PeopleSoft Enterprise Global Payroll for Italy 9.1 PeopleBook

Setting Up Social Security

This chapter provides an overview of the social security process and discusses how to:

Set up social security.
Set up CIG approvals.
Set up pension funds.
Report social contribution data.

Understanding the Social Security Process

Contributions are amounts paid by the employer to the National Social Security entity or the Complementary Social Security entities. These amounts can be paid on behalf of the employer and the employee. Employee contributions are withheld by the employer and paid to the Social Security entity. Amounts can be fixed amounts or percentages of income.

This section discusses:

Assessable income calculations.
Contribution calculations.
Reduction calculations.
Adjustment processing.
Viewing delivered elements.

Assessable Income Calculations

The assessable income for the main National Social Security contributions includes all gross earnings except amounts paid by the employer on behalf of the National Social Security entities. Contributions due to Complementary Social Security entities are based on a gross income that depends on the entity, such as the Trattamento di fine Rapporto (TFR) income.

Contribution Calculations

The main National Social Security contributions are percentages of the assessable income, except in particular cases in which the income exceeds a ceiling. Employer and employee rates vary depending on labor agreement and employee category. All of these percentages are retrieved by the system using brackets.

The complementary social security contributions are normally made by both employers and employees and can include part of the TFR fund as a destination. Both assessable income and percentages vary depending on the complementary social security entity and on the kind of enrollment. An employee can also add a voluntary contribution that can be either a fixed amount or a percentage of an income.

Other contributions to national social security include contributions on overtime and solidarity contribution.

Reduction Calculations

These reductions apply to the employer contributions made for employees hired under specific conditions. The existence and extent of the reduction depend on these factors:

Employment type and kind of hiring.
Hiring location.
Industrial sector.

The types of reductions are:

Reductions calculated as a percentage of employer social contributions dependant on employment type and hiring location.
Reductions calculated as a percentage of the assessable income dependant on the type of part time compensation.
Fixed reduction amounts Sgravi normally granted to employers that hire employees in regions of southern Italy with high unemployment rates.

Adjustment Processing

You can make end-of-the-year contribution calculations and their corresponding adjustments. Situations that may require adjustments include:

Assessable income exceeding pension fund (IVS) contribution ceilings for newly enrolled employees.
Additional IVS contribution.

IVS contributions are calculated monthly and are based on monthly income. Because monthly income may not accurately represent annual income, a contribution adjustment calculation must be done at the end of the year.
Decontribuzione.

Earnings based on company productivity are social security exempt up to a percentage of the yearly social security assessable income. In the course of the year, the yearly amount is estimated and the ceiling is calculated on the estimated amount. At year-end or termination the actual yearly amount is calculated, and an adjustment is made to the estimates.
December earnings (Elementi Variabili della retribuzione).

Amounts paid in January but related to December, such as overtime, must be considered in the CUD and 770 year-end reports for the year to which they relate.

Viewing Delivered Elements

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Italy. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 9.1 PeopleBook.

Setting Up Social Security

To set up social security use these components: INPS Categories ITA (GPIT_INPS_CAT), the INPS Contribution Codes ITA (GPIT_INPS_CDCTR), INPS Profiles ITA (GPIT_INPS_PROF), INPS Sgravi ITA (GPIT_INPS_SGRAVI), Providers Data ITA (GPIT_PROV), and Additional Company Info ITA (GPIT_COMP_ADDTL).

This section discusses how to:

Set up Assegni Nucleo Familiare (ANF) data.
Set up provider data.
Set up additional company information.
Set up employee social insurance data.

Pages Used to Set Up Social Security

Page Name	Definition Name	Navigation	Usage
Maintain ANF Data ITA	GPIT_ANF_EE	Global Payroll & Absence Mgmt, Payee Data, Social Security/Insurance, Maintain ANF Data ITA, Maintain ANF Data ITA	Enter employee data necessary for the family allowance calculation.
INPS Categories ITA	GPIT_INPS_CAT	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security/Insurance, INPS Categories ITA, INPS Categories ITA	Maintain the INPS Category table.
INPS Contribution Codes ITA	GPIT_INPS_CDCTR	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security/Insurance, INPS Contribution Codes ITA, INPS Contribution Codes ITA	Maintain the INPS Contribution Code table.
INPS Profiles ITA	GPIT_INPS_PROF	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security/Insurance, INPS Profiles ITA, INPS Profiles ITA	Maintain the INPS Profile table.
INPS Sgravi ITA	GPIT_INPS_SGRAVI	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security/Insurance, INPS Sgravi ITA, INPS Sgravi ITA	Maintain the INPS Sgravi table.
Providers Data ITA	GPIT_PROV	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security/Insurance, Providers Data ITA, Providers Data ITA	Define providers for the 770 report.
Additional Company Info ITA (additional company information)	GPIT_COMP_ADDTL	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security/Insurance, Additional Company Info ITA, Additional Company Info ITA	Set up company data for 770 reporting.
Maintain Social Ins Data ITA (maintain social insurance data)	GPIT_CTR_EE	Global Payroll & Absence Mgmt, Payee Data, Social Security/Insurance, Maintain Social Ins Data ITA, Maintain Social Ins Data ITA	Set up an employee's INPS and Sgravi data.

