🛡️ Social insurance

Social insurance calculates employee and employer contributions from payroll, withholds the employee part, creates the fund liability and pays it with a separate document. Statutory social insurance is set up once in HR settings; any further payroll contribution — health insurance, union dues, a voluntary fund — is a card in the Contribution types dictionary and keeps its own rates, its own ceiling and its own fund balance.

← Business process wiki

How the process works#

Social insurance is optional in the core HR contour: when rates are zero or absent, payroll can still run without a contribution document.

The flow is:

1. Payroll accrual passes employee gross amounts to ISocialInsuranceService.
2. The service reads HRSettings and every active contribution type, applies each one's own wage ceiling and the nationality rule, and creates a posted SocialInsuranceAccrual when at least one line has a non-zero contribution.
3. One accrual carries all contributions from that pay: one line for statutory social insurance, plus one line per active contribution type. The statutory line is the one with an empty Contribution type.
4. SocialInsuranceAccrual writes SocialInsurance separately per contribution type, and reduces PayrollLiability by the sum of all employee contributions.
5. SocialInsurancePayment pays a fund and reduces SocialInsurance — only in the slice of the contribution type named on the line.
6. GL integration posts employee withholding, employer expense, fund payable, and fund payment when accounts are configured. A contribution type with its own expense and payable accounts is posted to those; otherwise it joins the statutory accounts.

Payment is a separate document. Do not move the accrual into a paid state: that would remove the posted withholding and employer liability.

Settings#

HR settings#

Open Ribbon → HR → Settings → HR settings.

The service treats an employee with empty Nationality as local. This avoids silently removing contributions just because the employee card is incomplete.

Contribution types#

Open Ribbon → HR → Dictionaries → Contribution types. One card per payroll contribution beyond statutory social insurance: health insurance, union dues, a voluntary pension fund. Statutory social insurance itself is not a card here — it stays in HR settings, and on an accrual line it is the line whose Contribution type is empty.

Rates live on the card and not in HR settings because there can be many types, each with its own rates, its own ceiling and its own ledger account.

Deactivating a type is the way to stop it. Deleting the card would orphan the fund balance already posted against it.

Employee data#

Open Ribbon → HR → Dictionaries → Employees. The social insurance calculation reads Nationality. Payroll still needs the usual payroll fields such as Position, Division, Hire date, and Active; those are described on the payroll page.

GL account profile#

Open Ribbon → Accounting → Settings → Accounting settings.

Empty account references skip the GL leg; the HR register movements still post.

Example with numbers#

Settings:

Two employees are accrued:

The payroll liability to the local employee is reduced by 4,387.50. The social insurance fund liability is 4,387.50 + 5,287.50 + 900.00 = 10,575.00. A SocialInsurancePayment for those three amounts clears the fund register slice.

Example with extra contribution types#

Same HR settings. Two contribution types are added:

A local employee is accrued a gross wage of 30,000.00. One SocialInsuranceAccrual appears, with three lines:

Each type uses its own ceiling. The 20,000.00 health insurance ceiling cuts only the health insurance base; statutory social insurance still takes the full 30,000.00, because its own ceiling is 45,000.00. Union dues have no ceiling at all.

The employee's net pay is 30,000.00 − 2,925.00 − 250.00 − 150.00 = 26,675.00. All three withholdings reduce PayrollLiability.

The fund balance is kept apart per type: 2,925.00 + 3,525.00 due on statutory social insurance, 250.00 + 500.00 due on health insurance, 150.00 due on union dues. A SocialInsurancePayment line that names Health insurance and pays 250.00 + 500.00 closes the health insurance debt and leaves the other two untouched.

For a foreign employee on the same 30,000.00, health insurance is 0.00 employee / 800.00 employer (4.00% of the 20,000.00 capped base), and union dues are nothing at all, because both foreign rates on that card are zero.

Boundaries and edge cases#

• Empty or zero rates mean the contribution contour is off and no social insurance accrual is created.
• The ceiling caps only the contribution base. It does not cap unrelated payroll taxes added by country packages.
• Every contribution type has its own ceiling, independent of the social insurance ceiling and of other types.
• Foreign staff use only Social insurance rate, employer (foreign staff) and no employee contribution. Contribution types have their own pair of foreign rates and may withhold from foreign staff.
• A contribution type that is inactive, or that was deleted, produces nothing. It is never silently accrued at the statutory rates.
• A payment can be more than the current fund balance; the register allows negative balance for fund top-ups and revised calculations.
• Voiding must run in safe order: void the fund payment before voiding the social insurance accrual.

What is posted#

The delivered totals view Social insurance by employee groups by employee and shows opening, income, outcome and closing values for employee and employer contribution resources.

What's not there yet#

• Contribution types have no period of validity: a rate change is edited on the card and applies to every accrual made after the edit. Past accruals keep the amounts they were posted with.
• Country payroll taxes are not part of this page. Ukraine adds personal income tax and military levy in its localization package; Saudi GOSI uses these HR rates and has no separate Saudi object.
• There is no bank or cash reconciliation for the fund payment.

Same topic for other readers: User

Where next#

• Post and pay social insurance
• Payroll setup
• Obligations, payments and the general ledger