Examples of Chinese Statutory Calculation Card Overrides

Employee Qualifies for Special Tax Reduction Rate

Let's look at a scenario in which an employee qualifies for a special 20 percent reduced tax rate. To define this rate, add the Individual Income Tax calculation component to the employee's personal calculation card (if it doesn't already exist). Enter these component details:

Field	Value
Entitled to Tax Reduction or Exemption	Yes
Tax Exemption Amount Category	Mainland China resident with mainland China income

Use these values to create an override for this component:

Field	Value
Override Name	Special Tax Reduction Rate
Rate	0.2

Employee Makes Fixed Amount Contribution to Public Housing Fund

Let's look at a scenario in which an employee wants to make a fixed contribution amount to the public housing fund. To define this override, first create a new association on the employee's personal calculation card for the PHF calculation component, and select the tax reporting office to which the employee will contribute this calculation. Next, use these values to create an override for this component:

Field	Value
Override Name	Fixed Employee Contribution Amount
Amount	5000

Contribution Base Calculation Method Varies for Some Employees

The default method for calculating the contribution base for Basic Medical Insurance is Average Monthly Salary in Previous Year. However, for certain employees, you may have to use a fixed amount instead. In such situations, update the Basic Medical Insurance deduction component details on those employees' personal calculation card:

Field	Value
Employee Contribution Base Calculation Method	Fixed Amount
Force Contribution Base Recalculation	Yes

Use these values to create an override for this calculation component:

Field	Value
Override Name	Fixed Employee Contribution Base Amount
Amount	3000

Tax Exemption Amount for Organization Is Different than Default Exemption Amount Defined for Legislation

A default tax exemption amount of 2000 is defined at the legislative level. However, the territory in which a particular payroll statutory unit (PSU) conducts business uses a tax exemption amount of 2500.

On the PSU-level calculation card (Manage Legal Entity calculation Records task in Setup and Maintenance), create an Individual Income Tax calculation component and select the territory that uses the special exemption amount. Then, use these values to create an override for this calculation component:

Field	Value
Override Name	Tax Exemption Amount
Amount	2500

Previous Year's Average Salary Figures Must be Updated

The Employee Contribution Base Calculation Method is used when calculating the Public Housing Fund calculation in your area is set to 60 percent of City Average Monthly Salary in Previous Year. Likewise, the Upper Limit Calculation Method is set to 3 Times the Provincial Average Monthly Salary in Previous Year. These calculation methods require current values for City Average Monthly Salary in Previous Year and Provincial Average Monthly Salary in Previous Year. Once a year, as the data becomes available, you must update this information.

On the PSU-level calculation card (Manage Legal Entity calculation Records task in Setup and Maintenance), create an override for the Public Housing Fund social security using the following values:

Field	Value
Override Name	City Average Monthly Salary in Previous Year
Amount	3880

Field	Value
Override Name	Provincial Average Monthly Salary in Previous Year
Amount	3550