1.      List the country specific payroll Infotypes.

·         IT 580              Previous Employment Tax Details

·         IT 581              Housing (HRA/CLA/COA)

·         IT 582              Exemptions

·         IT 583              Car & Conveyance

·         IT 584              Income From Other Sources

·         IT 585              Section 80 Deductions

·         IT 586              Investment Details (Section 88)

·         IT 587              Provident Fund Contribution

·         IT 588              Other Statutory Deductions

·         IT 590              Long Term Reimbursements

·         IT 591              Nominations

2.      In which infotype the Superannuation, Gratuity and PAN details are
maintained?
·         IT 0185                        Personal IDs

3.      What are the PF Monthly Reports

·         Provident Fund Report for RPFC.

1.    Form 5            - Return of Employees Qualifying for Membership for the month.

2.    Form 10          - Return of the members leaving service during the month.

3.    Form 12A        - Statement of Contributions for the Month

·         Pension Fund Report for Exempted Trusts.

1.    1.Form 4                     - Return of Members Leaving service

2.    2.Form 5_E                 - Return of the members leaving service during the month

3.    3.Form 6                     - Statement of Contributions for the Month

 4.      In which infotype the ESI and LWF details are maintained?
·         IT 588              Other Statutory Deductions

5.      Which infotype is used for the Section 80 savings?

Assign employee payments and deductions; control payroll programs with a high degree of flexibility;
perform integrity checks through use restrictions; and indicate whether it is a payment or a deduction.

6.      Where we capture the housing and other income details?

·         IT 581              Housing (HRA/CLA/COA)

·         IT 584              Income From Other Sources

7.      What are the main integration points between HR Payroll and other SAP
modules? 
·         Benefits

·         FI/CO

·         Time Management

·         Travel Expenses

·         Employee Master Data

8.      How the Pay Scale type and Pay Scale area are defaulted in SAP?
·            TARIF Feature

·            Assigning the pay scale type and pay scale area to Personal area and personal subarea.

9.      What three roles do the employee subgroup groupings perform in payroll

Processing?
·         Assign employees to common personnel calculation rules.
·         Assign employees to collective agreement provisions.

·         Assign default wage types to employees.

10. How do we post the same wage type to different GL Account?

·         PPMOD feature

11. What is the tax code associated with the conveyance and HRA wage type for
calculating their exemption?
·         SCNV with conveyance wage type.

1. SHRA with HRA wage typ

1) Mention what is Payroll?

Payroll is the term used for the compensation a business must pay to its employees for a
set period of time or on a given date.

2) Mention what are the methods to manage Payroll?

The methods to manage Payroll includes,

1. Doing it yourself by hand

2. Using employee payroll software
3. Outsourcing payroll
4. Assisted payroll
3) Mention what all functions are involved in Payroll?

Functions involved in Payroll involves,

 Balancing and reconciling payroll data

 Delivers payroll checks
 Depositing and reporting taxes
 Wage deductions
 Record keeping and verifying the reliability of pay data
 Maintains compliance with tax laws
 Records paperwork for new hires
 Edits existing employee files.
 Calculating reimbursements, bonuses, overtime and holiday pay
4) Mention what are the employer paid benefits?

Employer paid benefits include,

 Holidays
  vacations
 sick days
 insurance (health, dental, vision, life, disability)
 retirement plans
 profit-sharing plans
5) Mention what is a Payroll System? Give an example.

A payroll system is a software which organizes all the tasks of employee payment and the
filing of employee taxes. These tasks can include,

 Tracking employees working hours

 Calculating wages
 Withholding taxes and deductions
 Printing and delivering checks
 Paying employment taxes to the government

SAP provides one such Payroll System.

6) Mention how to set up Payroll for small business?

To set up Payroll for small business, follow below steps

1. Identify your payroll responsibilities,

 Employees payment details
 Pay taxes
 File forms
2. Choose the payroll system that suits your business
3. Pay employees properly
4. Pay payroll taxes and file tax forms
7) Mention what you need to do in order to pay a new employee?

In order to pay new employee,

 Fill employee Information form, bank confirmation slip and get your employee to
complete a tax form.
 Send all forms to Payroll department at least three working days before your
employee’s first timesheet is due to be sent for payment.
8) Mention what is CTC?

CTC stands for Cost to Company.  It includes all the costs related to an employment
contract and covers all compulsory deductibles including deductions for provident fund,
medical insurance, etc.  These deductibles form a part of your compensation structure, but
you do not get them as a part of the in-hand salary.

