Variations on Standard Retro Processing
The standard solution for managing gross salary changes in the current year is:
Partial recalculation of gross salary elements used to process contributions for URSSAF, ASSEDIC, and CSG/CRDS.
Full recalculation of salary elements used to process contributions for ARRCO and tax levies.
Full recalculation of salary elements in any situation in which there is a segment mismatch.
However, because different kinds of retroactive change require different solutions, PeopleSoft delivers several variations on the standard approach.
This section discusses variations that apply to:
Gross salary changes with a change of establishment or company.
Ceiling changes.
Funding base exemption changes.
Changes in the lump-sum funding base for apprentices.
Contribution calculations for finalized years.
Net guarantee.
Contribution eligibility.
Hiring and departure.
Isolated amounts.
Inactive segments.
Normally, when a payee moves from one establishment to another, the accumulators storing the gross salary deltas are submitted to contributions in the new establishment. The "old" establishment pays the gross salary deltas, while the current establishment processes the contributions on these deltas.
However, when there is a change in company, the accumulators storing the gross deltas are not included in the current period calculation for the new company. This is because company is used as the key for the accumulators that store the gross deltas, and these deltas are associated with the old company. To force the gross regularization to occur within the new company's contribution calculations, PeopleSoft forwards a "dummy" element from the recalculated period to a "dummy" element in the current period. If an employee changes company, an inactive segment is processed for the employee for the old company (assuming that company is defined as a Payment Key at the pay entity level).
At a technical level, PeopleSoft manages this type of change by:
Verifying that the retro calculation system element is equal to Corrective.
If this condition is met, the "dummy" earning RETRO FICTIF is calculated and returns a value of 1.
Note: If you override the delivered Corrective retro method during implementation, the solution described here is not applied.
Mapping the element RETRO FICTIF to a second "dummy" earning element, RTRO INACTIF. This second earning receives the value of 1 contained in RETRO FICTIF when there is corrective retro (according to the retro process override definition entered on the Retro Process Overrides page).
Forwarding the earning RTRO INACTIF (with a value of 1) to the current period.
When this happens, there is no segment in the current period having the same payment keys as the recalculated segment. Because of this, an inactive segment is triggered in the current period for the "old" keys.
Note: If multiple segments are recalculated (for example, in December you recalculate all periods going back to September), the earning RTRO INACTIF will receive the value of 1 for each segment retroactively calculated as corrective (1 for September, 1 for October, 1 for November).
For this solution to work, when you define payee selection on the Calendar component (GP_CALENDAR ) prior to processing a payroll, you must include active payees plus payees with pending retroactive changes. Based on this selection, inactive payees are considered in the calendar calculation as long as they have retro forwarded adjustments coming from the dummy element for the inactive segment.
Warning! Global Payroll for France supports the retro-corrective solution described here only if you define company as a payment key at the pay entity level. This restriction is based on legal requirements for calculating, for URSSAF and ASSEDIC, contributions limited to a ceiling on a yearly basis and for a unique company. PeopleSoft does not support the use of payment keys such as contract number and establishment.
Changes to the ceiling values for URSSAF and ASSEDIC can affect funding base calculations even when there is no change to the gross salary. Global Payroll for France manages ceiling changes in corrective mode by using the old value of the gross to calculate the segment funding base, while applying the new ceiling values. Because of the ceiling changes, the final value of the funding base may be different from the initial value.
Exemption changes can affect funding base calculations even when there is no change to the gross salary. Global Payroll for France manages these changes in corrective mode by using the old value of the gross to calculate the segment funding base, while applying the new exemptions. Because of the exemption changes, the final value of the funding base may be different from the initial value.
Note: Retroactive changes to funding base exemption percentages can result in the recalculated funding base being different from the initial funding base. This can lead to a situation in which there are multiple rates to declare for the same contribution in the same DUCS declaration. In such cases, the new DUCS norm enables you to declare the old rates for URSSAF and ASSEDIC.
The gross salary is not used to determine the funding base for apprenticeship contracts. Instead, the system calculates a lump-sum funding base adjusted to the age of the apprentice and the duration of the contract. There is no annual regularization of contributions for the apprenticeship contribution as the lump-sum base is always under the ceiling. If the conditions used to calculate the lump sum funding base change retroactively, the recalculated lump-sum funding base is used, and this base is submitted to the rate in effect during the recalculated period.
