Organization-Level Calculation Values for China
You can define calculation values for statutory deductions at several levels. This topic describes how to set them at the level of the payroll statutory unit (PSU) and tax reporting unit (TRU) calculation cards. PSU-level values override any values set at the legislative level.
The calculation values allowed on a calculation card vary depending on the card level and the calculation component.
PSU-Level Calculation Values
Use the Manage Legal Entity Calculation Cards task in the Setup and Maintenance work area to define calculation values at the PSU level. Select the PSU, create or open the Statutory Deductions calculation card, and then enter the values on the Enterable Calculation Values on Calculation Cards tab. Do this at initial setup and as changes occur.
This table describes the calculation values allowed on a PSU-level calculation card.
|
Calculation Value Name |
Calculation Components Supporting this Value |
How the Value is Used |
|---|---|---|
|
Severance Payments Tax Exemption Amount |
Individual Income Tax |
Defines the severance payments tax exemption amount by exemption category for a specific territory. Supported tax exemption categories are listed earlier. |
|
Employee Contribution Rate, Employer Contribution Rate |
Social security and benefits components |
Defines the contribution rate for a specific territory and hukou type. For a contribution rate of 10 percent, enter a value of 0.1. |
|
Fixed Employee Contribution Amount, Fixed Employer Contribution Amount |
Social security and benefits components |
Defines a flat contribution amount for a specific territory and hukou type. |
|
Fixed Employee Contribution Base Amount, Fixed Employer Contribution Base Amount |
Social security and benefits components |
Defines a flat amount to use as the base for the contribution for a specific territory and hukou type. |
|
Employee Nontaxable Contribution Threshold Rate, Employer Nontaxable Contribution Threshold Rate |
All social security components except Maternity Insurance, Supplemental Medical Insurance, and Work-Related Injury Insurance |
Defines the maximum contribution rate for calculating nontaxable contributions for a specific territory and hukou type. Contributions exceeding the threshold are taxed. Note: If you provide a value for any nontaxable item (employee
nontaxable contribution threshold rate, employer nontaxable contribution
threshold rate, or nontaxable contribution base threshold amount),
the application calculates the nontaxable and taxable contributions
using the values provided. If you provide a base threshold amount but don't
provide threshold rates, then the application uses the employee and
employer contribution rates as the nontaxable contribution rates when
calculating nontaxable contributions.
|
|
Fixed Employee Nontaxable Contribution Threshold Amount, Fixed Employer Nontaxable Contribution Threshold Amount |
All social security components except Maternity Insurance, Supplemental Medical Insurance, and Work-Related Injury Insurance |
Reserved for future use. |
|
Nontaxable Contribution Base Threshold Amount |
All social security components except Maternity Insurance, Supplemental Medical Insurance, and Work-Related Injury Insurance |
Defines the maximum contribution base amount for calculating nontaxable contributions for a specific territory and hukou type. Note: If you provide nontaxable contribution threshold rates
but don't provide a base threshold amount, then the application uses
the employee and employer contribution base amount as the nontaxable
contribution base threshold amount when calculating nontaxable contributions.
|
|
Fixed Contribution Base Lower Limit Amount, Fixed Contribution Base Upper Limit Amount |
Social security and benefits components |
Defines the lowest and highest contribution base amounts that can be used when calculating the contribution amount for a specific territory and hukou type. |
|
City Lowest Average Monthly Salary in Previous Year, City Average Monthly Salary in Previous Year, Provincial Average Monthly Salary in Previous Year |
Social security and benefits components |
Defines the values used in contribution base calculation and upper and lower limit calculation, for a specific territory and hukou type, when they're set to any of these values:
Note: You must update these values once a year as data becomes available. |
|
Employee Contribution Rate by Years of Service Employer Contribution Rate by Years of Service |
Enterprise Annuity |
Defines contribution rates that vary by years of service for a specific territory and hukou type. Each calculation value defines one or more rows in a range table, rather than a single rate or amount. Each row defines a range of years and corresponding contribution rate. For example, one row might define a rate of 4 percent for first 4 years of service, and another row might define a rate of 6 percent for 5-9 years of service. |
TRU-Level Calculation Values
Use the Manage Legal Reporting Unit Calculation Cards task in the Setup and Maintenance work area to define calculation values specific to a TRU and hukou type. Select the TRU, create or open the Statutory Deductions calculation card, and then enter the values on the Enterable Calculation Values on Calculation Cards tab. Do this at initial setup and as changes occur, only if TRU values differ from those set at the PSU level.
Calculation values aren't allowed at the TRU level for income tax calculation components.
For social security and benefits deductions, all calculation values supported on a PSU-level calculation card are also supported at the TRU level, except for the following, which are used in the calculation of contribution base:
-
Fixed Employee Contribution Base Amount
-
Fixed Employer Contribution Base Amount
-
Nontaxable Contribution Base Threshold Amount
-
Fixed Contribution Base Lower Limit Amount
-
Fixed Contribution Base Upper Limit Amount
-
City Lowest Average Monthly Salary in Previous Year
-
City Average Monthly Salary in Previous Year
-
Provincial Average Monthly Salary in Previous Year
In addition, the calculation values you define at the TRU-level, the rounding methods you enter in the Contribution Information component details for social insurance and benefits components override the rounding methods defined at the PSU level.