Viewing Delivered Earnings Elements

Note: The earnings elements for Mexico are defined as PS Delivered/Not Maintained. Therefore, you can modify these elements to fit your needs, and when necessary, create your own earnings using the delivered elements as your guide.

This topic discusses the main delivered earnings (by earnings type). The earnings types are:

  • Produced units (Destajos).

  • Seniority-based.

  • Bonuses and commissions.

  • Sunday premium.

  • Salary.

  • Average salary.

  • Savings fund.

  • Food coupons.

  • Seventh day.

  • PTU.

  • Vacation premiums and Christmas bonuses.

  • Social benefits (Previsión Social).

Produced Units(Destajos)

Earnings of the produced units type (destajos) depend on the number of units produced. To trigger this type of earnings, use positive input or the Earning/Deduction Assignment page to enter the number of units in the unit component of the C UNI IMP and C UNI U*R elements. This unit value is used in the calculation of these earnings:

  • UNI PRO IMP: Returns a fixed amount based on the number of produced units.

  • UNI PRODUC: Calculates an amount based on the number of units and the rate per unit.

The delivered earnings for produced units include:

Earnings

Description

UNI PRO IMP

This earnings element is used to calculate flat amounts based on units produced and is assigned a value by the formula PE FM U PRO I F.

To calculate these earnings, the PE FM U PRO I F executes the bracket element PE BR TARIFA X UNI, which returns the correct amount depending on the number of units (the number of units is the search key in the bracket and the amount is the lookup value). For example, this earnings element could be used to calculate the correct flat amount for an employee who earns 100 for selling 500 units, 600 for selling 2000 units, 700 for selling 3000 units, and so forth.

Note: The units used in the search key of the bracket PE BR TARIFA X UNI must be entered through positive input or on the Earning/Deduction Assignment page for the element C UNI IMP.

UNI PRO U*R

This earnings element is used to calculate amounts based on both units produced and rates per unit and is assigned a value by the PE FM U PRO T X U formula.

To calculate this earnings element, the PE FM U PRO T X U formula runs the PE BR TARIFA X UNI bracket element, which contains all of the data needed to calculate an amount based on the number of units and the rate per unit (the number of units is the search key in the bracket and the lookup value is the rate per unit). For example, this earnings element could be used to calculate the correct amount for an employee who earns 0.05 per unit for selling 1000 units, 0.10 for selling 2000 units, 0.15 for selling 3000 units, and so forth.

Note: The units used in the search key of the PE BR TARIFA X UNI bracket must be entered through positive input or on the Earning/Deduction Assignment page for the C UNI U*R element.

Seniority-Based Earnings

Seniority-based earnings are contingent upon the number of years of service (or seniority) at the time of processing (the period end date). Depending on the seniority level, various components of these earnings—for example, percentages, calculation bases, or amounts—could change.

The delivered seniority-based earnings include:

Earnings

Description

ANTIG DIAS

The calculation rule for this earnings element is Rate × Unit, in which the rate is a daily rate (contained in the DAILY RT system element) and the PE FM PER B ANT D formula returns the unit (number of days to pay). To determine the units to apply (at the time of calculation), the PE FM PER B ANT D formula runs the GN BR BASADA ANTIG bracket, which returns the number of days for each seniority range (seniority is the search key and the number of days to pay is the lookup value).

For example, you can use this element to calculate seniority earnings for employees who receive three days at a daily rate of 600 after one year of service, seven days at this rate after three years of service, and so forth.

Note: The DAILY RT system element is calculated on the Job Data pages based on the pay components that you enter.

See Understanding Job Data.

ANTIG IMP P

This earnings element has a calculation rule of Amount, in which the PE FM PER B ANT I formula returns the amount. To determine the correct amount to use (at the time of calculation), the formula runs the GN BR BASADA ANTIG bracket, which contains the amounts that apply to each seniority range.

For example, you can use this earnings element to calculate the correct amount for employees who receive 1000 after one year of service, 2000 after three years of service, and so forth.

