Professional Documents
Culture Documents
Agenda
Background
Payroll Concepts
The Process
Master Data
Payroll
•Master data
Gross Net Cluster
•Time Data •Statutory Reporting
• Earnings
•Past Data •Monthly
• Perks •RT
•Cumulations •Half yearly
• Income Tax •CRT •Annual
• Prof Tax
• PF
•Interfaces
• Recoveries
•FI/CO posting
•Bank transfer
•Payment of taxes
•Statutory payments
Industry Geographic
HR Variations
Specific Practices
•Income Tax
•Professional Tax
•Provident Fund
•Payment of Gratuity
•Payment of Bonus
•ESI
•Labour Welfare Fund
60 Indian tables
1§ 2
$ Earning/Deduction
Payable/Non Payable
Calculation / Entry
Allowance Grouping
% 3 Employee
+ 500
Inval C
M230 = Minimum of {
50% (MB10 +
MD10)
& 500 }
INVAL B & C
SAP India 2001, India Payroll Core , P.Rajesh 22
Micro Level Indirect Valuation
e.g. Children education allowance Rs 250 per child
INVAL A,B,C or D
Feature 40ECS
Returns a Factor
Enterprise Structure
Personnel Structure
Organisation
Structure
Pay Parameters
Wage Types
Children’s Education
/ Hostel Allowance
Exemption
IT 582 Exemptions
IT 591 Nominations
PF contributed
Sec 10 exemptions availed
Medical exemption claimed
LTA availed
Tax deducted so far
Business profits
Capital gains
Dividends
Interests
Eligibility details
Rent details
Differential payment
of leased accommodation
Value of helper
Value of furniture
Travel Details
Link to Leave
reimbursements
Transfer of asset
Multiple trusts
Choice of Basis
Payment to pension
ESI
Professional Tax
Coverage of states
Tamilnadu
Gujarat
Maharashtra
Madhya Pradesh
Karnataka
West Bengal
Andhra Pradesh
Kerala
ESI benefit
Gratuity benefit
Pension benefit
Calculation of the tax based on the investments made and the standard
deduction
Define Loan Grouping for India – Define Loan Grouping for India – dependent on Maintain Loan Eligibility Checks and limits
dependent on loan type and ALGRP
loan type and ALGRP
Minimum Experience
Maximum Age
Months allowed between Current and Previous
loan
Number of outstanding loans allowed at a time
Maximum number of loans allowed during the
entire service
Total Outstanding loan amount allowed
Approved loan amount a minimum of Salary , %
asset value and a fixed amount definable by
customer.
Professional Tax
computation for bonus
payments in off cycle is
considered
Infotype 0057
Deduction in Payroll
Frequency of the Payment
can be defined
Linkage to Sec88 Rebate in
Payroll
Linkage to Sec80
Exemptions in Payroll
Different Payee options
Mandatory components
and fixed % of some
components
Customer specific
checks
Payroll
simulation for take
home pay analysis
Methods of Tax
Calculation
Tax at a standard rate
to be used across a
Company.
Tax at the individual
employee's marginal
rate of tax (excluding
surcharge or including
surcharge) before the
payment of bonus or
after the payment of
bonus
oThere are 5 different methods to compute TDS. The choice of which method
first parameter maintained in the schema against function INBTD.
oMultiple bonuses can be paid in the same offcycle run.
oCustomer Exit provided to override TDS computed by SAP.
Rounding options
can be configured at
the Pay Scale for
allowances Grouping
level.
Configurable
rounding Options
Configurable
recovery of rounded
off options
Fixed DA,Variable DA
Configurable Index codes for various Consumer Price
Indices.
Methods of calculating DA.
Non-Slab based calculation.
Basic slab based calculation.
Incremental basic slab based calculation.
CPI slab based calculation.
Incremental CPI slab based calculation.
Basic slab based calculation, subject to minimum
value
Fixed DA
Variable DA
•Customer definable
Superannuation trust ID‘s for
the various trusts.
•Employer‘s Contribution
percentage
•Frequency of contribution
(Monthly/Annual)
•Contributions can be for
calendar year or financial
•Option for making provisions
for monthly contributions
How ?
Legacy data
Tax calculation