Hierarchy
SAP_HRCNZ (Software Component) Sub component SAP_HRCNZ of SAP_HR⤷
PY-NZ (Application Component) New Zealand⤷
PC43 (Package) HR accounting: New Zealand
Basic Data
| Data Element | PNZ_ACSAC |
| Short Description | Actual Sacrifice percentage |
Data Type
| Category of Dictionary Type | Direct Type Entry | |
| Type of Object Referenced | No Information | |
| Domain / Name of Reference Type | ||
| Data Type | DEC | Counter or amount field with comma and sign |
| Length | 7 | |
| Decimal Places | 5 | |
| Output Length | 8 | |
| 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 | Actual SS |
| Medium | 20 | Actual Sal. Sac % |
| Long | 35 | Actual Salary Sacrifice Percentage |
| Heading | 35 | Actual Salary Sacrifice Percentage |
Documentation
Definition
Enter the percentage by which the employees earnings must be reduced to meet the requirements entered in the Contribution and Salary Sacrifice percentage fields.
Depending on the configuration of the Superannuation Funds NZ (V_T7NZSF) view, the system calculates the salary sacrifice percentage of the employee using one of the following formulas:
- a / (1+c+a) OR
- a/(1+a)
In the above formula:
- a = salary sacrifice
- b = employer contribution
- c = b-a
Use
Dependencies
Example
The standard employer contribution towards salary sacrifice is 1%. However, the company allows employees to sacrifice an additional 2%. In this case, you must enter a total of 3% in the Employer Contribution percentage field and 2% in the Sacrifice field on Superannuation NZ (0310) infotype.
Therefore, the percentage by which the system must reduce the employee's earnings is:
= 0.02 / (1 + 0.01 + 0.02)
= 0.02 / 1.03
= 0.019417
In the above scenario, if an employee has gross earnings of NZD100,000, the company contribution, without any sacrifice arrangement, would be NZD 1000 (1% of 100,000). The employee, however, enters into a 2% sacrifice arrangement. Now the gross pay is reduced by 1.9417% as per the above formula and the salary is reduced by NZD 1,942, leading to a new salary of NZD 98,058.
The total contribution of 3% leads to a contribution of NZD 2,942 (98058*0.03). NZD 1,000 of this was the amount that the employee would have paid had the employee not sacrificed and the remaining NZD 1,942 is the amount of salary that the employee has forgone.
If the entire company contribution is sacrified (i.e. the employee's salary is inclusive the company contribution) the formula is effectively a/(1+a) because in this case the value of b is zero. In this case, the sacrifice field and the company contribution percentages would be identical.
Some companies operate total remuneration packages and the full amount of superannuation contributions should be sacrificed but the company wants to differentiate from the compulsory employer contribution and any additional contribution amount. In this case, the 'SS excludes compulsory ER%" would have been selected in the configuration of the Superannuation Funds NZ (V_T7NZSF) view. In this case the formula changes to a/(1+a).
In the above example, this would lead to the employee's gross pay being reduced by 1.9607% and hence, the salary is reduced by NZD 1,961 leading to a new salary of NZD 98,039.
History
| Last changed by/on | SAP | 20080626 |
| SAP Release Created in | 600 |
