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Administrator Guide
Last Updated: 2023-06-23
FAQ: Contribution and Tax Exemptions (FRA)

FAQ: Contribution and Tax Exemptions (FRA)

Do apprentices benefit from exemptions for overtime work?
Workday calculates the
Overtime Work Amount Contribution Exemption [FRA]
 deduction for apprentices when they meet the legal eligibility criteria. Workday uses a different taxable base for apprentices that takes into account the number of overtime hours versus the total paid hours.
To enable Workday to identify hours to include, add pay component related calculations for hours to these pay component groups:
  • FRA Overtime Hours Eligible for Apprentice Exemption [FRA]
  • FRA Partially Paid Absence in Hours [FRA]
  • FRA Unpaid Absence in Hours [FRA]
In the
FRA Overtime Hours Eligible for Apprentice Exemption [FRA]
 pay component group, include overtime hours increased by their corresponding increased rate.
How can I prevent Workday from calculating apprenticeship tax?
Workday calculates apprenticeship tax for all establishments marked as liable for apprenticeship tax on either the
Edit Company FRA Tax Configuration
 or
Edit Establishment FRA Tax Configuration
 tasks.
You can prevent Workday from calculating the Workday-delivered apprenticeship tax deductions by creating a pay component with a nonzero result and adding it to the
FRA Prevent Apprenticeship Taxes Calculation
 pay component group.
How can I identify exempted contractual overtime hours to prorate for absences?
When calculating overtime contribution and tax exemptions, Workday prorates overtime hours based on the worker's built-up salary versus the worker's actual salary.
To calculate contribution and tax exemptions for overtime hours, you must add pay component related calculations for overtime hours and earnings to these pay component groups:
  • FRA Contractual Overtime Work Amount Eligible for Exemption
  • FRA Contractual Overtime Hours Eligible for Employer Exemption
How can I adjust exemptions for overtime work?
Workday calculates tax and contribution exemptions based on:
  • The legal tax limit.
  • The overtime work amounts that are part of the
    FRA Overtime Work Amount Eligible for Exemption [FRA]
     pay component group.
To add or subtract from the legal tax limit, add an override payroll input for the
Memo – Overtime Work Amount Tax Exemption [FRA] - Tax Exemption Ceiling Adjustments
 pay component related calculation.
To add to or subtract from the calculated eligible amount for overtime exemptions, add an override payroll input for 1 of these pay component related calculations:
  • Memo – Overtime Work Amount Contribution Exemption [FRA] - Eligible Amount Adjustment
  • Memo – Overtime Work Amount Tax Exemption [FRA] – Eligible Amount Adjustment
When you add a payroll input for only 1 of the Eligible Amount Adjustment pay component related calculations, Workday uses its value by default for the tax exemption calculation.
How does Workday calculate statutory contributions and taxes for on-demand additional payments?
When you process an on-demand additional payment, Workday calculates the contributions and taxes configured on the
Off Cycle (On Demand Additional, Manual)
 tab of the run category.
Workday calculates:
  • Social contributions based on a rate from the payment subperiod end date.
  • Taxes with a rate based on the payment date.
As opposed to regular payments, Workday only calculates SMIC reference values and social security ceilings for payments that are associated with 1 of these pay component groups:
  • FRA Absence Deduction to Subtract from Social Security Ceiling [FRA]
  • FRA Absence Indemnity to Add to Social Security Ceiling [FRA]
  • FRA Adds to Built up Reprocessed Taxable Wages [FRA]
  • FRA Full Time and Part Time Workers Overtime Hours [FRA]
  • FRA Part Time Medical Jobs Proration Ceiling Number of Days [FRA]
  • FRA Partially Paid Absence in Hours [FRA]
  • FRA Subtracts from Built up Taxable Wages [FRA]
  • FRA Unpaid Absence in Hours [FRA]
When an on-cycle or on-demand replacement payment follows an on-demand additional payment, Workday calculates a monthly regularization to respect the limits for:
  • Absences and complementary hours for social security ceilings.
  • Monthly overtime and contribution amounts for the employee overtime exemption calculation.
  • Monthly overtime units, and contribution amounts for the employer overtime exemption calculation, applying to companies with a headcount below 20 employees.
How does Workday calculate and report RTT payout-related exemptions for companies with fewer than 20 workers?
When workers request payment for their RTT days, Workday calculates income tax and social security exemptions. Workday uses dedicated pay component groups and deductions to manage the impact on URSSAF contributions and DSN reporting.
Use these pay component groups to calculate RTT payout exemptions:
  • FRA RTT Payout Number of Days
    for pay components related to the number of RTT payout days for the employer exemption.
  • FRA RTT Payout Amount
     for pay components related to the RTT payout amount for the employee exemption.
You also need to add RTT payout-related earnings to the
FRA Days Off Payoff Eligible for Employer Exemption [FRA
 and the
FRA Overtime Work Amount Eligible for Exemption [FRA]
 pay component groups.
Workday calculates the reduction of URSSAF contributions based on RTT payout with 2 deductions:
  • FRA RTT Payout Employer Exemption
  • FRA RTT Payout Employee Exemption
Workday reports these values in DSN rubric S21.G00.23.002:
  • 096 pour la réduction de cotisations salariales
  • 097 pour la déduction forfaitaire de cotisations patronales pour les employeurs de moins de 20 salariés
In addition, the
FRA RTT Payout Employer Exemption
 deduction is reported in DSN block 81 for rubric value
021 – Déduction patronale au titre des heures supplémentaires
. The
FRA RTT Payout Employee Exemption
 is reported for rubric value
114 - Montant de réduction des heures supplémentaires/complémentaires
.
How does Workday calculate overtime exemptions for companies with more than 20 workers?
The Employer Contribution Lump Sum Deduction calculates the exemption based on either daily or hourly rates and the corresponding contribution limit. Add your workers to these pay component groups, depending if they are paid in hourly or daily increments:
  • FRA Employer of more than 20 Workers Exemption – Overtime Hours
  • FRA Employer of more than 20 Workers Exemption – Days Off Paid
In the
Edit Company FRA Tax Configuration
 task, complete the
Company Headcount
 grid.