Updating Social Security Contributions

This chapter provides an overview of social security processing and discusses how to:

• View and update SDI wage data for payees.

• Process mass SDI changes.

• Generate IMSS notices.

• Run the SDI batch processes.

• Run social security reports.

• View delivered social security elements.

See Also

Defining Social Security Contributions

Understanding Social Security Processing

SDI (Salario Diario Integrado) represents the base salary that is used for social security calculations, including contributions to social security and INFONAVIT loan paybacks. It consists of:

• Fixed SDI, which is the payee's daily rate plus Aguinaldo (Christmas bonus), vacation premium, food coupons, or any other benefits the payee receives regularly.

• Variable SDI, which includes benefits that vary from one pay period to another, such as Sunday premium, triple overtime, and commissions.

The process for defining and updating social security contributions in Mexico consists of these steps:

1. (Optional) Update the social security contribution table and the repayment of INFONAVIT loans table.

   Global Payroll for Mexico delivers rules that compute fixed and variable SDI for payees and calculate deductions for social security and repayment of INFONAVIT loans. The calculations are based on tables that contain rates and ceilings. PeopleSoft HRMS delivers the data for these tables initially, but you must keep the tables current.

   Note. You can update the social security contribution table on the Quotas MEX page. This pages is discussed in another chapter in this PeopleBook.

   See Defining Social Security Contributions.

2. View and update SDI wage data for payees on the Maintain SDI Data MEX page.

3. Select additional elements that contribute to fixed SDI and define the integration parameters for these elements on the Fixed SDI page.

4. Define Variable SDI for a pay group on the Variable SDI page.

   Note. Before you can run the Variable SDI process, you must define Variable SDI for a pay group by selecting the earnings, accumulators, and formulas used in the Variable SDI process. The Variable SDI page is discussed in another chapter in this PeopleBook.

   See Defining Social Security Contributions.

5. Run SDI processes to calculate new SDI amounts when certain events or changes occur, such as employee anniversaries, or at the end of two months, if variable earnings are paid. The two SDI processes are:

   • Process SDI MEX (SDI FIJO).

   • Variable SDI (SDI VARIABLE).

Social Security Reports

Global Payroll for Mexico generates several reports for social security. It also provides the two interfaces that are required for paying social security contributions through the Sistema Unico de Autodeterminacion (SUA). SUA is the software that the Social Security Institute provides to calculate all employer and payee quotas.

Note. In Mexico, "social security quota" is used to refer to social security contributions.

Viewing and Updating SDI Data for Payees

This section provides an overview of updates to SDI wage data and discusses how to view and update a payee's SDI data.

Understanding Updates to SDI Data

The system automatically creates a new row of SDI data for a payee when:

• A payee is hired, terminated, or has a salary change.

• The Fixed or Variable SDI process is run and the system detects a change to SDI.

The SUA interfaces generate two flat files (one with payee data and one with transactions). The SUA system loads these files via a batch process and generates the payee and employer quotas every two months.

Then the employer calculates the corresponding quotas that need to be paid bimonthly and the quotas that are reported every two months. This is done with the SUA software. Once the quotas are calculated, the employer has to pay the corresponding amount to the bank.

You can view events that have caused changes to a payee's SDI data. You can also override a payee's Fixed SDI amount.

Page Used to View and Update SDI Data

Viewing and Updating a Payee's SDI Data

Access the Maintain SDI Data MEX page (Global Payroll & Absence Mgmt, Payee Data, Social Security/Insurance, Maintain SDI Data MEX, Maintain SDI Data MEX).

IMSS/SAR

Action/Reason

The information in this group box is populated automatically based on changes made in HR.

See Also

Understanding the SDI Factor Calculation

Setting Up the Administer Workforce Business Process

Processing Mass SDI Changes

This section provides an overview of mass SDI processing and discusses how to run the mass SDI process:

.

Understanding Mass SDI Processing

You can process mass SDI changes for seniority anniversaries and minimum wage changes on the Process SDI MEX page. The system uses Application Engine to process the SDI calculation and will insert new SDI data for employees having seniority anniversaries in the corresponding period, or for employees having an SDI data change derived from minimum wage changes.

Page Used to Run the Mass SDI Process

Running the Mass SDI Process

Access the Process SDI MEX page (Global Payroll & Absence Mgmt, Absence and Payroll Processing, Prepare Payroll, Process SDI MEX, Process SDI MEX).

SDI Process

Generating IMSS Notices

This section provides an overview of IMSS notices and discusses how to review generated IMSS notices.

Understanding IMSS Notices

When a payee is hired, rehired, has a salary change, or is terminated, you must report the event to IMSS. These reports can be:

• Printed notice (IMSS Printed Notices).

• Magnetic device notice (IMSS Mag. Media Notices).

• EDI (electronic transmission) notice (IMSS EDI Notices).

The run control page that you use to generate the notice depends on the selected reporting method. When you generate the notice, the system marks the corresponding check boxes on the IMSS Notice Control page. You use the IMSS Notice Control page to review the events reported for a payee.

