PeopleSoft Global Payroll for France 9.1 PeopleBook

Defining Levies

This chapter provides an overview of levies, lists steps to view and adjust ceilings and rates for levies, and discusses how to:

Establish levy rates.
Review delivered levy deductions.

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

See Also

Viewing Delivered Elements

Understanding Levies

Levies are deductions that don't fall into obvious categories, such as URSSAF, ASSEDIC, or AGIRC. Levies are paid to several organizations with different funding bases, with different conditions, and on different dates. They cover things like training, transport, apprenticeships, CSG and CRDS contributions, and the Levy on Salaries. Some of these levies are often grouped under the heading Other Employers Deductions on the payslip.

This table describes the levies that are managed by Global Payroll for France:

Levy	Description
Additional Transportation Levy	This levy is applies based on the decision of the local transportation organization and authorities. Payment is made on the same date as URSSAF contributions and is paid to URSSAF. The rate is recorded at the establishment level.
Levy on Contingency Funds	This levy is based on an employer's contributions to the optional contingency funds. So this is a contribution on contributions. This levy is paid to the URSSAF and is paid by employers with more than 10 payees.
Professional Training	Employers must allocate a percentage of their total payroll to professional training. The levy rates vary depending on whether the employer has fewer than 10 payees. There is a specific contribution paid by organizations that have contractual employees. The funding base for this levy is gross salary. Levy rates vary depending on whether the employer has fewer than 10 payees or whether the employer has contractual payees.
Transportation	This levy applies to employers with more than nine payees in the same transportation area (Syndicat de transport). The rate can vary, depending on the transportation area, and the funding base is gross salary. Payment is made on the same date as URSSAF contributions and is paid to the URSSAF. The levy is paid only for areas where a transportation levy is applicable. Note. This rate is recorded at the establishment level.
Participation of the Construction Effort	This levy applies to employers with 10 or more payees, and the funding base is gross salary. It is paid to a registered collector organization, or the employer manages it. The levy is paid at the end of the year and is based on salaries paid during the previous 12 months.
Apprenticeship	The funding base of this levy is gross salary. The rate of this levy is based on region (Alsace-Moselle or other regions) and is paid to the tax office. The postal code of the establishment is used to determine which rate must be applied.
Apprenticeship Additional	The funding base of this levy is gross salary. This additional apprenticeship levy is paid by companies submitted to the apprenticeship levy.
CSG and CRDS	Most payees are subject to this levy. The rate is based on whether the levy is CSG taxable, CSG nontaxable, or CRDS and the funding base is 95 percent of the gross salary plus the employer's contributions to the contingency fund. Payments are made to the URSSAF at the same time as other URSSAF contributions.
Levy on Salaries	Only employers that do not, in whole or in part, pay value-added tax (VAT) pay this levy. The rate varies by established brackets, and it is paid to the tax office.
Participation in the Works Council	Generally, an employer with more than 50 payees has a works council, but the use of works councils varies among employers. The levy is paid to the works council. Contributions to the works council budget vary from organization to organization and depend on rates, funding bases, employee participation, and so on. Contributions, paid by both the employer and employee, are based on a percentage of the gross salary, profit, or revenue. Because this levy varies among employers, the PeopleSoft system does not provide an element to manage it. The system does, however, offer two elements that contain sample contributions, indicating rates and funding bases. You can activate these elements and adapt them for your own use. It is your responsibility to maintain these elements.

Headcount Limits and Rates

Some levy rates are based on the headcount of the organization.

The system calculates the headcount of an organization after the payroll process. The headcount results are used during payroll processing for the following month. Therefore, the headcount might be inaccurate for the current month and you might have to override the value.

For example, during the month of May, you might have eight payees and then hire four payees in June. The system uses the headcount calculated in May to determine whether your organization is eligible for specific contributions (for example, the Levy on Contingency contributions paid by organizations with more than 10 payees). Then, in June, the system does not trigger the Levy on Contingency contributions even though this contribution should be triggered. The best solution in such a case is to override the variable that stores the headcount. This variable is GEN VR EFFECTIF SO; you can override it at the pay entity or pay group level.

Note. PeopleSoft strongly recommends that you define your pay entity to be equal to your organization.

Organizations Not Liable for a Levy

Each levy rate for organizations with fewer than nine payees is stored as a rate that is used by all organizations. If your organization is not liable for a particular levy, you can override the GEN VR EFFECTIF SO variable if the levies depending on headcount will not be triggered correctly.

Note. Modifying GEN VR EFFECTIF SO affects all contributions (and possibly some other elements) that use headcount.