ANTIG PCT

The calculation rule for this earnings element is Base × Percent, in which the base is a flat amount, and the percent is returned by the PE FM PER B ANT % formula. To determine the correct percentage (at the time of calculation), the PE FM PER B ANT % formula runs the GN BR BASADA bracket, which returns the percent for each seniority range (the seniority range is the search key and the percent is the lookup value).

For example, you can use this element to calculate seniority earnings for employees who receive 50 percent of a flat amount of 10,000 after one year of service, 75 percent of the same amount after three years of service, and so forth.

Bonuses and Commissions

The delivered earnings for bonuses and commissions include:

Earnings

Description

BONO

The calculation rule for this earnings element is Rate × Unit, and the unit component must be entered by positive input. If no positive input exists for a payee, the earnings are not calculated.

Note: The rate component of this earnings element comes from the DAILY RT system element and is calculated on the Job Data pages based on the pay components that you enter.

See Understanding Job Data.

COMISIONES

This earnings element has a calculation rule of Amount, in which the amount is entered by positive input. If there is no positive input for a payee, the earnings are not calculated.

Sunday Premium

Sunday premiums are based on the number of Sundays that each payee worked. Mexican law requires that each worked Sunday be paid at 125 percent of base salary; the law also says that an amount up to the minimum wage is exempt from taxes for each Sunday worked.

To trigger the calculation of this premium, you must enter—by positive input—the number of worked Sundays in the unit component of the PRIMA DOMIN element (this earnings element has a calculation rule of Unit × Rate × Percent, with the rate coming from the DAILY RT system element, and the percent defined as 125 percent).

The PRIMA DOMIN element calculates the total Sunday premium without regard to taxes. However because there is a tax exempt and a taxable portion of the Sunday premium, two other earnings have been defined to resolve these: PRIMA DOM EX (tax exempt portion) and PRIMA DOM GR (taxable portion). To trigger the calculation of these last two earnings, enter only the units (Sundays worked) in the unit component of the PRIMA DOMIN element. The system automatically calculates the taxable and nontaxable amounts.

The delivered earnings for the Sunday premium include:

Earnings

Description

PRIMA DOM EX

The PE FM PRIMA D EX formula resolves the earnings element. Its function is to calculate the Sunday premium up to the minimum wage amount for each day that you enter.

PRIMA DOM GR

The PE FM PMA DOM GRAV formula resolves the earnings element. For each Sunday worked, it calculates the Sunday premium in excess of the nontaxable minimum wage.

PRIMA DOMIN

Use this element to calculate the total amount of the Sunday premium. It has a calculation rule of Unit × Rate × Percent, with the rate coming from the DAILY RT system element and the percent defined as 125 percent.

Note: The DAILY RT system element is calculated on the Job Data pages based on the pay components that you enter.

See Understanding Job Data.

Salary

Global Payroll for Mexico provides two types of salary elements: SUELDO and SUELDO POR H. Each has its own calculation rule.

The delivered earnings for salary include:

Earnings

Description

SUELDO

Depending on the pay group parameters, this earnings element calculates the unit based on the calendar days or frequency days. Use this earnings element to process the most common type of salary element, in which the salary is based on the number of days worked. It has a calculation rule of Unit × Rate, in which the rate comes from the DAILY RT system element and the PE FM SUELDO UNI formula returns the unit that represents the actual number of work days. This formula calculates the number of days based on the period begin and end dates and includes a proration factor that enables it to manage new hires and terminations who work less than a full period.

For example, suppose that you have an employee in a monthly payroll with DAILY RT = 50. If the employee was hired on the third day of the month (January), SUELDO is calculated as 50 × (31 − 2) = 1450.

Note: The DAILY RT system element is calculated on the Job Data pages based on the pay components that you enter.

See Understanding Job Data.

SUELDO POR H

This earnings element calculates the most common type of hourly salary element. It has a calculation rule of Unit × Rate, in which the rate comes from the HOURLY RT system element and the units (hours) are entered by positive input in each payroll process. Therefore, the system calculates SUEL POR H only for payees who have positive input for these earnings.

Note: The DAILY RT system element is calculated on the Job Data pages based on the pay components that you enter.

See Understanding Job Data.

Average Salary

The average salary is a calculation base for other earnings. For example, some companies pay overtime based on the average of the (Daily Rate) + (Bonuses) + (Special Compensation).