9) Mention what are the common mistakes happen during Payroll process?

Common mistakes happen during Payroll process,

 Setting up Payroll Incorrectly

 Paying or deducting more money to employees account
  Forgetting to Record Paper Checks
 Submitting Deposits Late or Incorrectly
 Ignoring to run payroll on time.
10) Mention what is withholding tax?

Withholding tax also known as retention tax is the income withheld from employee’s wages
and paid directly to the government by the employer.

11) Mention what all people involve in Payroll Processing?

 Timekeeper: Responsible for ensuring that attendance and time is submitted by the
reporting deadline. The employee acts as the timekeeper in the case of web time entry
 Approver: Responsible for ensuring that time and attendance are approved and
submitted by the reporting deadline.
 Proxy: In the absence of approver’s, authorized time and attendance
 Department Administrator: Responsible for certifying that the process for gathering
and maintaining the data needed, along with completing and reviewing the payroll
report.
 Financial Manager: Responsible for monitoring and verifying the accuracy of the
payroll.
12) Mention what is Payroll source documents?

Payroll source documents are those documents which gives all the details required for the
generation of the salary of an employee. It includes,

 Time sheets
 Job sheets
 Time recorders
 Payroll registers
 Pay-in-slip (pay slip)
13) Mention what all detail must be checked before vouching of wages?

Before vouching of wages, following details are considered.

 Checking Of Internal System

 Checking for proper Calculations
 Checking Of Wages Sheet
 Verifying computing Paying System
 Nature Of Payment
 Same Cash Paid And Drawn
 Checking Of Names
 Checking for authorized Signature
 Unpaid Wages
 Deductions
14) How to avoid Payroll errors?

To avoid Payroll errors, try following things

1. Ensure that all employees details are correct

 2. Track leave start and end dates. calculate at the end of employment for holidays
accrued
3. Review your reporting process- for instance filling up your annual reconciliation form
4. Remain updated with changes and new rule in payroll tax rules
5. Don’t ignore payroll requirement deadlines- for instance paying withholding, payment
summaries to the employee, etc.
6. Make sure the correct employer premiums are taken out if insurance is covered.
15) Mention what to look for when selecting a Payroll Service Software?

When selecting a Payroll Service Software check for following things,

1. For security reason, the system should offer the necessary data encryption, disaster
recovery plans, and back up
2. Easy integration with other software like HR or Accounting Software
3. Does system have notification provision where the error occurs?
4. How long does it take to fix an error? Does system have notification provision when
an error occurs?
5. Is your Payroll Service Scalable- ( allow to adapt according to employees strength)
6. Does your Payroll Service supports mobile as well as cloud technology
7. Does your Payroll Service have built-in benefits management system?
8. Support reporting functionality such as tax reports, deduction analysis, gross-to-net
payroll register, compensation analysis, and so on.
16) Mention what comes under Non-taxable wages?

Health or retirement benefits that are paid before taxes known as Non-taxable wages.

17) When to Outsource Payroll?

Payroll should be outsourced when,

 A small company where the owner does payroll.

 You don’t come across last minute changes that frequently
 You don’t want to invest in in-house system and infrastructure
 You have to pay at multiple locations

