Making Statutory and Customary MPF Deductions

This section discusses the MPF deductions that are delivered by PeopleSoft.

PeopleSoft supplies the following deductions for the common MPF contributions. The deductions are PeopleSoft maintained and are all defined with a calculation rule of Base x Percent. Mandatory and voluntary deductions are delivered for both employers and employees.

Deduction	Description
ERMPFMN1 Employer Regular MPF Mandatory Contribution	Used for employer regular MPF mandatory contributions. Base = MPF FM ERMN1 Percent = 5 (Statutory)
ERMPFMN2 Employer Permitted Period MPF Mandatory Contribution	Used for employer MPF mandatory contributions within the sixty-day permitted period. Base = MPF FM ERMN2 Percent = 5 (Statutory)
ERMPFVOL1 Employer Regular MPF Voluntary Contribution	An additional 5 percent of relevant earnings and should be given to all employees. The rest of the rules are the same as those for the MPF Employer Voluntary deduction. The deduction is used for employer MPF voluntary contribution. Base = MPF FM ERVOL1 BASE Percent = 5 (Customary)
ERMPFVOL2 Employer MPF Permitted Period Voluntary Contribution	Used for employer MPF voluntary contributions within the sixty-day permitted period. Base = MPF FM ERVOL2 BASE Percent = 5 (Customary)
EEMPFMN1 Employee Regular Mandatory MPF Contribution	Used for employee MPF mandatory contributions. Base = MPF FM EEMN1 BASE Percent = 5 (Statutory)
EEMPFMN2 Employee Permitted Period Mandatory MPF Contribution	Used for employee MPF mandatory contributions within the sixty-day permitted period. Base = MPF FM EEMN2 BASE Percent = 5 (Statutory)
EEMPFVOL1 Employee Regular Voluntary MPF Contribution	Used for employee MPF voluntary contributions. Entered at the deduction assignment level. Base = Payee Level Percent = 100 (Customary)
EEMPFVOL2 Employee Permitted Period Voluntary contribution	Used for employee MPF voluntary contributions within the sixty-day permitted period. Entered at the deduction assignment level. Base = Payee Level Percent = 100 (Customary)

Deduction

Description

ERMPFMN1

Employer Regular MPF Mandatory Contribution

Used for employer regular MPF mandatory contributions.

Base = MPF FM ERMN1

Percent = 5

(Statutory)

ERMPFMN2

Employer Permitted Period MPF Mandatory Contribution

Used for employer MPF mandatory contributions within the sixty-day permitted period.

Base = MPF FM ERMN2

Percent = 5

(Statutory)

ERMPFVOL1

Employer Regular MPF Voluntary Contribution

An additional 5 percent of relevant earnings and should be given to all employees. The rest of the rules are the same as those for the MPF Employer Voluntary deduction. The deduction is used for employer MPF voluntary contribution.

Base = MPF FM ERVOL1 BASE

Percent = 5

(Customary)

ERMPFVOL2

Employer MPF Permitted Period Voluntary Contribution

Used for employer MPF voluntary contributions within the sixty-day permitted period.

Base = MPF FM ERVOL2 BASE

Percent = 5

(Customary)

EEMPFMN1

Employee Regular Mandatory MPF Contribution

Used for employee MPF mandatory contributions.

Base = MPF FM EEMN1 BASE

Percent = 5

(Statutory)

EEMPFMN2

Employee Permitted Period Mandatory MPF Contribution

Used for employee MPF mandatory contributions within the sixty-day permitted period.

Base = MPF FM EEMN2 BASE

Percent = 5

(Statutory)

EEMPFVOL1

Employee Regular Voluntary MPF Contribution

Used for employee MPF voluntary contributions. Entered at the deduction assignment level.

Base = Payee Level

Percent = 100

(Customary)

EEMPFVOL2

Employee Permitted Period Voluntary contribution

Used for employee MPF voluntary contributions within the sixty-day permitted period. Entered at the deduction assignment level.

Base = Payee Level

Percent = 100

(Customary)

Note: Earnings that are included in the MPF calculation are referred to as relevant income and include wages, salaries, leave pay, fee, commission, bonus, and gratuity. Because not all earnings are included in MPF calculations, it is possible to define the earnings that should be included in MPF calculation using the earning component.