Understanding Reimbursement Terms
Global Payroll for France is designed to manage many of the regulations that govern reimbursement terms for loans and advances. In addition to what the system already offers, you can also reconfigure the system to meet further needs, if necessary.
This section discusses:
Reimbursement of loans and salary advances (avances).
Reimbursement of permanent salary advances.
Reimbursement of advances on salary (acomptes).
Loan and advance processing relative to garnishment processing.
Global Payroll for France is set up to process loan and salary advance paybacks once a month. If there are multiple segments within the month, the system processes paybacks during the first segment of the month. In addition, regulations limit the deduction for reimbursement of a salary advance or loan to a maximum of 10 percent of the net salary each month. If you request a deduction of more than 10 percent of the payee's net salary, the system generates an error message stating that the payment amount exceeds the 10 percent limit. This message is sent to the user and appears on the Payee Messages page.
If multiple salary advances and loans are owed, the system processes the payback amounts in a set order. The processing order for reimbursement of loans and salary advances is as follows:
Salary Advance (RETENUE AV1)
Salary Advance (RETENUE AV2)
Salary Advance (RETENUE AV3)
Loan (RETENUE PR1)
Loan (RETENUE PR2)
Loan (RETENUE PR3)
When the system processes the deduction payments for loans and salary advances, it does not consider the order in which the loans and salary advances were created. It always processes each loan and salary advance reimbursement in this order.
Note: The order in which loans and advances are processed reflects the order of the elements in the PRE SE PRET process section.
Special Circumstances for Reimbursement of Loans and Salary Advances in the Case of Departure
If a payee leaves the organization and the balance of his or her advance or loan is more than 1/10th of his or her net salary, the system automatically deducts the entire balance, but issues a warning stating that the payment exceeds the 1/10th limit. At that point, it is up to the organization to change the amount of the payback to comply with regulations.
Sometimes a payee is transferred to an affiliated organization–an organization whose payees are paid using the same payroll system–and the payee's net salary from the former organization cannot cover the balance of the loan or salary advance. In this circumstance, the organization can process the last deduction from the former organization's payslip and roll over the balance owed to the new organization.
The balance of a permanent advance is recovered automatically when a payee leaves the organization. However, you can recover a permanent advance prior to departure by specifying the reimbursement amount using positive input.
When a payee receives an advance on salary, he/she receives compensation before the regular payroll payment. You can then reduce the payee's next payslip by the amount advanced by entering the reimbursement amount using positive input.
Global Payroll for France processes garnishments before it processes loans and salary advances (avances), permanent salary advances, or advances on salary (acomptes). If there is insufficient net pay to cover all loan and advance reimbursements after garnishments are deducted, the system avoids returning a negative net payment by processing the remaining loans and advances in subsequent pay periods.