Note: Gross salary changes do not impact funding base calculations for apprentices, because this calculation is independent of the salary.
Because it is not possible to change contributions after a calendar year has been declared in the DADS report, the URSSAF TRC, and the ASSEDIC BDA, Global Payroll for France does not manage the impacts of retroactive changes to gross salary elements in previous years. Customers must manage these by direct contact with the social organizations. In general, regularization changes for finalized years are declared manually.
Note: Global Payroll for France uses the forwarding method to manage retroactive calculations in past years. You can override this setup and use the corrective method to manage all employees or specific cases. However, doing so could result in contributions for previous years being including in the current DUCS declaration, which is forbidden by the social organizations.
To manage the net guarantee calculation when there is corrective retro processing, Global Payroll for France:
Blocks the recalculation of the net guarantee amount during recalculation.
The net guarantee amount is defined as Do Not Recalculate during retro calculations. This means that even if the IJSS amount changes retroactively, the net guarantee amount remains identical to the initial calculation.
Includes any IJSS deltas in the current period and then performs the net guarantee calculation.
An employee who is eligible for a specific set of contributions may be declared retroactively eligible for another set of contributions or ineligible for contributions. Conversely, an employee who is ineligible for contributions can be retroactively declared eligible for these contributions. Global Payroll for France has developed rules to manage such retroactive eligibility changes. These are described in the following sections.
Eligibility changes for URSSAF Contributions
|
Retroactive Change |
Description |
|---|---|
|
Change of Scheme |
Some URSSAF contribution rates vary based on the régime or scheme of the employee, while others depend on values defined for an establishment. Global Payroll for France manages changes from one scheme to another by recalculating and declaring contributions for the correct scheme. For the recalculated segment, URSSAF contributions are processed using the correct rates, and the gross salary used is the "old" gross salary. However, the gross deltas are processed using the contribution rates in effect in the current period. Note: These retroactive changes are declared in the DUCS report as follows: initial contributions are cancelled by declaring a negative funding base on the old scheme, while new contributions are declared in the same way but with a positive funding base. |
|
Eligible Employee Becomes Retroactively Non-Eligible |
This situation can occur, for example, if an employee is retroactively declared an expatriate not subject to URSSAF contributions. In this case, URSSAF contributions are not processed in the recalculated periods, and the initial contributions are cancelled. Note: The new DUCS norm enables organizations to declare regularized funding bases. Accordingly, the Global Payroll DUCS report for France reverses the initial declarations and displays negative funding bases for the recalculated periods with their corresponding rates. |
|
Employee not Eligible Becomes Retroactively Eligible |
Normally, when URRSAF contributions are recalculated, the recalculation of the prior period is based on the value of the "old" URSSAF gross segment accumulator (URS AC BRUT SG), and any gross salary deltas are processed in the current period using the rates currently in effect. However, when an employee becomes retroactively eligible for URSSAF contributions, the original value of this accumulator is equal to 0 (the accumulator has no value because the URSSAF process was not triggered in the original calculation, and the accumulator was not populated). This can lead to a situation in which the entire funding base is submitted to the current rate: if the rate has increased during the year, the company will pay more contributions than it should, and if the rate has decreased during the year, the company will pay less contributions than it should. To avoid this situation, Global Payroll for France has created another accumulator that duplicates the URS AC BRUT SG accumulator. This accumulator (URS AC BRUT BIS SG) is always populated, even if URSSAF contributions are not calculated. If the old value of the "standard" gross accumulator is equal to 0, the process retrieves this second gross accumulator. Warning! If you update the value of the standard URSSAF gross segment accumulator, you must also update the value of the second, duplicate accumulator. |
|
Employee Eligible for Exempt Scheme Becomes Eligible for the Normal Scheme |
If an employee who is eligible for an exempt scheme is retroactively assigned to a "normal" scheme, the variables URS VR BRT REG EX and URS VR BA REG EX (storing the exempted gross and the funding base) will not be populated, and the exempted rates will not apply when the prior period is recalculated. The exempt contributions will be cancelled in the recalculation, and will be declared as regularized in the DUCS report with negative funding bases. Note: In cases like this, the base is recalculated based on the old value of the accumulator URS AC BRUT SG. Typically, this accumulator is split when an employee is assigned to an exempted scheme so that a portion of the accumulator can be processed using the exempt rates; however, this split does not occur during the recalculation. The recalculated contributions correctly take into account the old gross and use the "normal" rates. The amount not paid in the correct scheme during the initial calculation is declared based on the new DUCS norm rules. |
