PeopleSoft Global Payroll for Spain 9.1 PeopleBook

Setting Up Social Security Contributions

This chapter provides overviews of Social Security terms and concepts, contribution calculation, and PeopleSoft HR data in Social Security calculation, and self-insurance collaboration management and discusses how to:

View and define Social Security ceilings, rates, and bases.
Define the multiple employment funding base.
Define a Social Security time limit for FDI report data.
Define self-insurance data.
View delivered social security deductions.

Understanding Social Security Terms and Concepts

This section discusses:

Social security in the pay process flow.
Bases.
Percentages and rates.
General and special schemes.
Work groups.
Minimum and maximum funding bases.
Upper and lower ceilings.

Social Security in the Pay Process Flow

This diagram illustrates how social security processing fits into the overall pay process flow of PeopleSoft Global Payroll for Spain. The social security process calculates the employer and employee contributions and the employer reductions, and generates data for the social security reports TC1 and TC2. The next step after social security processing is the tax calculation.

Social security in the pay process flow for PeopleSoft Global Payroll for Spain

Bases

PeopleSoft Global Payroll for Spain calculates social security contributions and deductions as a percentage of a funding base, except in the case of trainees and apprentices, whose contributions and deductions are based on fixed rates. For employees with multiple jobs, the calculation is based on reduced maximum and minimum bases that you define on the Multiple Employment page.

PeopleSoft Global Payroll for Spain delivers accumulators for these funding bases:

Common Contingencies Base: Used to calculate the common contingencies contribution.
Professional Contingencies Base: Used to calculate social security contributions for:
- Temporary Disability (Incapacidad Temporal (IT)) and Permanent Disability, Death, and Survival Benefits (Invalidez, Muerte, y Supervivencia, (IMS).
- Unemployment.
- Professional training.
- FOGASA (Fondo de Garantia Salarial.
Structural Overtime Base: Used to calculate social security contributions for structural overtime.
Non Structural Overtime Base: Used to calculate social security contributions for nonstructural overtime.

Note. PeopleSoft Global Payroll for Spain calculates the common contingencies and professional contingencies bases for trainees and apprentices for use in processing social security benefits. These bases are not required for calculating social security contributions.

Percentages and Rates

PeopleSoft Global Payroll for Spain calculates social security contributions and deductions either as percentages of a funding base or on the basis of fixed rates, depending on the social security contribution ID assigned to the employee. The social contribution ID defines:

Social security employee type.
Contribution type.

For employees with a social security employee type of regular, the contribution type is percentage. For this type of employee, PeopleSoft Global Payroll for Spain calculates contributions and deductions as a percentage of the common contingencies (CC) base, the professional contingencies (CP) base, or the structural and nonstructural overtime bases. For employees whose social security employee type is trainee, the contribution type is rate, which means that contributions and deductions are based on fixed rates. The exact rates or percentages are set by law and can vary from year to year.

Note. View and update the percentages and rates used in the social security calculation on the Contribution page.

General and Special Schemes

The social security system is divided into a general scheme and various special schemes. The general scheme applies to most employees working for others, while special schemes cover the self-employed and some categories of employees, such as sailors, those in the coal mining industry, and housekeeping employees. Currently, PeopleSoft Global Payroll for Spain delivers rules only for the general scheme.

Grant holders (becarios) are integrated into the general scheme, but have special rules regarding social security calculation:

They must be associated with the contribution group number 7.
They must be assigned a contribution ID of 008.
They must have an Empl Class (employee class) of Intern on the Job Information page.
The common contingencies base is the minimum base for the general scheme.
The professional contingencies base is the minimum base for the general scheme.

Becarios do not need to be associated with an official contract type, for purposes of generating the FAN flat file.

Note. Although PeopleSoft Global Payroll for Spain delivers rules for only the general scheme, you can define rules for other schemes using the Scheme, Work Group, and Contribution pages.

Work Groups

All employees who contribute to social security are assigned to government-defined work groups based on their levels of education, professional skills, and job titles. Every year, the government establishes different minimum and maximum funding bases and ceilings for each work group and scheme.

Note. Define the values of the maximum and minimum bases and ceilings for the general scheme on the Scheme page.

Minimum and Maximum Funding Bases

For each work group, the government establishes a minimum and a maximum base to use for calculating the common contingencies funding base. This means that for an employee in a specific group, the social security funding base cannot be greater than or less than the maximum or minimum established for that group. For example, if an employee's earnings subject to social security contributions are so high that the calculated funding base exceeds the upper limit, the actual funding base must be reduced to the upper limit. That is, social security contributions are based only on the portion of a payee's salary that is equal to or falls within the upper and lower limits for each group.

Note. Define the maximum and minimum funding bases for common contingencies on the Work Group page.

Upper and Lower Ceilings

Each year, the government establishes upper and lower ceilings for calculating the professional contingencies base. Just as in the case of the common contingencies contributions, social security contributions for professional contingencies are based only on the portion of a payee's salary that is equal to or falls within the upper and lower ceilings. The ceilings are the same for all work groups within a scheme.

Note. Define the upper and lower ceilings for professional contingencies on the Scheme page.

See Also

Base Calculation for Trainees

Viewing and Defining Social Security Ceilings, Rates, and Bases

(ESP) Setting Up Spanish Workforce Tables

Understanding Contribution Calculation

This section discusses:

Social security calculation.
Funding base calculation for regular employees.
Funding base calculation for employees with multiple jobs.
Base calculation for trainees and apprentices.
Base calculation for part-time employees.
Funding base normalization.
How to retrieve calculation percentages and rates.
Contribution calculation.

Social Security Calculation

PeopleSoft Global Payroll for Spain calculates social security contributions by multiplying a base by a percent (in the case of regular employees) or by retrieving a fixed rate (in the case of trainees and apprentices).

In PeopleSoft Global Payroll for Spain, the system:

Calculates the social security funding base.
Normalizes the funding base by comparing the calculated base with government-defined maximum and minimum values.
Retrieves the percentage used to calculate the contributions of regular employees (or rates in the case of trainees and apprentices).
Calculates contributions by multiplying a base by a percent (or by assigning a fixed rate in the case of trainees and apprentices).

Note. PeopleSoft Global Payroll for Spain also calculates contributions of the pending vacation balance for terminated employees. This is discussed later in this PeopleBook.

See Also

Terminating Employees

Funding Base Calculation for Regular Employees

This section discusses how the system calculates the four funding bases that are required to calculate employees' social security contributions: common contingencies base, professional contingencies base, and bases for structural and nonstructural overtime.

Note. This section discusses how the system handles regular employees. The calculations are different for trainees, apprentices, and employees with multiple jobs.

See Funding Base Calculation for Employees with Multiple Jobs.

See Base Calculation for Trainees.