The delivered earnings for average salary includes:

Earnings

Description

SALARIO PROM

This earnings element calculates the average salary based on the SP HR SAL PROM historical rule.

Savings Fund

The savings fund is one of the most common benefits that companies in Mexico provide to their employees. It is typically calculated as a percentage of the salary base.

The FDO AHORRO element calculates the basic benefit. However, because there is a tax exempt and a taxable portion of the savings fund, Global Payroll for Mexico delivers two additional elements to resolve these based on the amount of the FDO AHORRO: FDO AHOR EX and FDO AHOR GR elements.

The delivered earnings for the savings fund include:

Earnings

Description

FDO AHORR EX

This element holds the nontaxable portion of the savings fund benefit. Its value is calculated by the PE FM TOPE FONDO formula, and is defined as (13%) × (Minimum Wage Zone Salary of Employee) × (Worked Days).

FDO AHORR GR

This element holds the taxable portion of the savings fund benefit. Its value is calculated by the PE FM FONDO EMP GR formula. The taxable base is defined as the difference between FDO AHORRO and FDO AHOR EX. If the difference is negative, there is no taxable base.

FDO AHORRO

The calculation rule for this earnings element is Base × Percent, in which the base is calculated by the PE FM FONDO A EMPL formula and the percent is defined (by way of example) as 13 percent. The PE FM FONDO A EMPL formula calculates the base as follows: ((Calendar Days) − Absences) × (Daily Rate).

For example, suppose that you have an employee with a daily rate of 300, and the employee is absent for two days in the month (January). In this case, FDO AHORRO is calculated as follows: (31 − 2) × 300 × 13% = 1,131.

Note: The DAILY RT system element is calculated on the Job Data pages based on the pay components that you enter.

See Understanding Job Data.

Food Coupons

Food coupons are one of the most common benefits that companies in Mexico provide to their employees. Typically, the coupon is calculated as a percentage of the salary base.

The VALES DESP element calculates the basic benefit. However, because there is a tax exempt and a taxable portion of the food coupon, Global Payroll for Mexico delivers two additional elements to resolve these based on the amount of VALES DESP: VALES DES EX, and VALES DES GR.

The delivered earnings for food coupons include:

Earnings

Description

VALES DES EX

This element holds the nontaxable portion of the food coupon. Its value is calculated by the PE FM TOP VAL IMP formula.

VALES DES GR

This element holds the taxable portion of the food coupon. Its value is calculated by the PE FM VALES DESP G formula. The taxable base is the difference between VALES DESP and VALES DES EX. If the difference is negative, there is no taxable base.

VALES DESP

The calculation rule for this earnings element is Base × Percent, in which the base is calculated by the PE FM VALES DESP formula, and the percentage is defined (by way of example), as 10 percent. The PE FM VALES DESP formula calculates the base as follows: ((Calendar Days) − Absences) × (Daily Rate).

For example, suppose that you have an employee with a daily rate of 500, and that the employee is absent for four days in the month (January). In this case, VALES DESP is calculated as follows: (31 − 4) × 500 × 10% = 1,350.

Note: The DAILY RT system element is calculated on the Job Data pages based on the pay components that you enter.

See Understanding Job Data.

Seventh Day

This element enables you to calculate seventh day (Sunday) earnings for employees who work six or fewer days in a week.

The delivered seventh day earnings include:

Earnings

Description

SEPT DIA HOR

Resolves an employee's seventh day earnings based on the hours worked in the period. The calculation rule is as follows: ((Period Hours / (Period Hours − Rest Hours [Sunday])) − 8) × (Hourly Salary). For example, if the work period is 112 hours with 16 rest hours, the calculation is as follows: ((114 / 98) − 8) × (Hourly Salary) = (1.17 − 1) × (Hourly Salary) = 0.17 × (Hourly Salary). This means that for every worked hour, the payee will receive 0.17 of his hourly salary as SEPTIMO DIA.

Note: To pay seventh day earnings, set this up as part of your pay group parameters.

