Contribution Eligibility

Eligibility changes for URSSAF Contributions

Retroactive Change	Description
Change of Scheme	Some URSSAF contribution rates vary based on the régime or scheme of the employee, while others depend on values defined for an establishment. Global Payroll for France manages changes from one scheme to another by recalculating and declaring contributions for the correct scheme. For the recalculated segment, URSSAF contributions are processed using the correct rates, and the gross salary used is the "old" gross salary. However, the gross deltas are processed using the contribution rates in effect in the current period. Note: These retroactive changes are declared in the DUCS report as follows: initial contributions are cancelled by declaring a negative funding base on the old scheme, while new contributions are declared in the same way but with a positive funding base.
Eligible Employee Becomes Retroactively Non-Eligible	This situation can occur, for example, if an employee is retroactively declared an expatriate not subject to URSSAF contributions. In this case, URSSAF contributions are not processed in the recalculated periods, and the initial contributions are cancelled. Note: The new DUCS norm enables organizations to declare regularized funding bases. Accordingly, the Global Payroll DUCS report for France reverses the initial declarations and displays negative funding bases for the recalculated periods with their corresponding rates.
Employee not Eligible Becomes Retroactively Eligible	Normally, when URRSAF contributions are recalculated, the recalculation of the prior period is based on the value of the "old" URSSAF gross segment accumulator (URS AC BRUT SG), and any gross salary deltas are processed in the current period using the rates currently in effect. However, when an employee becomes retroactively eligible for URSSAF contributions, the original value of this accumulator is equal to 0 (the accumulator has no value because the URSSAF process was not triggered in the original calculation, and the accumulator was not populated). This can lead to a situation in which the entire funding base is submitted to the current rate: if the rate has increased during the year, the company will pay more contributions than it should, and if the rate has decreased during the year, the company will pay less contributions than it should. To avoid this situation, Global Payroll for France has created another accumulator that duplicates the URS AC BRUT SG accumulator. This accumulator (URS AC BRUT BIS SG) is always populated, even if URSSAF contributions are not calculated. If the old value of the "standard" gross accumulator is equal to 0, the process retrieves this second gross accumulator. Warning! If you update the value of the standard URSSAF gross segment accumulator, you must also update the value of the second, duplicate accumulator.
Employee Eligible for Exempt Scheme Becomes Eligible for the Normal Scheme	If an employee who is eligible for an exempt scheme is retroactively assigned to a "normal" scheme, the variables URS VR BRT REG EX and URS VR BA REG EX (storing the exempted gross and the funding base) will not be populated, and the exempted rates will not apply when the prior period is recalculated. The exempt contributions will be cancelled in the recalculation, and will be declared as regularized in the DUCS report with negative funding bases. Note: In cases like this, the base is recalculated based on the old value of the accumulator URS AC BRUT SG. Typically, this accumulator is split when an employee is assigned to an exempted scheme so that a portion of the accumulator can be processed using the exempt rates; however, this split does not occur during the recalculation. The recalculated contributions correctly take into account the old gross and use the "normal" rates. The amount not paid in the correct scheme during the initial calculation is declared based on the new DUCS norm rules.
Employee Eligible for Normal Scheme Becomes Eligible for Exempt Scheme	If an employee who is eligible for a normal scheme is retroactively assigned to an exempt scheme, the funding base for the specific contracts is calculated retroactively. The old URSSAF gross is retrieved and split between the normal and the exempt rates. In the situation described here, the funding bases calculated for both schemes will be different from the initial calculation: For the normal scheme, the funding base may be equal to 0 if the salary is not over the SMIC. In this case, the contributions initially declared are cancelled in the DUCS declaration. For the exempted schemes, the funding base was initially equal to 0. In this case, the funding bases are calculated for the exempted scheme in the prior period and are included in the DUCS declaration.
Apprenticeship Contract Changes	If an employee defined as an apprentice is retroactively linked to another scheme, the system retrieves the old gross accumulator and uses it to calculate the funding bases (limited to a ceiling or based on the gross). The initial calculation of contributions based on the lump sum funding base and exempted rates are cancelled in the DUCS declaration. If an employee associated with a normal scheme is retroactively defined as an apprentice, the old gross is retrieved but is not used to calculate the new apprenticeship scheme. The initial contribution declaration is cancelled and the new exempted contributions are reported based on the new DUCS norm for declaring regularizations. Note: In the case of apprenticeship contracts, Global Payroll for France does not calculate the funding base based on the gross salary; it instead uses a lump-sum funding base that varies depending on the age of the apprentice and the duration of the contract.

