Nonsalary Earnings

Nonsalary earnings are exempt from taxes and social security contributions in certain situations. Because of this, the system handles nonsalary earnings differently, depending on their amounts.

Each earning has a statutory maximum daily amount exempt from tax and social security contributions, which varies by fiscal territory. Update these rates using the Fiscal Territories component.

See Understanding Tax Calculation.

Any reimbursement over the statutory maximum is subject to taxes and Social Security contributions. Likewise, the entire amount must be accumulated over total earnings, but only the amounts in excess of the statutory maximum must be accumulated over the taxable and social security base.

You calculate these earnings by entering the number of days and the total amount of the complement in the amount through positive input.

As a result of the calculation, PeopleSoft Global Payroll for Spain provides three different elements for every nonsalary earning:

• One earning: Represents the total amount that the employee receives.

• One earning (the name includes the letters EX): Represents the amount that exceeds the maximum taxable exempted.

• One deduction (the name includes the letter EXX): Represents the amount that exceeds the maximum taxable exempted.

Travel expenses are compensations for trips, displacements, and general traveling expenses. PeopleSoft Global Payroll for Spain delivers a mileage earning and accounts for its tax and Social Security deductions in excess of the statutory rate.

Dietas is compensation that reimburses expenses resulting from business trips. They include these delivered earnings:

• DIETA EXPTR (expatriate traveling maintenance).

• DIETA INT (international traveling maintenance).

• DIETA LCL (domestic traveling maintenance).

• DIET VLO EXP (expatriate traveling maintenance for flight assistants)

• DIET VLO INT (international traveling maintenance for flight assistants).

• DIET VLO LCL (domestic traveling maintenance for flight assistants).

• PRNCTA EXP (expatriate overnight stay).

• PRNCTA INT (international overnight stay).

• PRNCTA LCL (domestic overnight stay).