Gross Salary Changes

Partial Recalculation

Some organizations such as URSSAF and ASSEDIC require that gross salary elements be submitted to the contribution rates in effect on the payment date. For example, if a payee receives a retroactive pay increase, the contribution rates of the current period should be applied to the gross salary deltas, rather than those in effect in the recalculated period (as the pay increase is only realized in the current period).

Global Payroll for France manages gross salary changes for URSSAF, ASSEDIC, and CSG/CRDS by:

• Recalculating the gross salary, taking into account the elements modified retroactively.

• Storing the recalculated gross in accumulators.

• Retrieving the old value of the gross rather than the recalculated gross to determine contributions in a prior period.

  Note: The system recalculates the gross, taking into account the retroactive changes in salary. However, when calculating the funding base for URSSAF and ASSEDIC, the system does not use the recalculated gross but the "old value" of this gross.

• Recalculating funding bases, based on the old gross value, using standard rules.

• Using the annual regularization of contributions principle to process the recalculated gross deltas in the current period. Based on this principle, the system compares, in the current period, the gross salary effectively used (submitted gross) to calculate the funding bases, and the recalculated gross salary (real gross).

  • If no retro calculation is triggered or if the gross salary hasn't changed retroactively, the submitted gross and the real gross are equal, and there are no gross deltas to process.

  • If a retro calculation occurs with a change in the gross salary, the submitted gross and the real gross are different. This difference (positive or negative) corresponds to the gross delta and is added to the gross calculated for the current period, where it is submitted to current contribution rates.

Full Recalculation

For other contributions such as ARRCO, AGIRC, contingency funds, and tax levies, Global Payroll for France performs a full recalculation of the gross salary. In other words, the system does not retrieve the old gross values, but fully recalculates both the gross salary and the funding bases, and replaces the original calculations with the new ones (in keeping with the logic of the corrective retro method).

In addition, Global Payroll for France uses the full recalculation method whenever a retro mismatch situation occurs, regardless of the social organization. The reason for this is that mismatches produce reversal segments that completely cancel the initial calculations. This prevents the old value of the gross salary elements from being retrieved during retroactive processing.

See Understanding Complex Retro Processing.

Gross Salary and Funding Base Calculation Steps for URSSAF, ASSEDIC, and CSG/CRDS

Global Payroll for France goes through the following steps to calculate the gross salary and funding bases for each organization:

1. Initialization: The system determines the ceilings to use for the different organizations (URSSAF, ASSEDIC, and CSG/CRDS).

2. Gross salary calculation: The system calculates the different earnings and deductions included in the gross salary.

3. URSSAF, ASSEDIC, and CSG/CRDS-specific gross base calculation:

   • If there is a retroactive calculation, the system retrieves the old value of the base.

   • If the calculation is in the current period, the system calculates the gross deltas not submitted to contributions, and adds them to the current gross salary to determine the gross base.

4. Calculation of contribution funding bases: The system calculates the funding bases for the contributions by applying the ceiling limitations and exemptions based on the gross base for each organization (URSSAF, ASSEDIC, and so on).

The calculation process uses these elements as follows:

1. When a segment is processed in retro corrective mode, Global Payroll uses the formulas URS FM BRUT REEL, ASS FM BRUT REEL and TAX FM BRT CSG REEL to:

   1. Retrieve the old value of the gross segment accumulator (URS AC BRUT SG, ASS AC BRUT SG, ARC AC BRUT SG, AGI AC BRUT SG, PRV AC BRUT SG, TAX AC ASS CSG SG).

   2. Assign the old value to the gross segment accumulator processed in the retro calculation.

   3. Add the recalculated gross value to the yearly real gross accumulator (URS AC BRUT REEL AN, ASS AC BRT REEL AN, TAX AC BRT CSG AN).

2. When a segment is processed in the current period or processed in retro forwarding mode, Global Payroll uses the formulas URS FM BRUT REEL, ASS FM BRUT REEL, and TAX FM BRT CSG REEL to:

   1. Calculate the gross delta not submitted to contributions by subtracting the submitted gross accumulator (URS AC BRUT AN, ASS AC BRUT AN, TAX AC ASS CSG AN) from the real gross accumulator (URS AC BRUT REEL AN, ASS AC BRT REEL AN, TAX AC BRT CSG AN).

   2. Add the delta calculated in step 2a to the current gross segment accumulator (URS AC BRUT SG, ASS AC BRUT SG, ARC AC BRUT SG, AGI AC BRUT SG, PRV AC BRUT SG, TAX AC ASS CSG SG).

   3. Submit the amount calculated in step 2b to the funding base and contribution calculations for each social organization, using the contribution rates in effect in the current period.

Example of a Gross Salary Recalculation for URSSAF

The following example of an URSSAF calculation illustrates the processing logic.

In this example:

• An employee is paid 100 EUR in January.

• In February, the employee's salary increases to 110 EUR. This change is retroactive to January.

In the January recalculation (V2R1), the system uses the old value of the gross segment accumulator (URS AC BRUT SG) calculated in V1R1 (100) rather than the true, recalculated gross (110) stored in the annual real gross accumulator (URS AC BRT REEL AN). In the January recalculation period, the value of the annual submitted gross (URS AC BRUT AN) is therefore less than the value of the real gross (URS AC BRT REEL AN).

In February, the difference between the submitted and the real gross is eliminated, as the delta between these amounts—calculated by subtracting the submitted gross accumulator (URS AC BRUT AN) from the real gross accumulator (110 – 100)—is added to the current February segment gross (110), and the resulting amount is added to the total annual amount submitted to contributions (URS AC BRUT AN).