PeopleSoft strongly recommends that you define your pay entity to be equal to your organization.

Transportation Levy

The transportation rate is stored at the establishment level. Because the payroll process does not manage the headcount at the establishment level, you must manage whether the levy is due. Record a rate if the levy is due or record a rate equal to 0 if it is not due.

If a payee is an itinerant worker with a transportation rate that is different from the rate applied to the establishment to which the payee is linked, override the rate at the payee level.

Note. Update the rates at the establishment level.

DUCS Considerations

The following levies appear on the URSSAF report and their DUCS codes and descriptions are as follows:

Transportation.
Eight percent on employers' contribution to contingency funds.
CSG taxable, nontaxable, and CRDS.

Defining URSSAF Contributions

Counting Employees

Generating DUCS

Steps to View and Adjust Ceilings and Rates for Levies

In Global Payroll for France, you can view and update contribution rate percentages for levies as the government issues new rates. You can also update and maintain ceiling information for the tax on salaries as the government issues new rules.

To view and update rates and ceilings:

View variables containing the rates for levies on the Rates and Elements page.
View the ceiling limits used to calculate the funding bases the tax on salaries levy on the Limits page.
View and if necessary adjust the monetary values of the ceilings for the tax on salaries levy on the Ceilings page.
View and if necessary adjust the contribution percentage rates of each category of levies on the pages of the Levy Rates FRA component.

Note. PeopleSoft maintains the rates and ceilings for levies. However, you can adjust the rates and ceilings manually through the application pages when there are statutory changes. You do not have to wait for PeopleSoft updates. If you manually adjust rates, you still need to evaluate the PeopleSoft updates to determine if you want to keep your changes or apply the delivered values.

Establishing Levy Rates

To establish levy rates, use the Levy Rates FRA (GPFR_TAX_RATES) component.

This section discusses how to:

Establish levy rates for levies on contingency funds and professional training.
Establish levy rates for apprenticeship, participation of the construction effort, CSG, and CRDS levels.
Establish levy rates on salaries.

Pages Used to Establish Levy Rates

Page Name	Definition Name	Navigation	Usage
General Rates 1	GPFR_TAX_RATES	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Addl Rates, Ceilings, Values, Levy Rates FRA, General Rates 1	Establish the rates for levies on contingency funds and professional training.
General Rates 2	GPFR_TAX_RATES2	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Additional Rates, Ceilings, Values, Levy Rates FRA, General Rates 2	Establish the levy rates for the Apprenticeship, Participation of the Construction Effort, CSG, and CRDS levies.
Levy on Salaries Rates	GPFR_TAX_RATES3	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Additional Rates, Ceilings, Values, Levy Rates FRA, Levy on Salaries Rates	Establish the levy tax rate on salaries for organizations that do not pay VAT or pay VAT on only less than 10 percent of sales (such as banks and insurers).

Establishing Levy Rates for Levies on Contingency Funds and Professional Training

Access the General Rates 1 page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Addl Rates, Ceilings, Values, Levy Rates FRA, General Rates 1).

The Contingency levy is paid only by organizations with more than 10 payees.

There are two sets of contribution rates for the various training funds: one is for organizations with more than 10 payees and the other is for organizations with fewer than 10 payees.

The Professional Training for Contractors levy is for all organizations that employ contractors, regardless of the number of payees in the organization.

Note. The PeopleSoft system provides these rates.

Levy on Contingency Funds

Displays the employer's contribution levy on Contingency funds. The amount is based on the employer's contribution to optional contingency funds. The levy applies only to organizations with more than 10 payees. If an organization has some optional contingency fund contributions, it must update the funding base on the Levy on Contingency fund. It is the employer's responsibility to include these contributions in the base for calculating the contingency levy. These contributions are added to the accumulator used by this levy (the TAX AC BAS PREV SG accumulator).

Professional Training

More than 10 Payees	Displays the levy for organizations with more than 10 payees. This levy is divided among four contributions used for varying purposes in the following fields: Capital Formation-Time, Individual Formation Time-off, Cooperative Education, and Training of the Employees.
Less than 10 payees	Displays the levy for organizations with fewer than 10 payees. The employer pays a mandatory levy for professional training and a supplement rate.
Professional Training for Contractors	Displays the levy that is paid by organizations employing contractors, regardless of the size of the organization.

Note. Remember to add the correct contingency funds deduction elements to the base accumulator used by the contingency funds levy.