Calculating the Common Contingencies Base

The Common Contingencies Base is the sum of various subbases that comprise earnings for:

Nonsick days base plus extra period proration.
Days when the employee is absent with these types of absence: IT absence, AT absence, maternity or paternity absence, or absence for risk during pregnancy.

For monthly employees who contribute 30 days total regardless of how many days are in a month, the system calculates absences days as 30 nonsick days.
Absence in which the employee contributes according to his earnings (cotiza por lo que gana).
Absence in which the employee contributes according to the minimum base (cotiza por la base minima).

In addition to summing up various subbases to calculate the final amount of the common contingencies base, the system sets the value of the maximum and minimum bases to use in the normalization process when an employee has multiple jobs in different companies.

Calculating the Professional Contingencies Base

The calculation of the professional contingencies base is almost identical to that of the common contingencies base. Here are the key differences between the calculation for the common contingencies base and the professional contingencies base:

The common contingencies calculation uses the maximum and minimum bases for the employee's work group (as defined on the Work Group page), whereas the professional contingencies calculation uses the upper and lower ceilings defined on the Social Security Scheme page.
The structural and nonstructural overtime amount is added to the nonsick base for the professional contingencies base.
Just as the common contingencies calculation uses a minimum hourly rate to calculate the funding base for part-time employees, the professional contingencies calculation uses its own minimum hourly rate.

Note. You can control how the system caclulates the professional contingencies base (CP BRD) using the CLI VR CP BRD CLC (CP BRD Calculation) variable.

When the variable has a value of 1 (the default value), the system calculates the CP BRD as: (Professional Contingencies for the previous month – Overtime for the previous month) / Contribution Days + Overtime average for the last 12 months .

If you assign a value to the variable other than 1, the system calculates CP BRD as: Daily Common Contingencies Base for the previous month + Overtime average for the last 12 months .

Calculating the Overtime Bases

Unlike the common and professional contingencies bases, the bases for structural and nonstructural overtime do not undergo normalization and do not require any special calculations. They are used only as a basis for determining the employer and employee contribution for overtime.

See Also

Funding Base Normalization

(ESP) Setting Up Spanish Workforce Tables

Funding Base Calculation for Employees with Multiple Jobs

When an employee has multiple jobs in different companies, the total social security base must be distributed between jobs to prevent excess contributions being taken from the employee's paycheck.

To trigger the calculation of the base for multiple jobs:

Specify the date (the effective date) on which the distribution of bases is to begin on the Multiple Employment page.
Enter a percentage (supplied by Social Security) representing the proportion of the common contingencies base that applies to each job on the Multiple Employment page. The system applies these percentages to the common contingencies ceilings and bases used in the normalization process.
Enter a percentage (supplied by Social Security) representing the proportion of the professional contingencies base that applies to each job on the Multiple Employment page. The system applies these percentages to the professional contingencies ceilings and bases used in the normalization process.

Base Calculation for Trainees

Social security contributions for trainees aren't calculated as a percentage of a funding base, but by means of fixed rates. Therefore, the system doesn't need to define a base to resolve the contributions or deductions of this category of employees. However, it still calculates both the Common Contingencies and Professional Contingencies bases for use in processing social security benefits.

Calculating the Common Contingencies Base

To calculate the common contingencies base for trainees and apprentices, PeopleSoft Global Payroll for Spain calculates 75 percent of the base using:

The lower ceiling for full-time employees whose contribution frequency is monthly or daily.
The minimum hourly rate for part-time employees.

Note. The lower ceiling and the minimum hourly rate used in this calculation come from the Work Group page.

Calculating the Professional Contingencies Base

To calculate the professional contingencies base for trainees and apprentices, PeopleSoft Global Payroll for Spain calculates 75 percent of the base using either the lower ceiling (for full-time employees whose contribution frequency is monthly or daily) or the minimum hourly rate (in the case of part-time employees).

Note. The lower ceiling and the minimum hourly rate used in this calculation come from the Work Group page.

Triggering Calculations for Trainees and Apprentices

To trigger the correct calculation for trainees and apprentices, define the contribution rates to apply on the Contribution page and link the employee to the correct scheme and Social Security contribution ID on the Contract Status/Content page.

PeopleSoft Global Payroll for Spain includes two contribution IDs for training contracts: 005 and 009. Use contribution ID 009 for contracts signed or extended after June 18th 2010 so that the system calculates unemployment benefits for employees with these contracts.

Managing Social Security Calculation

Base Calculation for Part-Time Employees

The calculation of the Social Security base for part-time employees (regardless of whether they are regular or irregular part-time) differs from full-time employees. The reporting of contributions for these employees is done in hours.

When performing normalization, the system calculates the minimum base by multiplying the statutory minimum hourly rate by the actual number of hours worked. The maximum base for part-time employees is the same as the maximum base for full-time employees.

When calculating the part-time employee's professional contingencies, the system calculates the lower ceiling by multiplying the statutory minimum hourly rate by the number of hours worked. The upper ceiling for part-time employees is the same as the upper ceiling for full-time employees.

The system calculates hours differently for regular and irregular part-time employees. For regular part-time employees, the system multiplies the value of the variable CLI VR RED JORNADA by the number of scheduled working days, which the system extracts from the employees' assigned work schedules. For irregular part-time employees without an overridden value for CLI VR RED JORNADA, the system uses the employee's assigned work schedule to count the exact number of worked hours.

See Also

Earnings Calculation

Funding Base Normalization

This section discusses how PeopleSoft Global Payroll for Spain compares an employee's funding bases with the minimum and maximum amounts defined by the government to calculate both professional and common contingencies contributions for regular employees.

Note. This section does not apply to trainees or apprentices, whose funding base is defined as a fixed rate.

The system calculates an employee's social security contribution in the following way:

Calculates all the subbases that contribute to the main funding base accumulator.
Sums all the subbases contributing to the social security funding accumulator.
To determine the common contingencies base, the system compares the sum calculated in step 2 to the maximum and minimum bases (amounts) defined for each work group on the Work Group page.

To calculate the professional contingencies base, the system adds the amount obtained in step 2 to structural and nonstructural overtime and compares the result with the upper and lower ceilings defined on the Scheme page. If the amount is below the minimum base/lower ceiling, it sets the base used for calculating contributions equal to the minimum base/lower ceiling. If this amount is greater than the maximum base/upper ceiling, it sets the base used for calculating social security contributions equal to the maximum base/upper ceiling.

For part-time employees, the system uses a set of reference bases and ceilings derived from the statutory minimum hourly rate.

Example

This example illustrates how PeopleSoft Global Payroll for Spain compares the common contingencies base.

Assume that an employee has a calculated monthly base of 700 EUR, which is the sum of contributing earnings plus extra period proration amount. Assume also that the employee has no absences in the current month, and has social security contributions that are processed monthly.