2. Question 1. What Is Period Parameter In Systems, Applications And Products In

Data Processing (sap) Payroll?
Answer :
In SAP payroll, the period parameter specifies the time period for which salary is
calculated, such as monthly, bi-monthly, weekly, or annually.
3. Question 2. What Is A Date Modifier?
Answer :
Date modifiers are used to define several payment dates for various payroll areas for
which the same period parameter is assigned.
The following table shows the various date modifiers:
Date Modifier Description
 1. Payment date on 1st day of the month
2. Payment date on 15th day of the month
3. Payment date on 25th day of the month
o Question 3. What Is The Payroll Control Record?
Answer :
payroll control record is a control indicator that controls individual stages of a
payroll. It defines the current payroll period and payroll past for retroactive
accounting.
o Question 4. What Is The Use Of Payroll Areas?
Answer :
The payroll area fulfills the following two functions that are necessary for a payroll:
1. Groups the personnel numbers together, which are to be processed on
the same date.
2. Determines the exact payroll period.
o Question 5. What Are Payroll Periods?
Answer :
Payroll periods are generated for every combination of period parameter and date
modifier that are assigned to a payroll area. These are always defined within a
specified time interval.
o Question 6. List The Steps Involved In Creating A Payroll Results
Infotype (it 0402).?
Answer :
Following are the steps required to create a Payroll Results Infotype:
1. Define the evaluation wage types
2. Set up the Payroll Infotype Assignment, which is used to write the payroll
data automatically
3. Assign the evaluation wage types to one or more wage types from the
payroll results
4. Assign the evaluation wage types to Payroll Results Infotype
o Question 7. What Is Primary Wage Type?
Answer :
The primary or dialog wage types are defined based on the requirement of the
organization. They are the standard wage types defined by SAP and start with a
number, such as 1012.
o Question 8. What Are The Two Main Categories Of Wage Types?
Answer :
The two main categories of wage types are primary or dialog wage type and
secondary or technical wage type.
o Question 9. What Are Wage Types In The Sap System?
 Answer :
The wage types are used to assign the payments and deductions in the employee's
payroll. It is also used to control the payroll program.
o Question 10. What Is The Use Of Pay Scale Group And Pay Scale Level?
Answer :
The pay scale group schedules the job evaluations and indirect evaluations. The pay
scale groups are divided into pay scale levels, which are used to define the level of
jobs.
o Question 11. What Are Pay Scale Areas?
Answer :
The pay scale areas represent the geographical regions to which a pay scale or
Collective Agreement Provision applies.
o Question 12. What Is The Pay Scale Type?
Answer :
The pay scale types are two-character keys defined for each region.
o Question 13. What Is The Tarif Feature?
Answer :
The standard system contains the TARIF feature, which takes the default values from
the pay scale type and pay scale area assigned to the personnel area.
o Question 14. What Is The Pay Scale Structure?
Answer :
The pay scale structure comprises the following four elements:
1. Pay scale type
2. Pay scale area
3. Pay scale group
4. Pay scale level
o Question 15. What Is Employee Subgroup Grouping For Personnel
Calculation Rule?
Answer :
The employee subgroup grouping for personnel calculation rule is defined as a
division of employee subgroups, and for these subgroups the same personnel
calculation rules are defined for payroll accounting and evaluation in payroll.
o Question 16. What Is Payroll Process In Sap?
Answer :
The remuneration for the work done by the individuals is calculated in payroll. In
other words, payroll is an umbrella term for a variety of work processes, such as the
creation of payroll results and remuneration statements, bank transfers, and
payments by check.
o Question 17. What Are The Different Composite Roles Available In
Payroll?
Answer :
Following are the composite roles available in payroll:
1. Payroll Manager:
1. Displays HCM (HR) Master Data and personnel file
2. Displays remuneration statement, payroll account, and payroll
journal

3. Payroll Process Administrator:

1. Performs time evaluation and runs payroll
2. Creates remuneration statements
3. Creates files for wage and salary payments
4. Posts payroll results to accounts

5. Payroll Administrator:
1. Maintains HCM (HR) Master Data & Time Management data
2. Simulates payroll
3. Checks remuneration statement and payroll accounts for individual
employees

o Question 18. What Is The Release Payroll Function?

Answer :
When you set the payroll status to Released for Payroll, the following functions are
performed:
1. Locking of the master data records
2. Increase in payroll period by one
3. Increase in payroll run number by one
o Question 19. What Is The Purpose Of Using Payroll Control Record?
Answer :
The purpose of using the payroll control record is given as follows:
1. Defines the past payroll for retroactive accounting
2. Locks the master data and the time data to prevent changes being made
during the execution of the payroll
o Question 20. What Are The Key Features In A Payroll Control Record?
Answer :
The key features in a Payroll Status Infotype (IT-0G03), which is maintained by the
system automatically, are as follows:
1. Earliest personnel retroactive accounting date
2. Payroll period
o Question 21. What Is The Transaction Code To Access The Payroll
Control Record?
Answer :
The transaction code to access the payroll control record is PE03.
o Question 22. What Is The Abkrs Feature?
Answer :
The ABKRS feature delivers a default value for the payroll area in the Organizational
Assignment Infotype (IT 0001).
o Question 23. What Is The Use Of Matchcode W?
Answer :
The matchcode W is used as a tool in the SAP R/3 system for locating the field
values corresponding to the selected items.
o Question 24. What Is The Use Of Payroll Control Record?
Answer :
The payroll control record allows you to manage payroll runs, such as payroll period,
payroll status, and earliest retroactive accounting period.
o Question 25. Can You Evaluate Payroll Results Using The Sap Query
And The Ad-hoc Query?
Answer :
Yes, payroll results can be evaluated using the SAP query and the Ad-hoc query,
Several Infotypes are available to evaluate the payroll results that are activated by
using the additional wage types. The required data from the payroll results is
available in the logical database PNP.
o Question 26. What Steps Are Required To Post Payroll Results To
Accounts?
Answer :
The following steps are required to post payroll results to accounts:
1. Define symbolic accounts
2. Define posting characteristics of wage types
3. Maintain posting date for payroll periods
4. Assign balance sheet accounts
5. Assign expense accounts

