Modifying Delivered Nonbasic Earnings Accrual
There are certain delivered nonbasic earnings such as INCENTIVOS and PRTCPCN BEN that you can modify to accrue over more than one month to prevent the Social Security contributions for those earnings from surpassing the maximum ceiling during the payment month. This topic provides an overview of this modification process and discusses how to view compensation accrued over more than one month.
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Page Name |
Definition Name |
Usage |
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GP_PIN |
Name the element and define its basic parameters. |
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GP_ERN_DED_CALC |
Define calculation rules for an earning element. |
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GP_ERN_DED_RND |
Specify rounding and proration options for the components of an earning element. |
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GP_ERN_DED_AC_ADDL |
Indicate the accumulators (already defined in the system) to which the earning element contributes. |
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GP_ED_PYE |
By payee, view and update earning and deduction assignments, or disable earning/deduction assignments. |
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GP_PI_MNL_ERNDED |
Enter positive input for one payee. (You select the employee ID, pay group, and calendar to access this page.) |
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Comp. Accrued >1 Month ESP (compensation accrued over more than one month) Page |
GPES_FUT_CNTRB |
View compensation accrued over more than one month. |
To modify nonbasic earnings to accrue over more than one month:
Add the post process formula SS FM BSE CNTB F on the Calculation page for the earning.
Remove the contribution base accumulator (SS AC BSE M S) on the Accumulator page for the earning.
On the Rounding/Proration page, add the proration rule GEN PO DIAS SLICE to the earning.
On the Earnings Name page, select the Payee check box in the Override Levels group box for the earning. This enables you to assign the earnings to payees using the Element Assignment by Payee (GP_ED_PYE) or One Time (Positive Input) (GP_PI_MNL_ERNDED) component.
Add a unique value in Field 5 on the Element Name - Custom Fields page. This helps to differentiate nonbasic earnings that accrue over more than one month.
The variable CLI VR M PRORRATEO determines the number of months used to distribute the Social Security contributions for the earning. You set the value for this variable when you assign the associated earning using the Element Assignment by Payee or One Time (Positive Input) components.
Earnings Behavior
The assigned earning behaves differently in the case of segmentation depending on which component you use to assign it. If you use the Element Assignment by Payee component, the system calculates the earning in every slice or segment with a prorated value. The system calculates Social Security contributions according to each of these values. If you use the One Time (Positive Input) component, the system calculates the earning only once and does not prorate the value. The system calculates Social Security contributions based on that calculated value.
Compensation Process Flow
Regardless of the component you use to assign the modified earning, the process flow for compensation accrued in more than one month is the same. The payee receives the total amount of the assigned earning in the payment month. The system calculates the monthly portion of the earning applicable to contribution base calculation by dividing the total amount by the number of months entered (the entered value of CLI VR M PRORRATEO). The pending base is the total amount minus the calculated monthly portion. In subsequent months, the system retrieves the data for the previous month. The pending base retrieved from the previous month becomes the new total amount. The system then subtracts the monthly portion from the new total amount to calculate a new pending base for the next month.
The payroll results for compensation accrued over more than one month depend on two factors: process month and payee situation.
In the payment month, if the payee is sick, the pending base is the total amount minus the monthly base corresponding to contribution days (healthy days). The monthly contributing base corresponds to healthy days.
In subsequent months:
If the payee does not contribution in the process month, the system stores a row equal to the previous one with one less number of months and with a total amount equal to the pending amount from the previous month.
If the payee is sick, the pending base is the total amount minus the monthly base corresponding to contribution days (healthy and sick days). The monthly contributing base corresponds to healthy days.
When calculating the regulatory daily base (BRD), the system considers the Social Security base of the previous month or months in which the contributions of compensation accrued in more than one month as already included.
When element or period segmentation occurs, the system calculates the proportional part to contribute for each slice and segment. In addition, the system calculates the total pending base minus the monthly corresponding base, but it stores only the data in the last slice of the last segment.
In the case of a termination, the system uses the total pending amount at the time of termination to calculate the contribution base. The pending amount is equal to zero in subsequent months in the case of a rehire.
Use the Comp. Accrued >1 Month ESP (compensation accrued over more than one month) page (GPES_FUT_CNTRB) to view compensation accrued over more than one month.
Navigation:
This example illustrates the fields and controls on the Comp. Accrued >1 Month ESP (compensation accrued over more than one month) page. You can find definitions for the fields and controls later on this page.
Field or Control |
Description |
|---|---|
Year From and Year To |
Enter the range of years over which you want to view compensation. |
Month From and Month To |
Enter the range of months over which you want to view compensation. |
Search |
Click to display compensation accrual information for the year and month range you specified. |
Details of Payee (Contribution)
This group box displays detailed information about accrued compensation for the payee. You can modify the amounts in the Amount to contribute and Pending to contribute fields.