This component aims to process profit shares in accordance with the applicable legislation.

Profit shares refer to a percentage of the company profit that is paid annually to the employee. The company must pay a profit share amount corresponding to between 60 and 120 days payment on the basis of the employee salary.

Normally, the employee receives the profit share at the end of the fiscal year, but the company may pay it in different installments and/or make advance profit share payments during the year.

• The employee’s accrued income up to the current date, in which case the employee will be paid 25% of the income earned up to June, and then 25% of the income earned from July to December.
• The estimated income of the employee for the fiscal year, in which case the employee will be paid 12,5% of their income earned in June and then another 12,5% in December.

Basically, profit share processing consists of the following:

• Employee profit share pro-rata calculation.
• Advance profit share calculation and payment.
• Profit share adjustment calculation and payment.

In addition, for each payroll period, the employee profit share balance is also calculated in order to specify whether the employee is entitled to secured loans against profit shares.

If the employee has cumulated these profit share amounts and you want to grant him or her a loan secured against profit shares, you should use the Venezuelan subtype VE02 (Loans Secured Against Profit Shares).