Hierarchy
SAP_HRCGB (Software Component) Sub component SAP_HRCGB of SAP_HR⤷
PY-GB-PS (Application Component) Öffentlicher Dienst⤷
P08P1 (Package) HR Public Sector Great Britain
IMG Activity
| ID | OHIGBPBSME0201 | OHIGBPBS020205 |
| Transaction Code | S_PL0_09000024 | (empty) |
| Created on | 20020221 | |
| Customizing Attributes | ||
| Customizing Activity |
Document
| Document Class | SIMG | Hypertext: Object Class - Class to which a document belongs. |
| Document Name | OHIGBPBS020205 |
Pay on Claim
If an employee holds more than one contract and the non-primary contract is entered late into the system two kinds of NI insurance calculation exist dependent on whether the payments to the employee are on a Regular Basis or Pay on Claim.
If the employee is paid on a Regular Basis, i.e. a regular monthly salary, NI calculation has to be carried out following a when earned principle (example 1).
If the employee is paid on an Irregular Basis (Pay on Claim) (E.G. the payments are made for exceptional tasks like non-recurring lectures) then the when paid principle has to be applied to NI calculation (example 2).
Use
For simplicity the examples are restricted to the employee NICs. The contracts are monthly and the NI category is A. The examples are related to the payroll periods 01 and 02.
1) Regular payment (When earned):
The employee holds two contracts. The gross of both contracts is in each period 1000 pounds.
In period 01 the non-primary contract has been forgotten and so has not been entered into the system. So employee NICs are 62,20 in period 01 because the gross of the primary contract is 1000.
In period 02 the non-primary contract is entered into the system retospectively for period 01. In period 02 NI has to be recalculated for period 01 on the total gross of 2000.
In this case, the Employee NICs are 162,20 for period 01. So arrears of 100 are produced. The total gross of period 02 is 2000. NICs in period 02 are 162,20 + Arrears from period 01 of 100 which gives a total of 262,20 for period 02.
2) Pay on claim (When paid):
In this example a professor gives two lectures for a university.
In period 01 only a primary contract exists but it is nothing paid on this contract.
In period 02 the professor gives a lecture for period 02 on the primary contract (2000 pounds) and it is realized that he had already a lecture for the non-primary contract in period 01 not entered yet to the system .
In this case, the gross of the non-primary contract (entered late to the system) has to be transferred to period 02 (when paid). The NICs will be calculated on a basis of the total NIable pay in period 02 (4000 pounds) .
So employee NICs are 211,40.
Requirements
To enable "Pay on Claim" rules to apply in late starter scenarios for multiple employment an additional wage type NIPC is introduced. The purpose for the wage type is simply to distinguish between Pay on Claim and Regular Pay. In general it is assumed that regular payments are made to an employee. However, in case that a Pay on Claim situation exists it has to be indicated by the payroll staff via wage type NIPC on Infotype 8 (Basic Pay). By entering the wage type on Infotype 8 the contract has to be calculated following the rules of Pay on Claim. No amount or number needs to be entered for wage type NIPC. The wage type will then transferrred in special calculation rule GBP2 to table RT. The existence of the wage type in table RT triggers the Pay on Claim calculation in the National Insurance payroll function GBNIC.
Standard settings
The GB Schema G000 does not need to have any extra customising performed. If the Wage Type NIPC exists in IT during the initialisation processing of the Multiple Employment solution then it will be moved to IT and its existence in RT will trigger the When Paid principle to be used during the NI calculation.
Activities
Add the Wage Type NIPC to the Basic Pay infotype (0008) of the employees you have that are paid on a "Casual or Pay On Claim" basis.
Example
Business Attributes
| ASAP Roadmap ID | ||
| Mandatory / Optional | ||
| Critical / Non-Critical | ||
| Country-Dependency |
Assigned Application Components
| Documentation Object Class | Documentation Object Name | Current line number | Application Component | Application Component Name |
|---|---|---|---|---|
| SIMG | OHIGBPBS020205 | 0 | HLA0009562 | Absences |
Maintenance Objects
| Maintenance object type |
History
| Last changed by/on | SAP | 20020221 |
| SAP Release Created in | 470 |
