SAP ABAP IMG Activity OHAKOI004 (Use advance wage types and permit negative outflows after filing T4 forms)
Hierarchy
☛ SAP_HRCCA (Software Component) Sub component SAP_HRCCA of SAP_HR
   ⤷ PY-CA (Application Component) Canada
     ⤷ P07C (Package) HR customizing: Canada
IMG Activity
ID OHAKOI004 Use advance wage types and permit negative outflows after filing T4 forms  
Transaction Code S_PL0_09000165   (empty) 
Created on 20020328    
Customizing Attributes OHAKOI001   Payroll Canada - Outflow/Inflow Processing 
Customizing Activity OHAKOI004   Use advance wage types and permit negative outflows after filing T4 forms 
Document
Document Class SIMG   Hypertext: Object Class - Class to which a document belongs.
Document Name OHAKOI004    

Use

If you would like to assign the negative outflow of a particular pay period to that period, provided that T4s have not been filed (so that the pay period has not been considered in filing thus far), you must enter constant TOYER in table T511K. The appropriate value must be defined for the constant, and the start and end dates must be set to 01.01.1900 and 31.12.9999, respectively.

Requirements

The configuration discussed here addresses processing methods without regard to their possible adverse legal implications. Therefore, we strongly recommend that your enterprise first contact the Canada Revenue Agency and le Ministère du Revenu du Québec (if applicable) to discuss the legal implications of the processing that you wish to perform.

Please discuss the implications of your chosen processing method with the appropriate authority before you take steps to implement it.

Standard settings

As delivered, during outflow/inflow processing, the standard system only considers wage types that cumulate into technical wage type /101 (Total gross). Non-taxable cash wage types, which are not considered during standard outflow/inflow processing, must cumulate into technical wage type /110 (Net Payments/Deductions).

If the sum of the differences of all taxable cash payments within a particular pay period is positive, then the standard system generates an outflow, which will be accounted for in the current pay period.

If the sum of the differences of all taxable cash payments within a particular pay period is negative, then no outflow will be generated.

Activities

  1. Execute the activity associated with this IMG step.
  2. On the subsequent screen, choose New Entries.
  3. On the screen thereafter, enter constant TOYER, start date 01.01.1900, end date 31.12.9999 and, in the Value column, the value of your choosing.
  4. Save your entries, then exit this step of the Implementation Guide.

Example

Example 1
Your employees are on a monthly payroll. You have entered constant TOYER in table T511K. In February, an employee's taxable cash payment is reduced by $100 for the month of December of the previous year. If no T4 (or similar form) has been filed for the affected employee, then the amount of -$100 will be assigned to the previous year, regardless of the specification in processing class 55 and the value of constant TOUTF. If a T4 (or similar form) has been filed, then -$100 will be processed in accordance with the settings in processing class 55 and the value of constant TOUTF.

Example 2
Your employees are on a monthly payroll. You have entered constant TOYER and specified a value of -$50 for constant TOUTF. In February, an employee's advance payment A1 is reduced by $20 for the month of December of the previous year. Thus far, no T4 (or similar form) has been filed, so the amount of $20 will be assigned to the previous year. In March, after filing the T4, the advance payment A1 is reduced by an additional $40 for the month of December of the previous year. Since the reduction of $40 lies below the threshold amount of $50, an outflow of $40 will be generated in pay period 12 (December) and the amount of $40 will be accounted for in the current year. No amended T4 will be required. In April, the advance payment A2 is reduced by $30 for the month of December. Retrocalculation will reverse the previous negative outflow of -$40 and assign total negative earnings of -$70 to the previous year. An amended T4 will be required. Overall, all reductions in advance payments A1 and A2 (a total of $90) will be accounted for in the previous year.

Business Attributes
ASAP Roadmap ID 204   Establish Functions and Processes 
Mandatory / Optional 2   Optional activity 
Critical / Non-Critical 1   Critical 
Country-Dependency I   Valid for countries specified 
Maintenance Objects
Maintenance object type C   Customizing Object 
Assigned objects
Customizing Object Object Type Transaction Code Sub-object Do not Summarize Skip Subset Dialog Box Description for multiple selections
V_T511K V - View SM30 TOYER Use advance wage types to permit negative outflows after filing T4 forms 
History
Last changed by/on SAP  20020404 
SAP Release Created in 470