Understanding Funding Bases

The funding bases for ASSEDIC contributions are:

• Base A: Gross salary limited to Ceiling A as defined on the Ceilings component.

  For ASSEDIC contributions limited to Ceiling A (such as RAC), the contribution is calculated based only on Ceiling A if the gross salary is more than Ceiling A. If the gross salary is less than Ceiling A, the contribution is calculated based on the gross salary.

• Base B: Part of the gross salary between Ceiling A and Ceiling A x 3.

  For ASSEDIC contributions limited to Ceiling B (such as RAC), the contribution is calculated only on the difference between the gross salary and Ceiling A if the gross salary is more than Ceiling A but less than Ceiling B. If the gross salary is more than Ceiling B, the contribution is calculated based on the portion between Ceilings A and B. If the gross salary is less than Ceiling A, no contribution on base B is required.

  Note: As of the January 1, 2001, the RAC contributions on Base A and on Base B have the same rate. The contributions could be calculated on only one slice (slice A + B), however, PeopleSoft will continue to split the contributions on the two slices (A and B) in case rates differ again in the future.

• Base A+B: Part of the gross salary included between Ceiling A and Ceiling A x 4.

  For the ASSEDIC contribution limited to Ceiling A+B (such as AGS), the contribution is calculated based on only Ceiling B if the gross salary is more than Ceiling B. If the gross salary is less than Ceiling B, the contribution is calculated based on the gross salary. The upper limit is Ceiling B.

These calculations are done on a monthly basis, but the comparisons are based on annual amounts. An annual gross salary is calculated from the monthly salary, and annual ceilings are calculated from the monthly ceilings. The system also produces a monthly report, detailing the contributions for the period. You can create and produce all required regulatory reports through the DUCS components in Global Payroll for France.

Ceilings A and B are prorated by the number of calendar days in the period to take into consideration hires and terminations during that period, the part-time rate (calculated in the payroll process), and the multiple employer rate. Payees who have multiple employers are not considered part-time, so only one proration is calculated.

Payees turning 65 during a pay period pay a prorated ASSEDIC contribution only for the period of time before their 65^th birthday. This is accomplished by triggering the section ASSEDIC if the payee isn't 65 years old at the beginning of the calendar period. The system prorates the ASSEDIC funding base if the payee turns 65 before the end date of the calendar period. The proration is equal to the amount of time the payee is still 64 years old within the calendar period divided by the calendar period duration. Ceilings A and B are not prorated; only the funding base is prorated. After a payee's 65^th birthday, if the birthday does not occur during the current calculated segment period, ASSEDIC contributions are no longer paid.

There are exceptions to ASSEDIC contributions depending on the classification of the payee or a payee's specific contract.

There are some additional exceptions that affect specific contributions. Global Payroll for France uses generation control to trigger the appropriate contributions in these special cases.