If the maximum and minimum bases for our employee are 3166.20 EUR and 1016.40 EUR, respectively, then the amount of 700 EUR falls below the minimum base. So 799.80 EUR is defined as the funding base.

Reference Bases and Ceilings

Although social security processing is essentially the same for professional and common contingencies, the two contribution types employ a different set of reference bases or ceilings. When calculating the common contingencies base, the system uses the maximum and minimum bases defined on the Work Group page. When calculating the professional contingencies base, the system uses the upper and lower ceilings defined on the Scheme page. In addition, when processing part time employees, the system uses a set of reference bases/ceilings derived from the statutory minimum hourly rate.

This table identifies the system pages on which you view, update, or define the current bases and ceilings used to calculate contributions for full-time employees and the minimum hourly rates used to define the reference bases and ceilings for part time employees.

Contribution Type	View, Update, or Define Base/Ceiling on:	Comments
Common contingencies (full-time employees)	Work Group Page	None
Common contingencies (part-time employees)	Work Group Page	When processing part-time employees, the system calculates the minimum base by multiplying the statutory minimum hourly rate by the real number of hours worked. The maximum base is the same as the maximum for full time employees.
Professional Contingencies (full-time employees)	Scheme Page	None
Profession Contingencies (part-time employees)	Scheme Page	When processing part-time employees, the system calculates the lower ceiling by multiplying the statutory minimum hourly rate by the number of hours worked. The upper ceiling is the same as for full-time employees.

Note. The maximum bases, minimum bases, and minimum hourly rates for common contingencies vary by scheme ID and contribution group. The upper ceiling, lower ceiling, and minimum hourly rate for professional contingencies vary by scheme ID alone.

Retrieving Calculation Percentages and Rates

In the case of regular employees, when the base for calculating social security contributions has been defined, the system retrieves the correct percentage to apply to the base. In the case of nonregular employees (trainees and apprentices), the system retrieves the contribution rate.

PeopleSoft Global Payroll for Spain uses arrays to retrieve the correct percentage or rate. The exact rate or percentage used to calculate each contribution is set by law and can vary according to the scheme ID, contribution ID, and effective date.

See Setting Up Statutory Rates.

Percentages for IT and IMS Contributions

The system calculates Incapacidad Temporal (IT) and Invalidez, Muerte y Supervivencia (IMS) contributions as follows:

IT contribution = professional contingencies base × IT percentage.
IMS contribution = professional contingencies base × IMS percentage.

The system determines the appropriate IT and IMS percentage in one of three ways:

If there is an occupational code assigned to a payee, the system uses the percentages defined for that occupational code.
If there is no occupational code assigned to a payee, the system uses the percentages defined for the industrial activity declared for the Social Security Number (SSN) employer to which the payee belongs.
In certain cases such as sickness, maternity, or unpaid leave, the system uses the percentages associated with occupational code C: Sickness and special relationships.

You define IMS and IT percentages for occupation codes on the Social Security Occupation Cd (social security occupation code) page. You define IMS and IT percentages for industrial activities on the Industry Activity Table page.

See Entering Industry Activity Codes, Defining Social Security Occupation Codes.

Contribution Calculation

The final step in the social security process is to determine the actual amount of the contributions either by multiplying the correct percentage by the appropriate funding base accumulator (in the case of regular employees) or by assigning a fixed amount (in the case of trainees and apprentices). The contribution includes these employee and employer contributions:

Employee	Common contingencies, professional training, unemployment, structural overtime, nonstructural overtime.
Employer	Common contingencies, professional training, unemployment, Fondo de Garantia Salarial (FOGASA), structural overtime, nonstructural overtime, Incapacidad Temporal (IT) and Invalidez, Muerte y Supervivencia (IMS).

Understanding PeopleSoft HR Data in Social Security Calculation

PeopleSoft Global Payroll for Spain uses a considerable amount of data from HR to calculate social security contributions. This table provides a quick reference to the basic HR information used in social security processing. It lists the pages on which you must enter the required data, as well as the names of the specific fields containing the data.

Page	Navigation	Fields	Use
Work Location	Workforce Administration, Job Information, Job Data, Work Location	SSN Employer	Associate the employee's with the employer's Social Security Number.
Job Information	Workforce Administration, Job Information, Job Data, Job Information	Contract Number	Each employee must be associated with a contract number. After the hiring process, you must go to the Contract Data page and enter the contract information there. On the Contract Data page, the contract number is associated with information used in the social security process, such as Contract begin date, regimen ID (scheme ID), and social security contribution ID.
		Full/Part	Identifies whether the employee works full or part time. Depending on the value that you enter in this field, PeopleSoft Global Payroll for Spain uses the social security calculation method for either full- or part-time employees. Note. For regular part-time employees, you must define more information on the Supporting Element Overrides page in core Global Payroll. You must set the supporting element override for the number of hours worked per day into the CLI VR RED JORNADA variable.
		FTE (full time equivalent)	You can use this field to identify the employee's full time equivalent. You can then apply the FTE value to compensation rate codes to determine reduced proportionality. The system also uses the value of this field during reduction calculation to identify the work-time reduction that is affecting the employee and to determine how to reduce the reduction amount. Note. You can set up an employee to behave as part time. You can do this by overriding the variable SS VR TRATA PRCIAL with a value of Y, or by including the specific contract in the bracket SS BR TRATA PRCIAL.
		Industrial activity code	Defines the percentage that the system uses to calculate contributions for work-related accidents and occupational diseases. The system retrieves the industrial activity code from the SSN employer assigned to a payee.
		Occupation code	If a payee's work activity doesn't match the general activity defined for the SSN employer to which he is assigned, you must assign a specific occupational code to the payee from the list provided by Social Security. This occupational code determines the percentage that the system uses to calculate contributions for work-related accidents and occupational disease.
		Regular/Temporary	For payees with contract durations less than 7 days, if this field has a value of Temporary, the system calculates a special contribution because these type of contracts are penalized by Social Security. Note. The contract type assigned to a payee has to be unmarked to keep the system from calculating the extra contribution.
		Empl Class (employee class)	For grant holders (becarios), you must select a value of Intern for this field. Grand Holders (becarios) you need to setup this field accordingly (=Intern)
Job Labor	Workforce Administration, Job Information, Job Data, Job Labor	Labor Agreement	Associate employees with a labor agreement.
		Employee Category	Each employee must be associated with a labor agreement and a category. These categories contain normal salary information and other information needed to process social security.
Labor Agreement Categories	Set Up HRMS, Product Related, Workforce Administration, Labor Administration, Labor Agreement, Employee Categorization	Scheme ID	Associate each employee with a scheme ID. Although you define the social security calculation rule of each social security scheme on the ESP Social Security Scheme Table component, employees must be associated with a social security scheme by means of the Scheme ID field.
		Social Security Work Group	The social security work group code identifies the minimum and a maximum funding base, the minimum hourly rate as defined by the government, and whether the employee is daily or monthly. Note. You can manage daily employees as though they are monthly employees even if they are assigned to a daily work group. To do so, you must use the Supporting Element Overrides page in core Global Payroll to specify the variable SS VR TRATA MNSUAL with a value of No.
Contract Type Table	Workforce Administration, Job Information, Contract Administration, Define Contract Types	Reduction ID	Enter one of the reduction IDs that you defined on the Reduction and Reduction Data pages in PeopleSoft Global Payroll for Spain. In this way, the reduction ID is associated with a contract type.
Contract Status/Content	Workforce Administration, Job Information, Contract Administration, Update Contracts	Contract Begin Date	Define a contract begin date for each employee.
		Contract End Date	If applicable, enter the contract end date for temporary contracts. If the duration of the contract is less than seven days, the payee has a value of Temporary in the Regular/Temporary field, and the contract is not designated as not affected by special contributions, the system performs a special contribution calculation for the employee because this kind of contract has a surcharge. Note. You can also specify that a contract belongs to the category of less than seven days by overriding the value of the variable SS VR CONTR 7D FLG through the Supporting Element Overrides page in core Global Payroll.
		Scheme ID	Associate each employee with a scheme ID. Although you define the social security calculation rule of each social security scheme on the ESP Social Security Scheme Table component, employees must be associated with a social security scheme by means of the Scheme ID field.
		Social Security Contribution	In PeopleSoft Global Payroll for Spain, different social security rates and percentages (sets) may exist within a social security scheme. Each of these sets is identified by a contribution ID. Although you define the different social security contribution IDs and their corresponding rates or percentages using the Contribution page in PeopleSoft Global Payroll for Spain, you must link each employee to a Social Security Contribution ID on the Contract Status/Content page.
		Reduction ID	Use the Reduction ID field to assign reductions to individual employees. An employee also inherits reductions that are included in the contract type assigned to the employee.
Contract Type/Clauses	Workforce Administration, Job Information, Contract Administration, Update Contracts, Contract Type/Clauses	Contract Type	Define a contract type for each employee.

