PeopleSoft Enterprise Global Payroll for China 9.1 PeopleBook

Setting Up Deductions

This chapter provides an overview of deductions and discusses how to create new deductions.

Understanding Deductions

This section discusses:

Delivered deductions.
Delivered supporting elements.
Process lists and sections.
Viewing delivered elements.

Delivered Deductions

PeopleSoft Global Payroll for China delivers a number of deductions that demonstrate the flexibility of Global Payroll rules to meet common processing requirements.

In this table, the first column combines the name and description of the delivered deductions. The other columns indicate the calculation rule components, such as base, percent and amount, the generation control, and the pre-process and post-process formulas for each deduction. NA indicates that a calculation rule component is not applicable.

Name/Descr.	Base	Percent	Amount	Generation Control	Pre-Process and Post-Process Formula
HOUSE_EE Public Housing Fund for EE	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
HOUSE_ER Public Housing Fund for ER	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
PENSION_EE Pension for Employee	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
PENSION_ER Pension for Employer	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
MEDICAL_EE Medical for Employee	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
MEDICAL_ER Medical for Employer	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
IND_INJ_EE Industry Injury Employee	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
IND_INJ_ER Industry Injury Employer	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
UNEMPL_EE Unemployment for Employee	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
UNEMPL_ER Unemployment for Employer	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
NORM TAX Normal Income Tax Deduction	NA	NA	CN FM CALC NORM TX (Formula - Monetary & Decimal)	NA	NA
DONATION Donation	NA	NA	Payee Level	NA	NA
TERM DED Pymt in Lieu of Notice by EE	NA	NA	CN FM TERM DED (Formula - Monetary & Decimal)	NA	NA
ANN BON TAX Annual Bonus Tax	NA	NA	CN FM CALC SP TAX (Formula - Monetary & Decimal)	NA	NA
SEVERANCE TX Severance Tax	NA	NA	CN FM CALC SEV TAX (Formula - Monetary & Decimal)	NA	NA
RTO DONATION Retro Donation	NA	NA	Payee Level	NA	NA
HOUSE VOL_EE Voluntary PHF for EE	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
HOUSE VOL_ER Voluntary PHF for ER	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
RTO NORM TAX Retro Normal Tax	NA	NA	Payee Level	NA	NA
MATERNITY_EE Maternity Insurance for EE	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
MATERNITY_ER Maternity Insurance for ER	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
SUP MED_EE Supplementary Medical for EE	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
SUP MED_ER Supplementary Medical for ER	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
RTO HOUSE_EE Retro Public Housing Fund ER	NA	NA	Payee Level	NA	NA
RTO HOUSE_ER Retro Public Housing Fund EE	NA	NA	Payee Level	NA	NA
RTO PENSN_EE Retro Pension for Employee	NA	NA	Payee Level	NA	NA
RTO PENSN_ER Retro Pension for Employer	NA	NA	Payee Level	NA	NA
RTO MED_EE Retro Medical for Employee	NA	NA	Payee Level	NA	NA
RTO MED_ER Retro Medical for Employer	NA	NA	Payee Level	NA	NA
RTO INJRY_EE Retro Industry Injury Employee	NA	NA	Payee Level	NA	NA
RTO INJRY_ER Retro Industry Injury Employer	NA	NA	Payee Level	NA	NA
RTO UNEMP_EE Retro Unemployment for EE	NA	NA	Payee Level	NA	NA
RTO UNEMP_ER Retro Unemployment for ER	NA	NA	Payee Level	NA	NA
RTO HS_VL_EE Retro Voluntary PHF for EE	NA	NA	Payee Level	NA	NA
RTO HS_VL_ER Retro Voluntary PHF for ER	NA	NA	Payee Level	NA	NA
RTO MATER_EE Retro Maternity Insurance EE	NA	NA	Payee Level	NA	NA
RTO MATER_ER Retro Maternity Insurance ER	NA	NA	Payee Level	NA	NA
RTO SUPMD_EE Retro Supplementary Medical EE	NA	NA	Payee Level	NA	NA
RTO SUPMD_ER Retro Supplementary Medical ER	NA	NA	Payee Level	NA	NA
PHFSI PRB PHFSI Accrued During Probation	NA	NA	CURR DRIVER VAL (System Element - Numeric)	NA	NA
INTERN TAX Intern Income Tax Deduction	NA	NA	CN FM CALC INTN TX (Formula - Monetary & Decimal)	NA	NA
RTO INTN TAX Retro Intern Tax	NA	NA	Payee Level	NA	NA
LAMI_EE Large Amount Medical for EE	CN VR CONT EE BASE (Variable - Numeric)	CN VR CONT EE PCT (Variable - Numeric)	NA	CN GC CONT	Pre - CN FM CONT Post - CN FM ROUNDING
LAMI_ER Large Amount Medical for ER	CN VR CONT ER BASE (Variable - Numeric)	CN VR CONT ER PCT (Variable - Numeric)	NA	CN GC CONT ER	Post - CN FM ROUNDING ER
RTO LAMI_EE Retro Large Amount Med EE	NA	NA	Payee Level	NA	NA
RTO LAMI_ER Retro Large Amount Med ER	NA	NA	Payee Level	NA	NA