|
Employee Eligible for Normal Scheme Becomes Eligible for Exempt Scheme |
If an employee who is eligible for a normal scheme is retroactively assigned to an exempt scheme, the funding base for the specific contracts is calculated retroactively. The old URSSAF gross is retrieved and split between the normal and the exempt rates. In the situation described here, the funding bases calculated for both schemes will be different from the initial calculation:
|
|
Apprenticeship Contract Changes |
If an employee defined as an apprentice is retroactively linked to another scheme, the system retrieves the old gross accumulator and uses it to calculate the funding bases (limited to a ceiling or based on the gross). The initial calculation of contributions based on the lump sum funding base and exempted rates are cancelled in the DUCS declaration. If an employee associated with a normal scheme is retroactively defined as an apprentice, the old gross is retrieved but is not used to calculate the new apprenticeship scheme. The initial contribution declaration is cancelled and the new exempted contributions are reported based on the new DUCS norm for declaring regularizations. Note: In the case of apprenticeship contracts, Global Payroll for France does not calculate the funding base based on the gross salary; it instead uses a lump-sum funding base that varies depending on the age of the apprentice and the duration of the contract. |
Eligibility Changes for ASSEDIC Contributions
|
Retroactive Change |
Description |
|---|---|
|
Eligible Employee Becomes Retroactively Non-Eligible |
If an employee who was previously eligible becomes non-eligible, the ASSEDIC contributions are not recalculated. The initial contributions are cancelled in the DUCS declaration and the ASSEDIC accumulators are updated. |
|
Employee not Eligible Becomes Retroactively Eligible |
Normally, when ASSEDIC contributions are recalculated, the recalculation of the prior period is based on the value of the "old" ASSEDIC gross segment accumulator (ASS AC BRUT SG), and any gross salary deltas are processed in the current period using the rates currently in effect. However, when an employee becomes retroactively eligible for ASSEDIC contributions, the original value of this accumulator is equal to 0 (the accumulator has no value because the ASSEDIC process was not triggered in the original calculation, and the accumulator was not populated). This can lead to a situation in which the entire funding base is submitted to the current rate: if the rate has increased during the year, the company will pay more contributions that it should, and if the rate has decreased during the year, the company will pay less contributions than it should. To avoid this situation, Global Payroll for France has created another accumulator that duplicates the ASS AC BRUT SG accumulator. This accumulator (ASS AC BRUT BIS SG) is always populated, even if ASSEDIC contributions are not calculated. If the old value of the "standard" gross accumulator is equal to 0, the process retrieves this second gross accumulator. Warning! If you update the value of the standard ASSEDIC gross segment accumulator, you must also update the value of the second, duplicate accumulator. |
Eligibility Changes for Retirement and Contingency Contributions
|
Retroactive Change |
Description |
|---|---|
|
Change of Fund Without Category Change |
Retirement and contingency contributions are paid to specific funds. Each fund must deliver a "contract number" for the different categories of employees declared. This contract number is used as a key in the accumulators used to calculate the retirement funding bases following the annual regularization rule. So, if an employee changes from a fund to another, the accumulators keys change and the contribution calculation is based on "re-initialized" accumulator values. PeopleSoft manages this situation by fully recalculating the retirement and contingency fund contribution. This corrective calculation ensures that the right accumulators are used and that contributions are correctly resolved. Note: In this situation, the funding base regularizations are added to the current period funding base in the DUCS declaration, as the retirement and contingency fund rates don't change during the year. Note: The annual gross accumulators for ARRCO and AGIRC are ARC AC BRUT ABA AN and AGI AC BRUT ABA AN. These accumulators are used to calculating the segment funding bases for ARRCO and AGIRC contributions. These accumulators are defined with four keys: Company, Contract Number, ARC VR CATEGORY or AGI VR CATEGORY (variables storing the employees' category), and ARC VR NUM MEMBRE or AGI VR NUM MEMBRE (variables storing the retirement contract number). |
|
Change in Employee Category (Employee, Art 36, or Manager) |
