From HR HR SP ES15, the system allows you to configure if the differences of tax basis due to a technical retroactive accounting should be considered as arrears in the fiscal sense or not.

Until HR SP ES15 this decision could only be taken through the constant IPOAT of the table T511K (rate of deduction for arrears). If the value of this constant is 0, the system assumes that the retroactive accounting should not be taken into account as arrears and applies the usual deduction rates to all the tax bases that flow to a period from periods corresponding to the previous fiscal year. If the value of this constant is different to 0 this value is applied as a deduction rate (currently 18%) to the retroactive accounting differences of the previous year. This process suffers from the disadvantage that the decision can only be taken by a client and time interval without being able to define different behaviors according to the company, collective agreement, etc.

With HR SP ES15 a solution is offered that allows the taking into account of the following parameters when it comes to setting the processing of arrears:

Through the EATRA feature, which is modified through the transaction PE03, you set what is known as the 'arrears grouper' (AGRAT) for values given in the settings mentioned. The arrears grouper can take any alphanumerical value of 5 spaces freely definable by the customer.

Through the view V_T5EI7 you can define a behavior by default for each one of the groupers defined as return value of the EATRA feature. In the case of retroactive accounting of previous fiscal years, you determine to which arrears grouper a wage type relevant for employment tax corresponds (according to its value for the processing class 70 and the organizational assignment data of the employee) during the calculation of employment tax and through the feature EATRA.

Once the grouper is known it is determined whether the wage type in question should be considered as arrears for tax purposes consulting the corresponding entry for the grouper for arrears in the table T5EI7. As in general there will be payroll periods in which an opposite behavior to that set by default in the table T5EI7 may be imposed, there is the possibility of setting the behavior of a specific grouper for arrears per ‘IN-PERIOD’ in the table T5EI6 (view V_T5EI6). This table is not a settings table (type C), but a table of master data (type A) that the user modifies directly in the productive system without necessity for a transfer from the development system.

All technical wage types of tax bases for employment tax (/15x, /17x, /14x) are assigned a set value for the processing class 70 and therefore belong to an arrears grouper according to the setting of the feature EATRA. It is only necessary to fix the value for the processing class 70 of a customer wage type if it behaves in the opposite way to the technical wage type in which it cumulates.

The new arrears settings mechanism can be used from 01/01/2001 to avoid problems in the generation of model 190. In the case of having loaded the HR SP ES15 before this date, the possibility of setting is limited to fixing the value of the constant IPOAT in the table T5EI3. Once the HR SP ES15 has been loaded, the constant IPOAT of the table T511K no longer has any effect. If the value of this constant has been modified, it is necessary to copy the modifications to the constant IPOAT of the table T5EI3

Likewise, from the HR SP ES15 special wage types are generated with the aim of distinguishing these amounts tax basis flows that are not considered arrears.

/4DA:

For each ‘for-period’ of the previous fiscal year in which a difference is detected, an entry is created in the RT table of the ‘in-period’ of this wage type. The differences corresponding to different ‘for-periods’ (the retroactive accounting could have generated differences in more than one recalculation period of the previous fiscal year) are distinguished by their different values in the variable split field V0 of the results table RT. This value likewise serves to detect to which wage type the retroactive difference corresponds. The V0 table contains an entry for split type (field V0ZNR) ‘B’ and the split number V0 assigned to a specific entry on the wage type /4DA in the table RT. The field V0INFO of the VO table specifies the ‘for-period’ from which the difference comes (eg: 199903) and the technical wage type (couple of basis and deduction) to which the difference corresponds, eg:, /151, /411.

A retroactive accounting is carried out in 01/2000 until 03/1999.

In 03 (for-per.)/1999 the following differences are generated:

/151: 10.000 ESP (which is carried forward to 01/2000)

/156: 5000 ESP (which is carried forward to 01/2000)

In 04/1999:

/156: 6000 ESP (which is carried forward to 01/2000)

In 12/1999 the following differences are generated:

/151: 20000 ESP (which is carried forward to 01/2000)

All these differences, except that of 04/1999, are considered arrears. The table RT of 01/2000 will have the following entries for the wage type /4DA:

No entry is generated with 6.000 ESP for 04/1999 because this difference is not considered arrears.

The meaning of the different splits of V0ZNR can be taken from the table V0, which has the following contents:

Given that the calculation of the deduction should not be done with the broken down amounts for ‘in-period’, the new technical wage type /4BA that contains the total of the amounts of the /4DA is generated, creating an entry for each technical wage type. These are distinguished by a similar mechanism to that used for the /4DA, using the variable split of type (V0TYP) 'R'.

For all variable split values(V0ZNR) an entry can be found in the table V0 under type 'R' with information about the technical wage type referred to in the entry of the /4BA. One peculiarity of this wage type is that the percentage applied for arrears is recorded in the quantity field (ANZHL), in general 18%.

In the example above the following entries are created for the wage type/4BA in the table RT:

The meaning of the different splits of V0ZNR can be taken from the table V0 which has the following contents:

The deduction calculated for the base contained in /4BA is recorded in the new wage type /4RA which also contains the type of split variable (V0TYP) 'R'.

Following the example, the following entries are created for the wage type in the table RT:

One of the peculiarities of the new program of checking by the Internal Revenue Service of the model 190 with format according to the Official Gazette of the Spanish State of 06/08/1999 is that neither deductions nor incomes are admitted to negative account in the case of payments carried out by the employee. Therefore, the Internal Revenue Service does not allow the netting of the deduction (negative) corresponding to this payment with deductions (positive) of the current year.

As from 1. 1. 2001 (negative) deductions are not calculated for negative bases carried forward from previous fiscal years In case of not agreeing with this procedure, the constant IBOAIN in the table T511k can be modified to value 0 and, in such case, the system will behave as usual. In this case the customer has to accept the special procedure that the system uses for the confection of model 190 in order to avoid a rejection of the file due to negative deductions.

From HR SP ES17 you can assign to the current fiscal year differences due to retroactive accounting of previous fiscal years (1999 and before) independently of the deduction rate applied to tax basis flows (usual rate or 18%). The decision to assign these differences to the current financial year or the previous one can be taken according to all the criteria shown earlier in relation to the fiscal arrears of previous fiscal years, except the value of the processing class 70.

Using the transaction PE03, the feature EATRA should be set so that it defines a grouper of arrears according to the input parameters of the feature (payroll area, personnel area, personnel subarea, etc). If a decision is made for the value of the processing class 70 (field PRCL) that decision will always be taken into account for the space value, independently of the setting of the processing class 70 for individual wage types that intervene in the confection of the model 190

Additionally the table T5EI6 should be set using the view V_T5EI6, specifying for each grouper of arrears and payroll period if the retroactive accounting of the previous fiscal year is considered arrears or not.

If an entry is not made for a combination of period/grouper a possible retroactive accounting is considered as ARREARS. The aim of the constant IPOAT of the table T5EI3 is to show the. rate of deduction that is applied to a tax basis flow by retroactive accounting to the previous fiscal year For fiscal regions 51, 52 and 99 this constant should always have the value 18% although in certain periods the usual rate has been applied during the payroll. These periods have not been considered arrears and therefore should be assigned to the current year without the need to do a recalculation of the deduction, in this case the value of the constant IPOAT of the table T5EI3 should absolutely not be used