Eligibility Changes for ASSEDIC Contributions

Retroactive Change	Description
Eligible Employee Becomes Retroactively Non-Eligible	If an employee who was previously eligible becomes non-eligible, the ASSEDIC contributions are not recalculated. The initial contributions are cancelled in the DUCS declaration and the ASSEDIC accumulators are updated.
Employee not Eligible Becomes Retroactively Eligible	Normally, when ASSEDIC contributions are recalculated, the recalculation of the prior period is based on the value of the "old" ASSEDIC gross segment accumulator (ASS AC BRUT SG), and any gross salary deltas are processed in the current period using the rates currently in effect. However, when an employee becomes retroactively eligible for ASSEDIC contributions, the original value of this accumulator is equal to 0 (the accumulator has no value because the ASSEDIC process was not triggered in the original calculation, and the accumulator was not populated). This can lead to a situation in which the entire funding base is submitted to the current rate: if the rate has increased during the year, the company will pay more contributions that it should, and if the rate has decreased during the year, the company will pay less contributions than it should. To avoid this situation, Global Payroll for France has created another accumulator that duplicates the ASS AC BRUT SG accumulator. This accumulator (ASS AC BRUT BIS SG) is always populated, even if ASSEDIC contributions are not calculated. If the old value of the "standard" gross accumulator is equal to 0, the process retrieves this second gross accumulator. Warning! If you update the value of the standard ASSEDIC gross segment accumulator, you must also update the value of the second, duplicate accumulator.

Retroactive Change

Description

Eligible Employee Becomes Retroactively Non-Eligible

If an employee who was previously eligible becomes non-eligible, the ASSEDIC contributions are not recalculated. The initial contributions are cancelled in the DUCS declaration and the ASSEDIC accumulators are updated.

Employee not Eligible Becomes Retroactively Eligible

Normally, when ASSEDIC contributions are recalculated, the recalculation of the prior period is based on the value of the "old" ASSEDIC gross segment accumulator (ASS AC BRUT SG), and any gross salary deltas are processed in the current period using the rates currently in effect. However, when an employee becomes retroactively eligible for ASSEDIC contributions, the original value of this accumulator is equal to 0 (the accumulator has no value because the ASSEDIC process was not triggered in the original calculation, and the accumulator was not populated).

This can lead to a situation in which the entire funding base is submitted to the current rate: if the rate has increased during the year, the company will pay more contributions that it should, and if the rate has decreased during the year, the company will pay less contributions than it should. To avoid this situation, Global Payroll for France has created another accumulator that duplicates the ASS AC BRUT SG accumulator. This accumulator (ASS AC BRUT BIS SG) is always populated, even if ASSEDIC contributions are not calculated. If the old value of the "standard" gross accumulator is equal to 0, the process retrieves this second gross accumulator.

Warning! If you update the value of the standard ASSEDIC gross segment accumulator, you must also update the value of the second, duplicate accumulator.