Public Housing Fund and Social Insurance Deductions

Global Payroll for China delivers 18 deductions associated with the Public Housing Fund and social insurance (PHF/SI):

HOUSE_EE
HOUSE_ER
PENSION_EE
PENSION_ER
MEDICAL_EE
MEDICAL_ER
IND_INJ_EE
IND_INJ_ER
UNEMPL_EE
UNEMPL_ER
HOUSE VOL_EE
HOUSE VOL_ER
MATERNITY_EE
MATERNITY_ER
SUP MED_EE
SUP MED_ER
LAMI_EE
LAMI_ER

PHF/SI deduction calculation, registration, and assignment are discussed in the "Setting Up Public Housing Fund and Social Insurance Contributions" chapter.

See Setting Up Public Housing Fund and Social Insurance Contributions.

Tax Deductions

Global Payroll for China delivers five deductions associated with tax processing:

NORM TAX
DONATION
ANN BON TAX
SEVERANCE TX
INTERN TAX

Tax deduction calculation, registration, and supporting element overrides are discussed in the "Setting Up Tax Processing" chapter.

See Setting Up Tax Processing.

Termination Deduction

Global Payroll for China delivers the TERM DED termination deduction. This deduction:

Uses the formula CN FM TERM DED to determine the amount.
Subtracts from the GROSS accumulator.
Allows payee override.

See Processing Terminations.

Retro Deductions

Global Payroll for China delivers 18 retro earnings:

RTO DONATION
RTO NORM TAX
RTO INTN TAX
RTO HOUSE_EE
RTO HOUSE_ER
RTO PENSN_EE
RTO PENSN_ER
RTO MED_EE
RTO MED_ER
RTO INJRY_EE
RTO INJRY_ER
RTO UNEMP_EE
RTO UNEMP_ER
RTO HS_VL_EE
RTO HS_VL_ER
RTO MATER_EE
RTO MATER_ER
RTO SUPMD_EE
RTO SUPMD_ER
RTO LAMI_EE
RTO LAMI_ER

The system uses these deductions to forward actual deduction information from a retro period to the current period when it encounters retro during a payroll run.

