Mid month Relieving and joining

Hi All,
Relieving and joining during mid of the month are not getting pro- rated.
System is able to pro-rate the salary for any unpaid absence but not for relieving and joining cases.
What is that I am missing? Please tell
Regards
Astha

Hi,
Relieving in the middle of the month:
Please check the payroll status infotype - 0003 of the relieved employee and mark the relieving date at field "Run Payroll upto" field.
Joining in the middle of the month:
Please check the date specification infotype - 0041 of the employee joined in the middle of the month (i.e hiring date) and mark it in that infotype.
After completing above process. Run the payroll.
Lets wait, what other experts says for this.
Regards,
Shadeesh.G

Similar Messages

Payroll processing for Mid month Joinees and Separated Employees

Hi Folks,
I have the following queries with regard to separation and Joining.
1.In Legacy , people who are joining after 17 of the current month is getting paid in the next month. Our Payroll Period is from 1 to 31st . Is it possible to stop Payment for people who are joining after 17th of the current month and Pay them in the subsequent month.
2.In legacy usually the Settlement happens in the subsequent month of Separation. Say if a employee resigns on April, he will get his full and Final settlement in the month of May or june. For a separated employee is it possible to make payment in the subsequent months.
Rgds,
Sekar.

For point no 1, yes its possibel. and there are multiplt ways to that. like lock the employee in payroll status infotype, or write a rule where in check the DOJ of the employee, and if employee joins after 17th, reject the payroll for that employee
For point no 2, yes you can process later also, but ensure that payroll gets processes in that financial year itself.

Mid month joiners PF Projection Issue

Hi Team,
We have an issue with respect to PF Projection for the employees who joined in mid month. We are on actual basis as an income tax projection.
Employee joined on 16.04.2014 and his basic is 20,000 rupees. Since he joined in mid month his PF will be deducted as 1200. Now the system is projecting under Aggregate chapter VI as 1200+2400*11 = 27600 which is incorrect. It should do as 1200+1200*11 = 14400
We are not sure why system Is behaving weird. If anybody come across this situation, please let us know.
Thanks and Regards,
Siva.

Hello,
Please note that proration in case of mid month termination and joining
will be applicable to PF eligible pay alongwith EPF basis.
This is the standard behaviour of the system.
Please go through the below explanation on the proration of PF
PF will be prorated if there is a mid month joinee or mid month
termination. In Case of LOP the Eligible Pay is not prorated.
If the pension basis is eligible pay which is maintained in T511P in the
constant PFBAS and currently having the value as 6500 then, in the case
of mid month joining 6500 gets prorated for the number of days employee
was in the trust.
In the case of mid month joining/leaving or transfer scenarios, the PF
Basis will be correspondingly prorated and so the contribution
calculated will also be prorated.
If the customer doesn't want this pension basis to be prorated then a
User Exit: Override Employer Pension Basis has been provided in payroll
function INEPF. The name of the exit is EXIT_HINCALC0_002. This exit is
in the enhancement HRINCEPF. We request you to go through the
documentation of this user exit at
Payroll India > Statutory Social Contribution > Provident Fund >
User Exit: Override Employer Pension Basis
With Regards,
Chetan

Asset Accounting - Mid month Convention

Hi,
I have a problem in Asset Accouting for configuring a mid-month convention (and mid-quarter), settings. I activated the use of half-month in my company code (value 15), and defined Calender assignment for my Fiscal year variant, for Period control 03. The depreciation start date is correctly calculated for the tax depreciation area (period control 03). But, for my book and group depreciation area (period control 01 - 1st of acquisition month), the system also calculating 15/mm.
For Book Depreciation area I need to calculate depreciation for the entire period in which Asset is acquired (period Control 01) Currently If I acuire the asset before 15th of month its calculating depreciation for entire month and If I acquire the asset after 15th of month its calculating only for half month.
Is there a way to have mid-month calculation only applying to specific depreciation area ? Did i miss something in the customizing or do I have to change the period control 01 to force the start date at the first of the current month ?
If you require any futher info to provide input on this issue, Please let me know.
Thanks in advance to everyone who could help me.

