Understanding Deductions

This topic discusses:

Delivered deductions.
Delivered supporting elements.
Process lists and sections.
Viewing delivered elements.

PeopleSoft Global Payroll for China delivers a number of deductions that demonstrate the flexibility of Global Payroll rules to meet common processing requirements.

In this table, the first column combines the name and description of the delivered deductions. The other columns indicate the calculation rule components, such as base, percent and amount, the generation control, and the pre-process and post-process formulas for each deduction. NA indicates that a calculation rule component is not applicable.

Name/Descr.	Base	Percent	Amount	Generation Control	Pre-Process and Post-Process Formula
HOUSE_EE Public Housing Fund for EE	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
HOUSE_ER Public Housing Fund for ER	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
PENSION_EE Pension for Employee	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
PENSION_ER Pension for Employer	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
MEDICAL_EE Medical for Employee	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
MEDICAL_ER Medical for Employer	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
IND_INJ_EE Industry Injury Employee	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
IND_INJ_ER Industry Injury Employer	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
UNEMPL_EE Unemployment for Employee	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
UNEMPL_ER Unemployment for Employer	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
NORM TAX Normal Income Tax Deduction	NA	NA	CN FM CALC NORM TX (Formula - Monetary & Decimal)	NA	NA
DONATION Donation	NA	NA	Payee Level	NA	NA
TERM DED Pymt in Lieu of Notice by EE	NA	NA	CN FM TERM DED (Formula - Monetary & Decimal)	NA	NA
ANN BON TAX Annual Bonus Tax	NA	NA	CN FM CALC SP TAX (Formula - Monetary & Decimal)	NA	NA
SEVERANCE TX Severance Tax	NA	NA	CN FM CALC SEV TAX (Formula - Monetary & Decimal)	NA	NA
RTO DONATION Retro Donation	NA	NA	Payee Level	NA	NA
HOUSE VOL_EE Voluntary PHF for EE	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
HOUSE VOL_ER Voluntary PHF for ER	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
RTO NORM TAX Retro Normal Tax	NA	NA	Payee Level	NA	NA
MATERNITY_EE Maternity Insurance for EE	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
MATERNITY_ER Maternity Insurance for ER	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
SUP MED_EE Supplementary Medical for EE	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
SUP MED_ER Supplementary Medical for ER	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
RTO HOUSE_EE Retro Public Housing Fund ER	NA	NA	Payee Level	NA	NA
RTO HOUSE_ER Retro Public Housing Fund EE	NA	NA	Payee Level	NA	NA
RTO PENSN_EE Retro Pension for Employee	NA	NA	Payee Level	NA	NA
RTO PENSN_ER Retro Pension for Employer	NA	NA	Payee Level	NA	NA
RTO MED_EE Retro Medical for Employee	NA	NA	Payee Level	NA	NA
RTO MED_ER Retro Medical for Employer	NA	NA	Payee Level	NA	NA
RTO INJRY_EE Retro Industry Injury Employee	NA	NA	Payee Level	NA	NA
RTO INJRY_ER Retro Industry Injury Employer	NA	NA	Payee Level	NA	NA
RTO UNEMP_EE Retro Unemployment for EE	NA	NA	Payee Level	NA	NA
RTO UNEMP_ER Retro Unemployment for ER	NA	NA	Payee Level	NA	NA
RTO HS_VL_EE Retro Voluntary PHF for EE	NA	NA	Payee Level	NA	NA
RTO HS_VL_ER Retro Voluntary PHF for ER	NA	NA	Payee Level	NA	NA
RTO MATER_EE Retro Maternity Insurance EE	NA	NA	Payee Level	NA	NA
RTO MATER_ER Retro Maternity Insurance ER	NA	NA	Payee Level	NA	NA
RTO SUPMD_EE Retro Supplementary Medical EE	NA	NA	Payee Level	NA	NA
RTO SUPMD_ER Retro Supplementary Medical ER	NA	NA	Payee Level	NA	NA
PHFSI PRB PHFSI Accrued During Probation	NA	NA	CURR DRIVER VAL (System Element - Numeric)	NA	NA
REM TAX REM Income Tax Deduction	NA	NA	CN FM CALC REM TX (Formula - Monetary & Decimal)	NA	NA
RTO REM TAX Retro REM Tax	NA	NA	Payee Level	NA	NA
LAMI_EE Large Amount Medical for EE	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
LAMI_ER Large Amount Medical for ER	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
RTO LAMI_EE Retro Large Amount Med EE	NA	NA	Payee Level	NA	NA
RTO LAMI_ER Retro Large Amount Med ER	NA	NA	Payee Level	NA	NA
EDU FEE Children’s Education Fee	NA	NA	Payee Level	CN GC SPL ADD DED	NA
CONT EDU FEE Continuing Education Fee	NA	NA	Payee Level	CN GC SPL ADD DED	NA
HOUSE LN INT Housing Loan Interest	NA	NA	Payee Level	CN GC SPL ADD DED	NA
HOUSING RENT Housing Rentals	NA	NA	Payee Level	CN GC SPL ADD DED	NA
ELDERLY SUP Expense for Elderlies Support	NA	NA	Payee Level	CN GC SPL ADD DED	NA
CHILD CARE Child Care Below 3 Years	NA	NA	Payee Level	CN GC SPL ADD DED	NA

