SAP ABAP IMG Activity OHANZSUP002 (Define ESCT Processing)
Hierarchy
☛ SAP_HRCNZ (Software Component) Sub component SAP_HRCNZ of SAP_HR
   ⤷ PY-NZ (Application Component) New Zealand
     ⤷ P43C (Package) HR customizing: New Zealand
IMG Activity
ID OHANZSUP002 Define ESCT Processing  
Transaction Code S_AHR_61007446   IMG-Aktivität: OHANZSUP002 
Created on 19981221    
Customizing Attributes OHANZSUP002   Define ESCT processing 
Customizing Activity OHANZSUP002   Define ESCT processing 
Document
Document Class SIMG   Hypertext: Object Class - Class to which a document belongs.
Document Name OHANZSUP002    

Any contribution an employer makes to a superannuation fund for the benefit of an employee is liable for 'Employer Superannuation Contribution Tax' (ESCT). The calculation of ESCT may be based on a 'grossed up' superannuation amount, or on the company base contribution amount.

To cater for the different calculations, you need to set up a new processing class. The calculation itself will be done in a cycle.

The withholding tax rate is stored as a constant (in the Implementation Guide for Payroll Accounting New Zealand under Superannuation -> Define ESCT Standard and Top Rates) and accessed automatically during the calculation.

Example

a = ESCT rate = 33%

b = company contribution = $50.00

  1. ESCT based on grossed up amount:
    ESCT = a / (1 - a) x b
    ESCT = 0.33 / (1 - 0.33) x 50 = $24.63
  2. ESCT based on company contribution
    ESCT = b x a
    ESCT = 50 - 0.33 = $16.50

Requirements

You have created one or more wage types in the wage type table to hold the calculated ESCT amount, for example the wage type S.Super.Contrib.Withhold wage type (/460).

You have created a processing class containing the following specifications:

  1. Calculations based on the base contribution amount
  2. Calculations based on the grossed up superannuation amount

Standard settings

Processing class 65 is delivered with the standard system. You can use this as a model for creating your own processing class.

Recommendation

Activities

Assign the appropriate processing class to the ESCT wages type(s).

Further notes

Business Attributes
ASAP Roadmap ID 204   Establish Functions and Processes 
Mandatory / Optional 1   Mandatory activity 
Critical / Non-Critical 1   Critical 
Country-Dependency I   Valid for countries specified 
Customizing Attributes Country Key Country Name
OHANZSUP002 NZ New Zealand
Assigned Application Components
Documentation Object Class Documentation Object Name Current line number Application Component Application Component Name
SIMG OHANZSUP002 0 HLA0003863 Superannuation 
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_512W_D V - View OH12 43_SUP2 01 Processing Classes, Cumulations, and Evaluation Classes 
History
Last changed by/on SAP  20080227 
SAP Release Created in