Understanding Public Housing Fund and Social Insurance Contributions

The Public Housing Fund and Social Insurance (PHF/SI) are statutory deductions to which both employees and employers contribute, although not all of them are mandatory in each area. They are:

  • Public Housing Fund

  • Voluntary Public Housing Fund

  • Basic pension insurance

  • Basic medical insurance

  • Statutory supplementary medical insurance

  • Unemployment insurance

  • Work-related injury insurance

  • Maternity insurance

  • Large amount medical insurance

PeopleSoft Global Payroll for China enables your Benefit Administrator to define PHF/SI registration details, assign and disable PHF/SI deductions for payees, and generate PHF/SI reports.

Delivered PHF/SI Deductions

Global Payroll for China delivers these PHF/SI deductions:

  • 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

This list does not include retro deductions.

For information about these deductions and the key supporting elements that are associated with them, see:

PHF/SI Calculation

To calculate PHF/SI deductions:

  1. For PHF/SI employee deductions, the CN GC CONT generation control element uses the CN FM EE CONT ELIG formula to determine employee eligibility.

    For PHF/SI employer deductions, the CN GC CONT ER generation control element uses the CN FM ER CONT ELIG formula to determine employer eligibility.

  2. The CN FM CONT preprocess formula determines the employee contribution base (CN VR CONT EE BASE), employee contribution percentage (CN VR CONT EE PCT), employer contribution base (CN VR CONT ER BASE), and employer contribution percentage (CN VR CONT ER PCT). For PHF/SI employee deductions, the system multiplies the employee contribution base by the employee contribution percentage to determine the amount. For PHF/SI employer deductions, the system multiplies the employer contribution base by the employer contribution percentage to determine the amount.

    CN FM CONT also determines the calculation basis, the switch month, the upper and lower limits of the calculation base, and the rounding rule to apply.

    The switch month is the month in which the system recalculates the base amount. A payee must have a full year of payroll results to be eligible for this recalculation.

    If the rounding rule specifies an upper or lower limit for a deduction and the base amount is outside those limits, the system resets the base amount to the appropriate upper or lower limit.

    The rounding rules that are processed in the CN FM ROUNDING formula are:

    • GP ROUND UP 2DEC

    • CN ROUND UP 1 DEC

    • GP ROUND DOWN 0DEC

    • GP ROUND NEAR 0DEC

    • GP ROUND UP 0DEC

    • CN ROUND DOWN 1DEC

    • GP ROUND DOWN 2DEC

    • CN ROUND NEAR 1DEC

    • GP ROUND NEAR 2DEC

  3. For PHF/SI employee deductions, the post process formula CN FM ROUNDING applies the rounding rule. For payees on probation, that is, with a probation date specified in their employment data in PeopleSoft HCM, the CN FM ROUNDING formula also checks whether the payee is on probation in the current period. If the payee is on probation and the Use Probation Processing check box is selected for the contribution, the system adds the current deduction amount to the probation accumulator CN AC PHFSI PROBN and sets the deduction amount to zero. If the payee's probation expires in the current period and theUse Probation Processing check box is selected for the contribution, the system adds the amount in the CN AC PHFSI PROBN accumulator to the current deduction amount.

    For PHF/SI employer deductions, the post process formula CN FM ROUNDING ER applies the rounding rule. The CN FM ROUNDING ER formula also calls the CN FM ROUNDING formula to perform probation processing for employer contributions. In addition, CN FM ROUNDING ER saves any retro adjustment amounts calculated in the period, as defined for each PHF/SI contribution in the CN BR CONT RETRO bracket, in the CN WA CONTRIBUTIONS writable array for PHF/SI reporting purposes.