Example of Creating a Calculation Card for a Tax Reporting Unit for China

This example illustrates how to define a calculation card that captures social security management information specific to a tax reporting unit (TRU) and hukou type. The calculation card at the TRU level also defines the policy for deferring social security deductions during probation periods.

Note: The values you define at this level apply only to employees associated with the TRU (as defined in the associations on each person's Deduction Information calculation card). These values override deduction information defined at the payroll statutory unit (PSU) level and any values predefined at the legislative level.

This task involves these subtasks:

• Creating the calculation card

• Defining public housing fund (PHF) information

• Defining social insurance information

• Defining the social security deduction deferment policy (optional)

• Defining benefits information, such as enterprise annuity (optional)

Create the Calculation Card

1. Navigate to Setup and Maintenance and open the implementation project.

2. Search for the Define Legal Reporting Units for Human Capital Management task, and then expand the entry to display a list of related tasks.

3. Locate the Manage Legal Reporting Units Calculation Cards task.

   If the entity you want to work with is displayed in the Selected Scope column, click the Go to Task icon for this task row and skip to step 13. Otherwise, continue with the next step.

4. In the Manage Legal Reporting Unit Calculation Cards task row, click the link in the Selected Scope column.

5. On the Select Scope window, select Select and Add in the Legal Entity field.

6. Click Apply and Go to Task.

7. On the Select and Add: Legal Entity window, search for the parent PSU and then select it in the Search Results.

8. Click Save and Close.

9. On the Select Scope window, select Select and Add in the Legal Reporting Unit field.

10. Click Apply and Go to Task.

11. On the Select and Add: Legal Entity window, search for the TRU for which you want to create a card and then select it in the Search Results.

12. Click Save and Close.

    The Tax Reporting Unit page is displayed. If a calculation card already exists for this entity, it's displayed in the Search Results.

13. Click Create.

14. Enter the effective as-of date, and select Statutory Deductions as the name of the card.

15. Click Continue to begin adding components to the card.

Define Public Housing Fund Information

1. Select Social Security in the Calculation Card Overview section.

2. Click Create in the Calculation Components section.

3. Select Public Housing Fund as the Calculation Component.

4. Select a hukou type, and click OK.

5. On the Calculation Component Details tab, click Create.

6. Select Contribution Information as the value for Calculation Component Details, and click OK.

7. Select the rounding methods to use when calculating the employee and employer contribution amounts, if they differ from those defined for the PSU.

8. On the Enterable Calculation Values on Calculation Cards tab, click Create.

9. Select the name of the value you want to define, and then enter the overriding value.

   Note: Only define values at this level if they're different from the values you defined on the PSU-level calculation card (or if you didn't define any values at that level). Define values based on your business requirements.

   This list shows all the values you can define. Normally you would define either a contribution amount or a rate, but not both. If you define values for both, the application uses the amount and ignores the rate

   • Employee Contribution Rate

   • Employer Contribution Rate

   • Employee Nontaxable Contribution Threshold Rate

   • Employer Nontaxable Contribution Threshold Rate

   • Fixed Employee Contribution Amount

   • Fixed Employee Nontaxable Contribution Threshold Amount

   • Fixed Employer Contribution Amount

   • Fixed Employer Nontaxable Contribution Threshold Amount

10. Click OK.

11. Repeat steps 8-10 for each override you want to create for this component.

12. Repeat steps 2-10 to create a PHF component for each hukou type.

Define Social Insurance Information

You can add calculation components for these social insurance types:

• Basic Pension Insurance

• Basic Medical Insurance

• Supplementary Medical Insurance

• Unemployment Insurance

• Maternity Insurance

• Work-Related Injury Insurance

The steps for creating social insurance components, adding component details, and defining overrides are similar to those required for public housing fund management, with two exceptions:

• For maternity insurance and work-related injury insurance, you only define 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.

To define social insurance information at this level:

1. Select Social Security in the Calculation Card Overview section.

2. Click Create in the Calculation Components section.

3. Select a social insurance component and hukou type.

4. Define component details if they differ from the values defined for the PSU.

5. Define overrides as required using the steps provided earlier for public housing fund information.

6. Repeat this process as needed to create components for each social insurance type and hukou type.

Define the Social Security Deduction Deferral Policy

The Common Information component defines how social security contributions should be handled during the probation period for a new hire. Defining this information is optional. By default, social security deductions aren't deferred during a probation period.

1. Select Social Security in the Calculation Card Overview section.

2. Click Create in the Calculation Components section.

3. Select Common Information as the Calculation Component, and click OK.

4. In the Calculation Component Details section, complete the Social Security Contribution Deferment Type field as follows:

   • Select Not applicable if social security deductions should not be deferred during probation periods.

   • Select Defer until probation period end date 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.

   • Select Defer until next month of probation period end date 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.

5. Click OK.

Define Benefits Information

1. Create Benefits calculation components, such as Enterprise Annuity, as appropriate for your organization's needs. The component details and override values you provide for an Enterprise Annuity are similar to those for Social Security components.

2. Click Save and Close to save the calculation card.