1. Implementing Payroll for China
  2. Enterable Values on the Personal Calculation Card

Enterable Values on the Personal Calculation Card

Use the predefined Deduction Information personal calculation card to define components to calculate, process, and report taxes, and social securities for China.

  • Component Groups and Calculation Components

  • Associations

  • Calculation Card Overrides

Some values entered on a calculation card override values defined in a calculation value definition.

Chinese statutory calculations are broadly categorized into these two component groups:

  • Taxes

  • Social Security

Component groups appear in the Calculation Card Overview section of the Calculation Cards page. Each component group supports a set of calculation components that capture data used to process the calculation.

Taxes Component Group

The Taxes component group has these calculation components:

  • Individual Income Tax: Individual income tax is a mandatory deduction for all employees in most cases. Add this component to the personal deduction card of each employee requiring the tax calculation, and select the employee's tax exemption amount category. The application determines the tax exemption amount the person is entitled to based on the category you select.

  • Aggregation Information: This component is created automatically when a personal statutory deduction card is created, but you must create an association on the card linking the component to valid employment terms. This component has no component details and allows no overrides. It applies only to personal deduction cards.

Social Security Component Group

The Social security component group has these calculation components:

  • Basic Medical Insurance

  • Basic Pension Insurance

  • Maternity Insurance

  • Public Housing Fund

  • Social Security Card Number

  • Supplementary Medical Insurance

  • Supplementary Public Housing Fund

  • Unemployment Insurance

  • Work-related Injury Insurance

Associations

A calculation card must be associated with a tax reporting unit (TRU). The association happens automatically if you specify the TRU in the new hire process. Otherwise, you need to manually create the association. This association enables the payroll process to apply rules and rates defined for the TRU when calculating deductions. It also controls the aggregation of deductions for tax reporting.

Association details link the Aggregation Information component with an assignment.

Change TRU for an Assignment

Use the Calculation Cards task to change the TRU for a preexisting assignment on the tax card. To change the TRU:

  1. In the Payroll section of My Client Groups, click the Calculation Cards task, which opens the Calculation Cards page.

  2. Search for and select the person record.

  3. Click Deduction Information.

  4. Click Associations under the Component Groups tree.

  5. Check the Effective As-of date and change it, if required.

  6. Click Edit and select Update.

  7. Update the TRU name.

  8. Click Save and Close.

Calculation Card Overrides

Calculation cards at different levels capture different information. The information defined at a lower-level overrides value defined at higher levels. An entry defined on the personal calculation card overrides the values defined at the TRU or payroll statutory unit level.