Note. You can also override the variable CLI VR ALTA DIRECC using the Supporting Element Override page in core Global Payroll to identify the employee as belonging to the high executive collective. You can also override this variable from certain formulas using any other logic or field that you create during implementation. You need to identify these employees in the FAN file.

See Also

Understanding Contribution Calculation

Getting Started with Administer Workforce

Increasing the Workforce

Entering Additional Data in Human Resources Records

Understanding Self-Insurance Collaboration Management

PeopleSoft Global Payroll for Spain provides functionality for managing data and reporting for self-insurance companies. Self-insurance companies are companies that are self-insured and voluntarily collaborate with Social Security in the management of benefits provided under the general scheme for temporary illness according to the terms of the collaboration. As defined by the General Law on Social Security (LGSS) Article 77, two types of self-insurance collaboration are available with Social Security:

Collaboration for work-related injury or occupational disease (AT/EP).
Collaboration for nonwork-related injury or common disease (non-AT/EP).

Self-insurance companies can collaborate in the management of social security benefits through one or both of these collaborations by assuming payment of the benefit directly to the affected employee on behalf of Social Security. Companies must pay these benefits with the same frequency that they pay salaries. In return, the self-insurance company gets deductions for its required social security contributions.

Collaboration for Work-Related Injury or Occupational Disease (AT/EP)

When a self-insurance company collaborates with Social Security for work-related injury or occupational disease (AT/EP):

The collaboration affects all employees of the employer social security number (Employer SSN) that you define as having a self-insurance collaboration on the Self-Insurance Data page.
The company gives healthcare coverage and pays for economic benefits for temporary disability derived from work-related injury or occupational disease (AT/EP).
The company is not refunded by Social Security for sick pay expenses (SUBSIDIO AT earning).
When calculating professional contingencies contributions for self-insurance companies, the system specifically considers the following contributions:
- Work-Related Injuries or occupational disease (AT/EP).
- Unemployment.
- Professional training.
- FOGASA (Fondo de Garantia Salarial).
- Permanent disability, death, and survival benefits (IMS).
The system computes an additional contribution quota, called Shared Services Contribution (Aportación a Servicios Comunes), which the self-insurance company must report.

The system obtains this quota amount through the following formula expression:

Shared Services Contribution = IMS Contribution × IT Self-Insurance Rate Where The IMS Contribution = the AT/EP contribution base × IMS rate IT Self-Insurance Rate = Amount derived from statutory table

Note. For this collaboration type, the system does not compute or report contributions for temporary disability (IT) rates when computing the professional contingencies contributions. However, PeopleSoft Global Payroll for Spain calculates and stores contributions for IT in the accumulator SS AC ER AUTO IT S for each employee. You can use this value for company reporting, such as reporting to general ledger to track how much money the company saves by being self-insured.

Collaboration for Common Disease or NonWork-Related Injury (non-AT/EP))

When a self-insurance company collaborates with Social Security for nonwork-related injury or common disease (non-AT/EP):

The collaboration affects all employees of the employer social security number (Employer SSN) that you define as having a self-insurance collaboration on the Self-Insurance Data page.
The company pays for economic benefits and can give healthcare for temporary disability derived from nonwork-related injury or common disease (non-AT/EP).
The company is not refunded by Social Security for sick pay expenses (PAGO DELEGADO earning).
The system calculates a reduction to be applied to the total common contingencies contribution to pay.

The system obtains this amount through the following formula expression:

Regular Situations Joint-Management Deduction = Base x IT Self-Insurance Rate Where Base = Field 111 (Non-AT/EP Contributions) + Field 115 (Employer Only Non-AT/EP Contributions) – Field 209 (Contribution Exempt Situations Deduction) IT Self-Insurance Rate = Amount derived from statutory table

This collaboration type affects the Total Employer Social Security Contributions calculation by reducing the final net to pay to Social Security through the Regular Situations Joint-Management deduction. This collaboration type also affects the RED system FAN File and the TC1 Report.

See Also

Defining Self-Insurance Data

Running Social Security TC Reports

Viewing Delivered Benefit Calculation Elements

Terminating Employees in Self-Insurance Companies

Viewing and Defining Social Security Ceilings, Rates, and Bases

To view social security contribution elements, use the Contribution Elements ESP component (GPES_SS_CONTRB). To define social security reduction and reduction data, use the Reductions ESP component (GPES_SS_BONIF). To view reduction elements, use the Reduction Elements ESP component (GPES_SS_BNF_DEF).

This section provides an overview of ceilings, rates, and other calculation values and discusses how to:

View social security contribution elements.
Define reductions.
Define reduction data.
View reduction elements.
Extend social security reductions.

