Setting Up Contingency Fund Contributions
This section provides an overview of contingency funds calculation and discusses how to set up contingency funds for contribution calculation.
The contingency funds functionality for Global Payroll for France integrates with the contingency funds management functionality in HR for France. The system uses arrays to retrieve new and additional data from HR that the system needs to process contingency fund deductions. After retrieving the data from the contingency contracts definition, the system creates contingency fund deductions using the Global Payroll core multiple-resolutions functionality with accumulator drivers. The system retrieves all contracts assigned to a given payee, and then generates as many instances of the contingency contribution deduction as there are contracts for the payee.
The delivered deduction elements are the PREVOYANCE S deduction for payee contingency contributions and PREVOYANCE E for employer contingency contributions. Both deductions are driven by the same driver accumulator PRV AC PILOTE, which has the following accumulator keys: membership number, contribution type, population category, and mandatory/optional flag. Then, for each unique accumulator instance—that is, for each unique set of keys— the system can generate both employee and employer contributions.
Contingency Fund Rates
To assign rates to contingency funds you must enter them directly in the contingency contract on the Pension/Contingency Contract page in the HR application. The system retrieves these rates by the arrays reading the contract. The system stores the rates in dedicated accumulators per contingency contract. The system uses the PRV AC TX PAT accumulator for the employer rate and the PRV AC TX SAL accumulator for the employee rate.
In previous releases customers used the Contingency Rates page to view the mandatory rates for contingency funds paid by the employer for management classes Article 36 and Article 4/4 bis. If you are upgrading from a previous release, you must set the inactivation date of the contingency funds rates as defined on the former Contingency Rates page to reflect the date when you want to apply the new rules.
Contingency Fund Contributions and Fiscal Net
Mandatory and optional contracts impact the fiscal net differently. For mandatory contingency contributions, the system deducts the payee part from the fiscal net. For non-mandatory contingency contributions, the system adds the employer part to the fiscal net. The system stores the values for the fiscal net in the GEN AC NET FISCAL accumulator. This accumulator has two members: the PREVOYANCE E deduction for employer contributions and the PREVOYANCE S deduction for payee contributions. The variables PRV VR ALIM S and PRV VR ALIM P determine the percentage of deductions to contribute to each member of the fiscal net accumulator. If the contingency contribution is mandatory, the variable value is 100. If the contingency contribution is non-mandatory, the variable value is 0. The system applies these percentage values to the deductions within the fiscal net accumulator.
Contingency Fund Contributions and Net to Gross Calculation
Global Payroll for France delivers the section PRV SE COTIS GN that contains the deductions dedicated to the payee and employer contributions calculations. The system uses this section when processing net to gross calculation.
DADS Setup for Contingency Fund Contributions
You define DADS data type codes on the Institution Type page of the Pension/Ctgcy Institutions component within HR. The system uses the DADS code as the pension code for DADS. Navigate to
DUCS Setup for Contingency Fund Contributions
As soon as the system calculates a set of contingency contributions (employee + employers on the same base) it automatically populates the DUCS writable array that the system later uses in the DUCS computation. The codes are stored in the delivered bracket PRV BR DU CODES. The system uses the DUCS codes in the PRV BR DU CODES bracket plus the code that you define in the institution definition in the DUCS Code field on the Institution Type page of Pension/Ctgcy Institutions component with the HR application. The system uses the DUCS code as the institution number for DUCS.
To set up DUCS for contingency funds, you must set up the PRV BR CONTRIB bracket for calculation of contingency fund contributions. You can also define whether a DUCS contact is a recipient or sender for DUCS type 903 on the Contact Definition page of the DUCS Contacts FRA component.
In releases prior to 9.0, you had to set up the DUCS contribution list for contingency funds through the family contribution code 909 on the DUCS Contributions page. If you are upgrading from a release prior to 9.0 you must set the inactivation date of the family contribution code 909 to reflect the date when you want to apply the new rules.
To set up Global Payroll for France to calculate contingency funds contributions:
Set up contract data for contingency contracts in the HR application.
This includes setting up codes for the funds to which employees contribute, defining the institutions that manage the contingency funds, and defining the contingency contracts. Global Payroll calculation process uses this information to calculate contingency funds.
Set up the PRV BR CONTRIB bracket for calculation of contingency fund contributions.
Within the bracket you must define:
The element that you want the system to use as the funding base of the contingency contribution calculation when processing payroll.
A definition for all contingency funds contributions.
The corresponding funding base DUCS code.
The code for positive and negative amounts for DUCS.
The element used to define the FTE for DUCS.
As part of the setup on for contingency contracts, you must enter the base calculation type on the Pension/Contingency Contracts page. If the Base Calculation Type field value is other than base times rate, you can select Other field value and enter a formula in the Formula Name field. Use of this option overrides all delivered functionality for contingency funds calculation. For example, the declaration does not trigger and the system does not retrieve the data from HR through the arrays.