Eligibility Changes for Retirement and Contingency Contributions

Retroactive Change	Description
Change of Fund Without Category Change	Retirement and contingency contributions are paid to specific funds. Each fund must deliver a "contract number" for the different categories of employees declared. This contract number is used as a key in the accumulators used to calculate the retirement funding bases following the annual regularization rule. So, if an employee changes from a fund to another, the accumulators keys change and the contribution calculation is based on "re-initialized" accumulator values. PeopleSoft manages this situation by fully recalculating the retirement and contingency fund contribution. This corrective calculation ensures that the right accumulators are used and that contributions are correctly resolved. Note: In this situation, the funding base regularizations are added to the current period funding base in the DUCS declaration, as the retirement and contingency fund rates don't change during the year. Note: The annual gross accumulators for ARRCO and AGIRC are ARC AC BRUT ABA AN and AGI AC BRUT ABA AN. These accumulators are used to calculating the segment funding bases for ARRCO and AGIRC contributions. These accumulators are defined with four keys: Company, Contract Number, ARC VR CATEGORY or AGI VR CATEGORY (variables storing the employees' category), and ARC VR NUM MEMBRE or AGI VR NUM MEMBRE (variables storing the retirement contract number).
Change in Employee Category (Employee, Art 36, or Manager)	Because the contributions processed for employees depend on their category, new contributions must be calculated in this situation. New accumulator instances must also be created, as the employee categories are used as keys for the retirement contributions accumulators (A4 for managers, A36 for employees viewed as managers by the retirement funds, and EMPL for employees). In the event of a category change, the system fully recalculates the contributions related to the new category, and updates the correct accumulators with their correct keys. Note: For the DUCS report, the old contributions are cancelled and the recalculated contributions are declared in the current period. The old and the recalculated contributions are considered in the current DUCS declaration and their funding bases are regularized (as in general, there is no change in the rates during the year). Some contributions such as the lump sum APEC (APEC forfaitaire) are calculated and declared only in March for Art 36 and Manager categories. When this contribution is calculated or cancelled retroactively, it must be declared in the current DUCS report. Note: In the event of retroactivity going back to prior years, the gross deltas should be forwarded to the current period and included in the retirement contributions for this period. In other words, the deltas should be processed for the retirement category and the retirement fund number of the current period.
Change In Contract Number	Contract number is also used as a key in the accumulators used for the retirement contribution calculation. When the contract number changes retroactively, all contributions are fully recalculated to generate new values for the funding bases, and new accumulators are created (based on the new keys). Note: In this situation, the contribution regularizations are fully declared in the DUCS report.
Apprenticeship Contract Changes	If an employee becomes an apprentice retroactively, no retirement or contingency contributions are calculated in the recalculated period, because a conditional formula attached to the Retirement and Contingency sections prevents them from being triggered for apprentices. Instead, the DUCS report deducts the contributions initially declared. If an apprentice becomes a non-apprentice retroactively, the retirement contributions are fully calculated in the retro period and are declared in the DUCS report.
Employee not Eligible for Contributions Becomes Eligible	If an employee is declared retroactively eligible, the contributions are calculated in the prior periods using the recalculated gross rather than the "old" value of the funding base. Contributions calculated in this way are added in full to the current DUCS declaration (as the rates do not change during the year).

Eligibility Changes for Levies

Retroactive Change	Description
Employee Eligible for CSG and CRDS Becomes Retroactively Non-Eligible	In this case, CSG and CRDS contributions are not processed in the recalculated periods, and the initial contributions are cancelled. Note: The new DUCS norm enables organizations to declare regularized funding bases. Accordingly, the Global Payroll DUCS report for France reverses the initial declarations and displays negative funding bases for the recalculated periods with their corresponding rates.
Employee not Eligible for CSG and CRDS Becomes Retroactively Eligible	To manage cases in which an employee who is ineligible for CSG and CRDS contribution becomes retroactively eligible, Global Payroll for France applies the same solution developed for URSSAF and ASSEDIC. This solution consists in retrieving the value of a second accumulator—TAX AC CSG BIS SG—that duplicates the standard TAX AC ASS CSG SG accumulator. This accumulator (TAX AC CSG BIS SG) is always populated, even if tax contributions are not processed. If the old value of the "standard" gross accumulator is equal to 0, the process retrieves the second gross accumulator. See Contribution Eligibility. If an employee who is ineligible for the transportation levy becomes retroactively eligible, the system recalculates the levy based on the initial social security funding base. If the rate changes between the recalculated period and the current period, the new DUCS norm allows a regularized declaration.
Changes in Eligibility for the Contingency Levy	Retroactive changes in eligibility for the contingency levy are processed using the full recalculation method.
Changes in Eligibility for the Training Levy	Retroactive changes in eligibility for the training levy are processed using the full recalculation method.
Changes in Eligibility for the Construction Levy	Retroactive changes in eligibility for the construction levy are processed using the full recalculation method.
Changes in Eligibility for the Tax on Salary Levy	Retroactive changes in eligibility for the tax on salary levy are processed using the full recalculation method.
Changes in Eligibility for the Work Council Levy	Retroactive changes in eligibility for the work council levy are processed using the full recalculation method.

See Managing Gross Salary Changes in the Current Year.