Setting Up ANF Data

Access the Maintain ANF Data ITA page (Global Payroll & Absence Mgmt, Payee Data, Social Security/Insurance, Maintain ANF Data ITA, Maintain ANF Data ITA).

INPS Table Element

Enter the element to retrieve the base allowances.

Family Income

Enter the family income and select the currency.

Family Condition Code

Use only if the INPS table must be retrieved online. Identifies the presence of a spouse and disabled dependents.

Setting Up Provider Data

Access the Providers Data ITA page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security/Insurance, Providers Data ITA, Providers Data ITA).

Provider Type

Select the type of provider. The provider is the organization that submits reports to the government. Providers are required for the 770 report and the Electronic CUD (e-mens) report.

If the company itself sends the report, select Company sending file directly. Otherwise, select the external organization that is responsible for the submission. The options are: Government Administration, Others, Partner Banks, or Post Administration.

Provider Tax Code

Enter the tax code assigned to the provider. Tax codes are assigned by the government.

Software Provider Tax Code

Enter the tax code assigned to the software provider.

INPS Site

Select the INPS site to which the provider submits reports. Define the INPS sites on the INPS Site page.

Setting Up Additional Company Information

Access the Additional Company Info ITA page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security/Insurance, Additional Company Info ITA, Additional Company Info ITA).

Details

Provider Code

Select the provider responsible for submitting the company's 770 and Electronic CUD (e-mens) reports to the government. Define providers on the Providers Data ITA page.

770 Data

Activity Code	Enter the activity code that specifies the company's activity type. The tax department (Ministero dell'Economia e delle Finanze) defines activity codes. For further information, refer to the tax department specifications: http://www.agenziaentrate.it
770 Status	Enter the 770 status code for the company. The tax department defines the 770 status codes that indicate companies' status for 770 reporting purposes.
Juridical Nature	Enter the code that defines the legal structure of the company. Refer to the tax department specifications for definitions of these codes.
Situation	Enter the situation code that applied to the company during the 770 reporting period. Refer to the tax department specifications for definitions of the situation codes.

Contractors Section

The fields in this section are for the Electronic CUD (e-mens) report if the company employs contractors.

ZIP Code	Enter the five-digit postal code for the company.
ISTAT Code	Enter the statistical classification code assigned to the company by the Statistical Legal Body (ISTAT).

Legal Representative

Enter details about the person who is responsible for the 770 report on this page. This person may be an employee or someone from an external organization.

Setting Up Employee Social Insurance Data

Access the Maintain Social Ins Data ITA page (Global Payroll & Absence Mgmt, Payee Data, Social Security/Insurance, Maintain Social Ins Data ITA, Maintain Social Ins Data ITA).

Contribution Regime

Select the national social security entity in which the employee is enrolled, such as INPS.

INPS Category

Select the INPS category.

INPS Contr Prof (INPS contribution profile)

Use to manage the employee's rules eligibility.

Contribution Code

Select the contribution code. This on the INPS contribution profile that you entered.

New Enrolled

Select to track the employee's enrollment in statutory insurance before and after 1993.

Contractor Contribution Type

Select the pension status only for contractors. Select one of these options:

No other Pension Fund: Select if the contractor is not enrolled in any pension plan.

Other Pension Fund: Select if the contractor is already enrolled in another pension plan.

Retired payee: Select if the contractor is retired.

Contract Type

Select the contract type for contractors only.

Activity Type

Select a value that describes the type of work carried out by the contractor.

INPDAI Regime

Select either CM, CP, or RP, depending on the payee's enrollment date.

INPDAI Matricula

Enter the payee's INPDAI enrollment code.

Sgravio Code

Tracks the employee's eligibility for contributive reductions. Multiple entries are allowed.

Setting Up CIG Approvals

This section provides an overview of Cassa Integrazione Guadagni (CIG) processing and discusses how to set up CIG approvals.