Note: Global Payroll for China delivers these special additional deductions for income tax calculation: EDU FEE, CONT EDU FEE, HOUSE LN INT, HOUSING RENT, ELDERLY SUP, and CHILD CARE. Currently, there is no provision to enter special additional deductions through Employee Self Service. It is customers’ responsibility to bring in employees’ special additional deduction information to the system.

Special additional deductions are not calculation-enabled. While they should not impact real earnings or deduction calculation, they have an impact on the calculated Reduced Taxable Income YTD.

Public Housing Fund and Social Insurance Deductions

Global Payroll for China delivers these deductions associated with the Public Housing Fund and social insurance (PHF/SI):

See the Delivered PHF/SI Deductions section in Understanding Public Housing Fund and Social Insurance Contributions.

For information about PHF/SI deduction calculation, registration, and assignment, see Setting Up Public Housing Fund and Social Insurance Data.

Tax Deductions

Global Payroll for China delivers these deductions associated with tax processing:

NORM TAX
DONATION
ANN BON TAX
SEVERANCE TX
REM TAX

For information about tax deduction calculation, registration, and supporting element overrides, see Understanding Tax Processing.

Termination Deduction

Global Payroll for China delivers the TERM DED termination deduction. This deduction:

Uses the formula CN FM TERM DED to determine the amount.
Subtracts from the GROSS accumulator.
Allows payee override.

See Understanding Terminations.

Retro Deductions

Global Payroll for China delivers these retro deductions:

RTO COED FEE
RTO EDU FEE
RTO ELD SUPP
RTO DONATION
RTO HOUSE_EE
RTO HOUSE_ER
RTO HSE RENT
RTO HSLN INT
RTO HS_VL_EE
RTO HS_VL_ER
RTO INJRY_EE
RTO INJRY_ER
RTO LAMI_EE
RTO LAMI_ER
RTO MATER_EE
RTO MATER_ER
RTO MED_EE
RTO MED_ER
RTO NORM TAX
RTO PENSN_EE
RTO PENSN_ER
RTO REM TAX
RTO SUPMD_EE
RTO SUPMD_ER
RTO UNEMP_EE
RTO UNEMP_ER

The system uses these deductions to forward actual deduction information from a retro period to the current period when it encounters retro during a payroll run.