Establishing Levy Rates for Apprenticeship, Participation of the Construction Effort, CSG, and CRDS Levels

Access the General Rates 2 page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Additional Rates, Ceilings, Values, Levy Rates FRA, General Rates 2).

Apprenticeship Levy

This group box displays the contribution that an employer pays for financing apprenticeships. The rate for the apprenticeship levy depends on the postal code of the establishment to which the payee is linked.

Other Regions	Displays the rate that applies to all regions, except Alsace-Moselle.
Alsace-Moselle	Displays the apprenticeship levy for the Alsace-Moselle region.

Apprenticeship Additional Levy

This group box displays the additional contribution than an employer pays for financing the apprenticeships. The rate is determined by the government. Currently the rate is identical for all regions.

Other Regions	Displays the rate that applies to all regions, except Alsace-Moselle.
Alsace-Moselle	Displays the apprenticeship levy for the Alsace-Moselle region.

Other

This group box lists the remaining levies. CSG levies are paid by all payees to finance social security and retirement funds. The payee pays the CSG levies and the CRDS levy. The funding base for the CSG and CRDS levies consists of the gross salary, the employer's contribution to the contingency fund, and departure or modification allowances that exceed a predefined amount.

Participation of the Construction Effort	Displays the rate for the Participation of the Construction Effort levy. This levy is paid by the employer based on a percentage of the gross funding base.
C.S.G. non Taxable	Displays the rate for the portion of the CSG levy that is exempt from tax.
C.S.G Taxable	Displays the rate for the portion of the levy that is taxable.
C.R.D.S.	Display the rate for the CRDS levy that is paid by payees.

See Also

Defining Bracket Elements

Establishing Levy Rates on Salaries

Access the Levy on Salaries Rates page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Additional Rates, Ceilings, Values, Levy Rates FRA, Levy on Salaries Rates).

The funding base for this levy is the gross salary and employer contributions to retirement and contingency funds, where applicable. There may also be a deduction for organizations that partially pay VAT. Those employer contributions to retirement and contingency funds greater than the tax limits of 19 percent and 3 percent are included in the levy on the salary funding base.

There are three rates of contribution to this levy. The rates are expressed as a percentage of the funding base. The monetary amount ranges and limits appear to the left of the rate.

Annual Bracket 1	Displays the rate for the salary levy for earnings within annual bracket 1.
Annual Bracket 2	Displays the rate for the salary levy for earnings within annual bracket 2.
Annual Bracket 3	Displays the rate for the salary levy for earnings within annual bracket 3.

See Also

Tax and Limits

Special VAT-Exempt Element Group

A special element group (TAX EG TAXSAL) indicates which organizations are exempt from VAT contributions and are therefore liable to pay the salary levy.

Reviewing Delivered Levy Deductions

The deductions for levies are delivered with the PeopleSoft system, but it is the organization's responsibility to maintain them. This table lists the delivered deductions for levy processing:

Deduction	Description	Generation Control
TAX 8% PREV	The 8 percent contingency funds tax.	TAX GC 8%PREV
TAX APPR ADD	Additional tax for apprenticeship.	TAX GC STG EXCL
TAX APPRENTI	Tax for apprenticeship (all institutions).	TAX GC STG EXCL
TAX BGT CD E	Works council tax (employer).	None.
TAX BGT CE S	Works council tax (payee).	None.
TAX CONSTRUC	Tax on construction.	TAX GC CONSTR
TAX CGFORIND	Individual education tax.	TAX GC FORM
TAX CRDS	CRDS tax.	TAX GC CSG CRDS
TAX CSG IMPO	Taxable CSG tax.	TAX GC CSG CRDS
TAX CSG NIMP	Nontaxable CSG tax.	TAX GC CSG CRDS
TAX FOCAPTEM	Capital education tax	TAX GC FORM
TAX FORALTER	Sandwich course tax.	TAX GC FORM
TAX FORMCDD	CDD education tax.	TAX GC FORMCDD
TAX FORMSAL	Employee education tax.	TAX GC STG EXCL
TAX FORMSUPL	Additional education tax.	TAX GC FORMSUP
TAX SALAIRE1	Salary tax on bracket 1.	TAX GC SALAIRE
TAX SALAIRE2	Salary tax on bracket 2.	TAX GC SALAIRE
TAX SALAIRE3	Salary tax on bracket 3.	TAX GC SALAIRE
TAX TRANSPOR	Tax on transportation.	TAX GC TRANSPORT
TAX TRANS AD	Additional transportation tax contribution.	TAX GC TRANSP ADDI

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

See Also

Viewing Delivered Elements