Understanding CIG Processing

In some situations, employers can make a request to the INPS for partial payment of salaries for employees who are put on temporary leave. For example, construction companies that are affected by bad weather or companies experiencing problems can put some employees on temporary leave and then request a Cassa Integrazione Guadagni payment from the INPS.

If the INPS approves the request, the CIG payments are made for a specific period. The monthly CUD reports for the approved period include details about the employees affected.

Global Payroll for Italy delivers the following for CIG processing:

Enter absence data for employees affected using the absence takes delivered for CIG processing.

See Setting Up Absences.
Record CIG approvals using the Setup CIG Approvals ITA component (GPIT_CIG_PREG).

When you run the Electronic CUD Monthly report (GPIT_CUDE_AE) for periods in which CIG is approved, the system checks for employees with a CIG absence entry during the period and includes the relevant information that is required by the INPS.

Page Used to Set Up CIG Approvals

Page Name	Definition Name	Navigation	Usage
Setup CIG Approvals ITA	GPIT_CIG_PREG	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security/Insurance, Setup CIG Approvals ITA, Setup CIG Approvals ITA	Define the periods for which CIG payments have been authorized by the INPS and the periods during which these payments are reported in the electronic CUD (e-mens) report.

Setting Up CIG Approvals

Access the Setup CIG Approvals ITA page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security/Insurance, Setup CIG Approvals ITA, Setup CIG Approvals ITA).

From Date, Thru Date

Enter the dates for which CIG payments are approved.

Payment Month, Payment Year

Select the payment month and the year in which the CIG payments are included in the monthly electronic CUD (e-mens) report.

Setting Up Pension Funds

To manage pension funds, you must establish the fund codes and enter the contribution amounts for each employee. To set up pension funds, use the Complementary Fund Codes ITA (GPIT_FPC_COD), Complementary Fund Regimes ITA (GPIT_FPC_REG), and Complementary Fund Types ITA (GPIT_FPC_TYP) components. This section lists the pages used to set up pension funds.

Pages Used to Set Up Pension Funds

Page Name	Definition Name	Navigation	Usage
Complementary Fund Codes ITA	GPIT_FPC_COD	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Pensions, Complementary Fund Codes ITA, Complementary Fund Codes ITA	Set up fund codes.
Complementary Fund Regimes ITA	GPIT_FPC_REG	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Pensions, Complementary Fund Regimes ITA, Complementary Fund Regimes ITA	Set up fund regimes for your fund codes. Typically, each fund regime has different employee and employer contributions. Employees are enrolled in fund regimes according to their contributive seniority.
Complementary Fund Types ITA	GPIT_FPC_TYP	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Pensions, Complementary Fund Types ITA, Complementary Fund Types ITA	Set up fund types.
Maintain Compl Fund ITA (maintain complementary fund)	GPIT_FPC_EE	Global Payroll & Absence Mgmt, Payee Data, Pension Information, Maintain Compl Fund ITA, Maintain Compl Fund ITA	Select employees' pension fund code, regime code, and fund type using the codes defined on the complementary pension fund setup pages. You also use this page to define voluntary contribution rates.

Reporting Social Contribution Data

This section provides an overview of social security reporting and discusses how to:

Set up the Contribution report.
Run the Contribution report.

Understanding Social Security Reporting

Social security contributions are included in these reports:

Monthly DM10 report for the INPS.
S503 report.
CUD report.
770 report.
Contribution report.

Use this report to reconcile the monthly DM10 report or to check single contributions. This section discusses how to set up and run the Contribution report. Use the Contribution Report Setup ITA component (GPIT_CTRRP_SETUP) to set up the Contribution report.

Pages Used to Set Up and Run the Contribution Report

Page Name	Definition Name	Navigation	Usage
Contribution Report Setup	GPIT_CTRRP_SETUP	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security/Insurance, Contribution Report Setup ITA, Contribution Report Setup	Define the sections of the Contribution report and the elements included in each section.
Contribution Report ITA	GPIT_RC_CTRRP	Global Payroll & Absence Mgmt, Social Security/Insurance, Contribution Report ITA, Contribution Report ITA	Run the Contribution report.

Setting Up the Contribution Report

Access the Contribution Report Setup page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security/Insurance, Contribution Report Setup ITA, Contribution Report Setup).

The report definition delivered with Global Payroll for Italy includes the elements that we deliver. You can update the definition with custom elements for your organization.

Section ID

Enter the section ID that identifies a section of the report.

