Understanding Self-Insurance Collaboration Management

PeopleSoft Global Payroll for Spain provides functionality for managing data and reporting for self-insurance companies. Self-insurance companies are companies that are self-insured and voluntarily collaborate with Social Security in the management of benefits provided under the general scheme for temporary illness according to the terms of the collaboration. As defined by the General Law on Social Security (LGSS) Article 77, two types of self-insurance collaboration are available with Social Security:

  • Collaboration for work-related injury or occupational disease (AT/EP).

  • Collaboration for nonwork-related injury or common disease (non-AT/EP).

Self-insurance companies can collaborate in the management of social security benefits through one or both of these collaborations by assuming payment of the benefit directly to the affected employee on behalf of Social Security. Companies must pay these benefits with the same frequency that they pay salaries. In return, the self-insurance company gets deductions for its required social security contributions.

Collaboration for Work-Related Injury or Occupational Disease (AT/EP)

When a self-insurance company collaborates with Social Security for work-related injury or occupational disease (AT/EP):

  • The collaboration affects all employees of the employer social security number (Employer SSN) that you define as having a self-insurance collaboration on the Self-Insurance Data page.

  • The company gives healthcare coverage and pays for economic benefits for temporary disability derived from work-related injury or occupational disease (AT/EP).

  • The company is not refunded by Social Security for sick pay expenses (SUBSIDIO AT earning).

  • When calculating professional contingencies contributions for self-insurance companies, the system specifically considers the following contributions:

    • Work-Related Injuries or occupational disease (AT/EP).

    • Unemployment.

    • Professional training.

    • FOGASA (Fondo de Garantia Salarial).

    • Permanent disability, death, and survival benefits (IMS).

  • The system computes an additional contribution quota, called Shared Services Contribution (Aportación a Servicios Comunes), which the self-insurance company must report.

    The system obtains this quota amount through the following formula expression:

    Shared Services Contribution = IMS Contribution × IT Self-Insurance Rate Where The IMS Contribution = the AT/EP contribution base × IMS rate IT Self-Insurance Rate = Amount derived from statutory table

Note: For this collaboration type, the system does not compute or report contributions for temporary disability (IT) rates when computing the professional contingencies contributions. However, PeopleSoft Global Payroll for Spain calculates and stores contributions for IT in the accumulator SS AC ER AUTO IT S for each employee. You can use this value for company reporting, such as reporting to general ledger to track how much money the company saves by being self-insured.

Collaboration for Common Disease or NonWork-Related Injury (non-AT/EP))

When a self-insurance company collaborates with Social Security for nonwork-related injury or common disease (non-AT/EP):

  • The collaboration affects all employees of the employer social security number (Employer SSN) that you define as having a self-insurance collaboration on the Self-Insurance Data page.

  • The company pays for economic benefits and can give healthcare for temporary disability derived from nonwork-related injury or common disease (non-AT/EP).

  • The company is not refunded by Social Security for sick pay expenses (PAGO DELEGADO earning).

  • The system calculates a reduction to be applied to the total common contingencies contribution to pay.

    The system obtains this amount through the following formula expression:

    Regular Situations Joint-Management Deduction = Base x IT Self-Insurance Rate Where Base = Field 111 (Non-AT/EP Contributions) + Field 115 (Employer Only Non-AT/EP Contributions) – Field 209 (Contribution Exempt Situations Deduction) IT Self-Insurance Rate = Amount derived from statutory table

This collaboration type affects the Total Employer Social Security Contributions calculation by reducing the final net to pay to Social Security through the Regular Situations Joint-Management deduction. This collaboration type also affects the RED system FAN File and the TC1 Report.