Earnings Calculation

PeopleSoft Global Payroll for Spain calculates earnings, getting a daily rate. Depending on the way that the employee contributes to social security, the rate is multiplied by 30 for monthly employees or by the number of days in the month for daily employees.

If you calculate daily employees, you must know the daily values for each earning, as well as the total number of days worked. An employee with a daily calculation type doesn't receive the same gross and net amount every month because different months have different numbers of days. For example, an employee will receive less money in February than in June.

Cases occur in which you might want to manage daily employees as though they were monthly employees. Although an employee is assigned to a daily social security work group, you might want to pay the employee's Social Security contribution on the basic 30-day month. In such a case, you must override the value of variable SS VR TRATA MNSUAL with a value other than No for the specific employee.

Conversely, you might want to manage monthly employees as though they were daily employees. In such a case, you must override the value of variable SS VR TRATA DIARIO with a value other than No. In addition, you must specify the range of dates for which this override is effective.

PeopleSoft Global Payroll for Spain also calculates earnings for part-time employees. Part-time employees for Spanish payroll are ones who are normally paid based on their hours worked and have their Social Security contribution calculation based on their hours worked. You identify whether an employee is part-time through the Full/Part field on the Job Information page of the Job Data component (JOB_DATA). You can also use the FTE field to identify the employee's full-time equivalent. You can then apply the FTE value to compensation rate codes to determine reduced proportionality.

PeopleSoft Global Payroll for Spain differentiates between two types of part-time employees:

• Regular part-time employees:

  These are employees who have a reduction in the working hours per day and whose contribution to social security is based on hours. An example is an employee working from Monday through Friday for four hours per day. These employees are always paid for 30 days if they are monthly or paid by the number of days in the month if they are daily.

• Irregular part-time employees:

  These are employees who have an irregular work schedule where they can work a different number of days each month. Examples include employees who work weekends or weekends and bank holidays only, employees who work just three days per week, and employees who work a different number of days and hours each week. PeopleSoft Global Payroll for Spain uses the work schedule definition assigned to the employee to calculate the actual worked and contributed days for irregular part-time employees.

For regular part-time employees, you must use the supporting element override functionality to specify through the CLI VR RED JORNADA variable the number of working hours per day for the employees. This step is required for regular part-time employees.

Here is an example of how the system calculates earnings for part-time employees. Assume that the monthly gross salary for a full-time employee working eight hours a day is 2000 EUR. For a part-time employee who is in the same professional category as the full-time employee, working six hours a day, the system automatically multiplies the rate by a factor of 6/8 to calculate a monthly gross salary of 1500 EUR for the part-time employee.

Each earnings element can accumulate its value over other elements. The following is a list of the accumulators that are used with earnings elements included in the standard solution. Before defining a new element, it's a good idea to understand what each accumulator does.

• Basic earnings (GEN AC DEV BAS S):

  The sum of all basic earnings for an employee. Use this base to determine the amount of an extra period or as the base for calculating an hourly rate.

• Nonbasic earnings (TAX AC DIN VAR S):

  The sum of all nonbasic or variable earnings for an employee.

• Total earnings (GEN AC SAL BRUTO S):

  The sum of all elements considered as earnings for an employee.

• In kind earnings (TAX AC SPC):

  The sum of all in kind earnings for tax reasons.

• Salary taxable base (TAX AC BASE S):

  The sum of all the taxable salary earnings.

• In kind taxable base (TAX AC SPC ): The sum of all the taxable in kind earnings.

• Employee's Social Security common contribution base (SS AC BSE D S and SS AC BSE M S): The sum of all the contribution earnings in common contributions.

When you create a new element, you should define the accumulators to which the element contributes.

This table lists the basic earnings and the accumulators to which each basic earnings type contributes:

PeopleSoft Global Payroll for Spain also provides accumulators that are PS Delivered/Not Maintained. These accumulators make defining new basic earnings easier.

This table lists the accumulators that are PS Delivered/Not Maintained: