SAP ABAP IMG Activity OHANZTAX010 (Maintain Student Loan Repayment Rates)
Hierarchy
☛SAP_HRCNZ (Software Component) Sub component SAP_HRCNZ of SAP_HR ⤷PY-NZ (Application Component) New Zealand ⤷P43C (Package) HR customizing: New Zealand
Hypertext: Object Class - Class to which a document belongs.
Document Name
OHANZTAX010
An employee who has a student loan is required to make monthly repayments from his or her salary if he or she earns over a certain amount. For the tax year ending March 1999, an employee earning over $283 per week before tax was required to pay 10% on every dollar over the threshold. The repayments are deducted from the employee's salary by the employer on behalf of the Inland Revenue.
In this step, you create and maintain the thresholds for each tax code, above which the employee must make student loan repayments. You also maintain the deduction percentage on the salary above the threshold.
You need to maintain this step if the minimum weekly earnings or the deduction percentage for student loan is changed by the Inland Revenue.
Example
Requirements
Standard settings
Recommendation
Activities
To change the minimum weekly earnings or the deduction percentage for student loan repayments in a particular tax code:
Select the tax code that you wish to change.
Choose Goto -> Details.
Change the minimum weekly earnings threshold in the Dedn. Min Earn. field.
Change the rate of repayment to be deducted from earnings over the threshold in the SL deduction percent field.
Change the threshold value to be subtracted from total weekly earnings in the SL deduction subtract amt field.