Reporting and Retroactivity

Declaration Methods

The retroactive process impacts not only the calculation of social contributions for URSSAF, ASSEDIC, and AGIRC/ARRCO, but also the declaration of these contributions. PeopleSoft follows the DUCS norm for declaring contributions. The latest version of these norms supports corrective declarations, and PeopleSoft has taken advantage of the new standards to develop solutions for reporting retroactive changes.

There are two kinds of declarations for reporting retroactive changes to social contributions:

• Additive declarations.

  In an additive declaration, the funding bases from recalculated periods are added to the funding base in the current period.

  Note: Funding bases can be added together only when there is no difference in contribution rates between the recalculated periods and the current period, as the DUCS norm allows only one rate to be declared per period.

• Rectified declarations.

  In a rectified declaration, separate "rectification" reports are issued for each period recalculated. In other words, bases are not combined and different rates can be attached to the base deltas as well as the current period base.

  Note: Rectified declarations can be generated regardless of whether the rates used in the current and recalculated periods are the same or different.

• URSSAF.

  For the URSSAF declaration, the DUCS program differentiates contributions calculated in different periods. For example, if there is a retroactive base salary change in December going back to the beginning of the year in January, the DUCS declaration will consist of 11 rectified declarations (from January to November) and one normal declaration (for December).

  If there is a difference in the rates between the current and prior periods, each retroactive change in a funding base must be declared separately and identified by the period regularized, just as is the case when only the funding base changes.

• ASSEDIC and AGIRC/ARRCO.

  For ASSEDIC and AGIRC/ARRCO, the DUCS program combines contributions calculated in different periods as long as the rates are the same in the prior and current periods (the recalculated funding bases are added to the current period funding base).

  If there is a difference in rates between current and prior periods when contributions are recalculated, the DUCS report will display the same contribution multiple times with the different rates and corresponding bases.

  Note: Conflicting rates are retrieved only if for a specific DUCS type, the setup indicates that additive declarations are done.

Managing Retroactive Changes to Rates in the DUCS Declaration

When a company reprocesses prior periods to correct contribution rates that are above or below the official rates, the resulting calculations are recorded in the DUCS declaration as follows:

• The initial calculations done using incorrect rates are reversed in the current declaration.

  Note: From the perspective of the social organization, it will appear that these reversals use an invalid rate.

• The recalculations done with the correct rates are declared for the full funding base.

When the social organization receives the "corrected" declaration, it may issue a rectification to force either immediate payment of missing contributions (if the original rate used was below the official rate), or a reduction in future payments (if the original rate used was above the official rate). This is because the "corrected" DUCS declaration displays invalid rates for the contributions that have been reversed.

Viewing and Modifying the Declaration Method Used for Reporting

You can view the declaration method defined by the official bodies for each organization on the DUCS Types page. If the rules for making retroactive declarations change, you can use this page to modify the method.