Funding Base Normalization
This topic discusses how PeopleSoft Global Payroll for Spain compares an employee's funding bases with the minimum and maximum amounts defined by the government to calculate both professional and common contingencies contributions for regular employees.
Note:
This topic does not apply to trainees or apprentices, whose funding base is defined as a fixed rate.
The system calculates an employee's social security contribution in the following way:
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Calculates all the subbases that contribute to the main funding base accumulator.
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Sums all the subbases contributing to the social security funding accumulator.
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To determine the common contingencies base, the system compares the sum calculated in step 2 to the maximum and minimum bases (amounts) defined for each work group on the Work Group page.
To calculate the professional contingencies base, the system adds the amount obtained in step 2 to structural and nonstructural overtime and compares the result with the upper and lower ceilings defined on the Scheme page. If the amount is below the minimum base/lower ceiling, it sets the base used for calculating contributions equal to the minimum base/lower ceiling. If this amount is greater than the maximum base/upper ceiling, it sets the base used for calculating social security contributions equal to the maximum base/upper ceiling.
For part-time employees, the system uses a set of reference bases and ceilings derived from the statutory minimum hourly rate.
Example
This example illustrates how PeopleSoft Global Payroll for Spain compares the common contingencies base.
Assume that an employee has a calculated monthly base of 700 EUR, which is the sum of contributing earnings plus extra period proration amount. Assume also that the employee has no absences in the current month, and has social security contributions that are processed monthly.
If the maximum and minimum bases for our employee are 3166.20 EUR and 1016.40 EUR, respectively, then the amount of 700 EUR falls below the minimum base. So 799.80 EUR is defined as the funding base.
Reference Bases and Ceilings
Although social security processing is essentially the same for professional and common contingencies, the two contribution types employ a different set of reference bases or ceilings. When calculating the common contingencies base, the system uses the maximum and minimum bases defined on the Work Group page. When calculating the professional contingencies base, the system uses the upper and lower ceilings defined on the Scheme page. In addition, when processing part time employees, the system uses a set of reference bases/ceilings derived from the statutory minimum hourly rate.
This table identifies the system pages on which you view, update, or define the current bases and ceilings used to calculate contributions for full-time employees and the minimum hourly rates used to define the reference bases and ceilings for part time employees.
| Contribution Type | View, Update, or Define Base/Ceiling on: | Comments |
|---|---|---|
|
Common contingencies (full-time employees) |
Work Group Page |
None |
|
Common contingencies (part-time employees) |
Work Group Page |
When processing part-time employees, the system calculates the minimum base by multiplying the statutory minimum hourly rate by the real number of hours worked. The maximum base is the same as the maximum for full time employees. |
|
Professional Contingencies (full-time employees) |
Scheme Page |
None |
|
Profession Contingencies (part-time employees) |
Scheme Page |
When processing part-time employees, the system calculates the lower ceiling by multiplying the statutory minimum hourly rate by the number of hours worked. The upper ceiling is the same as for full-time employees. |
Note:
The maximum bases, minimum bases, and minimum hourly rates for common contingencies vary by scheme ID and contribution group. The upper ceiling, lower ceiling, and minimum hourly rate for professional contingencies vary by scheme ID alone.