Setup the Additional Social Insurance Deduction for an Employee for Kuwait

The Calculation Card task associates the additional social insurance calculation component with the employee and records the details required for deduction.

Follow the steps detailed below:

Navigate to the Payroll Calculations work area.
Select Calculation Cards from the task list.
Enter the Name of the employee who's subject to the additional social insurance deduction.
Select the same Legislative Data Group that was used when creating the additional social insurance deduction component.
Enter the Effective-As-of Date and ensure that it is on or after the date used when creating the element.
Click Search.
Select the employee for whom you want to set up the additional social insurance deduction component. Any available calculation cards that the employee has will appear in the Search Results.
Select the Employee Social Insurance Details calculation card.
Note: This calculation card is automatically created at the time of hiring if the employee’s citizenship information was entered during the hiring process.
Click Add Row in the Calculation Components section to create a new calculation component.
In the Calculation Component field, select the name used when creating the element.
Select Employee Social Insurance Details in the Parent Calculation Component field.
Select the Insurance Type that categorizes the additional social insurance deduction.
Note: The deduction code associated with each Insurance Type is used by statutory reports to identifyspecific amounts for reporting.
Click OK.
Make sure that the newly created calculation component is selected.
Click Add Row in the Calculation Component Details section.
Select Global Additional Insurance Details from the list and click OK.

Select the required Partial Deductions Arrears Rule from the list. The Partial Deduction Arrears Rule controls how deductions that couldn't be made due to insufficient pay are handled. The table below gives the list of the available arrears rules.

Arrears Processing Rules

Arrears Rule	Description
Do not take a partial deduction or create arrears	If the full amount can't be deducted due to insufficient funds defer the deduction and don't recognise the amount as being in arrears.
Do not take partial deduction, place all in arrears	If the full amount can't be deducted due to insufficient funds defer the deduction and recognise the full amount as being in arrears.
Take a partial deduction, but do not create arrears	If the full amount can't be deducted due to insufficient funds deduct what can be taken but don't recognise the outstanding amount as being in arrears.
Take a partial deduction, place remaining in arrears	If the full amount can't be deducted due to insufficient funds deduct what can be taken but recognise the outstanding amount as being in arrears.

Don't enter any values in any other fields.
Make sure that newly created calculation componenet is created.
Create a new calculation component detail using Add Row at top of the Calculation Component Details section.
Select Kuwait Additional Insurance Details from the list and click OK.
Enter combination of Monthly Payment and Number of Installments or Total Debt and Number of Installments.
Enter the Deduction Authority. This is the name of the social insurance authority that requested the deduction to be made.
Enter the Reference Number. This is the unique identifier for this social insurance deduction for this person.
Click Save and Close.
Note: It isn't possible for an employee to have more than one calculation component using the same element and insurance type at the same time. If multiple concurrent additional social insurance deductions for the same insurance type are required then additional elements will have to be defined.

Deduction of Additional Social Insurance During a Payroll Run

The existence of one or more child additional social insurance calculation components for an employee’s Employee Social Insurance Details calculation component triggers the payroll calculation. The calculation is done at a payroll relationship level taking into account the specific information recorded for the amount of deduction to be made, the procedure for managing arrears and arrears recovery, the insurance type, the deduction authority, and so on. The deductions will continue until the total amount is deducted.

View and Report Results for Additional Social Insurance Deductions

Once the payroll is run, the results of each deduction as well as any arrears for an employee are calculated and recorded using the elements and balances created by the Elements task for the specific additional social insurance deduction. These deductions will appear alongside the standard social insurance deductions on the employees SOE and payslip.

Statutory reports such as Report 167, Report 166, and Report 103 identify specific types of additional social insurance for reporting using the insurance type (deduction code) that was used to classify each additional social insurance calculation component when adding it to the employee’s calculation card using the Calculation Cards task.

Payroll Definitions

The Elements task creates a set of supporting payroll definitions used to calculate and report the additional social insurance deductions. The Name used when creating the element is used as a prefix in the name of some of the related payroll definitions to show their association and is represented as ‘<element_name>’, as shown below:

Element: <element_name>: Represents each additional social insurance calculation that's taken place. Input values are Reference Code and Insurance Type.

Element: <element_name> Deduction Results: The amount of additional social insurance deduction from the employee.

Name	Description
Pay Value	The amount deducted.
Reference Code	Reference to the calculation component for employee that represents the additional social insurance being deducted.
Insurance Type	Reference to insurance type for this additional social insurance.
Total Debt	The total amount to be deducted based on what was entered on the calculation component for the employee.
Total Debt Run	The total amount to be deducted at time of payroll calculation.
Period Payment	Monthly payment to be deducted
Number 1	Number of Instalments.
Text 1	Reference number that was entered for the calculation component for the employee.
Text 2	Deduction authority that was entered for the calculation component for the employee.

Element: <element_name> Arrears Result: Arrears amount for when there's insufficient pay to take the full deduction amount from the employee. Input values are Pay Value, Reference Code, and Insurance Type.

Balance: <element_name>: Amount deducted from the employee.

Name
Relationship Inception to Date
Relationship Period to Date
Relationship Year to Date
Relationship Reference Code Inception to Date
Relationship Reference Code Period to Date
Relationship Reference Code Year to Date

Balance: <element_name> Arrears Deduction: Arrears amount for the employee.

Name
Relationship Inception to Date
Relationship Period to Date
Relationship Year to Date
Relationship Reference Code Inception to Date
Relationship Reference Code Period to Date
Relationship Reference Code Year to Date

Calculation Component:<element_name>: Represents the additional social insurance deduction component which can be added to an employee’s calculation card to trigger the deduction.
Formula: <element_name> Social Insurance Auto Indirect: Formula is triggered after the main social insurance calculation has occurred. It identifies each additional social insurance deduction by looking at the social insurance calculation card and its child components and triggers the calculation for each additional social insurance deduction.
Formula: <element_name> Social Insurance Deduction Context Override: This formula is called from the formula <element_name> Social Insurance Auto Indirect above and replaces the logic to trigger the processing of additional social insurance deductions.
Formula: <element_name> Social Insurance Calculator: Formula is triggered for each additional social insurance deduction that needs to be taken and calculates the deduction and any arrears according to the choices made. The formula <element_name> Social Insurance Deduction Context Override is called from the formula overrides this functionality.
Formula: <element_name> Social Insurance Deduction Context Override: This formula is called from the formula <element_name> Social Insurance Calculator above and replaces the logic to calculate the additional social insurance deductions.