Split Wage Types into Tax-Free/Subject to Tax Parts
Customizing Activity
OHADSTC20
Split Wage Types into Tax-Free/Subject to Tax Parts
Document
Document Class
SIMG
Hypertext: Object Class - Class to which a document belongs.
Document Name
OHADSTC20
In this step, you determine which wage types are to be split into taxable and tax-exempt portions. This does not apply to the wage types for Sunday bonuses, night bonuses or public holiday bonuses. These are covered in chapter Sunday/Night/Public holiday bonuses.
Example
You give your employees an anniversary gift for 40 years' service. These anniversary gifts are tax-exempt up to a limit of 2400 DM. The part of the benefit exceeding this tax-exempt amount is taxable.
Requirements
Wage types that are to be separated into tax-exempt and taxable portions must be coded accordingly in processing class 08 of table T512W.
Standard settings
The standard R/3 system contains sample entries which you can use as a reference for your own entries.
Activities
Check which wage types have a tax-exempt portion.
Code processing class 08 according to the entries in table T512W for the wage types to be split (first view).
Enter the wage types to be split in the following view.
Switch to the detail screen for the wage types to be split.
Determine the type of split.
Define how the tax-exempt amount is to be made known to the system.
Enter the technical wage types in which the tax-exempt and the taxable portion of your wage type is stored.