SAP Belgium nv-sa Olympiadenlaan 2 1140 Brussels (Evere)
Version 2013 Part 2
DeCava OVERVIEW SAP-HCM: “Belgian Complementary Indemnity Payments” This documentation relates to the DeCava functionalities introduced by authorities April 2010 and is subdivided in different parts. This document includes Part 2:
Although the documents are divided in different parts they remain complementary to each other. Some aspects which are explained in this document could also have relevancy within others.
SAP-Belgium: Complementary Indemnity Payments
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As from 2012 the naming convention within the DeCava functionality has been changed putting emphasis on the Unemployment status of the beneficiary instead of making reference to a Retirement status.
Within the documentation we will regularly still refer to the naming conventions used in 2010 as these are more familiar.
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Stelsel van Werkloosheid met bedrijfstoeslag - SWT Régime de Chômage avec Complément d'entreprise - RCC System of Unemployment with Complement from company - SUC
MONTHLY COMPLEMENTARY PAYMENTS CONTINUED DURING THE COMPLETE UNEMPLOYMENT PERIOD Functionalities for the Advance Taxes The examples below illustrate in first place the different calculations being applied. These examples should not always be regarded as compliant with real legal business rules and cases.
Table of Contents 01 DeCava Taxes - SUC (Early Retiree) .............................................................................................. 4 02 DeCava Taxes - SUIC (Unemployment - Canada Dry)................................................................... 9 03 DeCava Taxes - SUIC (Part Time Career Interruption) ................................................................ 14 08 DeCava Taxes - Multiple Complements with different context .................................................... 17 10 DeCava Taxes - Partial Conventional Fund payment .................................................................... 20 13 DeCava Taxes – Debtor type 4 and Fund payment ....................................................................... 22
The numbering of the different examples are defined equally amongst the different documentation parts.
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01 DeCava Taxes - SUC (Early Retiree)
An employee born 12.03.1952 has been notified of his dismissal on 05.01.2010. He leaves the company as from 01.04.2010. He fulfills the legal conditions to become the unemployment status: full time “Early Retiree” (SUC) with dependent family members at charge. He will receive from governmental Unemployment Office a monthly allowance of 1150 €. As from 01.04.2010 he will also become the rights of a complementary payment from his former employer. This payment is based upon the national collective agreement 17. The moment of dismissal he was employed within the activity sector of Joint Commission 218 (Profit Sector). His former employer becomes the only debtor of a monthly complementary payment which, according Sector agreement is due till the person’s official age of pensioning (65 years of age). The pensioning starts April 2017 and the Early Retiree status will end March 2017. The complementary Indemnity payment equals 100 € / month.
Social Insurance contributions: see document Part 1
Taxable Basis Depending upon the Complementary Indemnity payment and his context the Taxable Bases are defined.
The taxable calculation basis is not the same as the taxable payment amount
The employee’s taxable calculation basis
(/45C)
1250.00
Will consist of the addition of the Allowance payment amount the Conventional payment amount
+ (/A01) + (/C01)
1150.00 100.00
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Minus the employee’s SI contribution amount
- (/3C1)
0.00
To define the employee’s taxable payment (/40E) the employer will not make use of the Allowance Social Benefit amount. It will consist of: the employer’s Conventional payment amount
+ (/C01)
100.00
Minus the employee’s SI contribution amount
- (/3C1)
0.00
The wage types will be processed according the processing class 83 values E (addition) and F (subtraction)
Payroll Calculation Rules The complementary indemnity context will be questioned to define the taxable amounts. The context is defined via the variable split indicator pointing to the payment conditions:
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1. Processing of /A01 – the Social Benefit amount The rule B053A will question the further payment conditions as available in related table CI. This questioning is done by means of operation VAKEY which has been extended for these purposes. According the rule B053A the social benefit amount /A01 within the condition early retirees will be stored in taxable basis /45C.
