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.
|
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.