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Purpose

This process aims to calculate the amounts the employee and company must contribute to the National Education Cooperation Institute (INCE) in accordance with the applicable legislation.

Process

You execute this process in the VEIC subschema (Calculating INCE Contributions), following the steps below:

 

  1. The VEIN rule initially checks that an ordinary payroll is being run or an off-cycle payroll (only if it is a profit share advance payment or profit share adjustment).

    2.  

  2. The VEI1 rule copies the values of wage types /118 (Cum. basis INCE employee) and /119 (Cum. basis INCE company) to valuation bases /018 (Employee INCE basis) and /019 (Company INCE basis) respectively.

    3.  

  3. The VEI2 rule generates wage types /703 (Employee INCE contrib.) and /704 (Company INCE contrib.), which will later contain the results of the employee and company INCE contributions.

    4.  

  4. Rule VEI3 calculates INCE contributions. Wage type /703 uses valuation basis /018, applying to it the percentage set in view V_512W_B. Wage type /704 uses valuation basis /019, applying to it the percentage set in view V_512_B. The results of these calculations are saved in the IT table.

    5.  

  5. You call the VEINC function, which maintains table INC_EVAL with the values obtained in the step above.

Example

Contribution amounts used to define the INCE calculation base are defined in the applicable legislation.

For example, you can specify that the employee calculation base is the paid profit share amount, while for the company, it is the total of the earned income of the employee plus the employee’s profit share.

The VEIC subschema uses the values of the contribution bases available and calculates the company and employee contribution amounts in accordance with the legally defined percentages. An example of the values used by the subschema and of the results obtained is shown in the table below:

 

Basis

Contribution %

Contribution Amount

Employee

225,000.00

0.5

1,125.00

Company

300,000.00

2.0

6,000.00

 

 

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