Delivered Supporting Elements

This table lists the key supporting elements used to define the delivered deductions:

Element Type	Element Name	Used By	Function
Accumulators	CN AC PHFSI PROBN	HOUSE_EE HOUSE_ER PENSION_EE PENSION_ER MEDICAL_EE MEDICAL_ER IND_INJ_EE IND_INJ_ER UNEMPL_EE UNEMPL_ER HOUSE VOL_EE HOUSE VOL_ER MATERNITY_EE MATERNITY_ER SUP MED_EE SUP MED_ER LAMI_EE LAMI_ER	Accrues PHF/SI contributions during a payee's probation. It is updated by the CN FM ROUNDING formula.
Brackets	CN BR PHF-SI CALC	HOUSE_EE HOUSE_ER PENSION_EE PENSION_ER MEDICAL_EE MEDICAL_ER IND_INJ_EE IND_INJ_ER UNEMPL_EE UNEMPL_ER HOUSE VOL_EE HOUSE VOL_ER MATERNITY_EE MATERNITY_ER SUP MED_EE SUP MED_ER LAMI_EE LAMI_ER	Stores the contribution calculation type. Also stores upper and lower limit formulas and override variables for the employee and employer contribution base if an upper or lower limit is required; the switch month; employee and employer fixed-amount contribution base amount overrides; and the rounding rule for each contribution.
	CN BR AVE ANN SAL	HOUSE_EE HOUSE_ER PENSION_EE PENSION_ER MEDICAL_EE MEDICAL_ER IND_INJ_EE IND_INJ_ER UNEMPL_EE UNEMPL_ER HOUSE VOL_EE HOUSE VOL_ER MATERNITY_EE MATERNITY_ER SUP MED_EE SUP MED_ER LAMI_EE LAMI_ER	Stores the city average annual salary and city minimum monthly salary amounts as declared by city governments.
	CN BR CONT PCT	HOUSE_EE HOUSE_ER PENSION_EE PENSION_ER MEDICAL_EE MEDICAL_ER IND_INJ_EE IND_INJ_ER UNEMPL_EE UNEMPL_ER HOUSE VOL_EE HOUSE VOL_ER MATERNITY_EE MATERNITY_ER SUP MED_EE SUP MED_ER LAMI_EE LAMI_ER	Stores the employee and employer percents by contribution type.
	CN BR CONT AREA	HOUSE_EE HOUSE_ER PENSION_EE PENSION_ER MEDICAL_EE MEDICAL_ER IND_INJ_EE IND_INJ_ER UNEMPL_EE UNEMPL_ER HOUSE VOL_EE HOUSE VOL_ER MATERNITY_EE MATERNITY_ER SUP MED_EE SUP MED_ER LAMI_EE LAMI_ER	Stores the contribution areas.
	CN BR CONT LIMIT	HOUSE_EE HOUSE_ER PENSION_EE PENSION_ER MEDICAL_EE MEDICAL_ER IND_INJ_EE IND_INJ_ER UNEMPL_EE UNEMPL_ER HOUSE VOL_EE HOUSE VOL_ER MATERNITY_EE MATERNITY_ER SUP MED_EE SUP MED_ER LAMI_EE LAMI_ER	Returns an upper and lower limit for PHF/SI contributions for employees, employers, or the sum of employees and employers, for any province.
	CN BR CONT RETRO	RTO DONATION RTO NORM TAX RTO HOUSE_EE RTO HOUSE_ER RTO PENSN_EE RTO PENSN_ER RTO MED_EE RTO MED_ER RTO INJRY_EE RTO INJRY_ER RTO UNEMP_EE RTO UNEMP_ER RTO HS_VL_EE RTO HS_VL_ER RTO MATER_EE RTO MATER_ER RTO SUPMD_EE RTO SUPMD_ER RTO LAMI_EE RTO LAMI_ER	Stores the name of the retro element corresponding to each employee and employer contribution. It is resolved by the CN FM ROUNDING ER formula.
	CN BR TX EXEMPTION	NORM TAX ANN BON TAX SEVERANCE TX	Uses the CN VR EE TYPE variable value to return the tax exemption that the system deducts from a payee's taxable income.
	CN BR TX INTN EXEM	INTERN TAX	Uses CN VR EE TYPE and TAXABLE INTERN MTD values to return the tax exemption for interns.
	CN BR TAX RATE	NORM TAX ANN BON TAX SEVERANCE TX	Used by CN FM CALC TAX to obtain the tax rate and quick calculation deduction to determine the amount to withhold from the payee's normal salary for one pay period in the current financial year.
