Understanding Contribution Rates and Limits

This section discusses:

PeopleSoft-delivered contribution rates and ceilings.
Contribution calculations.

PeopleSoft defines the contribution rates for URSSAF, ASSEDIC, ARRCO/AGIRC, and contingency funds as variables. Although PeopleSoft populates these variables with the correct rates for each type of contribution, and defines the ceilings that apply to the bases used to calculate these contributions, you can adjust the rates and ceiling values to comply with changing laws.

For example, there are 17 variables for the ARRCO rates. Each variable represents a single ARRCO contribution rate. On the ARRCO Rates page, the first variable contains the rate for the non-managers, Slice 1 (T1), payee contribution. The second variable contains the rate for the non-managers, Slice 1 (T1), employer contribution, and so on.

Many contributions, such as those for URSSAF and ASSEDIC, are based on earnings limits, or ceilings, defined by the government.

Ceilings are the earnings limits that define the different contribution rates for organizations such as URSSAF and ASSEDIC. The Limits page contains ceiling definitions. The monetary values of the ceilings appear on the Ceilings page.

You use the Contract Data page in PeopleSoft HR to assign limits to the earnings ceilings and enter complementary HR information specific to France. This information relates to the payee's regime and any related contribution deductions. Any payee eligible for an URSSAF contribution must be associated with a contribution class code (social security code or regime).

This section discusses how the contribution calculations change in specific situations.

Progressive Regularization of Contributions

Some contribution types have limit ceilings. For these contributions, Global Payroll for France applies a progressive regularization of the contributions. This means that in each segment, the system calculates the limited funding base based on the annual amounts and obtains the funding month for the segment. The funding base is calculated as follows:

Calculation of the annual funding base limited to a ceiling – annual funding base on which the payee has already contributed = segment funding base limited to a ceiling

The annual funding base is calculated by the GEN FM CALC LIMIT formula. To process this formula correctly, the following variables must be populated: GEN VR BRUT (annual base amount), GEN VR MAXI (upper ceiling limit), and GEN VR MINI (lower ceiling limit).

Ceiling Proration Based on the Number of Segment Days

The ceilings entered on the Ceilings page are monthly ceilings for the URSSAF, ASSEDIC, ARRCO/AGIRC, and Contingency funds contributions. In the case of segmentation, these ceilings are prorated according to the number of days in the current segment being processed. The proration is calculated by the GEN FM NB JR 30IEM formula, based on 30 days per month (trentième) for all months of the year (as required by French law).

To override the number of days in the current segment retrieved by the GEN FM NB JR 30IEM formula, use the variable GEN VR 30EME FORCE and enter the new value on the Supporting Element Overrides page. The new value will be used for the calculation of the prorated ceilings. All ceilings calculated by PeopleSoft are affected by this override.

Ceiling Reduction for Payees with Multiple Employers

For payees with multiple employers, enter a multiple employer rate on the Contract Data page. The ceiling reduction is calculated using the value entered in the Multiple Employer Rate field.

Ceiling Proration for Part-Time Payees

You can apply proration to the ceiling for part-time payees. If these payees work less than the company standard hours, this proration is applied. This proration does not apply if the payee has multiple employers because the law indicates that only one proration can be used. The ceiling reduction first applies for the multiple employer rate and is never processed for part-time payees if it has been applied for multiple employers.

Gross Reduction Percentage for Specific Job Categories

You can enter a gross reduction value for specific job categories on the Contract Data page. The generic formula GEN FM ABATT BASE is used to calculate the funding base after reduction with the limitation previously defined.

Overriding Ceiling Values

Several variables can be used to override the ceiling values calculated by the application. The ceilings must be overridden individually.

Variable	Function
URS VR PLAF A FORC	Overrides the URSSAF A ceiling.
ASS VR PLAF A FORC	Overrides the ASSEDIC A ceiling.
ASS VR PLAF B FORC	Overrides the ASSEDIC B ceiling.
ASS VR PLAF AB FORC	Overrides the ASSEDIC AB ceiling.
ARC VR PLAF A FORC	Overrides the ARRCO A ceiling.
ARC VR PLAF 1 FORC	Overrides the ARRCO 1 ceiling.
ARC VR PLAF 2 FORC	Overrides the ARRCO 2 ceiling.
AGI VR PLAF A FORC	Overrides the AGIRC A ceiling.
AGI VR PLAF B FORC	Overrides the AGIRC B ceiling.
AGI VR PLAF C FORC	Overrides the URSSAF C ceiling.
AGI VR PL ABC FORC	Overrides the AGIRC ABC ceiling.
AGI VR PL GMP FORC	Overrides the AGIRC GMP ceiling.
PRV VR PLAF A FORC	Overrides the Contingency Funds A ceiling.

Long Term Absences

There are three types of long-term absences considered by Global Payroll for France:

Unpaid Absence During An Entire Month.
In the case of an unpaid absence during a whole month, the ceilings are considered equal to 0. In order to manage this case, the payee status must be equal to Leave with Pay during the whole month.

If the payee status is equal to Leave with Pay, the URSSAF, ASSEDIC, and Contingency ceilings and the ARRCO ceiling for payees are set equal to 0.

If you want to avoid setting ceilings equal to 0, override the variable GEN VR ANNUL PLAF at the Supporting Element Overrides level with the value 0. Then, even if the status is equal to Leave with Pay for the whole month, the ceilings won't be set equal to 0.
Uninterrupted Absence that Overlaps Two Calendar Year with A Status of Leave with Pay.
In this situation, if there is a payment of back pay salaries for the previous year, the system retrieves the last ceiling values for the payee and uses these ceilings to calculate the contributions of the segment.
Uninterrupted Absence that Overlaps Two Calendar Year with A Status of Leave without Pay.
When the payee comes back (and when his status is no longer equal to Leave with Pay), then all the ceilings are set to 0. This means that the system does not use the ceilings if they have been retrieved as described in the previous case.