Understanding Ceilings, Rates, and Other Calculation Values

To view and define ceilings, rates, and other calculation values:

View and define social security ceilings.

To view or update ceilings and the minimum hourly rate associated with the general scheme (delivered by PeopleSoft Global Payroll for Spain), use the Scheme page in HR. To define values for other schemes, enter the Scheme page in add mode, and supply the required data.
View and define the maximum and minimum social security bases, as well as the minimum hourly rate.

Most common contingency bases are calculated in relation to a maximum and minimum funding base or are derived from a minimum hourly rate (in the case of part-time employees). To view or update the maximum base, the minimum base, or the hourly rate for the general scheme, use the Work Group page in HR. If you are defining values for a different scheme, enter the component in add mode and supply the required data.
View and define rates used in the contribution calculation.

When you have reviewed the ceilings and bases used to calculate social security contributions, use the Contribution page in PeopleSoft HR to view or update the contribution rates and percentages for the general scheme. If you are defining values for a different scheme, enter the component in add mode and supply the required data.
View key elements used in the social security calculation.

When you have viewed or defined data on the Scheme, Work Group, and Contribution pages, use the Contribution Elements ESP page to obtain information about deductions, key accumulators, and variables used in the social security process.
View and maintain information related to contribution reductions.

In some cases, employers may be granted a reduction in the amount of their social security contributions if they hire older employees or employees with qualifying disabilities. Reductions are assigned to employees in three ways: assigning a reduction to the payee's SSN, assigning a reduction to a contract type, or assigning a reduction directly to the employee's contract data using the Contract Status/Content page. You can also define reductions at the Establishment level.

To set up and maintain the correct reduction percentage, as well as the duration of the reduction, use the Reduction and Reduction Data pages.
View key elements related to the employer's social security reduction.

When you have viewed, modified, or entered new reduction information on the Reduction and Reduction Data pages, use the Reduction Elements page to obtain information about key accumulators used to calculate and store the amount of the employer reductions.

Pages Used to View and Define Social Security Data

Page Name	Definition Name	Navigation	Usage
Contribution Elements ESP	GPES_SS_CNTB_BSE	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Contribution Elements ESP	Obtain information about key elements used in the social security process.
Reduction	GPES_SS_BNF	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Reductions ESP, Reduction	View and define the employer's social security reductions.
Reduction Data	GPES_SS_BNF_DTA	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Reductions ESP, Reduction Data	View and define the employer's social security reduction data.
Reduction Elements	GPES_SS_BNF_DEF	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Reduction Elements ESP	Obtain information about key accumulators used in the social security reduction process.
Absence Takes - Supporting Element Overrides	GP_ELM_DFN_SOVR	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Absence Elements, Absence Takes, Supporting Element Overrides	Override the value of a bracket, date, duration, formula, or variable element that is used in the definition of the take element.
User Defined Result Fields	GP_ABS_TAKE8	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Absence Elements, Absence Takes, Used Defined Result Fields	Select the user-defined fields that can be overwritten by a system element during processing.

Viewing Social Security Contribution Elements

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

Base

Displays the accumulator that stores the funding base used in the social security calculation.

Employer Contribution

The accumulator that stores the employer's contribution to social security.

Employee Contribution

The accumulator that stores the employee's contribution to social security.

Percentage (For TC's)

The variable that stores the total contribution percentages (employee plus employer percent) that must be recorded in the TC reports.

Contrib by Minimum Base (contribution by minimum base)

The accumulator that stores the contribution base corresponding to the period that contributes by minimum base.

Illness Base

The accumulator that stores the contribution base corresponding to sick days.

Extended Illness Base

The accumulator that stores the contribution base corresponding to the period affected by extended illness absence.

Extended AT/EP Base

The accumulator that stores the contribution base corresponding to the period affected by extended AT/EP absence.

Maternity Base

The accumulator that stores the employee's maternity base.

Employer MT Contribution (employer maternity contribution)

The variable that stores the employer's contribution for maternity or pregnancy risk benefits.

Vac. Trmntn. Soc. Sec. Contrib (vacation termination social security contribution)

The deduction that stores the contributions related to paid vacations for terminated employees.

See Also

Understanding Contribution Calculation

Defining Reductions

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

Reduction ID

The reduction ID identifies the specific reduction rule that applies to an employee. When accessing this page, select an ID and view (or modify) the existing data, or enter a new ID and define the reduction associated with that ID.

Compatible

Select to designate the reduction as compatible with any other reductions assigned to a payee (concurrent reductions). The system calculates and applies all compatible reductions for a payee.

If you deselect the check box, the system considers the reduction incompatible. The system calculates all incompatible reductions assigned to a payee, but applies only the one that is most beneficial to the employer.

If a payee has both compatible and incompatible reductions, the system applies all compatible reductions, but applies only the incompatible reduction that is most beneficial to the employer.

Reduction Type

The reduction type identifies the categorization for a specific social security reduction to be applied to an employee.

Possible values are:

America's Cup Challenge: Select if the social security reduction is due to the America's Cup Challenge.

Note. You can also override the variable TAX VR COPAMER (America Cup Eligibility) to indicate that an employee is eligible for this tax reduction.

Distance Training (CD11): Select if the social security reduction is due to a distance training contract.

INEM (Box 601 of TC-1) Catastrophe: Select if social security reductions due to an official declaration of a catastrophe are met by INEM.

INEM (Box 601 of TC-1): Select if social security discounts are met by INEM.

INEM 60 Years Old: Select if social security reductions are met by INEM due to the partially retired employee being at least 60 years old with at least five years seniority.

INEM 65 years Old: Select if social security reductions are met by INEM due to the partially retired employee being at least 65 years old with at least 35 contributing years.

Presence Training (CD10): Select if the social security reduction is due to a presence training contract.

RD 5/2006: Select if the reduction appears as part of law RD 5/2006.

Note. You can assign more than one reduction with this reduction type (code CD22) to a given employee. If you do, you are legally required to print the two reductions on two different lines in the FAN file. The system processes CD22 reductions with an effective date greater than or equal to the reference date (setup variable GEN VR REF CD22) according to this requirement and prints them separately in the FAN file.

When you apply this type of reduction to employees with part-time contracts the system needs to calculate them by applying a percentage to the reduction amount equal to the work schedule increased by 30% up to a maximum of 100%.

For women returning to work after maternity leave who are eligible for a reduction with special collective, 0016 (field 1269 of the DAT segment in the FAN) and request a work schedule reduction due to child care (GUARDA LEGAL), Social Security requires that the system take into account the original work schedule during the calculation of the amount corresponding to the reduction type with code CD22. To set this up, enter a supporting element override for the specified period for the formula SS FM FCT FTE to define the previous FTE.

Research Staff: Select if the reduction applies to research staff (personal investigador).

SS (Box 209 of TC-1): Select if social security reductions are met by the Social Security agency.