This table lists the key supporting elements used to define the delivered deductions:

Element Type	Element Name	Used By	Function
Accumulators	CN AC PHFSI PROBN	HOUSE_EE HOUSE_ER PENSION_EE PENSION_ER MEDICAL_EE MEDICAL_ER IND_INJ_EE IND_INJ_ER UNEMPL_EE UNEMPL_ER HOUSE VOL_EE HOUSE VOL_ER MATERNITY_EE MATERNITY_ER SUP MED_EE SUP MED_ER LAMI_EE LAMI_ER	Accrues PHF/SI contributions during a payee's probation. It is updated by the CN FM ROUNDING formula.
Brackets	CN BR CONT RETRO	RTO DONATION RTO NORM TAX RTO HOUSE_EE RTO HOUSE_ER RTO PENSN_EE RTO PENSN_ER RTO MED_EE RTO MED_ER RTO INJRY_EE RTO INJRY_ER RTO UNEMP_EE RTO UNEMP_ER RTO HS_VL_EE RTO HS_VL_ER RTO MATER_EE RTO MATER_ER RTO SUPMD_EE RTO SUPMD_ER RTO LAMI_EE RTO LAMI_ER	Stores the name of the retro element corresponding to each employee and employer contribution. It is resolved by the CN FM ROUNDING ER formula.
	CN BR TX EXEMPTION	NORM TAX ANN BON TAX SEVERANCE TX	Uses the CN VR EE TYPE variable value to return the tax exemption that the system deducts from a payee's taxable income.
	CN BR TX REM EXEM	REM TAX	Uses CN VR EE TYPE and TAXABLE REM MTD values to return the tax exemption for remunerated individuals (interns, consultants, instructors, contractors, and other) .
	CN BR TAX RATE YR	NORM TAX ANN BON TAX SEVERANCE TX	Used by CN FM CALC YR TAX to obtain the tax rate and quick calculation deduction to determine the amount to withhold from the payee's normal salary for one pay period in the current financial year.
	CN BR TAX RT REM	REM TAX	Used by CN FM CALC REM TX to obtain the tax rate and quick calculation deduction to determine the amount to withhold on an remunerated individual’s salary.
	CN BR TX REDUCTION	NORM TAX ANN BON TAX SEVERANCE TX REM TAX	Stores the reduction rate by tax area. The reduction rate is a percentage or an amount that the system loads at the beginning of the CN SE TAX section.
Generation Control	CN GC CONT	HOUSE_EE PENSION_EE MEDICAL_EE IND_INJ_EE UNEMPL_EE HOUSE VOL_EE MATERNITY_EE SUP MED_EE LAMI_EE	Determines whether payees are eligible for PHF/SI contributions.
	CN GC CONT ER	HOUSE_ER PENSION_ER MEDICAL_ER IND_INJ_ER UNEMPL_ER HOUSE VOL_ER MATERNITY_ER SUP MED_ER LAMI_ER	Determines whether employers are eligible for PHF/SI contributions.
Formula	CN FM CONT	HOUSE_EE PENSION_EE MEDICAL_EE IND_INJ_EE UNEMPL_EE HOUSE VOL_EE MATERNITY_EE SUP MED_EE LAMI_EE	Pre-process formula determines the employee contribution base (CN VR CONT EE BASE) and employee contribution percentage (CN VR CONT EE PCT) to calculate the amounts for PHF/SI deductions.
	CN FM ROUNDING	HOUSE_EE HOUSE_ER PENSION_EE PENSION_ER MEDICAL_EE MEDICAL_ER IND_INJ_EE IND_INJ_ER UNEMPL_EE UNEMPL_ER HOUSE VOL_EE HOUSE VOL_ER MATERNITY_EE MATERNITY_ER SUP MED_EE SUP MED_ER LAMI_EE LAMI_ER	Post-process formula applies the rounding rule to PHF/SI deductions.
	CN FM CONT LIMIT	HOUSE_EE HOUSE_ER PENSION_EE PENSION_ER MEDICAL_EE MEDICAL_ER IND_INJ_EE IND_INJ_ER UNEMPL_EE UNEMPL_ER HOUSE VOL_EE HOUSE VOL_ER MATERNITY_EE MATERNITY_ER SUP MED_EE SUP MED_ER LAMI_EE LAMI_ER	Calls which can return a contribution limit. If a contribution exceeds or falls below the limit for a payee, the system generates a payee warning message.
	CN FM CALC TAX	NORM TAX ANN BON TAX SEVERANCE TX	Uses the bracket CN BR TAX RATE to obtain the tax rate and quick calculation deduction to calculate the amount to withhold on the payee's normal salary for one pay period in the current financial year. Subtracts the tax reduction from the tax amount if a payee is eligible for disability reduction.
	CN FM CALC NMYR TX	NORM TAX	Calculates normal tax from normal salary using the accumulative withholding method.
	CN FM DONATION	ANN BON TAX REM TAX	If a donation exists for a payee, deducts the tax-exempt portion of the donation from the taxable income to determine NORM TAX or REM TAX. The system calls this formula to determine ANN BON TAX if no normal tax is calculated and normal tax falls below the tax exemption for the period.
	CN FM CALC SP TAX	ANN BON TAX	Calculates annual bonus tax.
	CN FM CALC SEV TAX	SEVERANCE TX	Calculates severance tax.
	CN FM CALC REM TX	REM TAX	Uses the bracket CN BR TAX RT REM to obtain the tax rate and quick calculation deduction to calculate the amount to withhold from a remunerated individual’s salary. Subtracts the tax reduction from the tax amount if a payee is eligible for disability reduction.
	CN FM REM TAX	REM TAX	Inserts the REM tax calculation values into the CN WA TAX REPORT writable array for tax reporting purposes.