	CN BR TAX RT INTN	INTERN TAX	Used by CN FM CALC INTN TX to obtain the tax rate and quick calculation deduction to determine the amount to withhold on an intern's salary.
	CN BR TX REDUCTION	NORM TAX ANN BON TAX SEVERANCE TX INTERN TAX	Stores the reduction rate by tax area. The reduction rate is a percentage or an amount that the system loads at the beginning of the CN SE TAX section.
Generation Control	CN GC CONT	HOUSE_EE PENSION_EE MEDICAL_EE IND_INJ_EE UNEMPL_EE HOUSE VOL_EE MATERNITY_EE SUP MED_EE LAMI_EE	Determines whether payees are eligible for PHF/SI contributions.
	CN GC CONT ER	HOUSE_ER PENSION_ER MEDICAL_ER IND_INJ_ER UNEMPL_ER HOUSE VOL_ER MATERNITY_ER SUP MED_ER LAMI_ER	Determines whether employers are eligible for PHF/SI contributions.
Formula	CN FM CONT	HOUSE_EE PENSION_EE MEDICAL_EE IND_INJ_EE UNEMPL_EE HOUSE VOL_EE MATERNITY_EE SUP MED_EE LAMI_EE	Pre-process formula determines the employee contribution base (CN VR CONT EE BASE) and employee contribution percentage (CN VR CONT EE PCT) to calculate the amounts for PHF/SI deductions.
	CN FM ROUNDING	HOUSE_EE HOUSE_ER PENSION_EE PENSION_ER MEDICAL_EE MEDICAL_ER IND_INJ_EE IND_INJ_ER UNEMPL_EE UNEMPL_ER HOUSE VOL_EE HOUSE VOL_ER MATERNITY_EE MATERNITY_ER SUP MED_EE SUP MED_ER LAMI_EE LAMI_ER	Post-process formula applies the rounding rule to PHF/SI deductions.
	CN FM CONT LIMIT	HOUSE_EE HOUSE_ER PENSION_EE PENSION_ER MEDICAL_EE MEDICAL_ER IND_INJ_EE IND_INJ_ER UNEMPL_EE UNEMPL_ER HOUSE VOL_EE HOUSE VOL_ER MATERNITY_EE MATERNITY_ER SUP MED_EE SUP MED_ER LAMI_EE LAMI_ER	Calls the CN BR CONT LIMIT bracket, which can return a contribution limit. If a contribution exceeds or falls below the limit for a payee, the system generates a payee warning message.
	CN FM CALC TAX	NORM TAX ANN BON TAX SEVERANCE TX	Uses the bracket CN BR TAX RATE to obtain the tax rate and quick calculation deduction to calculate the amount to withhold on the payee's normal salary for one pay period in the current financial year. Subtracts the tax reduction from the tax amount if a payee is eligible for disability reduction.
	CN FM CALC NORM TX	NORM TAX	Calculates normal tax from normal salary. Calls the CN FM DONATION formula if a donation exists for a payee.
	CN FM DONATION	NORM TAX ANN BON TAX INTERN TAX	If a donation exists for a payee, deducts the tax-exempt portion of the donation from the taxable income to determine NORM TAX or INTERN TAX. The system calls this formula to determine ANN BON TAX if no normal tax is calculated and normal tax falls below the tax exemption for the period.
	CN FM CALC SP TAX	ANN BON TAX	Calculates annual bonus tax.
	CN FM CALC SEV TAX	SEVERANCE TX	Calculates severance tax.
	CN FM CALC INTN TX	INTERN TAX	Uses the bracket CN BR TAX RT INTN to obtain the tax rate and quick calculation deduction to calculate the amount to withhold from an intern's salary. Subtracts the tax reduction from the tax amount if a payee is eligible for disability reduction.
	CN FM INTN TAX	INTERN TAX	Inserts the intern tax calculation values into the CN WA TAX REPORT writable array for tax reporting purposes.

