DRC | Setting Up The IERE Company Contribution Component

The IERE component (impôt exceptionnel sur les rémunérations) is a tax on expatriate employees, paid by the employer as an additional tax. Under no circumstances may the IERE be lower than the guaranteed minimum wage in the country of origin of the recipient of the remuneration.

Steps to set up the IERE component:

1. Edit the IERE component on the Company Payroll Components screen and advise the percentage applicable for the company.
   Example:
   
2. Ensure that the IERE component has been ticked to "add component to all employees".
   
3. The employee must be attached to the Expat Employment Category on their Position screen for the component to calculate. 
   
1. Set up the Employment Category under Config >Dropdown Management> Other Dropdowns and add an Employment Category for Expat.
   Example:
   
2. Add the Expat Employment Category on the employee's Position screen.
   
   

PaySpace has acknowledged the importance of flexibility in setting up minimum wage rates due to the varying rates dictated by labour law in different sectors and industries. Customers now have the flexibility to configure these rates with the applicable minimum wage rates using the Component Tables Configuration feature.

1. Add the applicable minimum wage rates on company level (Config > Basic Settings > Dropdown Management > Component Tables Configuration).
   Example:
   
   
   
2. Add the new Minimum Wage Rate note component on the Company Payroll Component (Config > Payroll > Payroll Components).
   
   
3. Add the Minimum Wage Rate note component as a Recurring Payroll Component with the correct Effective Date, and link the employees to the applicable rates (Payroll Processing > Recurring Payroll Components).
   
4. If the Minimum Wage Rate note component exists on an employee's payslip, this rate will be used for the comparison calculation. If the rate is entered as a 0.00, then no minimum limit will be applied.
   

Once the above steps have been performed, the IERE component populates on the payslip under the Company Contributions tab.

      

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