Note: For a complete list of elements (for each supporting element type) that are delivered for Global Payroll for China, navigate to Set Up HCM > Product Related > Global Payroll & Absence Mgmt > Elements > Supporting Elements. Access a supporting element of your choice (for example, Accumulators) and search with CHN as the country.

All deductions are members of the CN PR PAYROLL process list.

Within this process list, the deductions are arranged in these sections:

Section	Elements in Section
CN SE CONTRIBUTION	HOUSE_EE HOUSE_ER PENSION_EE PENSION_ER MEDICAL_EE MEDICAL_ER IND_INJ_EE IND_INJ_ER UNEMPL_EE UNEMPL_ER HOUSE VOL_EE HOUSE VOL_ER MATERNITY_EE MATERNITY_ER SUP MED_EE SUP MED_ER LAMI_EE LAMI_ER RTO HOUSE_EE RTO HOUSE_ER RTO PENSN_EE RTO PENSN_ER RTO MED_EE RTO MED_ER RTO INJRY_EE RTO INJRY_ER RTO UNEMP_EE RTO UNEMP_ER RTO HS_VL_EE RTO HS_VL_ER RTO MATER_EE RTO MATER_ER RTO SUPMD_EE RTO SUPMD_ER RTO LAMI_EE RTO LAMI_ER
CN SE TAX	NORM TAX ANN BON TAX SEVERANCE TX REM TAX
CN SE TERMINATION	TERM DED

Section

Elements in Section

CN SE CONTRIBUTION

HOUSE_EE

HOUSE_ER

PENSION_EE

PENSION_ER

MEDICAL_EE

MEDICAL_ER

IND_INJ_EE

IND_INJ_ER

UNEMPL_EE

UNEMPL_ER

HOUSE VOL_EE

HOUSE VOL_ER

MATERNITY_EE

MATERNITY_ER

SUP MED_EE

SUP MED_ER

LAMI_EE

LAMI_ER

RTO HOUSE_EE

RTO HOUSE_ER

RTO PENSN_EE

RTO PENSN_ER

RTO MED_EE

RTO MED_ER

RTO INJRY_EE

RTO INJRY_ER

RTO UNEMP_EE

RTO UNEMP_ER

RTO HS_VL_EE

RTO HS_VL_ER

RTO MATER_EE

RTO MATER_ER

RTO SUPMD_EE

RTO SUPMD_ER

RTO LAMI_EE

RTO LAMI_ER

CN SE TAX

NORM TAX

ANN BON TAX

SEVERANCE TX

REM TAX

CN SE TERMINATION

TERM DED

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

See Understanding How to View Delivered Elements

Understanding Deductions

Delivered Deductions

Public Housing Fund and Social Insurance Deductions

Tax Deductions

Termination Deduction

Retro Deductions

Delivered Supporting Elements

Process Lists and Sections

Viewing Delivered Elements