Statutory supplementary medical insurance
Unemployment insurance
Work-related injury insurance
Maternity insurance
Large amount medical insurance

PeopleSoft Global Payroll for China enables you to define PHF/SI registration details, assign and disable PHF/SI deductions for payees, and generate PHF/SI reports.

Delivered PHF/SI Deductions

Global Payroll for China delivers 18 PHF/SI deductions:

HOUSE_EE
HOUSE_ER
PENSION_EE
PENSION_ER
MEDICAL_EE
MEDICAL_ER
IND_INJ_EE
IND_INJ_ER
UNEMPL_EE
UNEMPL_ER
HOUSE VOL_EE
HOUSE VOL_ER
MATERNITY_EE
MATERNITY_ER
SUP MED_EE
SUP MED_ER
LAMI_EE
LAMI_ER

These deductions, along with the key supporting elements associated with them, are discussed in the "Setting Up Deductions" chapter.

See Delivered Deductions.

See Delivered Supporting Elements.

PHF/SI Calculation

To calculate PHF/SI deductions:

For PHF/SI employee deductions, the CN GC CONT generation control element uses the CN FM EE CONT ELIG formula to determine payee eligibility.

For PHF/SI employer deductions, the CN GC CONT ER generation control element uses the CN FM ER CONT ELIG formula to determine payee eligibility.

The CN FM CONT preprocess formula determines the employee contribution base (CN VR CONT EE BASE), employee contribution percentage (CN VR CONT EE PCT), employer contribution base (CN VR CONT ER BASE), and employer contribution percentage (CN VR CONT ER PCT). For PHF/SI employee deductions, the system multiplies the employee contribution base by the employee contribution percentage to determine the amount. For PHF/SI employer deductions, the system multiplies the employer contribution base by the employer contribution percentage to determine the amount

CN FM CONT also uses the CN BR PHF-SI CALC bracket to determine the calculation basis, the switch month, the upper and lower limits of the calculation base, and the rounding rule to be applied.

The calculation basis values in the CN BR PHF-SI CALC bracket are:

Bracket Value	Calculation Basis
1	Average of previous year-to-date gross salary or current month gross salary if the previous year-to-date average is not available.
2	Previous month's gross salary.
3	Current month's gross salary.
4	Fixed amount.
5	City average salary of previous year.
6	60% of city monthly salary.
7	City minimum monthly salary.
0	Overridden base amount entered at the payee level. Note. If the calculation base is 0 and no base amount is entered at the payee level, the default value for the calculation basis is the current month's gross salary.

The switch month is the month in which the system recalculates the base amount. A payee must have a full year of payroll results to be eligible for this recalculation.

If the CN BR PHF-SI CALC bracket specifies an upper or lower limit for a deduction and the base amount is outside those limits, the system resets the base amount to the appropriate upper or lower limit.

The rounding rule values in the CN BR PHF-SI CALC bracket are:

Bracket Value	Rounding Rule
0	GP ROUND UP 2DEC
1	CN ROUND UP 1 DEC
2	GP ROUND DOWN 0DEC
3	GP ROUND NEAR 0DEC

For PHF/SI employee deductions, the post process formula CN FM ROUNDING applies the rounding rule. For payees on probation, that is, with a probation date specified in their employment data in PeopleSoft HRMS, the CN FM ROUNDING formula also checks whether the payee is on probation in the current period. If the payee is on probation and the Use Probation Processing check box is selected for the contribution, the system adds the current deduction amount to the probation accumulator CN AC PHFSI PROBN and sets the deduction amount to zero. If the payee's probation expires in the current period and the Use Probation Processing check box is selected for the contribution, the system adds the amount in the CN AC PHFSI PROBN accumulator to the current deduction amount.

For PHF/SI employer deductions, the post process formula CN FM ROUNDING ER applies the rounding rule. The CN FM ROUNDING ER formula also calls the CN FM ROUNDING formula to perform probation processing for employer contributions. In addition, CN FM ROUNDING ER saves any retro adjustment amounts calculated in the period, as defined for each PHF/SI contribution in the CN BR CONT RETRO bracket, in the CN WA CONTRIBUTIONS writable array for PHF/SI reporting purposes.