As long as the depreciation keys are different between the depreciation areas you should be able to have one calculating at mid-month and the other at full month, respectively.
Just a thought: Go into transaction "OAVH" and make sure that the periods are assigned correctly for your Period Control "1". It should have one line item with a "0" in the month and day field and the period field should be 'blank'.
If the Period Control is correct, you should try creating a custom Period Control that defines each period as the last day of the month.
Hope this helps,
Chad

For the mid month new joiner the annual Conveyance exemption is coming incorrectly

Dear All,
For one of our client, we have have faced a uniqe issue.
If any employee join in the mid of the month, his prorated conveyance amount ( wage type 2020) is coming correctly. Suppose an employee joined at 16th of the month, system is calculating his conveyance for that month as INR 400 and which is correct.
However in his tax calculation for that particular month, system is taking INR 400*(rest of the month of the FY) in the wage type /4E3. which is incorrect. Suppose he joined in 16th April , system is calculating tax exemption 400*12=4800
Now if we run next month payroll , system is caculating the exemption properly. i.e. INR 400 + 800* rest of the month of the FY,
Please help
Regards
Tirtha

Hi Tirtha,
system is calculating perfectly.
first of all system check the no. of present days and accordingly it give the amount in the wage type /3C3 conveyance amount monthly and /3C4 will give Conveyance monthly exemption and it will multiply with no. of months to the fiscal year end and store in the wage type /4E3.
for example check for PF:
Every month PF amount store in WT /3F1 and send to /3F5 and this WT multiplied with No. of months and store the Annual amount in wt /3F6.
Regards,
Praneeth kumar

I have a mid-2010 iMac and just purchased a 2TB TC, can't join existing wireless network with AC standard so attached to iMac via ethernet with TC wifi turned off. How do i access TC now? not showing up in disk utility or on desktop. working fine with TM

I have a mid-2010 iMac and just purchased a 2TB TC, I just found out that it can't join existing wireless network with new AC standard so attached to iMac via ethernet with TC's wifi turned off. How do i access TC now? not showing up in disk utility or on desktop. It is working fine with TM. My cheeper seagate drives etc kept crashing, so i didnt trust cheeper back up options anymore. Connected those drives to TM via firewire and could see the drives and access them.
Also, I didn't want to bridge TC with my new fios router that I paid 100 dollars for, to get N speed and also paying 10 dollars more a month for fast speed. I heard that bridging slows down everything and then there can be port issues with mail etc. I connect to the internet via airport only and it is pretty fast. Getting over 50mbs downloads and over 30mbs uploads. Plus everything in my home it connected to my fios router, airport express for music streaming, two apple tvs, vuezone camer system. I really didn't want to monkey around too much with my system. But are there other options to connect the new TC. Can't find info anywhere for this and called apple who gave me the info above. after hanging up, i see that i cant access my TC and I am wondering if i would have to reset it to turn wifi on again to make changes to the drive, turn off blinking light or repair it in disk utility if it should become corrupted.
For other with similar issues i did solve some other problems: when i connected it to my ethernet port on my iMac wifi stopped working. Found that I had to turn off the ethernet in the system>network screen, but then TM didn't see the TC so i restarted after changes and then it saw it.
Now a rant. I can't believe in this wireless age that Apple would make a product that cant join a wireless net work. The apple rep said i could return it and look for the previous TC that would join an existing wireless network. Are we going backwards?
Thanks!
lennydas

