Create a Legal Reporting Unit Calculation Card

This topic demonstrates how you can create a calculation card at the tax reporting unit level. Use the Manage Legal Reporting Unit Calculation Cards task to create the card.

A legal reporting unit statutory deductions card captures social security management information specific to a tax reporting unit and hukou type. It also defines the policy for handling social security deductions during probation periods if deferring deduction can be arranged. It's optional to set up a legal reporting unit statutory deductions card.

The values you define at this level apply only to the employees associated with this tax reporting unit (as defined in the associations on each person's personal statutory deductions card). These values replace the deduction information defined at the payroll statutory unit level and any values predefined at the legislative level when calculating statutory deductions for employees associated with the tax reporting unit.

Perform these tasks to create a Legal Reporting Unit calculation card for China:

• Create the Statutory Deductions Card

• Define the Public Housing Fund Calculation Components

• Define the Social Insurance Calculation Components

• Define the Common Information Calculation Components

How to Create the Statutory Deductions Card

1. In the Setup and Maintenance work area, do the following:

   • Offering: Workforce Deployment

   • Functional Area: Enterprise Structures

   • Task: Define Legal Reporting Units for Human Capital Management

   Expand the entry to display a list of related tasks.

2. Click the Select link for the Legal Reporting Unit Calculation Cards task.

3. On the Select Scope window, select appropriate values from the Legal Reporting Unit and Legal Reporting Unit lists.

4. Click Apply and Go to Task.

5. On the Tax Reporting Unit page, click Create.

6. On the Create Calculation Card dialog box, do the following:

   • In the Effective As-of Date field, enter a date.

   • From the Name list, select Statutory Deductions.

7. Click Continue.

How to Define the Public Housing Fund Calculation Components

1. Select Social Security from the Components Groups in the Calculation Card Overview section.

2. Click Create in the Calculation Components section.

3. On the Create calculation component page, do the following:

   • from the Calculation Component list, select Public Housing Fund.

   • From the Contribution Type list, select a value.

4. Click OK.

5. In the Public Housing Fund: Details section, click Create.

6. On the Create Calculation Component Details dialog box, from the Calculation Component Details list, select Contribution Information and click OK.

7. In the Public Housing Fund: Details section, on the Calculation Component Details tab, click Contribution Base Information and complete these fields:

   Field	Value
   Employee Amount Rounding Method	Select a value.
   Employer Amount Rounding Method	Select a value.

8. On the Enterable Calculation Values on Calculation Cards tab, click Create. Select the name of the override you want to create and then enter the overriding value. This table lists the overrides allowed for public housing fund management at the payroll statutory unit level. Because these values vary by territory, no default values are provided for any of the items in this table. They are all set to zero at the legislative value.

   Note: Only create overrides at this level if the values are different from the values you defined on the payroll statutory unit statutory deduction card (or if you didn't define any values at that level).

   OVERRIDE NAME	VALUE TYPE	VALUE EXAMPLE
   Employee Contribution Rate	Rate	0.18
   Employee Nontaxable Contribution Threshold Rate	Rate	0.12
   Employer Contribution Rate	Rate	0.18
   Employer Nontaxable Contribution Threshold Rate	Rate	0.12
   Fixed Employee Contribution Amount	Total amount	-
   Fixed Employee Nontaxable Contribution Threshold Amount	Total amount	-
   Fixed Employer Contribution Amount	Total amount	-
   Fixed Employer Nontaxable Contribution Threshold Amount	Total amount	-

9. Click Save and Close.

   You can create multiple instances of this component, one for each hukou type.

How to Define the Social Insurance Calculation Components

Before you define the social insurance calculation components, consider the following points:

• You can add social insurance calculation components and component details to the statutory deductions card. You can add calculation components for these social insurance types to a Legal Reporting Unit statutory deductions card:

  • Basic Pension Insurance

  • Basic Medical Insurance

  • Supplementary Medical Insurance

  • Unemployment Insurance

  • Maternity Insurance

  • Work-Related Injury Insurance

• For maternity insurance and work-related injury insurance, you define only the employer contribution; there is no corresponding employee contribution

• For supplementary medical insurance, maternity insurance, and work-related injury insurance, taxable contribution calculation isn't required

1. Select Social Security from the Components Groups in the Calculation Card Overview section.

2. Click Create in the Calculation Components section.

3. On the Create calculation component page, do the following:

   • From the Calculation Component list, select a social insurance type.

   • From the Contribution Type list, select a value.

4. Click OK.

5. In the Details section of the selected social insurance type, click Create.

6. On the Create calculation Component Details dialog box, from the Calculation Component Details list, select Contribution Information and click OK.

7. In the Details section of the selected social insurance type, on the Calculation Component Details tab, click Contribution Base Information and complete these fields:

   Field	Value
   Employee Amount Rounding Method	Select a value.
   Employer Amount Rounding Method	Select a value.

8. On the Enterable Calculation Values on Calculation Cards tab, click Create. Select the name of the override you want to create and then enter the overriding value.

9. Click Save and Close.

How to Define the Common Information Calculation Components

1. Select Social Security from the Components Groups in the Calculation Card Overview section.

2. Click Create in the Calculation Components section.

3. On the Create Calculation Component page, from the Calculation Component list, select Common Information and click OK.

4. In the Common Information: Details section, on the Calculation Component Details tab, click Common Information .

5. From the Social Security Contribution Deferment Type list, select any of these options:

   Option	Description
   Not applicable	Select this option if social security deductions should not be deferred during probation periods.
   Defer until probation period end date	Select this option to defer social security contributions during probation periods and deduct the full amount (current and deferred) in the pay period that includes the probation end date.
   Defer until next month of probation period end date	Select this option to defer social security deductions and deduct the full amount (current and deferred) in the pay period following the pay period that includes the probation end date.

6. Click Save and Close.