Defining Custom Rules for Tax Base Estimation

PeopleSoft Global Payroll for Spain provides an alternative way to calculate the tax base by delivering two configurable formulas that your implementation team can use to set up custom requirements for estimating tax base. These configurable formulas are distinct from the delivered tax base estimation formulas so that modification and use of these configurable formulas does not affect the maintenance of the standard delivered formulas.

The configurable formulas are:

  • CLI FM CALC ING A: Use this formula to write your own code for calculating the estimated tax base without using the delivered calculation method. The code that you enter in this formula overrides the whole tax base. You can use this formula to provide an override to the calculated tax base by assigning the value to the element through any mechanism that Global Payroll core provides to override supporting elements.

  • CLI FM EST OTROS: Use this formula to include other earnings in the tax base calculation in addition to the ones entered through the Job Data component, through the components in the Earning and Deduction assignment menu, or through flexible compensation.

Custom Designated Estimation

Implementation teams can define the details of the CLI FM CALC ING A formula to override the delivered tax base estimation functionality by developing custom requirements for estimating tax base. PeopleSoft Global Payroll for Spain delivers this formula with no value. Implementers can add code to perform the tax base estimate calculation and retrieve a value. To override the calculated value for this formula, users can enter a value into this formula at the payee level as an override. The system then uses the override value rather than the calculated value.

Note:

If the value of this formula is anything other than 0, the system assumes that you are using this formula to calculate estimated tax base through your own method rather than the delivered method, or that you are overriding the estimated tax base with a specific value. The system therefore does not use the delivered method to calculate the estimated tax base.

Custom Other Earnings Estimation

Implementation teams can define the details of the CLI FM EST OTROS formula if they want to use the delivered tax base estimation rules but have other earnings from other sources (such as from brackets, formulas, or custom compensation records) that they want to include in the estimate besides the ones from the job record or earnings and deduction assignments. These additional earnings are added on top of the tax base members (fixed, in kind, and variable).

To use this functionality, implementers can code the delivered CLI FM EST OTROS formula so that the system includes compensation from other sources in the estimated tax base. The system adds the results of this formula to the standard members of the tax base without affecting the delivered standard rules for the calculation.

When coding this formula, implementers may need to update values of the following variables:

  • TAX VR EST AÑO BR: Use this variable to add value from other compensation to the estimated fixed amount.

  • TAX VR EST AÑO VR: Use this variable to add value from other compensation to the estimated variable amount.

  • TAX VR EST AÑO SP: Use this variable to add value from other compensation to estimated in kind compensation amount.

These variables are added to each member of the tax base in the standard formulas. Implementers need to add their calculated amounts to those variables so that the customer design is integrated in the standard design. For example:

TAX VR EST AÑO BR + New Element1 = TAX VR EST AÑO BR

TAX VR EST AÑO VR + New Element2 = TAX VR EST AÑO VR

TAX VR EST AÑO SP + New Element3 = TAX VR EST AÑO SP

Where

New Element1 represents the amount calculated by CLI FM EST OTROS corresponding to fixed income.

New Element2 represents the amount calculated by CLI FM EST OTROS corresponding to variable income.

New Element3 represents the amount calculated by CLI FM EST OTROS corresponding to in kind income.