Process Lists and Sections

All deductions are members of the CN PR PAYROLL process list.

Within this process list, the deductions are arranged in these sections:

Section	Elements in Section
CN SE CONTRIBUTION	HOUSE_EE HOUSE_ER PENSION_EE PENSION_ER MEDICAL_EE MEDICAL_ER IND_INJ_EE IND_INJ_ER UNEMPL_EE UNEMPL_ER HOUSE VOL_EE HOUSE VOL_ER MATERNITY_EE MATERNITY_ER SUP MED_EE SUP MED_ER LAMI_EE LAMI_ER RTO HOUSE_EE RTO HOUSE_ER RTO PENSN_EE RTO PENSN_ER RTO MED_EE RTO MED_ER RTO INJRY_EE RTO INJRY_ER RTO UNEMP_EE RTO UNEMP_ER RTO HS_VL_EE RTO HS_VL_ER RTO MATER_EE RTO MATER_ER RTO SUPMD_EE RTO SUPMD_ER RTO LAMI_EE RTO LAMI_ER
CN SE TAX	NORM TAX ANN BON TAX SEVERANCE TX INTERN TAX
CN SE TERMINATION	TERM DED

Viewing Delivered Elements

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for China.

See PeopleSoft Enterprise Global Payroll 9.1 PeopleBook, "Viewing Delivered Elements," Understanding How to View Delivered Elements.

Creating New Deductions

This section discusses:

The accumulator structure of deductions.
How to configure deduction assignment and override components.
User fields.

Understanding the Accumulator Structure of Deductions

If you create new deductions, make sure that they conform to the accumulator structure of the delivered deductions. This is to ensure that the new elements are processed correctly and are included in the appropriate gross-to-net calculations.

Accumulator Structure of Deductions

This table describes the accumulator structure of deductions:

Accumulator Name	Description	Contributing Deductions
CHN NET	Net Pay China	ANN BON TAX DONATION HOUSE_EE HOUSE VOL_EE IND_INJ_EE MATERNITY_EE MEDICAL_EE NORM TAX PENSION_EE RTO DONATION RTO HOUSE_EE RTO HS_VL_EE RTO INJRY_EE RTO MATER_EE RTO MED_EE RTO NORM TAX RTO PENSN_EE RTO SUPMD_EE RTO UNEMP_EE SEVERANCE TX SUP MED_EE UNEMPL_EE INTERN TAX RTO INTN TAX LAMI_EE RTO LAMI_EE
TAXABLE NORMAL SAL	Total taxable normal salary	HOUSE_EE HOUSE VOL_EE IND_INJ_EE MATERNITY_EE MEDICAL_EE PENSION_EE SUP MED_EE TERM DED UNEMPL_EE LAMI_EE
NORM TAX_MTDA	Normal Income Tax Deduction	NORM TAX
DONATION_MTDA	Donation	DONATION
ANN BON TAX MTD	Annual Bonus Tax MTD	ANN BON TAX
SEVERANCE TAX MTD	Severance tax MTD	SEVERANCE TX
INTERN TAX_MTDA	Intern Tax Monthly Accumulator	INTERN TAX

Understanding How to Configure Deduction Assignment and Override Components

If you create deductions that use variables or other supporting elements in their calculations, you can modify or replace the standard supporting element override components to facilitate entering the values of these variables and other elements at either the payee or calender ID override levels.

Note. You can modify the standard supporting element override components by adding or changing field labels, prompt tables, and other page elements to better suit the elements that you want to override.

Understanding User Fields

When you create a deduction, you can associate it with as many as six different user fields. You can then assign the deduction to the same payee multiple times in a single segment and track each assignment, as well as any associated arrears, separately by user field set.