o SAP HR Interview Questions

o What is PROCESSING CLASS, where we do them and why?
o Wage type characteristic that determines how processing is conducted
during the payroll run.
o What is EVALUTION PATH, where do we do it and why?
o A chain of relationships between objects in a hierarchical structure. for eg.
O-S-P(Organization->Position->Person).
o What is INTERNAL PAYROLL PROCESS?
o Payroll process(program) is run at a specific point in time, not only to
calculate an employee’s basic remuneration but also any special
payments, overtime payments or bonuses that must be effected for the
period in question.
o What is meant by payscale structure? How did you configure pay scale
structure? (I said I created various payroll areas and defaulted them
using the feature ABKRS. Seemed he was expecting more than this from
me.)
o Pay Scale Structure means creation of Payroll area , Pay scale type,area,
group and levels with EmpSub group grouping for PCR & CAP’s.
o How do you import pay scale data from non SAP to SAP? (Somebody told
me that there’s a tool called LEGACY to transfer non SAP data to SAP. I
said the same. Is it the same for payroll also? He wanted a clearer
explanation of how I did it.
o Yes you have to say from which transaction code you are transferring data
from Non SAP in to sap.
o What is meant by a schema? (I said I’m only aware that it is a set of rules
which is copied and renamed, but never worked on that.)
o No, you have to say him that schema is a set of instructions ( Programs ) 
modified as per requirements and its process is to collect the data as from
all the defined instructions with sub schemas and PCR’s. As I was not
authorised to work on them I know just the process of schemas only, (you
should have said like this.)
o How do you restrict the data to be entered in payroll area?
o No, data is entered in a payroll area , but the employees are defined
depending on their payscale structure. If you are restricting any data to be
entered for pay strcs this is for indirectly for payroll area.
o What is meant by authorization? Did you ever work on it?
o Authorisations are the transactions given to the end users or the
developers for only some areas to work, infotyopes, transaction codes, org
units and others depending on the requirement of the client or the
developing enterprise.  Check this at PFCG tcode.
o What is the difference between Indian and US Payroll. (I said each of
them have their own ITs and the taxation differs.)
o Yes it correct and even you have to say about the Benefits which are more
important in US. In US unemployment tax will come. Garnishments will
 come, Residence taxation, Work tax and others, you have to say it in broad
way then only they can know that you are working, or confident enough.
o How do you differentiate Tax for different countries?
o Taxation has so many use exits to be created which means it all happens
only from  the new versions which SAP Releases.
o What is meant by slab? How is Indian slab and US slab? (He was talking
about some %ages. I don’t know what they are. ) 
o Grouping of employees depending on their allowances and PERKS is
nothing but Slab system and it also even comes  for  Professional Tax.
o What are Dynamic Actions? Give a few examples. What are the IT’s you
used in them. (I know only Birth of Child action, and the IT’s used in it are
Personal Data, Additional Payments)
o Dynamic actions which are triggered by the system. They are result of
some personnel action.  If you make a change (personnel action) to the
personnel data of an info type that then has an effect on the data of a
second info type, the system automatically displays the info type.  One of
the main purpose of the dynamic action (of the system) is to have a
consistent and coherent data.  These actions are started automatically by
the system, unlike the Personnel actions which you start by yourself.  The
best example is when you carry out  an action lets say hiring, you need to
populate a set of info types. Your initial entry of details in infotype 0000 is
personnel action. When you do this system automatically displays next
infotpes- which is result of dynamic action
o What is Qualification Deficiency? How will you come to know that a
Person does not have certain skills/qualifications? (This was posed after
I said that I worked on Training and Events also).
o Generally the required qualifications are stored in Required Qualifications
(Infotype 5129).  So any deficient qualifications can be viewed in this
infotype.
o What is IT 41 used for? How do I default IT 41?
o Date Specifications (Info type 0041).  The following information is
recorded in the Date Specifications info type (0041). The Date type
specifies the type of information.  A concrete Date type (specified by the