Processing class 83 values E (addition) 879 = Early Retiree The wage type /A01 (= Social Benefit amount) Within the context of payment type 0 (= monthly) Within the context Half Time indicator 0 (= full time unemployed) Resumption of Work Type (= no resumption)
Will be added in the taxable calculation basis /45c
2. Processing of /C01 – the Complementary amount The complementary payment from wage type /C01 will be subject of similar operations in calculation rules:
Processing class 83 values E (addition) 879 = Early Retiree The wage type /C01 Processing Class 84 = specification 1 (Conventional employer) Within the context Half Time indicator 0 (= full time unemployed) Within the context of payment type 0 (monthly)
Will be added in the taxable payment basis /40E Will be added in the taxable calculation basis /45C
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Processing Class 84 value is stored in context CI table: “Specification” = 1
Specification value 1 = the Conventional payments by Employer
1. Processing of /3C1 – the Employee’s SI contribution To define the taxable amounts the processing of employee contribution in this business case does not take place as no employee contribution is due.
Tax Calculation According the tax scales II (Legal Cohabitation – Partner without income) there are no taxes due
Net payment amount The payment amount will be the complementary indemnity amount as no employee SI contribution (/3C1), neither advance taxes (/41E) are due. /COA will exclusively include the Employer’s payment(s). The /C01 is not used as this could include Fund payments.
The complementary amount (/C0A) will be added in Net Payment (/550), Net for Garnishment (/500) and total costs (/700) /
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Besides the complementary amount (/C0A) also the employer SI contribution (/3CA) will be added in the total of costs (/700)
IT table: The variable split indicators are eliminated
An employee born 04.03.1952 has been notified of his dismissal on 01.10.2009. He leaves the company as from 01.04.2010. He fulfills the legal conditions to become the Unemployment allowances with dependent family members at charge. He will receive from governmental Unemployment Office a monthly allowance of 1150 €. As from 01.04.2010 he will also become the rights of a complementary payment from his former employer. This is based upon an individual agreement which foresees the continued payment whenever the employee starts working again. The moment of dismissal he was employed within the activity sector of Joint Commission 218 (Profit Sector). His former employer becomes the only debtor of a monthly complementary payment which is due till the person’s official age of pensioning (65 years of age). So the Unemployment status will end March 2017. The complementary Indemnity payment equals 400 € / month.
Social Insurance contributions: See document Part 1
Taxable Basis & Calculation Depending upon the Complementary Indemnity payment and his context the Taxable Bases are defined.
The employee’s taxable calculation basis The employee’s taxable payment
(/4C1) (/40E)
Will both consist of the addition of the Conventional payment amount
+ (/C01)
400.00
Minus the employee’s SI contribution amount
- (/3C1)
44.87
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The rule B053B will have to question the payment conditions as available in variable key and related table CI. This questioning is done by means of operation VAKEY
Position 1 2–4 5 7 8 9 10 11 12 - 15
Example 2 883 0 2
Meaning Value of processing class 84 Worker Code Capitalization Notion Agreement Notion
1
Agreement Date Resumption of work measure
0 0001
Half Time indicator Resumption of work type Indemnity ID
AGTYP ( Agreement Type) = 2
AGRDT (Agreement date) = blank
RECON (Resumption of work) = 1
SAP-Belgium: Complementary Indemnity Payments
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= Additional payment by employer = SUIC - Canada Dry = Monthly = Individual agreement or agreement on level of company = Blank – “Not before 01.10.2005” = The agreement fulfills the condition in case of resumption of work = Full Time unemployment = no resumption = Identifier of the defined Indemnity
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Processing class 83 values E (addition) 883 = Canada Dry The wage type /C01 Processing Class 84 = specification 2 (Additional payment by employer) Within the context of payment type 0 (monthly) Within the context Agreement date= blank (not < 01.10.2005) Within the context Resumption of Work = 1 (Compliant agreement)
Will be added in the taxable calculation basis /4C1
In a similar way the employee’s SI contribution (/3C1) will processed and then deducted in the same calculation basis (/4C1)
Processing class 83 values F (Subtraction) 883 = Canada Dry Within the context of payment type 0 (monthly) Within the context Agreement date= blank (> 30.09.2005) Within the context Resumption of Work = 1 (Compliant agreement)
Will be deducted in the taxable calculation basis /4C1
These both computations will result in: 400 € - 44.87 € = 355.13 € wage type /4C1
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To enable the different advance tax rules and declaration requirements there are created different wage types for the taxable (payment) basis and taxes.