Note. In the case of a catastrophe occurring to a company, the reduction is directly applied to all the contributions for the company.

Reason

Enter the reason for the reduction. This field is available only if you select reduction type INEM (Box 601 of TC-1).

Employers are entitled to a reduction if they hire unemployed people with unlimited contracts before December 31st, 2009. In this situation, in addition to entering a value in the Reason field, you need to enter the remaining unemployment benefit by overriding the variable SS VR UNEMP BNFT for the hiring month.

Group

Specify the collective to which the reduction applies. The system displays this field only if you select reduction type RD 5/2006 or SS (box 209 of TC-1).

See Also

Understanding Contribution Calculation

Defining Reduction Data

Access the Reduction Data page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Reductions ESP, Reduction Data).

Concept

Identify the type of contribution (common contingency, FOGASA, temporary disability, and so on) to which the reduction defined in the Reduction Percentage , From Month, and To Month fields applies (see the following description).

From Month and To Month

Define a reduction with a limited duration. Use the From Month field to identify the first month of the reduction; use the To Month field to identify the last month of the reduction. The actual calendar month on which the reduction begins or ends is based on the contract begin date identified on the Contract Data page in PeopleSoft HR. For example, in the preceding example, the value of the From Month field is 1 and the value of the To Month field is 999. This means that beginning with the month of the initial contract (for example, 1/1/1990), the reduction applies for 999 months. If the start date had been 4 and the To Month date had been 6, the reduction would not begin until April (three months after the contract begin date) and would end after the month of June (five months after the month that the contract started). If you enter 1 in the From Month field and 999 in the To Month field, the system assumes that the duration of the contract is unlimited.

Note. Do not use 0 as the From Month value. Instead use 1.

Percentage to Reduce

View, modify, or define the percentage amount of the reduction that applies to the contribution type identified in the Concept field.

Annual Amount to Reduct

View, modify, or define the exact flat amount of the reduction that applies to the contribution type identified in the Concept field. For monthly employees, the system divides this annual rate by 360 and multiplies the resulting value by the contributed days on the payroll. For daily employees, the system divides the annual rate by the annual calendar days and then multiplies the resulting value by the contributed days on the payroll. For part-time employees, the system reduces the reduction amount based on the FTE value assigned to the employee. The FTE field value represents the reduction of the work schedule.

Viewing Reduction Elements

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

Employer Contribution

The accumulator that stores the amount of the employer's contribution to social security for each contribution type, common contingency, permanent disability D & S, professional training, and FOGASA.

To calculate the employer reductions, PeopleSoft Global Payroll for Spain applies the reduction percentages defined on the Reduction Data page to the amount in this accumulator.

Social Security Reduction

The accumulator that stores the employer reductions that are managed by social security for each contribution type (common contingency, permanent disability D & S, professional training, and FOGASA).

INEM Reduction

The accumulator that stores the employer reductions managed by INEM for each contribution type (common contingency, permanent disability D & S, professional training, and FOGASA).

Establishment Reduction

The accumulator that stores the employer reductions managed by INEM in case a catastrophe occurs to a company establishment.

60 Years Old Reduction

The accumulator that stores the employer reductions for employees older than 60.

65 Years Old Reduction

The accumulator that stores the employer reductions for employees older than 65.

Research Stuff Reduction

The accumulator that stores the employer reductions for employees that are categorized as research staff (personal investigador).

Extending Social Security Reductions

According to the INEM, "The suspension of the application of reductions implies the suspension of the calculation of the period of the reductions." This refers to periods of absence, such as maternity leave, in which the employee stops contributing to Social Security and the system likewise does not calculate reductions. In these cases, the period of absence should be excluded from the reduction period and therefore the end date of the reduction should be extended. PeopleSoft Global Payroll for Spain enables you to set up reduction extensions at the absence take level. To accomplish this you must:

Override the variable SS VR EXT F RED with a value of S at the absence take level so that the system extends the reduction duration when an absence event is defined:
1. Access the Absence Takes - Supporting Element Overrides page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Absence Elements, Absence Takes, Supporting Element Overrides).
2. On the Elements/Dates tab, enter an element type of Variable and an element name of SS VR EXT F RED.
3. Select the begin date as the effective date of this extension setup. Starting from this date, the absence take being updated will extend the reduction calculation. Be aware that if you select a date in the past, it might affect future retroactivity calculations because the system might produce results that are different than those previously calculated.
4. On the Values tab, enter a character value of S.
Confirm that you are storing the value of the User Defined Character 1 result field:
1. Access the Absence Takes - User Defined Result Fields page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Absence Elements, Absence Takes, User Defined Result Fields).
2. If the configuration type User Defined Character 1 is not already listed in the User Defined Result Fields group box, add it.

See Also

Defining Absence Take Elements

Defining the Multiple Employment Funding Base

This section provides an overview of multiple employment funding base and discusses how to enter multiple employment data.

Understanding the Multiple Employment Funding Base

In PeopleSoft Global Payroll for Spain, you can calculate the social security contribution funding base for employees with multiple jobs. You define multiple employment funding bases using the Multiple Employment Data page.

Example: Applying Distribution Percentages to the Standard Bases and Ceilings

In this example, assume that an employee has two jobs with these characteristics:

Hours and Salary for Job 1:
- Hours Worked: 5 hours per day.
- Contribution Group: 2.
- Base Salary: 1.202,02 EUR per month.
- Additional Salary: 291,49 EUR per month.
- Overtime: 345,58 EUR in current month.
- Number of Extra Periods: 0.
Hours and Salary for Job 2:
- Hours Worked: 3 hours per day.
- Contribution Group: 3.
- Base Salary: 294,50 EUR per month.
- Additional Salary: 24,04 EUR per month.
- Number of Extra Periods: 0 (including base salary).

Assume that the social security calculation generates these maximum and minimum common contingency bases to use in the normalization process for Job 1:

Base	Standard Base Amount
Maximum Base	3166.20 EUR
Minimum Base	843.30 EUR

Assume also that the social security calculation generates these upper and lower professional contingencies ceilings to use in the normalization process:

Ceiling	Standard Ceiling Amount
Upper Professional Contingencies Ceiling	3166.20 EUR
Lower Professional Contingencies Ceiling	728.10 EUR

If the distribution percentage for the common contingency base for Job 1 (provided by Social Security) is 75 percent, the system recalculates maximum and minimum bases for common contingencies in the following way:

Base	Standard Base Amount	Recalculated Base
Maximum Common Contingencies Base	3166.20 EUR	3166.20 × 75% = 2691.27 EUR
Minimum Common Contingencies Base	843.30 EUR	843.30 × 75% = 632.48 EUR

And if the distribution percentage for the professional contingency base for Job 1 (provided by Social Security) is 75 percent, the system recalculates the upper and lower ceilings for professional contingencies in the following way:

Ceiling	Standard Ceiling Amount	Recalculated Ceiling
Maximum Professional Contingencies Ceiling	3166.20 EUR	3166.20 × 75% = 2691.27 EUR
Minimum Professional Contingencies Ceiling	728.10 EUR	728.10 × 75% = 546.08 EUR

Note. The maximum and minimum base percentages in these tables are defined on the Multiple Employment Data page.

