Estimating Taxes Based on Schedule

Companies can enter compensation for part-time employees from a variety of sources such as the Job component, and earnings assignment. They can enter theoretical compensation and apply the full-time equivalent to determine compensation for part-time employees or they can enter compensation directly that is already reduced based on the schedule. PeopleSoft Global Payroll for Spain has two categories for part-time employees:

• Regular part-time: These employees have a daily or weekly recurring schedule. The system treats them as full-time employees, but with a reduced daily schedule. You identify them in the system by overriding the variable CLI VR RED JORNADA with the number of working hours per day.

• Irregular part-time: These employees do not have a recurring schedule. They are paid a different amount each month depending on how many days they work.

PeopleSoft Global Payroll Spain provides flexibility in setting up the system for both types of part-time employees.

Note:

PeopleSoft Global Payroll for Spain takes into account every schedule assigned to an employee when calculating scheduled hours for the estimation period. This means that the system includes schedule assignment changes when calculating scheduled hours.

Part-Time Factor Calculation

The variable TAX VR FTE FCT determines the part-time factor that the system applies to the estimated tax base. PeopleSoft Global Payroll Spain performs a different calculation of the part-time factor depending on the type of employee. For regular part-time employees this factor is usually just the entered full-time equivalent (FTE), but for irregular part-time employees, the system performs a more complex calculation based on the number of hours defined at the employee work schedule level.

For irregular part-time employees the part-time factor is equal to the number of scheduled hours for the estimation period divided by the total number of theoretical hours for the estimation period. The system retrieves the number of scheduled hours from the schedule definition assigned to a payee. The system retrieves the number of theoretical hours from the labor agreement definition.

Note:

To determine the total number of theoretical hours for the estimation period, the system prorates the labor agreement hours associated with the estimation period.

Part-Time Tax Estimation Formulas

There are several formulas you can use to manually affect the calculated tax estimation for part-time payees:

Formula	Description
CLI FM SBR FCT FTE	Overrides the part-time factor. By default, the system calculates FTE depending on the type of employee. For irregular part-time employees it calculates FTE as the number of scheduled hours divided by the number of theoretical hours for the estimation period. For full time and regular part time employees, the system uses the FTE entered in the Job component. You can modify the formula's code to manage calculation of FTE based on your specific requirements.
CLI FM SBR FLX AJT	Affects the calculated tax estimation through the tax estimation adjustment functionality.
CLI FM APL FTE JOB	Determines whether the system applies the FTE factor to the compensation that is entered in the Job component. You can modify the code to define the rules that apply the factor. The default value of the formula is N, which tells the system to assume that the compensation coming from the Job component already includes the FTE. Note: The standard solution for this formula assumes that the compensation from ANNUAL_RT in the JOB_DATA table was entered already reduced or already affected by the FTE.
CLI FM APL FTE E&D	Determines whether the system applies the FTE factor to compensation entered through earning and deduction assignment. The default value is Y (yes).
CLI FM APL FTE FXL	Use to apply the FTE factor to flexible compensation. Determines whether the system applies the FTE factor to flexible compensation. The default value is Y (yes).