Note. The IMSS reports are discussed later in this chapter.

See Running Social Security Reports.

Page Used to Review Generated IMSS Notices

Reviewing Generated IMSS Notices

Access the IMSS Notices Control page (Global Payroll & Absence Mgmt, Social Security/Insurance, Review IMSS Notices MEX, IMSS Notices Control).

IMSS Notice Control

Select the type and form of notice you would like to generate for the payee.

Note. You can clear a generated IMSS notice if you want to regenerate it.

See Also

Global Payroll for Mexico Reports

Running the SDI Batch Processes

This section provides an overview of the SDI batch process and discusses how to:

• Modify the fixed SDI process.

• Modify the variable SDI process.

Understanding the SDI Batch Process

When you run the payroll process, the system produces two writable arrays related to social security:

• IM_WA_DATOS_SDI, which contains information for both fixed and variable SDI amounts.

• IM_WA_REP_VARIAB, which is used to generate the Variable SDI report.

Before you run the payroll process, you can launch two additional social security processes: one from the SDI for Anniversary and SMG page, and the other from the Payroll/Absence Run Control page. These processes calculate new SDI amounts, which are the basis for all the Social Security earnings and deductions, such as employee and employer contributions and loan paybacks. The two processes are:

• Fixed SDI process (SDI FIJO).

  Run this process if your organization offers benefits that contribute to fixed SDI. You can run this as often as needed to generate data for IMSS notifications.

  You should also run the Fixed SDI process every time there is a massive salary increase , a minimum wage change, or changes caused by employment anniversaries.

• Variable SDI process (SDI VARIABLE).

  Run this payroll process bimonthly to calculate variable SDI figures from the previous two months. The system will add the variable earnings for the last two months and divide them by the number of paid days for the two previous months minus unpaid absences according to the pay group parameters defined on Pay Groups MEX component. The Variable SDI process is run in January, March, May, July, September, and November. The calculations are also used in the Variable SDI report.

Modifying the Fixed SDI Process

If your organization offers benefits (in addition to the Christmas bonus and vacation premium) that contribute to fixed SDI, you must select additional elements that contribute to fixed SDI and define the integration parameters for these elements on the Fixed SDI page. Then you must run the Fixed SDI process to calculate fixed SDI. (The Application Engine program takes into account the Christmas bonus and vacation premium when it calculates fixed SDI.)

Modifying the Variable SDI Process

Global Payroll for Mexico delivers a process list (CALC SDI VARIAB) for calculating variable SDI. If you need to add earnings that contribute to the variable SDI amount, follow the procedure below.

To include an earnings in the Variable SDI process:

1. Select the earning that is a member of the SDI bimonthly accumulator.

   This is very important. If the bimonthly accumulator does not exist for the earning, you must create a new one. Select the earning and the corresponding accumulator on the Variable SDI page.

2. Select one of the three formulas (integration methods): IM FM 100% VAR, IM FM TOP VAL IMSS, or IM FM PREMIO INT on the Variable SDI page.

All earnings belong to one of the three formulas (integration methods). Below are some examples:

Note. Do not add the earnings elements to the SDI VARIABLE section.

The order in which you run the SDI FIJO (Process SDI MEX) and SDI VARIABLE processes is very important because the fixed process (SDI FIJO) depends on the variable process (SDI VARIABLE). For example, the date for the SDI FIJO corresponds to a hiring or salary increase date for the payee and the SDI VARIABLE as defined by law is the first day of each two months based on the earnings of the previous two months.

See Also

Defining Variable SDI

Running Social Security Reports

This section lists the social security reports that you can run in Global Payroll for Mexico and discusses how to create the Risk Factor report.

Pages Used to Run Social Security Reports

See Also

Global Payroll for Mexico Reports

Creating the Risk Factor Report

The Risk Factor report lists all employees who had a disability from a work risk during the year. It takes the information that is entered in the Absence Event Input Detail page, within the Absence Event component. In particular, the Risk Factor report takes the following information: Illness Type, Illness Document Number, Permanent Illness Percentage, and Death Indicator. All other necessary information is retrieved from the Absence Event page.

The Risk Factor report creates an ASCII output file for the IMSS software, so that it can be loaded up as a batch file. The output file contains the following data (in this order):

• An automatically generated serial number.

• Company name.

• Company address.

• Period (year).

• Establishment ID.

• Social security number.

• Employee name.

• Illness, whether it's a relapse or reappraisal.

• Illness begin date.

• Risk type.

• Subsidized days.

• Percentage of permanent illness (only for work accidents and work illnesses).

• Death indicator (in case of death, a "D" will display.)

• Illness end date.

Viewing Delivered Social Security Elements

This section discusses:

• Delivered social security deductions.

• Delivered social security process lists.

Delivered Social Security Deductions

This table lists the delivered social security deductions for Mexico:

Delivered Social Security Process Lists

This table lists the delivered social security process lists for Mexico:

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

See Also

Understanding How to View Delivered Elements