Ok... it is getting a bit clearer but there are still some questions.
I connect to the internet via airport only and it is pretty fast.
I was assuming airport in this statement in your first post meant the TC or the Express.. but I now realise we are still in the mass confusion stage where apple calls everything wireless an airport. So what you mean is the airport internal card of the computer??
Also, I didn't want to bridge TC with my new fios router that I paid 100 dollars for, to get N speed and also paying 10 dollars more a month for fast speed. I heard that bridging slows down everything and then there can be port issues with mail etc.
I think this is mistaken.
Putting the TC in bridge mode plugged into your FIOS will not slow the network.. nor will it cause mail or port issues.. in bridge the TC is just a fancy WAP and switch plus the network hard drive.
If the computer is close it will be faster than the FIOS.
You can run both wireless networks with different names.. so it is clear which is which. But you can also setup roaming so the computers themselves pick which is the best wireless.
I tried extending the wireless net work and tried joining wireless network, but the TC kept crashing and I had to keep resetting the TC. the Apple support person said these, extend wireless network and joint wireless network, are no longer a connection option with the new TC because of the new AC protocol.
Thanks again!
You cannot extend to a non-apple wireless router.
You cannot use join a wireless network because when you do the ethernet ports will be cut off.
But that has not changed.. I don't think Apple support is correct.. there has been no change with the AC model.. it is simply a fact that apple routers do not work in join wireless mode other than as a dumb client. The same applies to AC as to the earlier version.. but I have asked another person to check this.
Join in the express is the only apple router that still allows an ethernet connection.
For now you best use of the TC is bridged to the FIOS. Wireless you can sort out between several options.

Pension and mid-month hiring

Dear Experts,
A person was hired in mid-month, the 15th.
Payable earnings is 4480
The schema is referencing the correct wage type /103
in payroll the amount for the pension of 2480.85 x 6.9% = 171.18. But it should be 309.12
a pcr was created for special cumulations into/103 that reads as follows;
- 3
    - /103 PF APPL. EARNINGS
          WPALL FRST
          ADDWT *
There's no other wage type that has that amount. anks
How do we get teh calculation for the 309.12 to result?
Many thanks,
M

I must forewarn you that I am not familiar with IT0150.
In your initial post, you had mentioned a pcr as
- 3      - /103 PF APPL. EARNINGS
          WPALL FRST
          ADDWT *
This implies that if WT /103 exists in more than one "split", then only it's values (RTE/NUM/AMT) for the first split will be kept in the Input Table, that is if that are all options for the pcr.
Regarding pcr ZVA1, you should first look into the Input Table that is read by the pcr to check the values of /103 and of /809 (Constant GENAU should have a value of 100,000.00). As mentioned by Frances, this is a Custom pcr that will prorate the amount paid. It was created to respond to a requirement, but if I understand you correctly, you would like the payment not to be prorated when the employee is hired in the current month.
Do you have a WT or a temporary variable that indicates that the employee has been hired in the current month?

HT1689 since doing the 7.0.4 update i notice that my mobile data has doubled and i am running out of data mid month. I've disabled apps s not many running. Any suggestions?

since doing the 7.0.4 update i notice that my mobile data has doubled and i am running out of data mid month. I've disabled apps s not many running. Any suggestions?

I am having the same issue even with the newer 7.1. I have a 1-100 KB data push on both my husdand's and my phone every hour on the hour (i.e. my will be at :23 of the hour and his will be at :13 of the hour and it will change). This is whether we are on a WIFI and with all apps, background refreshes, push notifications, etc turned OFF.

Changing Plan Mid-month "pro-rated" unclear and deceptive practice. C.S. offers no help

I recently found myself having to up my plan minutes for a family emergency. I went online and checked my usage I was at 394 minutes out of a 450 minute plan, so I elected to switch to the 900 plan minute for the month, ancipating I would go over in the next week. I was given options to back date it or start on that day, as I had clearly not gone over my alloted minutes, I chose to start it as of that day.
My Bill came and I received 69 dollars in minute overages. How was this explained, that by prorating the bill, they divide the cylcel in half, not only by "dollars" which seemed to be the explantion I received online, but by minutes. SO my minute alotment of 450 was reduced to 240 for those two weeks I oriignally had 450 minutes in. They billed as if that was my allowance therefore saying I now went over my plan by 154 minute which I was billed to the tune of 69.00 dollars, plus the addition of the monthly increase in plan.
My question to any logical rational intelligent person would be, why would someone choose to up there minute plan, before they went over, just to then be charged for minutes they would not have been had they not upped there plan to the next level. This defies common sense and any explanation would as well.
Customer service sadly would not even hear or understand this, only to say this is a valid "cost" and I should have read the "disclosure" statement or called if I had questions and not use online services. I asked both the operator and a supervisor for the terms of the disclosure agrement and neither could tell me what it said. However in reading billing question answers they respond "For example, if you changed rate plans during the middle of your billing cycle, your statement should contain a charge for the old rate plan (according to the number of days in your cycle that you were on the old rate plan) and the new rate plan. " yes that makes sense but no where does it say your minutes may be reduced up until this point and you may occur additional charges not already used. by ironically "increasing your minute plan".
I am waiting for a manager to return my call, As a long time customer of verizon whom have promoted them and the new iphone all over facebook and such to my friends I am very discouraged by this practice, and the lack of resolve.

