Income tax Changes for Mid year Golive

Gurus
For Income Tax reconciliation with legacy i have used PCR INVT and changed to ZNVT.
It is working perfectly in two scenarios
1. Adding a Amount(MVT0) to existing Tax Amount in /460
2. Repaacing existing tax amount of /460 through (MVT1)
But our Client want to nullify the tax (i.e what ever the tax amount appearing in SAP without changing any Income, Gross, taxable income) they want to nullyfy the /460.
Kindly let me know how to manage this scenario on Case to case basis. (When i try to replace amount through WT 8VT1-Copy of MVT1 in It0015 , WT is not accepting 0 As value)

Are you trying to run payroll from april and match it in the system? in that case if employee has no tax deducted in the legacy system it would be highly difficult to match. It will be easier to go with mid-year go-live schema INLK.
Consequently you can update the wagetype with a value lesser than Rs 1.
Raghu

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Income tax issue for mid month joinees

Issue 2:
For New (mid month) joinee at the first month gross salary is calculated based on the earned salary amount *12 months (or no. of remaining months for financial yr end), but in my client income tax deducted based on the actual salary (not earned salary) from the first month onwards.
For example :
Employee X,
Joined date 15.08.2011,
Actual salary = 1,00,000 INR. Earned salary for 15 days = 50,000 INR.
While Start Payroll for the period 5th (August) 2011. The WT /416 Gross salary = 4,00,000 (50000*8). Based on this gross salary income tax calculated, But I want to calculated the gross at first month (august 2011) based on follows,
Gross salary : August month earned salary = 50,000 + Actual salary per month =1,00,000*7 =7,00,000.
Gross salary = 7,50,000 INR.
Please give me some solution
Thanks and regards
Mohan .V

Hi Param Dayal,
New issues rise Now....
For New (mid month) joinee at the first month Exemption U/S 10 is calculated based on the Conveyance Allowance amount *12 months (or no. of remaining months for financial yr end), but in my client income tax Exemption U/S 10 based on the actual salary (not earned salary) from the first month onwards.
For example :
Employee X,
Joined date 15.08.2011,
Conveyance Allowance = 800 INR. Earned Conveyance Allowance for 15 days = 400 INR.
While Start Payroll for the period 5th (August) 2011. The WT /130 Exemption U/S 10 = 3,200 (400*8). Based on this Conveyance Allowance The Exemption U/S 10 calculated, But I want to calculated the Exemption U/S 10 at first month (august 2011) based on follows,
August month earned Conveyance Allowance = 400 INR + Actual Conveyance Allowance per month =800*7 =5,600.
Exemption U/S 10 = 6,000 INR.
Please give me some solution
Thanks and regards
Mohan .V
Edited by: mohantamilan on Sep 26, 2011 2:52 PM

Mid year golive, regular schema is not calculating anualgross for 12 month

HI
its mid year golive payroll , we uploaded april- sept old result. then run inlk schema.
after that when i run regular payroll system is not taking previous 6 moth salary for annual gross. semilarly system is not considering last 6 month for exemption also
i have uploded /130 tech wagetype also for old result but still its not working.
its calculating everything from oct - march .
please help

Hello Suprita,
I hope your query is on India payroll, if it is so then kindly raise your query in ERP HCM forum, this forum is specific to Payroll North America.
With Regards,
S.Karthik

List of wage type for mid year go live

Dear All,
I need your help we are going for mid year go live and we are planning to uploaded payroll results .so here iam confissued with the wage types which should be uploaded so kinldy send me any list of wage types for statutory and income tax to be uploaded in results so that they can get statutory forms and form16.
thks

Dear Laxman,
refer the links its use full to you and directs you towards solution
[Mid year Go-Live (India Payroll);
[http://help.sap.com/saphelp_47x200/helpdata/en/5a/f57415558f4e52925b05aa57dad09d/content.htm]
[regarding mid year go-live;
regards,
mohammed

New Income tax slab for FY 2013-14 / AY 2014-15-Not working in SAP

Dear Consultants,
According to Indian Govt New Income tax slab for FY 2013-14 / AY 2014-15,
Taxable Income in 10% slab maximum tax will be Rs 28000 (taking 2000 tax credit
into consideration) is there any SAP note to be apply for this condition, Please do needful.
Thanks in Advance,
Navesh

