Understanding FAKs
An FAK is a family allowance agency that pays monthly contributions towards family allowances, such as child allowances and maternity benefits.
Employers must be affiliated with an FAK unless they have special dispensation. The FAK is generally the same agency that is used to deduct AHV/ALV contributions. Employers are entitled to special dispensation when belonging to an FAK provided that they have a recognized contract of employment.
FAK benefits depend on the canton in which an employer is located. If an employer is affiliated with an FAK, they must transfer a certain percentage of an employee's total contribution to AHV to the FAK.
The system processes FAK data in three parts: initialization, calculation, and refund administration.
Initialization
During the initialization step, the system determines which canton rules to apply for a payee. Section CH_FK_INIT performs these actions:
Reads Canton from the Location table (GP_LOCATION_TBL).
Reads the tax location from the Swiss Location table (PS_LOCATION_CHE).
Reads Canton from the Child Allowance Data table (PS_GPCH_CA_DATA1).
Decides which Canton value to apply to FAK calculation using the FAK/CA Canton EE override formula (CH_FK_FO002).
Prepares the FAK Canton information using the initiate read of FK_FAK_STX for FAK formula (CH_FK_AR004_IN_FK).
Calculation
During the calculation step, the system computes the following earning, accumulators, and deductions:
|
Element |
Element Type |
Description |
Calculation Rule |
|---|---|---|---|
|
CH_FK_02 |
Accumulator |
FAK Base |
AHV Wage (CH_AH_D11_BASE) + Customer Entry (CH_FK_C02) + FAK Base Correction (CH_FK_M02). |
|
CH_FK_M02 |
Deduction |
FAK Base Correction |
Base (Payee Level) * Percent (100). |
|
CH_FK_D10 |
Deduction |
FAK Contribution EE |
Base (Accumulator CH_FK_02) * Percent (0.3). |
|
CH_FK_D11 |
Deduction |
FAK Contribution |
Base (Accumulator CH_FK_02) * Percent (CH_FK_PCT). |
|
CH_FK_D00 |
Accumulator |
FAK Debt |
Family Allowance Total (CH_CA_ALL) + Custom Entry (CH_FK_CD00) — FAK Contribution (CH_FK_D11). |
|
CH_RP_FKD00 |
Earning |
FAK Saldo (copy of CH_FK_D00) |
Amount (Accumulator CH_FK_D00). |
|
CH_FK_D12 |
Deduction |
FAK Compensation |
Base (Accumulator CH_FK_02) * Percent (0.01). |
|
CH_FK_D13 |
Deduction |
FAK Additional VS |
Base (Accumulator CH_FK_02) * Percent (0.015). |
Refund Administration
During this step, the system determines calculation amounts. Section CH_TX_S4000 performs these actions:
Applies additional employer FAK contributions for payees in Neuenburg and Zug by using deduction CH_FK_D21.
Prepares the source tax canton information using formula CH_FK_AR004_IN_TX.
Places the FAK default data and source tax refund percentages into array CH_FK_AR001.
Calculates the tax refund for administrators (accumulator CH_TX_D11).
The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Switzerland. Instructions for running the query are provided in the PeopleSoft Global Payroll PeopleBook.