Page Used to Define the Multiple Employment Funding Base

Page Name	Definition Name	Navigation	Usage
Multiple Employment Data	GPES_MULT_EMP	Global Payroll & Absence Mgmt, Payee Data, Social Security/Insurance, Multiple Employment Data ESP, Multiple Employment Data	Calculate the funding base of social security contributions for employees with multiple jobs.

Entering Multiple Employment Data

Access the Multiple Employment Data page (Global Payroll & Absence Mgmt, Payee Data, Social Security/Insurance, Multiple Employment Data ESP, Multiple Employment Data).

Sector

Select Public or Private.

Authorization Number

Enter the employee's social security authorization number used for multiple employment. This information will be included in the TC2 report that is sent to Social Security.

Minimum CC Base Percent (minimum common contingencies base percent)

Enter the percentage to be applied to the minimum base used to calculate the funding base for common contingencies.

Maximum CC Base Percent (minimum common contingencies base percent)

Enter the percentage to be applied to the maximum base used to calculate the funding base for common contingencies.

Minimum CP Base Percent (minimum professional contingencies base percent)

Enter the percentage to be applied to the lower ceiling used in the calculation of the professional contingencies base.

Maximum CP Base Percent (minimum professional contingencies base percent)

Enter the percentage to be applied to the upper ceiling used in the calculation of the professional contingencies base.

Defining a Social Security Time Limit for FDI Data

To define a time limit for transferring medical note data to the Social Security agency, use the Social Security Data component (SSEC_DATA_ESP).

See Defining a Social Security Time Limit for FDI Data.

Defining Self-Insurance Data

To set up and maintain self-insurance data, use the Self-Insurance Data component (GPES_SLF_INS_DATA).

This section discusses how to define self-insurance data.

Page Used to Define Self-Insurance Data

Page Name	Definition Name	Navigation	Usage
Self-Insurance Data	GPES_SLF_INS_DATA	Set Up HRMS, Product Related, Workforce Administration, Workforce Data ESP, Self-Insurance Data, Self-Insurance Data	Set up and maintain self-insurance percentages and details for companies (at the employer social security number level) with voluntary self-insurance collaborations.

Defining Self-Insurance Data

Access the Self-Insurance Data page (Set Up HRMS, Product Related, Workforce Administration, Workforce Data ESP, Self-Insurance Data, Self-Insurance Data).

Self-Insurance Percentages

Use this group box to define the reduction rate percentages for each self-insurance collaboration type. The system factors these percentages when calculating social security contributions for companies with self-insurance that collaborate with Social Security to provide the corresponding benefits or specific contributions.

Effective Date	Enter the date that the self-insurance reduction rate percentages become valid.
Status	Select whether the self-insurance reduction rate percentages are Active or Inactive.

Percentage for AT/EP

Contains the self-insurance percentage for the work-related injury or occupational disease (AT/EP) collaboration type as given annually by the Ministry of Labor and Social Affairs (MTAS). It is used during the shared services contribution calculation. Oracle delivers and maintains this value.

Percentage for non AT/EP

Contains the self-insurance percentage for common disease or nonwork-related injury (non-AT/EP) collaboration type as given annually by MTAS. It is used during calculation of the regular situations joint-management reduction. Oracle delivers and maintains this value.

Self-Insurance SSN Employers

Use this group box to specify, by employer social security number, the companies with self-insurance and the collaboration types associated with these employer social security numbers.

Social Security Number and Company	Select the employer social security number for the companies that have self-insurance and are collaborating with Social Security to directly provide AT/EP or non-AT/EP benefits to employees. The system prompts you to select from employer social security numbers for Spanish establishments as defined on the Establishment Address page.
Effective Date	Enter the date that the collaboration type for each selected company becomes valid. This is the authorization date.
Status	Select whether the collaboration type for each selected company is Active or Inactive.
Check AT/EP	Select to indicate that the selected company has a self-insurance collaboration type for work-related injury or occupational disease.
Check non-AT/EP	Select to indicate that the selected company has a self-insurance collaboration type for common disease or nonwork-related injury.

Viewing Delivered Social Security Deductions

This section discusses delivered social security deductions.

PeopleSoft Global Payroll for Spain defines employee contributions to social security as deductions with a calculation rule of Base * Percentage for regular employees. For trainees and apprentices, the deductions are defined as a flat amount. The deductions that are used to calculate employee contributions due to vacations not taken are defined as a flat amount.

See Understanding Contribution Calculation.

PeopleSoft Global Payroll for Spain delivers these deductions for social security contributions:

Deduction	Description
LIQ V SS CC	Vacation treatment for social security common contingency. Used for common contingencies contributions. Note. This deduction is used to calculate an employee's contributions due to vacations not taken at the time of termination
LIQ V SS DS	Vacation treatment for social security unemployment. Used for the unemployment contribution. Note. This deduction is used to calculate an employee's contributions due to vacations not taken at the time of termination
LIQ V SS FP	Vacation treatment for social security professional treatment. Used for the professional training contribution. Note. This deduction is used to calculate an employee's contributions due to vacations not taken at the time of termination
SS CT FWD	Social Security to be forwarded. Used during retro calculation to forward Social Security data to the current month. This value is used just during calculation of tax percentage.
SS DD CC	Employee deduction for common contingencies.
SS DD DSMPL	Employee deduction for unemployment.
SS DD FRM PR	Employee deduction for professional training.
SS DD HS X E	Employee deduction for structural overtime.
SS DD HS XNE	Employee deduction for nonstructural overtime.

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

Delivered Termination Deductions

Base	Displays the accumulator that stores the funding base used in the social security calculation.
Employer Contribution	The accumulator that stores the employer's contribution to social security.
Employee Contribution	The accumulator that stores the employee's contribution to social security.
Percentage (For TC's)	The variable that stores the total contribution percentages (employee plus employer percent) that must be recorded in the TC reports.
Contrib by Minimum Base (contribution by minimum base)	The accumulator that stores the contribution base corresponding to the period that contributes by minimum base.
Illness Base	The accumulator that stores the contribution base corresponding to sick days.
Extended Illness Base	The accumulator that stores the contribution base corresponding to the period affected by extended illness absence.
Extended AT/EP Base	The accumulator that stores the contribution base corresponding to the period affected by extended AT/EP absence.
Maternity Base	The accumulator that stores the employee's maternity base.
Employer MT Contribution (employer maternity contribution)	The variable that stores the employer's contribution for maternity or pregnancy risk benefits.
Vac. Trmntn. Soc. Sec. Contrib (vacation termination social security contribution)	The deduction that stores the contributions related to paid vacations for terminated employees.

