1. Implementing Payroll for China
  2. Create a Social Security Deductions Element

Create a Social Security Deductions Element

This example demonstrates how you can use the element template and create a social security deductions element for China. Use the Elements task in the Compensation section of My Client Groups to create the element.

Creating a Social Security deductions element includes:

  • Creating the social security deductions element

  • Creating the input values

  • Creating the element eligibility record

  • Creating balance feeds

How to Create a Social Security Deductions Element

To create a social security deductions element:

  1. From your Home page, navigate to My Client Groups > Show More.

  2. Under Compensation, click Elements.

  3. On the Elements page, click Create.

  4. Enter these details.

    Field

    Value

    Legislative Data Group

    Select an appropriate LDG.

    Primary Classification

    Social Security Deductions

    Secondary Classification

    Basic Pension Insurance Employee Contribution

  5. Click Continue.

  6. On the Basic Information page, complete these fields.

    Field

    Value

    Name

    Enter a name. For example: Basic Pension Insurance EE Cont Adjustment

    Reporting Name

    The name you enter is displayed on reports for this deduction payroll element.

    Effective Date

    Enter an early date so that the payroll element is available for use immediately.

    Input Currency

    Yuan Renminbi

    Should every person eligible for the element automatically receive it?

    No

    What's the earliest entry date for this element?

    First Standard Earning Date

    What's the latest entry date for this element?

    Final Close

    Note: An element's latest entry date determines how element entries process after a person is terminated or transferred to another payroll.

    At which employment level should this element be attached?

    Payroll Relationship Level

    Note: Select Payroll Relationship Level, if you want to hold the arrears in a balance so that the payroll run can deduct the pretax amount in a subsequent payroll period. The arrears are held at the Payroll Relationship level.

    Does the element recur each payroll period, or does it require explicit entry?

    Nonrecurring

    Process the element only once in each payroll period?

    Yes

    Can a person have more than one entry of the element in a payroll period?

    Yes

  7. Click Next on the Additional Details page.

  8. Click Next twice. Verify that the information shown on the Create Element: Review page is correct.

  9. Click Submit.

How to Create an Input Value

On the Element Summary page, update the newly created element details.

  1. In the Element Overview section, select Input Values.

  2. Select Actions, and then Create Input Value.

  3. In the Name field, enter Pay Value.

  4. From the Special Purpose list, select Primary output value.

  5. From the Unit of Measure list, select Money.

  6. Select the Displayed, Allow User Entry, Required, and Create a Database Item check boxes.

  7. Click Submit.

How to Create an Eligibility Record

On the Element Summary page, update the newly created element details.

  1. In the Element Overview section, select Element Eligibility.

  2. Select Actions, and then Create Element Eligibility.

  3. In the Name field, enter a name for the eligibility record.

  4. In the Eligibility Criteria section, select any criteria if you want to restrict who can pay this deduction. Or else, select All payrolls eligible.

  5. Click Submit.

    All the associated balances, feeds, input values, formulas, and related elements required for payroll processing are created automatically.

Create Balance Feeds

To display the user-defined social security deduction items on the statement of earnings and payslip, complete these steps:

  1. Use the Balance Definitions task to create a balance with Social Security Deductions category with the created element specified under the Primary Details section.

  2. Add the following dimensions for the new balance:

    • Relationship, Run

    • Relationship, Year to Date

    • Relationship, Tax Unit, and Run

    • Relationship, Tax Unit, and Year to Date

    • Relationship, Tax Unit, Payslip

  3. Add one balance feed for the balance by using the Social Security deductions element you created for Basic Pension Insurance.

  4. Verify that the balance feed exists for the element for the following balances:

    • Social Security Deductions

    • Statutory Deductions

    • Gross Deductions

    • Net Payments

    • Subject to Minimum Wage Protection Calculation

  5. Add the balance feed to this seeded balance: Basic Pension Insurance Employee Nontaxable Contribution.

  6. Use the Balance Groups task and add the newly created balance to Global Payroll Relationship Other Deductions balance group (with balance group usage: Global Payroll Relationship Other Deductions for Global Archive) with the following dimensions:

    • Relationship, Tax Unit, Payslip

    • Relationship, Tax Unit, and Year to Date