Gross Salary Changes with a Change of Establishment or Company

Normally, when a payee moves from one establishment to another, the accumulators storing the gross salary deltas are submitted to contributions in the new establishment. The "old" establishment pays the gross salary deltas, while the current establishment processes the contributions on these deltas.

However, when there is a change in company, the accumulators storing the gross deltas are not included in the current period calculation for the new company. This is because company is used as the key for the accumulators that store the gross deltas, and these deltas are associated with the old company. To force the gross regularization to occur within the new company's contribution calculations, PeopleSoft forwards a "dummy" element from the recalculated period to a "dummy" element in the current period. If an employee changes company, an inactive segment is processed for the employee for the old company (assuming that company is defined as a Payment Key at the pay entity level).

At a technical level, PeopleSoft manages this type of change by:

  • Verifying that the retro calculation system element is equal to Corrective.

    If this condition is met, the "dummy" earning RETRO FICTIF is calculated and returns a value of 1.

    Note:

    If you override the delivered Corrective retro method during implementation, the solution described here is not applied.

  • Mapping the element RETRO FICTIF to a second "dummy" earning element, RTRO INACTIF. This second earning receives the value of 1 contained in RETRO FICTIF when there is corrective retro (according to the retro process override definition entered on the Retro Process Overrides page).

  • Forwarding the earning RTRO INACTIF (with a value of 1) to the current period.

    When this happens, there is no segment in the current period having the same payment keys as the recalculated segment. Because of this, an inactive segment is triggered in the current period for the "old" keys.

    Note:

    If multiple segments are recalculated (for example, in December you recalculate all periods going back to September), the earning RTRO INACTIF will receive the value of 1 for each segment retroactively calculated as corrective (1 for September, 1 for October, 1 for November).

For this solution to work, when you define payee selection on the Calendar component (GP_CALENDAR ) prior to processing a payroll, you must include active payees plus payees with pending retroactive changes. Based on this selection, inactive payees are considered in the calendar calculation as long as they have retro forwarded adjustments coming from the dummy element for the inactive segment.

WARNING:

Global Payroll for France supports the retro-corrective solution described here only if you define company as a payment key at the pay entity level. This restriction is based on legal requirements for calculating, for URSSAF and ASSEDIC, contributions limited to a ceiling on a yearly basis and for a unique company. PeopleSoft does not support the use of payment keys such as contract number and establishment.