Defining Public Housing Fund and Social Insurance Registration

This section discusses how to define PHF/SI registration for pay entities.

Page Used to Define PHF/SI Registration for Pay Entities

Page Name	Definition Name	Navigation	Usage
PHF/SI Registration CHN	GPCN_PHFSI_REGT	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, PHF/SI Registration CHN, PHF/SI Registration CHN	Define PHF/SI registration information for pay entities.

Defining PHF/SI Registration for Pay Entities

Access the PHF/SI Registration CHN page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, PHF/SI Registration CHN, PHF/SI Registration CHN).

In Global Payroll for China, you enter PHF/SI registration information at the pay entity level. You must enter registration details for each combination of contribution type and contribution area. For example, you define registration information for work-related injury insurance contributions in Beijing separately from the registration information for the same type of contribution in Shanghai.

Assigning and Disabling Public Housing Fund and Social Insurance Deductions

This section discusses how to:

Assign and disable PHF/SI deductions for payees.
Enter element details for PHF/SI deductions.

Note. The Specify Contribution CHN (GPCN_PHFSI_SET1) page is informational only. The contributions that you select on this page have no effect on payroll calculations.

Pages Used to Assign Public Housing Fund and Social Insurance Deductions

Page Name	Definition Name	Navigation	Usage
Element Assignment By Payee	GP_ED_PYE	Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, Element Assignment By Payee, Element Assignment By Payee	Assign PHF/SI deductions to a payee.
Element Detail	GP_ED_PYE_DTL_SEC	Click the element name link on the Element Assignment By Payee page.	Enter element details for assigned PHF/SI deductions.

Assigning and Disabling PHF/SI Deductions for Payees

Access the Element Assignment By Payee page (Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, Element Assignment By Payee, Element Assignment By Payee).

Assigning New PHF/SI Deductions

To assign a PHF/SI deduction new enrollment or transfer in for a payee:

Enter the new assignment
Enter a begin date for the assignment.
Specify the process order.
Enter an Account Status value of TRANSFER IN and the appropriate Account Status Change value on the Element Detail page.

Note. The account statuses of TRANSFER IN and OPEN are functionally the same. Either status allows the resolution of a PHF/SI contribution during payroll processing.
Verify that the Active check box is selected.

Transferring Out Existing PHF/SI Deductions

To transfer out an existing PHF/SI deduction assignment:

Enter an end date for the existing PHF/SI deduction assignment. The end date must be the payee's job termination date minus one day, or the date minus one day at which contributions should cease if the payee's job is not terminated.
Add a new row for the same PHF/SI deduction with a new start date. The start date of this deduction assignment must be the payee's job termination date or the date that the deduction is to be transferred out if the payee's job is not terminated.
For the new deduction, enter an Account Status value of TRANSFER OUT, and enter the appropriate Account Status Change value. You should enter the same account number and any other applicable field values that were defined for the prior deduction assignment.

Note. If you want to resolve the PHF/SI contribution deduction during the transfer out period, select the Deduct on Term/Xfr check box on the Element Detail page.

Closing Existing PHF/SI Deductions

To close an existing PHF/SI deduction assignment:

Enter an end date for the existing PHF/SI deduction assignment. The end date must be the payee's job termination date minus one day.
Add a new row for the same PHF/SI deduction with a new start date. The start date of this deduction assignment must be the payee's job termination date.
For the new deduction, enter an Account Status value of CLOSED, and enter the appropriate Account Status Change value. You should enter the same account number and any other applicable field values that were defined for the prior deduction assignment.

Note. If you want to resolve the PHF/SI contribution deduction during the termination period, select the Deduct on Term/Xfr check box on the Element Detail page.

PHF/SI Deduction Assignment and Hukou Type

The system will not calculate an assigned PHF/SI deduction if the payee to which you assigned it does not have a specified Hukou type. You can specify a payee's Hukou type using the Hukou Type field on the Regional page, or by creating a supporting element override (SOVR) for the CN VR HUKOU variable.