The tax rates are defined in table of constants
The calculation of the applicable taxes are integrated in function BST00
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Net payment amount:
to become the Net Payment amounts:
Payroll Calculation rule B030 will process, based upon the processing class 05, the relevant wage types ADDITION: Employers payment 400.00 €
SUBTRACTION : Employee SI contribution (44.87 €) and Advance taxes (35.83 €)
Tax declarations
Via the table T5BX4 the assignment of wage types (/4C1 and /4A1) to the appropriate declaration income forms and fields can be customized.
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03 DeCava Taxes - SUIC (Part Time Career Interruption)
An employee born 04.03.1955 becomes a Part Time Career interruption as from 01.04.2010. He fulfills the legal conditions to become a governmental allowance with status: part time “Career Interruption” / “Time Credit”) without dependent family members at charge. It is also agreed that the employee is exempted from execution of effective work during this part time employment. He will receive from governmental Unemployment Office a monthly allowance of 445 €. As from 01.04.2010 he will also become the rights of a complementary payment from his employer. His employer becomes the only debtor of a monthly complementary payment during the period of career interruption. This means till 31.03.2012 being the end date of the Career Interruption status. The complementary Indemnity payment equals 400 € / month.
Social Insurance contributions: See document Part 1
Taxable Basis & Calculation The taxable basis will have to be computed based upon the questioning of the wage type and context. Besides the Complementary Indemnity payment the employee will become the remunerations for executed work. For reason of Tax Declaration there will be needed a separate wage type /40Y with the taxable complementary amount
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To define the appropriate tax wage types the indemnity context will be questioned.
Position 1 2–4 5 7 8 9 10 11 12 - 15
Example 2 885 0 2
Meaning Value of processing class 84 Worker Code Capitalization Notion Agreement Notion
1
Agreement Date Resumption of work measure
1 0001
Half Time indicator Resumption of work type Indemnity ID
= Additional payment by employer = Career Interruption = Monthly = Individual agreement or agreement on level of company = Blank “Not before 01.10.2005” = The agreement fulfills the condition in case of resumption of work = Half Time unemployment = no resumption = Identifier of the defined Indemnity
Processing class 83 values E (addition) 885 = Career Interruption The wage type /C01 Processing Class 84 = specification 2 (Additional payment by employer)
Within the context Half Time Indicator =1 (Half Time) Will be added in the taxable payment /401 Will be added in the taxable calculation basis /452 Will be added in the taxable declaration basis /40Y
A similar processing will be done for the /3C1 wage type (Employee Social Insurance contribution) but in negative. Besides the complementary indemnity remuneration and SI contribution the employee will also become the regular remunerations (/101) and SI withholdings (/301). These will also be stored in the /401 and /452. Taxes are computed based upon the totalizing of complementary and regular remunerations.
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Net payment amount:
to become the Net Payment amounts:
Payroll Calculation rule B030 will process, based upon the processing class 05, the relevant wage types.
Tax declarations
Via the table T5BX4 the assignment of wage types to the declaration income forms and fields can be customized.
The wage type /40Y will be subtracted from the 281.10 fiche and declared within the income 281.18 fiche. Therefore the 281.10 income fiche will only remain the taxable amount for the part of the regular executed work and the total of advance taxes.
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08 DeCava Taxes - Multiple Complements with different context
An employee born 16.02.1952 has been notified of her dismissal on 22.11.2009. She leaves the company as from 01.03.2010. She fulfills the legal conditions to become the unemployment status: “Unemployed - SUIC” with dependent family members at charge. She will receive from governmental Unemployment Office a monthly allowance of 1150 €. As from 01.03.2010 she will also become the rights of 2 different complementary payments from her former employer. The moment of dismissal she was employed within the Profit Sector. Her former employer becomes the only debtor of A first monthly complementary payment which, according Sector agreement (18.12.2008) is due till the person’s ending of the Unemployment status (February 2017). This complementary Indemnity payment equals 300 € / month.
