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10/29/2015

PayrollOverview|SCN

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createdbyOmprasadReddyonMar28,20151:55PM,lastmodifiedbyOmprasadReddyonMar28,20152:00PM

PayrollOverview
PayrollDefinition
Payrollisusedtocalculatetheremunerationforworkdoneforeachemployee.SAP
Payrolldeliverspowerfulandefficientgrosstonet,nettogross,regularandoff
cyclepayrollprocessing.SAPscomplexPayrollprocesshandleseverything
includingvacationpolicies,compensationprograms,workschedules,Holidays,
overtimepayetc.
Payrollaccountingcalculatesthepaymentofworkdonebyanemployee.Payroll
functiondoesthefollowing:
Computeemployeesgrosssalary
Makenecessarydeductions
CalculateNetsalary
GenerateChecksordirectdeposits.
Payrollcomponentsinclude:
Payrollareagroupsemployeesbasedonthefrequencyoftheirpaydates.eg.Z1

forsalariedstaffpaidmonthly.
ControlRecordItdeterminesthecurrentpayrollperiodforapayrollarea.
PeriodModifierPeriodinwhichpayrollaccountingiscarriedout.Example.
10formonthlypayperiods.
DateModifierDistinguishesperiodswithsamefrequencybutdifferentdate.
Eg.10formonthlypayperiodbutwiththepaydatebeing5thofeverymonth.
PayrollCalendarGeneratingcalendarsforcumulatingwagetypestoget
monthly,quaterlyoryearlysumtotals.
Payscaletypeusedforsegregationofemployeespayscalesbasedonthetype
ofunioncontractsinacompany.Eg.10nonunionworkers20collective
agreementforsecretariescontract.
PayscaleareaDifferentiatesPayscalebasedongeographicalarea.Eg.10
California.
PayscalegroupDifferentiatesemployeespayscalesbasedonfunctionality.
Eg.GR01groupingforjuniorclerks,GR02forseniorclerks.
PayscalelevelSubdivisionofemployeesPayscale.Eg.L1level1clerk,L2
http://scn.sap.com/docs/DOC62857

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level2clerk.
WagetypesThepaymentsanddeductionsforanemployeearecodedaswage
types.Eg.A001salarypayment,B001401Kdeduction.
PayrollInfotypes:Payrolldataisstoredinvariousinfotypes,which
includes,0001,0007,0008,0009,0014,0015,0057,.Theseinfotypes
maintainpersonaldetails,paymentanddeductioninfo,,taxdata,etc.
PayrollProcessinvolves:
Maintainingpayrollrelatedinfotypes
Periodicpayrollrun
TransferringdatatoFI/CO
TransferringthirdpartyremittancedatatoAccountsPayable
Taxreporting
Standardreporting
SAPHRPayrollOverview
Inabroadsense,payrollaccountingisthecalculationofremunerationfor
workperformedbyanemployee.Morespecifically,payrollaccounting
consistsofavarietyofprocessesthatarebecomingincreasinglyimportant
duetotheemployersincreasedobligationtosupplybenefitsandmedical
welfare.
Thesebenefitsareproductsof:
Taxlaw
Contributionlaw
Benefitslaw
Reportinglaw
Informationlaw
Theremunerationiscalculatedinthefollowingsteps:
1.Calculationofgrossremuneration
2.Calculationofnetremuneration
Grossandnetpaycomprisestheindividualpaymentsanddeductionswhich
arecalculatedduringapayrollaccountingperiod,andarereceivedbyan
employee.Thesepaymentsanddeductionsareincludedinthecalculationof
paybyuniquelydistinguishablewagetypes.
PayrollispredefinedintheSAPHRsystemformanycountriesspecifically

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