SEPTIMO DIA

Using the PE PO SEPT DIA SD O proration element, SEPTIMO DIA resolves an employee's seventh day earnings based on the days worked in the period. The calculation rule is as follows: ((Period Days / (Period Days − Rest Days [Sunday])) − 1) × (Daily Salary). For example, if the work period is 14 days with 2 rest days, the calculation is as follows: ((14 / 12) − 1) × (Daily Salary) = (1.17 − 1) × (Daily Salary) = 0.17 × (Daily Salary). This means that for every worked day, the payee will receive 0.17 of his daily salary as SEPTIMO DIA.

Note: To pay seventh day earnings, set this up as part of your pay group parameters.

PTU

The basic profit sharing earnings are calculated by the PTU element. However, because there is a tax exempt and a taxable portion of these earnings, Global Payroll for Mexico delivers two additional elements to resolve these based on the amount of the PTU: PTU EXENTO and PTU GRAVABLE elements.

Note: PTU amounts are calculated based on other earnings that an employee receives. To specify which earnings to include in the calculation of profit sharing, use the PTU Elements/Payees page.

See PTU Elements/Payees Page.

The delivered PTU earnings include:

Earnings

Description

PTU

Profit sharing

PTU EXENTO

Nontaxable profit sharing

PTU GRAVABLE

Taxable profit sharing

PTU IMP DIAS

PTU Days Amount

PTU IMP SAL

PTU Salary Amount

Vacation Premiums and Christmas Bonuses

Vacation premiums and Christmas bonuses can be based on either the daily rate or the average salary. To set up vacation premiums and Christmas bonuses, use the Xmas, Vac, Premium, SDI Factor page.

See Xmas, Vac, Premium, SDI Factor Page.

The delivered earnings for vacation premiums and Christmas bonuses include:

Earnings

Description

AGUINALDO

Christmas bonus

AGUINALDO EX

Nontaxable Christmas bonus

AGUINALDO GR

Taxable Christmas bonus

Social Benefits(Previsión Social)

Social benefits (Previsión social) are earnings derived from disability subsidies, scholarships for employees and their dependents, child care, sport and cultural activity fees, as well as other benefits given to employees according to the law and labor contracts.

Global Payroll for Mexico delivers three earnings, three formulas, and a section for social benefits.

The delivered earnings for social benefits include:

Earnings

Description

PREV SOC EX

Use this earning to calculate nontaxable social benefits. The calculation rule is Amount, with the PS FM PREV SOC EX formula used as the amount element. It compares the daily salary plus PREV SOCIAL against 7 times the minimum wage to identify the nontaxable part of PREV SOCIAL.

PREV SOC GR

Use this earning to calculate taxable social benefits. The calculation rule is Amount, with the PS FM PREV SOC GR formula used as the amount element.

PREV SOCIAL

Use this earning to calculate the total general social benefits. The calculation rule is Amount, with the TOTAL PREV SOCIAL accumulator used as the amount element. All social benefits earnings should be defined as contributing to this accumulator.

Delivered earnings for Mexico are processed and calculated in different process lists. Most basic earnings are calculated as part of the NOMINA process list and are included in the section called PERCEPCIONES. However, the PERCEPCIONES section recurs in other process lists, and there are numerous other earnings elements—Christmas bonus, termination pay, and so forth—that are processed elsewhere.

This table displays the main process list and sections used to calculate earnings elements for Mexico:

Process List

Section

NOMINA

INICIALIZACION NOM

SUELDO FRE/CAL/HOR

TIEMPO EXTRA

PERCEPCIONES

PROMEDIO

VACACIONES NOM

AGUINALDO SEC

AUSENTISMO NOM

SALDO VACACIONES

LIQ Y FINIQUITOS

RETRO

PREVISION SOCIAL

IMPUESTOS FED

SEGURO SOCIAL

SALDOS AJUSTE ISR

RETRO DEDUCCIONES

PRESTAMOS

DESPUES IMPUESTOS

DEDUCCIONES

PROVISIONES

IMPUESTOS EST

PIRAMIDADO SEC

AJUSTE REDONDEO

FORMATO 37

AGUINALDO WA

Note: The PeopleSoft system delivers a query that you can run to view the names of all delivered elements that are designed for Mexico.