SAP ABAP IMG Activity PY_NZ_TAX_001 (Define Annualized Earnings Calculation for Extra Pay)
Hierarchy
☛ SAP_HRCNZ (Software Component) Sub component SAP_HRCNZ of SAP_HR
   ⤷ PY-NZ (Application Component) New Zealand
     ⤷ PC43 (Package) HR accounting: New Zealand
IMG Activity
ID PY_NZ_TAX_001 Define Annualized Earnings Calculation for Extra Pay  
Transaction Code S_L4H_49002416   (empty) 
Created on 20110927    
Customizing Attributes PY_NZ_TAX_001   Define Annualized Earnings Calculation for Extra Pay 
Customizing Activity PY_NZ_TAX_001   Define Annualized Earnings Calculation for Extra Pay 
Document
Document Class SIMG   Hypertext: Object Class - Class to which a document belongs.
Document Name PY_NZ_TAX_001    

Use

You use this Customizing activity to set the parameters of Calculate fixed tax rate for every Extra Pay Payment(NZEEP) payroll function in the Period factoring and storage (New Zealand) (NZAL) schema to calculate the tax rate for extra pay.

You can set parameter 1 and parameter 2 of the Calculate fixed tax rate for every Extra Pay Payment (NZEEP) payroll function, to calculate the annualized earnings to process extra pay as per requirements. In the standard SAP solution, these parameters are set to blank.

  • If you set parameter 1 to X, the Calculate fixed tax rate for every Extra Pay Payment (NZEEP) payroll function considers the extra pay amount from previous periods while calculating the annualized earnings of the employee.
    • For example, consider that an employee paid on a fortnightly basis receives the following payments:


    Previous Period            Current Period
Base salary     2,000            2,000
Extra Pay    500            1,000


Annualized earnings with parameter 1 set to X        ((2500+2000) x13) + 1000 = 59500

(Inclusive of extra pay from previous periods)

  • If you set parameter 2 to X of the Calculate fixed tax rate for every Extra Pay Payment (NZEEP) payroll function and if there are no previous earnings, the payroll function does not do any special processing.
    • For example, consider that an employee paid on a fortnightly basis receives the following payments:


    Previous Period        Current Period

Base salary     0        2,000
Extra Pay    0         500


Annualized earnings with the parameter 2 set to X        (2000X13) +500 = 26500

(No special processing)       


Annualized earnings with the parameter 2 set to blank        (2000X26) +500 = 52500

(Special processing because there are no previous earnings)

Note

Do not apply the parameters directly to this function if payroll results exist for employees so as to avoid retrospective processing errors. If you want to set these parameters after Go Live, you can incorporate the Conditional execution of functions (IF) payroll function with a rule, to control processing and avoid these errors in the Period factoring and storage (New Zealand) (NZAL) schema.

Requirements

Standard settings

Activities

Example

Business Attributes
ASAP Roadmap ID 204   Establish Functions and Processes 
Mandatory / Optional 2   Optional activity 
Critical / Non-Critical 2   Non-critical 
Country-Dependency I   Valid for countries specified 
Customizing Attributes Country Key Country Name
PY_NZ_TAX_001 NZ New Zealand
Assigned Application Components
Documentation Object Class Documentation Object Name Current line number Application Component Application Component Name
SIMG PY_NZ_TAX_001 0 HLA0003855 New Zealand 
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
PSCC L - Logical transport object PE00 NZAL  
History
Last changed by/on SAP  20110930 
SAP Release Created in