Dear Friends,
My issue is closed, by applying the below note. this will be useful for others in future
SAP NOTE :- 1850965
As per the Union Budget 2013 - 2014, for individuals having a taxable income less than 5 Lac, a tax credit of INR 2,000 would be given. While executing payroll (TCode: PC00_M40_CALC_SIMU) for employees, when a cross financial year retro is triggered from previous year, tax credit amount is being generated. However, it is not reducing the overall tax liability of the employee. This behavior is incorrect. For an employee 'X' a cross financial retro is triggered. After considering the cross FY arrears, employees' taxable income comes out to be less than 5 Lac. In this case, a tax credit of INR 2,000 is generated. Suppose, the overall tax liability of employee 'X' was INR 10,000, then even after tax credit his liability remains 10,000. Tax liability for employee shall become INR 8,000 (10,000 - 2,000).
To apply this Note Need to apply the HR Support Package : Release 604, Package Name: SAPK-60462INSAPHRCIN
Thanks & Regards,
Navesh

Info type and subtype to stop income tax deduction for a month

can i know how to stop income tax deduction for a month for a specific employee. I understand that this s possible

Hi
You can use additional wage type (infotype 0015)
and subtype voluntary tax std is MVT1 as per SAP
if you maintain 0.01 value here and indicating the month
SAP calculated income tax is supressed and this is how u can stip income tax deduction for a month
with regards
partha
keep sharing and learning

Upload in Excel Sheet for Mid Year Go Live

Hi Friends,
How to upload T558 B & C tables in Excel Sheet for Mid Year Go Live.
Awaiting for your reply
Regards
Praveen P

Hi,
t558c template here between postingdate and amount two blank tab is there
client pernr period country wagetype postingdate amount
t558b template here between period and posting date two blank tab is there
client pernr period postingdate periodparameter year period monthstartrdate enddate month
and the date format is YYYYMMDD
Edited by: BALAPANI on Oct 13, 2009 12:19 PM

Salary & Income Tax Projection for Retiring Employees

Hi Friends,
We have a case where an employee is retiring on 14.08.2014 (which is his birthday also i.e. P0002-GBDATE = 14.08.1954).
When we executed payroll for this employee in the month of July 2014, the system deducted income tax as per the slabs for a senior citizen (as Union Budget 2013-14, current year budget changes have not been incorporated).
The company wants the employee to be considered as a 'normal citizen/person' and not as a 'senior citizen' until his date of retirement or during the tenure of his employment.
What can be done to resolve this issue?
We are using
Actual Basis for Projection of Salary and Income Tax
Date Type 'N0' in IT0041 (Date Specifications)
Please suggest something.
Regards,
Kumar

I have personally checked this, as facing the same problem. AND THIS IS WORKING, THANKS FOR THE INFORMATION.
HOWEVER THERE IS ANOTHER SOLUTION ALSO.
One can create an retirement action, which has to be executed for all the employees going to retire during the year.
system will calculate the gross and project the tax only upto the retirement date.
if exttn is required you can also config the retirement-exten action in case of extension is carried out.
Rather than touching the standard scheme this is the best way I know? you can also fetch the reports in the future with the help of standard reports.
However, if anyone is having any PCR idea, that is also welcome. Do give me a helping hand by share the same.
Edited by: virparkash on May 23, 2011 1:19 PM

COA structure changes in mid year

Hi
Client's requirement is to change the COA completely in mid year....will there be any cons by doing this activity:
Activities:
Creating new account group and GL accounts.
Changing all the integration settings GL accounts-OBYC/OB40/VKOA
Reconciliation accounts of customer and vendor
Please let me know.
regards.

Dear KS,
Yes you can change the GL Account at any point there will not be any issues. For Recon Account you can change it at any point of time. Regarding Tax Account I don't foresee any risk.
Please ensure if there is any hard coding of Old G\L Accounts in any one of the Z program or in Substitution. Also if there is any clearing rule written for GL Acocunt.
Br, Vivek

Income Tax deducted for withdrawn employee

Hi Experts
In my Client One employee is withdrawn on 31.04.2011n he got final settelement in that month,But in the june payroll for that employee income tax deducted,we have cheked all his prevoius payroll cluster but not able to get the solution.Can anyone tell why this happend
regards
Aakash

