Steps: Set Up Reclassification Leaves (FRA)
Earned income and reclassification allowances are subject to different statutory calculations during these phases of a reclassification leave:
- Notice period.
- Legal period.
- Extension beyond the legal period.
You can set up Workday to:
- Pay the appropriate earnings during each phase of reclassification leave.
- Exempt reclassification allowances paid during the legal period from common law contributions.
- Subject reclassification allowances paid during the legal period to CSG/CRDS on replacement income.
- Subject reclassification allowances to complementary retirement contributions.
- Access theMaintain Leave Familiestask.Add a new row and enter Reclassification in theLeave Family Namefield.Security:Set Up: Leave of Absencedomain in the Time Off and Leave functional area.
- From theCreate a leave type for each phase of reclassification leave.Leave Payment Typeprompt, selectFranceand then a payment type associated with reclassification leave:
- France - FRA_RC - Reclassification Leave - No Contributions. Workday doesn't calculate the AGIRC-ARRCO ceiling for leaves based on this leave payment type.
- France - FRA_RC_CONT - Reclassification Leave - With Contributions. Workday calculates the AGIRC-ARRCO ceiling for leaves based on this leave payment type.
- France - FRA_RC_EX - Reclassification Leave - Extension
- France - FRA_RC_N - Reclassification Leave - Notice
- Access theMaintain Absence Mapping for Payroll Francetask.ForDSN Rubric CodeS21.G00.65.001, map your company's leave types to theDSN Rubric Valuefor reclassification leave.Security:Set Up: Payroll - FRAdomain in the FRA Payroll functional area.
- Create a separate earning for the payment during each of the reclassification periods. Example: Payment in lieu of notice, reclassification allowance during the legal period, reclassification allowance during an extended period.For earnings representing the legal reclassification allowance during the legal period, selectFRA Adds to CSG/CRDS on Replacement Income Taxable Base and Subtracts from Common Law Contributions Taxable Basesfrom theGroupsprompt on theNon-Effective Datedtab.You can use Workday-delivered instance set comparison calculations to determine when a worker is eligible. Example:Leave Payment Type equals Reclassification Leave – Legal Period – No Contributions.
- Set up pay component eligibility.Edit the pay component eligibility on your deductions for contingency fund contributions.You can use Workday-delivered instance set comparison calculations to determine when a worker is eligible. Example:Leave Payment Type equals Reclassification Leave – Legal Period – With Contributions. See Concept: Pay Component Eligibility.
When you process a payroll calculation, Workday:
- Pays the appropriate earning during each reclassification period.
- Unless specified, exempts reclassification allowances for the legal period from common law contributions, and subjects them to CSG/CRDS on replacement income.
Julie, the payroll administrator creates:
These statutory leave types:
Statutory Leave Type | Associated with Leave Payment Type |
|---|---|
Reclassification Leave - Legal Period | France - FRA_RC_CONT - Reclassification Leave - With Contributions
|
Reclassification Leave - Extension | France - FRA_RC_EX - Reclassification Leave - Extension
|
These earnings:
Earning | Calculation | Added to Pay Component Groups | Worker Eligibility |
|---|---|---|---|
Health Care Contribution (Deduction) | Based on reclassification allowance. | FRA Statutory ER [FRA]
| Leave Payment Type equals Reclassification Leave – Legal Period – With Contributions
|
Reclassification allowance - Legal | 65% of the base salary | FRA Adds to Gross [FRA]
FRA Adds to CSG/CRDS on Replacement Income Taxable Base and Subtracts from Common Law Contributions Taxable Bases FRA Adds to AGIRC-ARRCO Taxable Base [FRA] | Leave Payment Type equals Reclassification leave - Legal period - With Contributions
|
Reclassification allowance - extension | 80% of the base salary | FRA Adds to Gross [FRA]
| Leave Payment Type equals Reclassification leave - Extension
|
Set up the run category to process earnings for workers on a reclassification leave.
Place workers on leave with the appropriate leave type when they are on reclassification leave.