Because the contributions processed for employees depend on their category, new contributions must be calculated in this situation. New accumulator instances must also be created, as the employee categories are used as keys for the retirement contributions accumulators (A4 for managers, A36 for employees viewed as managers by the retirement funds, and EMPL for employees). In the event of a category change, the system fully recalculates the contributions related to the new category, and updates the correct accumulators with their correct keys. Note: For the DUCS report, the old contributions are cancelled and the recalculated contributions are declared in the current period. The old and the recalculated contributions are considered in the current DUCS declaration and their funding bases are regularized (as in general, there is no change in the rates during the year). Some contributions such as the lump sum APEC (APEC forfaitaire) are calculated and declared only in March for Art 36 and Manager categories. When this contribution is calculated or cancelled retroactively, it must be declared in the current DUCS report. Note: In the event of retroactivity going back to prior years, the gross deltas should be forwarded to the current period and included in the retirement contributions for this period. In other words, the deltas should be processed for the retirement category and the retirement fund number of the current period. |
|
Change In Contract Number |
Contract number is also used as a key in the accumulators used for the retirement contribution calculation. When the contract number changes retroactively, all contributions are fully recalculated to generate new values for the funding bases, and new accumulators are created (based on the new keys). Note: In this situation, the contribution regularizations are fully declared in the DUCS report. |
|
Apprenticeship Contract Changes |
If an employee becomes an apprentice retroactively, no retirement or contingency contributions are calculated in the recalculated period, because a conditional formula attached to the Retirement and Contingency sections prevents them from being triggered for apprentices. Instead, the DUCS report deducts the contributions initially declared. If an apprentice becomes a non-apprentice retroactively, the retirement contributions are fully calculated in the retro period and are declared in the DUCS report. |
|
Employee not Eligible for Contributions Becomes Eligible |
If an employee is declared retroactively eligible, the contributions are calculated in the prior periods using the recalculated gross rather than the "old" value of the funding base. Contributions calculated in this way are added in full to the current DUCS declaration (as the rates do not change during the year). |
Eligibility Changes for Levies
|
Retroactive Change |
Description |
|---|---|
|
Employee Eligible for CSG and CRDS Becomes Retroactively Non-Eligible |
In this case, CSG and CRDS contributions are not processed in the recalculated periods, and the initial contributions are cancelled. Note: The new DUCS norm enables organizations to declare regularized funding bases. Accordingly, the Global Payroll DUCS report for France reverses the initial declarations and displays negative funding bases for the recalculated periods with their corresponding rates. |
|
Employee not Eligible for CSG and CRDS Becomes Retroactively Eligible |
To manage cases in which an employee who is ineligible for CSG and CRDS contribution becomes retroactively eligible, Global Payroll for France applies the same solution developed for URSSAF and ASSEDIC. This solution consists in retrieving the value of a second accumulator—TAX AC CSG BIS SG—that duplicates the standard TAX AC ASS CSG SG accumulator. This accumulator (TAX AC CSG BIS SG) is always populated, even if tax contributions are not processed. If the old value of the "standard" gross accumulator is equal to 0, the process retrieves the second gross accumulator. If an employee who is ineligible for the transportation levy becomes retroactively eligible, the system recalculates the levy based on the initial social security funding base. If the rate changes between the recalculated period and the current period, the new DUCS norm allows a regularized declaration. |
|
Changes in Eligibility for the Contingency Levy |
Retroactive changes in eligibility for the contingency levy are processed using the full recalculation method. |
|
Changes in Eligibility for the Training Levy |
Retroactive changes in eligibility for the training levy are processed using the full recalculation method. |
|
Changes in Eligibility for the Construction Levy |
Retroactive changes in eligibility for the construction levy are processed using the full recalculation method. |
|
Changes in Eligibility for the Tax on Salary Levy |
Retroactive changes in eligibility for the tax on salary levy are processed using the full recalculation method. |
|
Changes in Eligibility for the Work Council Levy |
Retroactive changes in eligibility for the work council levy are processed using the full recalculation method. |
Global Payroll for France has developed solutions to manage retroactive hiring and departures, their impact on URRSAF, ASSEDIC, and other social contributions.
|
Retroactive Change |
Description |
|---|---|
|
Payee Hired Retroactively |
The solution used to manage this situation depends on the social organization.