Reduction ID	The reduction ID identifies the specific reduction rule that applies to an employee. When accessing this page, select an ID and view (or modify) the existing data, or enter a new ID and define the reduction associated with that ID.
Compatible	Select to designate the reduction as compatible with any other reductions assigned to a payee (concurrent reductions). The system calculates and applies all compatible reductions for a payee. If you deselect the check box, the system considers the reduction incompatible. The system calculates all incompatible reductions assigned to a payee, but applies only the one that is most beneficial to the employer. If a payee has both compatible and incompatible reductions, the system applies all compatible reductions, but applies only the incompatible reduction that is most beneficial to the employer.
Reduction Type	The reduction type identifies the categorization for a specific social security reduction to be applied to an employee. Possible values are: America's Cup Challenge: Select if the social security reduction is due to the America's Cup Challenge. Note. You can also override the variable TAX VR COPAMER (America Cup Eligibility) to indicate that an employee is eligible for this tax reduction. Distance Training (CD11): Select if the social security reduction is due to a distance training contract. INEM (Box 601 of TC-1) Catastrophe: Select if social security reductions due to an official declaration of a catastrophe are met by INEM. INEM (Box 601 of TC-1): Select if social security discounts are met by INEM. INEM 60 Years Old: Select if social security reductions are met by INEM due to the partially retired employee being at least 60 years old with at least five years seniority. INEM 65 years Old: Select if social security reductions are met by INEM due to the partially retired employee being at least 65 years old with at least 35 contributing years. Presence Training (CD10): Select if the social security reduction is due to a presence training contract. RD 5/2006: Select if the reduction appears as part of law RD 5/2006. Note. You can assign more than one reduction with this reduction type (code CD22) to a given employee. If you do, you are legally required to print the two reductions on two different lines in the FAN file. The system processes CD22 reductions with an effective date greater than or equal to the reference date (setup variable GEN VR REF CD22) according to this requirement and prints them separately in the FAN file. When you apply this type of reduction to employees with part-time contracts the system needs to calculate them by applying a percentage to the reduction amount equal to the work schedule increased by 30% up to a maximum of 100%. For women returning to work after maternity leave who are eligible for a reduction with special collective, 0016 (field 1269 of the DAT segment in the FAN) and request a work schedule reduction due to child care (GUARDA LEGAL), Social Security requires that the system take into account the original work schedule during the calculation of the amount corresponding to the reduction type with code CD22. To set this up, enter a supporting element override for the specified period for the formula SS FM FCT FTE to define the previous FTE. Research Staff: Select if the reduction applies to research staff (personal investigador). SS (Box 209 of TC-1): Select if social security reductions are met by the Social Security agency. Note. In the case of a catastrophe occurring to a company, the reduction is directly applied to all the contributions for the company.
Reason	Enter the reason for the reduction. This field is available only if you select reduction type INEM (Box 601 of TC-1). Employers are entitled to a reduction if they hire unemployed people with unlimited contracts before December 31st, 2009. In this situation, in addition to entering a value in the Reason field, you need to enter the remaining unemployment benefit by overriding the variable SS VR UNEMP BNFT for the hiring month.
Group	Specify the collective to which the reduction applies. The system displays this field only if you select reduction type RD 5/2006 or SS (box 209 of TC-1).

Concept	Identify the type of contribution (common contingency, FOGASA, temporary disability, and so on) to which the reduction defined in the Reduction Percentage , From Month, and To Month fields applies (see the following description).
From Month and To Month	Define a reduction with a limited duration. Use the From Month field to identify the first month of the reduction; use the To Month field to identify the last month of the reduction. The actual calendar month on which the reduction begins or ends is based on the contract begin date identified on the Contract Data page in PeopleSoft HR. For example, in the preceding example, the value of the From Month field is 1 and the value of the To Month field is 999. This means that beginning with the month of the initial contract (for example, 1/1/1990), the reduction applies for 999 months. If the start date had been 4 and the To Month date had been 6, the reduction would not begin until April (three months after the contract begin date) and would end after the month of June (five months after the month that the contract started). If you enter 1 in the From Month field and 999 in the To Month field, the system assumes that the duration of the contract is unlimited. Note. Do not use 0 as the From Month value. Instead use 1.
Percentage to Reduce	View, modify, or define the percentage amount of the reduction that applies to the contribution type identified in the Concept field.
Annual Amount to Reduct	View, modify, or define the exact flat amount of the reduction that applies to the contribution type identified in the Concept field. For monthly employees, the system divides this annual rate by 360 and multiplies the resulting value by the contributed days on the payroll. For daily employees, the system divides the annual rate by the annual calendar days and then multiplies the resulting value by the contributed days on the payroll. For part-time employees, the system reduces the reduction amount based on the FTE value assigned to the employee. The FTE field value represents the reduction of the work schedule.

Employer Contribution	The accumulator that stores the amount of the employer's contribution to social security for each contribution type, common contingency, permanent disability D & S, professional training, and FOGASA. To calculate the employer reductions, PeopleSoft Global Payroll for Spain applies the reduction percentages defined on the Reduction Data page to the amount in this accumulator.
Social Security Reduction	The accumulator that stores the employer reductions that are managed by social security for each contribution type (common contingency, permanent disability D & S, professional training, and FOGASA).
INEM Reduction	The accumulator that stores the employer reductions managed by INEM for each contribution type (common contingency, permanent disability D & S, professional training, and FOGASA).
Establishment Reduction	The accumulator that stores the employer reductions managed by INEM in case a catastrophe occurs to a company establishment.
60 Years Old Reduction	The accumulator that stores the employer reductions for employees older than 60.
65 Years Old Reduction	The accumulator that stores the employer reductions for employees older than 65.
Research Stuff Reduction	The accumulator that stores the employer reductions for employees that are categorized as research staff (personal investigador).

Sector	Select Public or Private.
Authorization Number	Enter the employee's social security authorization number used for multiple employment. This information will be included in the TC2 report that is sent to Social Security.
Minimum CC Base Percent (minimum common contingencies base percent)	Enter the percentage to be applied to the minimum base used to calculate the funding base for common contingencies.
Maximum CC Base Percent (minimum common contingencies base percent)	Enter the percentage to be applied to the maximum base used to calculate the funding base for common contingencies.
Minimum CP Base Percent (minimum professional contingencies base percent)	Enter the percentage to be applied to the lower ceiling used in the calculation of the professional contingencies base.
Maximum CP Base Percent (minimum professional contingencies base percent)	Enter the percentage to be applied to the upper ceiling used in the calculation of the professional contingencies base.