Example: Configure Reclassification Leaves with Contributions (FRA)
This example illustrates how to create a leave type and reclassification earning subject to
contributions.
You want to manage payroll for workers during the legal period of a reclassification leave.
During the legal period, your workers receive a reclassification allowance instead
of their standard pay. The workers' reclassification allowances are:
- Exempt from social security contributions.
- Subject to the CSG/CRDS on replacement income.
- Subject to complementary retirement and health care contributions.
Create a leave family called
Reclassification
.Create a calculation that returns the value of the reclassification allowance, called
Reclassification Allowance
.Configure your run category for workers on leave.
Security:
- Set Up: Leave of Absencedomain in the Time Off and Leave functional area.
- Set Up: Payroll Calculations (Payroll - Specific)domain in the Core Payroll functional area.
- Set Up: Payroll - Pay Group Specificdomain in the Core Payroll functional area.
- Access theCreate Leave Typetask.Enter these values:
Option Description Leave TypeReclassification - Legal Period - ContributionsLeave FamilyReclassificationLeave Payment typeSelectFranceand thenFrance - FRA_RC_CONT - Reclassification Leave - Contributions.Enabled for Worker TypeEmployeeIn theLeave Impactssection, select thePayroll Effectcheck box. - Access theCreate Earningtask.Enter these values:
Option Description NameReclassification Allowance - No ContributionsCodeReclass_Legal_No_ContEffective DateEnter today's date.Worker EligibilityLeave Payment Type equals Reclassification Leave - Legal Period - ContributionsCalculationReclassification AllowanceOn theNon-effective datedtab, select these pay component groups from theGroupsprompt:- FRA Adds to AGIRC-ARRCO Taxable Base [FRA]
- FRA Adds to CSG/CRDS on Replacement Income Taxable Base and Subtracts from Common Law Contributions Taxable Base [FRA]
- FRA Adds to Gross [FRA]
- FRA CSG/CRDS Reduction Calculation Activation [FRA]
Select any custom pay component groups related to health insurance and supplementary retirement insurance. - Access theEdit Run Categorytask for your run category.On theNonactive (On Cycle, On Demand Replacement)tab, add this row:Pay Component to CalculateStatusLeave TypesReclassification Allowance - No ContributionsOn LeaveReclassification - Legal Period - Contributions
- ClickOK.
You can now place workers on leave for the legal period of a
reclassification leave. Workers on this type of leave receive a reclassification
allowance instead of their regular pay. The reclassification allowance is subject to
complementary retirement and health contributions.
In the
Maintain Absence Mapping for Payroll France
task, map the new leave
type to the absence value 625 - Reclassification
to declare the
reclassification leave in DSN reporting.