Establishing Levy Rates
To establish levy rates, use the Levy Rates FRA (GPFR_TAX_RATES) component.
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
GPFR_TAX_RATES |
Establish the rates for levies on contingency funds and professional training. |
|
|
GPFR_TAX_RATES2 |
Establish the levy rates for the Apprenticeship, Participation of the Construction Effort, CSG, and CRDS levies. |
|
|
GPFR_TAX_RATES3 |
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). |
Use the General Rates 1 page (GPFR_TAX_RATES) to establish the rates for levies on contingency funds and professional training.
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Image: General Rates 1 page
This example illustrates the fields and controls on the General Rates 1 page. You can find definitions for the fields and controls later on this page.
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.
|
Field or Control |
Definition |
|---|---|
| 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
|
Field or Control |
Definition |
|---|---|
| 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.
Use the General Rates 2 page (GPFR_TAX_RATES2) to establish the levy rates for the Apprenticeship, Participation of the Construction Effort, CSG, and CRDS levies.
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Image: General Rates 2 page
This example illustrates the fields and controls on the General Rates 2 page. You can find definitions for the fields and controls later on this page.
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.
|
Field or Control |
Definition |
|---|---|
| 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.
|
Field or Control |
Definition |
|---|---|
| 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.
|
Field or Control |
Definition |
|---|---|
| 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. |
Use the Levy on Salaries Rates page (GPFR_TAX_RATES3) to 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).
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Image: Levy on Salaries Rates page
This example illustrates the fields and controls on the Levy on Salaries Rates page. You can find definitions for the fields and controls later on this page.
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.
|
Field or Control |
Definition |
|---|---|
| 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. |
A special element group (TAX EG TAXSAL) indicates which organizations are exempt from VAT contributions and are therefore liable to pay the salary levy.