GOSI Arrears for Saudi Arabia

Earnings allowances, loans, court orders and GOSI Arrears, Saned Arrears, are the elements for which the Saudi localization has predefined specific calculation rules.

Arrears management for GOSI and Saned can be created for Saudi Arabia using the primary classification Voluntary Deductions and the secondary classifications GOSI Arrears or Saned Arrears.

Full GOSI contributions from both employees and the employer need to be calculated and paid to the General Office for Social Insurance (GOSI) each month.

If an employee does not have enough earnings for the full employee GOSI contributions to be deducted, then the following is done as part of the payroll process:

• The maximum amount of employee GOSI contributions that can be taken, without creating negative net pay, should be deducted from the employee.
• If the full amount of employee GOSI contributions can't be deducted, then the Employer GOSI Subsidy elemententry is created in the current pay period and contains the GOSI Annuities or Saned amount that the employee is unable to pay. Legislatively, the employer should continue to pay the GOSI contributions on behalf of the employee if the employee is unable to do so, and any social insurance contributions paid by the employer on the employee’s behalf may be regarded as a loan that should be settled by the employee in accordance with the provisions in labor law.
• The purpose of the subsidy element is to track the arrears due in a balance, so the employee can refund this amount to the employer at a future date using the Employee GOSI Annuities or Saned Arrears Payment element.

If you want the GOSI contributions you paid on behalf of the employee to be refunded:

• Manually create an element for the Employee GOSI Annuities Arrears Payment element with the pay value as the amount held in the Employee GOSI Annuities Arrears balance.
• Manually create an element entry for the Employee GOSI Saned Arrears Payment element with the pay value as the amount held in the Employee GOSI Saned Arrears balance.

Setup for GOSI Arrears Management

Create Element Definitions:

1. Using the Manage Elements task, click Create to create a new element for GOSI Annuities or GOSI Saned.
2. In the Create Element window, complete the fields as shown:

   Arrears Type	Primary Classification	Secondary Classification	Category
   GOSI Annuities	Voluntary Deductions	GOSI Arrears	Standard
   GOSI Saned	Voluntary Deductions	Saned Arrears	Standard

   For arrears to be recovered across multiple periods, and for other arrears to be recovered later, the following responses should be provided:

   Area	Question	Response
   Standard Rules	At which employment level should this element be attached?	Payroll relationship level
   Standard Rules	Does this element recur each payroll period, or does it require explicit entry?	Recurring
   Standard Rules	What should happen when there are insufficient funds to cover the deductions?	Take a partial deduction, place remaining in arrears
   Standard Rules	Process the element only once in each payroll period?	Yes
   Standard Rules	Can a person have more than one entry of this element in a payroll period?	No
   Calculation Rules	What is the calculation rule?	Fixed amount deduction
   Special Rules	Is this element subject to proration?	No
   Special Rules	Is this element subject to retroactive changes?	No
   Special Rules	Process stop when the total is reached?	Yes

   Note: To enable the question “Process stop when the total is reached?” you must select “No” as your response to the question “Can a person have more than one entry of this element in a payroll period?” This implies multiple entries will not be allowed. If you need to add another arrears element after the first arrears element hasbeen stopped by a payroll run, you must end date the first arrears element before creating the second arrears element.