Aakash,
Once employee moves to employement status zero, payroll will only be executed if there is some master data change. Without that it is not possible. So just check if system ws triggering some retro for this test case. Also you can check IT0003 'Earliest MD change' for the reason. Alongwith it even if the user has deleted the record, you can still do the simulation run and check the results for the employee. from result you can easily track if there was any chnage.
Edited by: Praveen Tiwari on Jun 24, 2011 7:30 PM

Tds rate has been changed for the year 2009-10

Hi experts,
Now my user wants to change TDS rate as per section 194J and 194I.Please advise where i can make change in configuration.
Regards,
Samar

Hi,
Create new tax codes for the new rates.
Regards

Income Tax Projection for Retiring Employees

Hi Folks,
One of our Employee is getting retired in the month of August, As per SAP,In April-2009 his IT projection happens for the entire financial Year April to March 2010.
That is his IT projection for APril to March is 5Lakhs, but his actual earnings from April to date of Separation (till august) is 3.5 Lakhs, because of this his Tax liablity from APril to July goes high and in the month of August there is a refund.
Now for retiring Employees how can we make the IT projection happen only till the month of Retirement. Is their any standard process available or through custom development.
Experts Plz advice.
Rgds,
Sekar.

I have personally checked this, as facing the same problem. AND THIS IS WORKING, THANKS FOR THE INFORMATION.
HOWEVER THERE IS ANOTHER SOLUTION ALSO.
One can create an retirement action, which has to be executed for all the employees going to retire during the year.
system will calculate the gross and project the tax only upto the retirement date.
if exttn is required you can also config the retirement-exten action in case of extension is carried out.
Rather than touching the standard scheme this is the best way I know? you can also fetch the reports in the future with the help of standard reports.
However, if anyone is having any PCR idea, that is also welcome. Do give me a helping hand by share the same.
Edited by: virparkash on May 23, 2011 1:19 PM

Income tax calculation for Payroll India

Hi guys,
I want to know how the wage type /436 (Tax on Total) is generating.
For example the total Income of an employee i.e. /434 is 417,480 for the month May 2007. I understood, how /434 is generating. But I am not realising how /436 (Rs. 74,244) is generating.
The slab is as per the FY 2007
110,000.00----
0.00 INR
150,000.00----
10.00INR
250,000.00----
20.00INR
99,999,999.00----30.00INR
Can any body explain me. I am waiting for your valuable reply.
Regards
Prasad

Hi Prasad,
Have you found any answer for /436.
Now am also is same position " HOW /436 IS CALCULATING" my client also want to see the TAX complete calculation.
PLEASE FRIENDS, help me out, ITS VERY URGENT in my UAT presentation.
Now again am starting this thread, Who ever gives required output they can awared their points.
Kind Regards,
Saisree.S

Payroll.xls file for Mid Year Go Live

Hi All,
I want to use the program the program HINUULK0 for uploading data into
tables t558b and t558c. The SAP help documentation says that it provides a
template payroll.xls for entering the data. I've not been able to spot this
file yet.
From where I can get the PAYROLL.XLS file?
Please help.
Thanks
Atin

Dear Atin,
For table T558B use format :-
Client
Personnel Number
Sequential number for payroll period
Payroll type
Payroll Identifier
Pay date for payroll result
Period Parameters
Payroll Year
Payroll Period
Start date of payroll period (FOR period)
End of payroll period (for-period)
Reason for Off-Cycle Payroll
Sequence Number
For Table T558C use format :
Client
Personnel Number
Sequence Number
Country grouping
Wage type
Key date
Rate
Number
Amount
Hope this helps.
Kindly reward if useful.
Regards & Thanks,
Darshan Mulmule

1099 information for mid year go live

Hello guys,
How to capture the payments made to 1099 vendors until go live in SAP. At go live we only load open items. How do we integrate payments from Legacy (until go live) and payments from SAP (after go live) to generate the 1099s from SAP system?
Regards
Madhu

Dear Atin,
For table T558B use format :-
Client
Personnel Number
Sequential number for payroll period
Payroll type
Payroll Identifier
Pay date for payroll result
Period Parameters
Payroll Year
Payroll Period
Start date of payroll period (FOR period)
End of payroll period (for-period)
Reason for Off-Cycle Payroll
Sequence Number
For Table T558C use format :
Client
Personnel Number
Sequence Number
Country grouping
Wage type
Key date
Rate
Number
Amount
Hope this helps.
Kindly reward if useful.
Regards & Thanks,
Darshan Mulmule

Income tax Changes for Mid year Golive

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