Her former employer will also make a second complementary payment of 200 € / month. However this payment will, based upon an individual agreement, not continue whenever the former employee starts working again.
Social Insurance contributions: See document Part 1
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Taxable Basis & Calculation There will be created different taxable basis due to the different context of each of the complementary payments
This will result in different tax calculations for each of the taxable basis.
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Tax declarations Within the tax declaration these amounts will be declared differently via the assignment in table T5BX4.
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10 DeCava Taxes - Partial Conventional Fund payment
An employee born 03.02.1952 has been dismissed on 28.02.2010. He fulfills the legal conditions to become the “Early Retiree” status, without dependent family members at charge as from 01.03.2010. He will receive from governmental Unemployment Office a monthly allowance of 1200 €. As from 01.03.2010 he also becomes multiple complementary payments. The moment of dismissal he was employed within the Profit Sector. In total there will be a complementary Indemnity payment of 210 € / month. This amount can in time be subject of increase by indexation.
A part of the conventional payment will be done by the Employer which is due till the person’s official age of pensioning (65 years of age). The Early Retiree status will end February 2017. This complementary Indemnity payment equals 110 € / month. Another part of the conventional payment will be done by a Fund due till the person’s official age of pensioning. This complementary Indemnity payment equals 100 € / month. This payment remains fixed in time.
After the Social Insurance processing there will be the wage types with different context (C 01 and C02) available in internal table IT
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Taxable Basis & Calculation These amounts will be stored in the taxable calculation basis and in taxable payment wage type. The complementary amount from the Fund will not be added in the taxable payment amount, but will be taken into account when taxable calculation basis is defined. Following the basic concept, this is done based upon the questioning of the wage type context. Example: Addition of /C01 according the value within processing class 84
Context C 01
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13 DeCava Taxes – Debtor type 4 and Fund payment
An employee born 01.04.1949 has been dismissed on 28.02.2010. He fulfills the legal conditions to become the “Unemployment SUIC” status, with dependent family members at charge. He will receive from governmental Unemployment Office a monthly allowance of 1150 €. As from 01.03.2010 he also becomes multiple complementary payments. The moment of dismissal he was employed within the Profit Sector.
Employer - monthly complementary payment: which, according Sector agreement is due till the person’s official age of pensioning (65 years of age). So the Early Retiree status will end April 2014. This complementary Indemnity payment equals 200 € / month.
Fund - - monthly complementary payment: due till the person’s official age of pensioning (65 years of age). This complementary Indemnity payment equals 170 € / month. According the sector agreements the Fund will be the debtor of employer contributions related to this payment.
Taxable Basis & Calculation Due to the differences in payment context there are defined different indicators:
Meaning Value of processing class 84 Worker Code Capitalization Notion Agreement Notion
1
Agreement Date Resumption of work measure
0 0001
Half Time indicator Resumption of work type Indemnity ID
Example 6 883 0 1 X 1
Meaning Value of processing class 84 Worker Code Capitalization Notion Agreement Notion Agreement Date Resumption of work measure
0
Half Time indicator Resumption of work type Indemnity ID
0001
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C 01 = Additional payment by employer = SUIC - Canada Dry = Monthly = Collective agreement or collective labor agreement at enterprise level = Blank – “Not before 01.10.2005” = The agreement fulfills the condition in case of resumption of work = Full Time unemployment = no resumption = Identifier of the defined Indemnity C 02 = Fund debtor of SI employer contribution = SUIC - Canada Dry = Monthly = Sector agreement = X – “Before 01.10.2005” = The agreement fulfills the condition in case of resumption of work = Full Time unemployment = no resumption = Identifier of the defined Indemnity
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These will group the different prorate payment amounts
The employers pro rata amount (/C01 with Proceesing Class 84 value 2) will be stored in taxable basis. The Fund payment (Processing Class 84 value 6) is excluded from the advance tax computation.