Sequence Number

Enter the sequence number that determines the order in which the sections are printed in the report.

Section Type

Select one of these values:

General: The section contains either employee contributions or employer contributions.

Employer + Employee Contrib. (employer and employee contributions): The section contains both types of contributions. The employee and employer contributions are shown in separate columns on the same line of the report.

General Element

Access the General Element tab.

If the section type is General, use this tab to list the elements for employee or employer contributions. If the section type is Employer + Employee Contrib., this tab lists the elements for the employer contributions only.

Sequence	Enter the sequence number for the earning or deduction that determines the order in which the element is printed in the report.
Description	Enter a description of the earning or deduction. This description is printed in the report.
Calculation Rule	Select one of these values: Amount: Prints the element amount in the report. B and A (Base and Amount): Prints the base and the element amounts.
Element Type	Select Earnings or Deduction.
Element Name	Select the earning or deduction that you want to add to the report.
Sign	Select one of these values: Add: Adds the value of the element to the total for the section. Subtract: Subtracts the value of the element from the total for the section.

Employee Element

Access the Employee Element tab.

If the section type is Employer + Employee Contrib., this tab lists the elements for the employee contributions only.

Calculation Rule	Select the calculation rule for the secondary element.
Element Type	Select the element type for the secondary element.
Secondary Element	Select the earning or deduction.

Running the Contribution Report

Access the Contribution Report ITA page (Global Payroll & Absence Mgmt, Social Security/Insurance, Contribution Report ITA, Contribution Report ITA).

Selection Criteria

Use this group box to define the group of employees included in the report and the period the report covers.

Month, Year

Select the month and the year that you want to use as the reporting period.

Break List

Use this group box to define how you want the report organized. For example, if you select Company, then the report is sorted by company and it includes the total contributions for each company.

You can select up to six criteria. The report includes totals for each criteria. For example, if you select Company and Establishment, then the report is sorted by company and, for each company, the report is organized by establishment.

If you have the following organization:

Company	Establishments
KI0001	KI1E001, KI1E002
KI0002	KI2E001, KI2E002

The report is organized as follows:

Establishment KI1E001 data

Total for KI1E001

Establishment KI1E002 data

Total for KI1E002

Total for Company KI0001

Establishment KI2E001 data

Total for KI2E001

Establishment KI2E002 data

Total for KI2E002

Total for Company KI0002

Totals for report (company KI0001 and KI0002)

Criteria

Select one of the following values: Company, Establishment, PayGroup, INPS Category, INPS Contributive Code, or INPS Position.

INPS Table Element	Enter the element to retrieve the base allowances.
Family Income	Enter the family income and select the currency.
Family Condition Code	Use only if the INPS table must be retrieved online. Identifies the presence of a spouse and disabled dependents.

Provider Type	Select the type of provider. The provider is the organization that submits reports to the government. Providers are required for the 770 report and the Electronic CUD (e-mens) report. If the company itself sends the report, select Company sending file directly. Otherwise, select the external organization that is responsible for the submission. The options are: Government Administration, Others, Partner Banks, or Post Administration.
Provider Tax Code	Enter the tax code assigned to the provider. Tax codes are assigned by the government.
Software Provider Tax Code	Enter the tax code assigned to the software provider.
INPS Site	Select the INPS site to which the provider submits reports. Define the INPS sites on the INPS Site page.

Contribution Regime	Select the national social security entity in which the employee is enrolled, such as INPS.
INPS Category	Select the INPS category.
INPS Contr Prof (INPS contribution profile)	Use to manage the employee's rules eligibility.
Contribution Code	Select the contribution code. This on the INPS contribution profile that you entered.
New Enrolled	Select to track the employee's enrollment in statutory insurance before and after 1993.
Contractor Contribution Type	Select the pension status only for contractors. Select one of these options: No other Pension Fund: Select if the contractor is not enrolled in any pension plan. Other Pension Fund: Select if the contractor is already enrolled in another pension plan. Retired payee: Select if the contractor is retired.
Contract Type	Select the contract type for contractors only.
Activity Type	Select a value that describes the type of work carried out by the contractor.
INPDAI Regime	Select either CM, CP, or RP, depending on the payee's enrollment date.
INPDAI Matricula	Enter the payee's INPDAI enrollment code.
Sgravio Code	Tracks the employee's eligibility for contributive reductions. Multiple entries are allowed.

From Date, Thru Date	Enter the dates for which CIG payments are approved.
Payment Month, Payment Year	Select the payment month and the year in which the CIG payments are included in the monthly electronic CUD (e-mens) report.