Supplemental Medical Insurance for Tianjin

Currently, no established rules exist for supplementary medical insurance for the Tianjin contribution area. Therefore, while PeopleSoft Global Payroll for China delivers data rows for the combination of the TIANJIN contribution area and SUP MEDICAL contribution type within the CN BR PHF-SI CALC, CN BR CONT PCT, and CN BR CONT MONTH brackets, the values for all the fields are null. If you want to assign the SUP MED_EE deduction to a payee in the Tianjin contribution area, you must enter values in the fields of the TIANJIN/SUP MEDICAL rows of the CN BR PHF-SI CALC, CN BR CONT PCT, and CN BR CONT MONTH brackets. Otherwise, the system will not calculate the assigned SUP MED_EE deduction during a payroll run.

Entering Element Details for PHF/SI Deductions

Access the Element Detail page (click the element name link on the Element Assignment By Payee page).

Contribution Area

Enter a value to override the contribution area associated with the deduction.

Contribution Base Calc Method (contribution base calculation method)

Enter a value to override the contribution base calculation method.

Account Number

Enter an account number for the contribution.

Overridden base

Enter a value to override the contribution base.

Account Status

Enter an account status. Values are:

CLOSED: The system resolves deductions with this status as long as the Deduct in Term/Xfr period check box is selected.

OPEN: The system resolves deductions with this status if the start date of the deduction assignment is in or prior to the current period and the current segment is the last segment in the current period.

SUSPEND: The system does not resolve deductions with this status.

TRANSFER IN: The system resolves deductions with this status if the start date of the deduction assignment is in or prior to the current period and the current segment is the last segment in the current period.

TRANSFER OUT: The system resolves deductions with this status as long as the Deduct in Term/Xfr period check box is selected.

Deduct in Term/Xfr period

Select to resolve deductions with an Account Status value of CLOSED or TRANSFER OUT. This enables you to resolve PHF/SI contribution deductions during a termination or transfer out period.

Use Probation Processing

Select this check box for a PHF/SI deduction to accrue the deduction amount to the CN AC PHFSI PROBN accumulator and set the deduction amount to zero during a payee's probation period.

When the probation period expires, the system adds the amount in the CN AC PHFSI PROBN accumulator to the current period deduction amount and does not accrue further amounts to the accumulator. The system stores the accumulator for a maximum of 12 months after the employee's last hire date.

Note. You can also specify this override at the pay group or pay entity level.

Contribution Area	Enter a value to override the contribution area associated with the deduction.
Contribution Base Calc Method (contribution base calculation method)	Enter a value to override the contribution base calculation method.
Account Number	Enter an account number for the contribution.
Overridden base	Enter a value to override the contribution base.
Account Status	Enter an account status. Values are: CLOSED: The system resolves deductions with this status as long as the Deduct in Term/Xfr period check box is selected. OPEN: The system resolves deductions with this status if the start date of the deduction assignment is in or prior to the current period and the current segment is the last segment in the current period. SUSPEND: The system does not resolve deductions with this status. TRANSFER IN: The system resolves deductions with this status if the start date of the deduction assignment is in or prior to the current period and the current segment is the last segment in the current period. TRANSFER OUT: The system resolves deductions with this status as long as the Deduct in Term/Xfr period check box is selected.
Deduct in Term/Xfr period	Select to resolve deductions with an Account Status value of CLOSED or TRANSFER OUT. This enables you to resolve PHF/SI contribution deductions during a termination or transfer out period.
Use Probation Processing	Select this check box for a PHF/SI deduction to accrue the deduction amount to the CN AC PHFSI PROBN accumulator and set the deduction amount to zero during a payee's probation period. When the probation period expires, the system adds the amount in the CN AC PHFSI PROBN accumulator to the current period deduction amount and does not accrue further amounts to the accumulator. The system stores the accumulator for a maximum of 12 months after the employee's last hire date. Note. You can also specify this override at the pay group or pay entity level.