Automatic Calculation Card Creation Process

In Setup and Maintenance, if you set the Selected Extension for China to Payroll or Payroll Interface using the Features by Country or Territory task, then a Deduction Information card is created automatically as part of the new hire process.

In addition, a valid element eligibility record is created for the Aggregation Information element. It's important to understand these aspects of automatic calculation card creation:

• Tax reporting unit (TRU) association

• Association details

• Adding calculation components, component details, and overriding values

TRU Association

Associations on a Deduction Information calculation card specify which TRUs should handle the tax, social security, and benefits deductions defined on the card. Associations determine how these deductions should be calculated and reported, which is based on the local policy of the legal jurisdiction for the associated TRU.

When you select a TRU in the Payroll Details section on the Hire an Employee: Employment Information page, an association to that TRU is automatically added to the employee's Deduction Information calculation card. It's considered the main TRU for the card, and is responsible for individual income tax reporting and is the default TRU for all other components on the card.

Note: If no TRU was selected on the Employment Information page, no association is created. You must create a TRU association on the card manually using the Manage Calculation Cards task.

You can use the Manage Calculation Cards task or the Batch Loader to update associations on the card if, for example, an employee wants to make Public Housing Fund (PHF) contributions to the TRU in the employee's hukou location of Shanghai, rather than to the main TRU in Beijing that handles individual income tax.

Association Details

Association details associate the Aggregation Information component with an assignment or employment terms. The automatic card creation process adds association details to the employee's Deduction Information calculation card automatically.

Note: If no TRU was selected, no association details are created. You must create a TRU association first, and then create association details using the Manage Calculation Cards task.

Add Calculation Components, Component Details, and Overriding Values

The automatically created card doesn't contain any tax, social security, or benefits components. You must add components for all deductions for the employee, such as individual income tax, PHF, basic medical insurance, and so on. You must also provide the required component details, such as the employee's social insurance account number or tax exemption category, for each component you add.

Use the Manage Calculation Cards task or the Batch Loader to add new components, component details, and overriding values if required.