|
|
Retroactive Change in Hire Date |
Retroactive changes to an employee's hire date produces a retro mismatch. In this situation, the system fully recalculates the contributions. If, in addition to a hire change, a change of salary occurs, the system may not apply the current rates to the gross deltas as required by URRSAF and ASSEDIC (because it performs a full recalculation and replacement of the elements in the prior period). For this reason, you should evaluate the impacts retroactive hiring on your calculations. Note: Other retro mismatch situations that you need to manage are: (1) change of company, (2) change of establishment, (3) and all changes to segment dates (for example, departures). In these situations, you need to determine whether the correction could negatively impact the contribution calculations and declarations. |
|
Retroactive Departure |
In most cases, retroactive departures imply a segment mismatch and a full recalculation of all contributions in the current year. The termination allowances paid retroactively are then submitted to the "old" rates. Note: This is a limitation of the delivered retroactive processing logic, as URSSAF and ASSEDIC require the use of rates in effect in the current period. Note: There are some situations in which a retroactive departure does not imply a segment mismatch. This occurs, for example when an employee is retroactively terminated on the last day of the segment (in which case there is no change in the segment dates between the initial calculation and the recalculation). As there is no retro mismatch in this situation, a partial recalculation occurs and the gross deltas (if any) are processed in an inactive segment in the current period. |
|
Retroactive Change in the Departure Date |
This situation produces a retro mismatch and a full recalculation of all contributions. |
|
Retroactive Hire and Departure in the Same Period |
In this situation, because no prior version exists, the system partially recalculates the URSSAF, ASSEDIC, and CSG/CRDS contributions. The gross deltas are submitted to contributions in the current period using an inactive segment. |
Isolated amounts are amounts paid at or after termination that are submitted to specific AGIRC retirement contributions.
Global Payroll for France delivers specific rules for managing isolated amounts processed retroactively. These rules are triggered when:
There is a retroactive termination.
There is a retroactive payment of an amount after a termination.
There is a retroactive termination or payment following a termination for an employee who has changed categories between the different recalculated segments.
Three elements have been created–using the retro process override setup–to retrieve any deltas created by the retroactive calculations:
RETRO SI: This earning element retrieves the gross salary deltas of the accumulator GEN AC BRUT SG.
RETRO SI AGI: This earning element retrieves the gross deltas of the accumulator AGI AC BRUT SG (AGIRC gross base segment accumulator).
RETRO DELT SI: This earning element retrieves the deltas of the accumulator AGI AC SI MNT SG (isolated amounts segment accumulator).
Note: These elements are used in the formula RTO FM RECUP SI only when the segment processed is INACTIVE and the current calculation is not retroactive.
When processing isolated amounts at or after termination, the system:
Calculates the difference between RETRO SI and RETRO DLT SI.
Adds the results of this calculation to any isolated amounts in the current period.
The system stores the difference between RETRO SI and RETRO DLT SI in the variable RTO VR SI, and adds the value of this variable to the current isolated amounts accumulator AGI AC SI MNT SG.
Note: This calculation treats the gross salary deltas as isolated amounts, but processes only deltas that have not already been considered as isolated amounts and submitted to contributions.
When an employee changes category during the year (for example, from employee to manager), there is a possibility that this calculation will treat all gross deltas as isolated amounts, when only the gross deltas for periods when the payee was a manager should be considered. To avoid this, the system calculates the difference between RETRO SI and RETRO SI AGI. If there is a difference between these elements, the system knows that the employee changed category in the recalculated period. It stores this difference in the variable RTO VR SI AGI, and uses it to limit the isolated amounts delta (so that deltas for the periods when the employee was not eligible for AGIRC contributions are not included in the isolated amounts).
To process retroactivity in certain situations, Global Payroll for France triggers inactive segments in the current period. For example, this occurs in situations in which an employee changes company between the different segments recalculated.
Inactive segments have the following characteristics:
No ceilings are calculated in inactive segments.
Because the employee is not considered "present" in inactive segments, there is no ceiling calculation. The progressive regularization of contributions occurs normally for the segment with a gross increase, but there is no change in the annual ceiling amount.
The different elements (variables, accumulators) storing the worked/paid days or hours are set to 0 in the inactive segment.
The inactive segment is not considered in the calculation of seniority days (stored in the accumulator GEN AC JOUR ANC).
No SMIC control occurs in inactive segments, as no paid hours can be calculated for these segments.
The fiscal and social reinstatement calculation is triggered for inactive segments.
Inactive segments are declared in the DADS-U. The begin and end dates of these segments are set to 1 January (01/01) as required by the norm.