SAP ABAP Data Element PMX_IIMEX (Indicator for tax calculation method)
Hierarchy
☛ SAP_HRCMX (Software Component) Sub component SAP_HRCMX of SAP_HR
   ⤷ PA-PA-MX (Application Component) Mexico
     ⤷ PB32 (Package) Human Resources master data - Mexico
Basic Data
Data Element PMX_IIMEX
Short Description Indicator for tax calculation method  
Data Type
Category of Dictionary Type D   Domain
Type of Object Referenced     No Information
Domain / Name of Reference Type PMX_IIMEX    
Data Type CHAR   Character String 
Length 1    
Decimal Places 0    
Output Length 1    
Value Table      
Further Characteristics
Search Help: Name    
Search Help: Parameters    
Parameter ID   
Default Component name    
Change document    
No Input History    
Basic direction is set to LTR    
No BIDI Filtering    
Field Label
  Length  Field Label  
Short 10 Meth. Ind. 
Medium 16 Method indicator 
Long 20 Tax method indicator 
Heading 9 MethdInd. 
Documentation

Definition

Indicates the method that you should use to calculate the tax. The allowed values are:

  • '0' No tax calculation

    You should not apply any kind of tax.

  • '1' Increase payments

    You should use this method when the payroll period is shorter than the period of the tax table to be applied. The first step is to project the taxed income for the period onto the periodicity of the table; once you have calculated the tax, the resulting values are returned once again to the payroll period.

    For example, if you want to use this method for a weekly worker with a monthly tax table:

    • Week 1 of the month:
      Projected income = ( Income for the period / 7 ) * 30.4
      Tax for the period = ( Calculated tax / 30.4 ) * 7
    • Week 2 of the month:
      Projected income = ( Income for the period / 7 ) * 30.4
      Tax for the period = ( Calculated tax / 30.4 ) * 7
    • Week 3 of the month:
      Projected income = ( Income for the period / 7 ) * 30.4
      Tax for the period = ( Calculated tax / 30.4 ) * 7

      This procedure is applied to the remaining weeks of the month (either four or five weeks in total).
      For a regular (normal) payroll, each period is edited individually for tax purposes, and cumulated amounts are not included. For an annual adjustment, this method would produce the same results as method 4 (adjustment by period), including cumulated amounts.

      Note: the values 7 and 30.40 are defined in the payroll constants (table
      T511K), and they can be changed by the user.

  • '2' Direct table

    If you use this method, the selected tax table will be applied directly to the taxed income for the period. This means that no projections or proportions will be applied. You should ensure that the selected tax table coincides with the periodicity of the payroll being run, for example: that you choose the weekly table for weekly employees.

  • '3' Proportional table

    If you use this method, the corresponding table will be applied proportionally to the days in the payment period. This means that each of the amounts in the tax and employment subsidy tables (except percentages) will be divided by the periodicity of the table and multiplied by the number of days in the payment period. The resulting proportional tables will be applied directly to the taxed income.

    For example, if you want to use this method for a weekly worker with a monthly tax table:
    Each value in the tax table willl be multiplied by the following
    factor: 7 / 30.4
    Note: The values 7 and 30.4 are defined in the payroll constants
    (table T511K), and they can be changed by the user.

  • '4' Adjustment by period

    You should only apply this method when the periodicity of the tax table to be used is not the same as the number of days in the payment period. You need to obtain the cumulated information in order to carry out the adjustment and project the cumulated income to the periodicity of the table. After the income has been projected, the tax is calculated by directly applying the table. At the end of the process, an adjustment should be carried out on the resulting values.

    For example, if you want to use this method for a weekly worker with a monthly table:

    • Week 1 of the month:
      Projected income = ( income for the period / 7 ) * 30.4 Projection factor = 4.3428571
      Tax for the period = ( calculated tax / 30.4 ) * 7
    • Week 2 of the month:
      Projected income = ( cumulated income for the month / 14 ) * 30.4 Projection factor = 2.1714285
      Proportional tax = ( calculated tax / 30.4 ) * 14
      Tax for the period = Proportional tax - Cumulated amt for previous periods
    • Week 3 of the month:
      Projected income = ( cumulated income for the month / 21 ) * 30.4 Projection factor = 0.6907894
      Proportional tax = ( calculated tax / 30.4 ) * 21
      Tax for the period = Proportional tax - Cumulated amt for previous periods

      This procedure is repeated for the remaining weeks of the month (either four or five weeks in total). The cumulated income should always be projected, even in the final period of the month. The same applies for the annual adjustment.

      There are other alternative ways to determine income projection, but in order to use them you need to apply function module EXIT_HMXCISR0_002. In any case, the resulting tax will always be adjusted using the values calculated up until the previous period.

      Note: the tax calculation applies an income projection factor that is correct to seven decimals.

  • '5' Calculation for Consultants

    For this calculation method the table is applied directly for taxed income. The calculated tax must not be less than the tax that would result from applying the maximum annual rate included in article 177 of the Income Tax Act (LISR)

  • '6' Special annual payments

    You should use this tax method for remuneration arising from annual gratuity, profit share, leave bonus and other special annual payments. These special payments are usually made once per year. To calculate tax for these amounts, you can apply the following options:

    1. Use the following formula based on article 142 of the Income Tax Act:

    Tax to be deducted = Remuneration taxed for tax * Rate

    Where:

    Rate = (Tax including remuneration - Regular tax) / Monthly taxed remuneration

    Monthly taxed remuneration = (Remuneration taxed for tax / 365) * 30.4

    Tax including remuneration = the tax that results from applying the direct tax table with: regular monthly wage + monthly taxed remuneration

    Regular tax = the tax that results from applying the direct tax table with: regular monthly wage

    2. By differences (similar to the point above)

    Income to be deducted = Tax including total taxed remuneration - Regular tax

    Tax including remuneration = tax that results from applying the direct monthly table with: regular monthly wage + total taxed remuneration

    Regular tax = Tax that results from applying the direct monthly table with: regular monthly wage

In order to determine which of these two options will be applied in this method, you should configure payroll constant IA86R in table T511K accordingly.

  • '7' Severance pay

    You should apply this tax method for payments arising from seniority bonuses, retirement, severance pay and other employment termination payments. This is the method defined in the article 113 of the Income Tax Act.

    These payments are made when the work relationship between an employee and the company is terminated. You have two options for calculating tax in these cases:

    • If the income taxed for these concepts is greater than zero, but less than the final regular monthly wage, the monthly table is applied directly, but the employment subsidy is not applied.
    • If the income taxed for these concepts is equal to or greater than the final regular monthly wage, then the following formula is applied:
      • Net tax = Taxed income * Rate
      Where: Rate = Final regular monthly tax / Monthly wage
  • '8' Tax Miscellanea 1991

    For the annual tax adjustments, instead of applying the rate and table set out in articles 177 and 178 or the Income Tax Act, it is possible to use the rate and table set out in those same articles in 1991,but updated for the current year. When you use this tax method, the 1991 option will be applied.
    This method is also valid for the monthly tax adjustment.

  • '9' Pensions and Retirements
    • This is applied to persons who have retired from work. In regards to company pensions, there is no legal framework within the Federal Work Law, and so benefits and the conditions requiered for receiving them are set by each company through its retirement plans and collective agreements. If your company decides to pay pensions to retired employees, these payments will have to be processed in a particular way in order to calculate the corresponding Income Tax.
    • If the pension, retirement or retirement credit is paid in a lump sum, the tax should be calculated as set out in article 141 of the Income Tax Act regulations
    • If the pension, retirement or retirement credit is paid through sev
History
Last changed by/on SAP  19980416 
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