user) is used in a series of reports, for example to evaluate an entry date
that cannot be derived from the organizational assignment history but
which is stored in the Date Specifications info type(0041).   This info type
can be used in payroll as well as for the leave program.  The standard
system contains twelve combinations of Date type and Date. If you require
more than twelve date specifications for an employee at the same time,
you can use time constraint 3.
o Suppose the client wants me the vacancy to be displayed on a website as
well as ESS. How should I do it? (I only know ESS means Employee Self
Service, please explain about ESS also).
o Employee Self-Service enables employees to create, display, and change
their own HR-related data in the Enterprise Portal generally related to. 
Benefits and Payments,, Working Time, Career and Job, Employee Search,
Personal Data, Travel Management, Corporate Information and Life and
Work Events.  So the kind of data the employees can edit, change or delete
depending upon the authorizations the employees (users and roles) have. 
The authorization to have access to the vacancies by employees is given,
generally the vacancies will be displayed for all the employees i.e all the
employees will have authorizations.   
o What is internal recruitment ?
o Internal recruitment is search for internal applicants. when you integrate
with personal development, you can use profile match up which help to
search for resources internally.
o Also  In recruitment it is represented by ‘P’ as Person and ‘AP” as external
person.
o What are problems generally faced while posting result to FICO ?
o Normally mismatching of amount get posted.
o What is controlling area, what does it do, and how were is it assigned ?
o Controlling area is under of FI person which helps to set for costing
purposes also based on the fiscal variant is set.
o What is the purpose of creating symbolic a/c, what is transaction code
for same ? Can we assign one symbolic a/c to multiple wage types ?
o It depends upon your payroll requirement to create salary head like
expense account etc.
o What is REPORT VARIANT FOR OFF CYCLE ACTIVITIES, what do we do in
this step ?
o Variant is to save all input field parameters.  once you saved as a variant ,
you can use the same for future purposes.
o If we have to create multiple positions, what method OR tool we can use
to avoid errors due to creating them manually.
o You can create multiple position by LSMW or batch programs for the
Tcode PP01 or PPOCE
o What do is LANDSCAPE in SAP Project, I think its related to no. of
servers used, Pls correct me if I am wrong, Or what it is ?
o It is related to Basis
o What is the role of a administrator in PA ?
o To restrict access to Personnel administration based on PA/PSA.
o Administrator: we come across for Personnel administration, Time
management, and Payroll in sap .
o Each administrator is responsible for each individual activity.  You can get
the name of the administrator in the pay slip so the employee for any
clarification he can meet the responsible administrator  (accessed through
payslip)
o This administrator (is created in PA of PM) is responsible for recruitment.
o What is go live actually ? What is the role of a functional consultant in it ?
o Go live is transferring of data from Development server to Production
server.
o   Development —–>  Quality server
o In Quality you need to Unit, Integration testing, Once it is OK in Quality
server,
o   Then you need
o   Development —-> Production                                   
o How to group employees for their allowances in payroll?
o Go to basic salary of India in Payroll India and group the employee first
depending on the allowances to be paid and this is
applied for even differentiating the employees into groups depending on
their pay structures. 
o In OM, how to get the details for group of employees (ex.) group of
Drivers in the organisation?
o Drivers can be identified depending on their position at which they are
working and you can have a different job codes for them who do you want
to look into.
o How is Time management and payroll is integrated?
o TM MGMT and Payroll are integrated in ways are time data is collected
from the info type 0007 and these hours are taken in basic as Number of
hours worked  or utilized, and even with time evaluation and last with
schemas integration.
o X000 schema carries xt00 and these data can be transferred between
other modules.
o What are the other modules integrated with OM?
o OM contains all the modules to be integrated, depending client
requirement it is done. As OM-PA, OM -RECT, OM-BENEFITS, OM-
TRAINING & EVENT MGMT, OM – PD AND OTHERS.
o CHECK THIS BY GOING TO IMG –> CTRL F AND GIVE INTEGRATION WITH
OM )
CHECK ALL OF THEM , GO FOR PROGRAM
o RHINTE00 PHINTE10 , PRHINTE20 , PHINTE30 AND 40 ALSO.