RAE across years

In Profit you can make corrections to preceding wage years. The corrections are called RAE entries across years in Profit.

Description

In general, a correction across years is intended to correct errors in the preceding year, and at the same time correct the wage declaration and the year-end work. For example, wage entries, incorrectly specified insurance situations, the applicability or not of premium reductions, etc. For other matters, such as subsequent processing of the wages of hourly employees or overtime, you can use the normal correction periods. That is also the case for CLA changes that take effect in a previous year.

You cannot correct years before 2006 and the wages for the year for which you want to process any year overlapping correction must have been processed in Profit.

The tax authority allows the submission of correction messages for the wage declaration. If you want to post RAE entries to the preceding financial year, you must add a correction line to the salary processing plan of the preceding year.

How an RAE entry is processed in a previous year depends on the processing status of period 1 of the current year:

• Period 1 of the current year not approved yet

  Profit processes the RAE entry in the previous year.

• Period 1 of the current year has been approved

  Profit only creates RAE entries in a preceding year if a correction period has been recorded in that year for the employer in question.

Example:

The current wage year is 2012 and you have already definitively processed January, February and March. You enter a salary increase for an employee with an effective date of 1 October 2011.

• If you do not add a correction period in 2011, Profit creates RAE entries in April 2012 for the January, February and March 2012 periods. No RAE entries are made for 2011.
• If, however, you do add a correction period in 2011, Profit creates RAE entries for the relevant periods in 2011 (October, November and December) and 2012 (January, February and March).

Note:

Be careful when you are changing calculation bases and wage summaries. Wage components that are included in calculation bases and wage summaries are not date dependent and therefore can also apply to preceding wage years in which you have inserted an RAE entry across years.

Procedure

• Add a correction period to a closed financial year

  You add a correction line to the salary processing plan of the preceding year, if you want to process RAE entries for the preceding financial year.

• Add a wage entry

  Add the entry in the previous wage year.

• Initiate an RAE entry across years for the employee
• Process a correction period in a closed financial year

  You can process corrections to preceding wage years in a separate correction period. In the Salary processing cockpit, you process this correction period in the usual way.

• Change the ‘BT’ annual wage

  You must prepare a new wage declaration for corrections to preceding years. If large differences have been processed for the employee, it may be necessary to change the ‘BT’ annual wage for the current year. You make this change yourself in the employee properties.

  Contact the pension funds involved for information regarding the declaration of changed wage data. Do not forget to print new annual statements for the employees involved.

• Wage declaration and RAE across years

  In case of a correction across years, Profit will reprocess every period of a closed wage year. Profit automatically generates a new declaration line for periods in which no open declaration line is present.

• Generate the annual statement for an employee

  Generate a new annual statement for the employees for which you have added a wage entry.