Mike I appreciate that at least you are familiar with what the disclosure statement says, despite othert reps not being able to recite it. However the term "may" be in inself is Misleading, if "airtime" is prorated the statement should read "YOUR airtime MINUTES will be prorated and reduced to this point, possibly resulting in overages and additional charges" The wording is intentionally misleading. If it weren't MIke, why would anyone KNowingly select an option that would then cause them to owe an additional 69.00 dollars they didnt owe at the time, when UPPING their PLAN?
The fact that Customer Service Can't see that as a very real possiblity and just is dissmisive saying You should have read the disclosure statement., and it is a valid charge tells, me they run into this frequently and they have a script to read from to cover themselves, leaving the HUman Element out of the equation. It is sad enough I had to Up my plan only temporarily while dealing with a tragic family situation, to add insult to injury. To me the term "may" be prorated and "may" result in additional overages meant, that if I had gone over my minutes prior to the change I would be charged, because MIKE that is COMMON SENSE. and a REASONABLE person May think that. Cutomer Service Reps could at least acknowledge that as a very real Understanding of how that line could be interupted, and that a reasonable person would not otherwise increase their plan only to be charge for something they would not have otherwise been charged.
I am almost positive in the Future this wording will be Changed after the continued Myriad of complaints. From what I already understand the new "changing minutes and not plan" option already has changed it. SO why not make things right for long time loyal customers now. I actually want to reduce my plan back down now as it was a temporary emergency however I DONT dare do it mid month again, SO I will wait another 2 weeks and pay even more.
This is NOT ME and my misunderstanding, just googling the topic comes up with tons and tons of complaints, articles written on the topic and so fourth. I have been waiting days for someone as promised to call me back as well and that hasnt happened. I have talked to so many friends about this many verizon customers and all say this can't be right, because it DOESNT MAKE SENSE, despite it being "valid" as you say.

TS4088 why is there a limit on 3 years? it should be all the MacBook Pro mid 2010 with symptoms, there should get their logic board changed for free, mine mac is 3 month late and i had this problem for over a year, but i first saw this article today :(

it should be all the MacBook Pro mid 2010 with symptoms, there should get their logic board changed for free, mine mac is 3 month late and i had this problem for over a year, but i first saw this article today

Hey Clintonfrombirmingham
I called Apple technical support in Denmark, but with no positive reply.
She couldn't do anything, and said that They had sent a recall Email about the problem and with their offer to repair the Macbook Pro, but I'd never recieved an Email about the problem. She wasn't in power to make an exception. It can't be true that i paid a lot of money, for a product that can't barely stand on its own feets, Apple didn't tell me that the product I was about to buy, would restart every 5 minute. and now when they know the problem, they wont repair it? it just don't make sense for me. If a car seller discovers that all the brakes in a car he had sold, will crash after some years he will call all the cars back to repair no mater what. i just don't understand how Apple will make good service for their custumers, by extending the warranty from 2 to 3 years, but wont take the computers there is a little bit to old, 4 months will make the difference. i can't believe it.
What can i do now?
best regards Oskar

Select and join one month record

I receive a request from my customer . He want generate a total sales record for a month and those data stored in daily sales table and customer table.
tblcustomer-20140101
tblcustomer-20140102
tblcustomer-20140103
tblcustomer-20141231
tblsales-20140101
tblsales-20140102
tblsales-20140103
tblsales-20141231
is there anyway when user select month name from application(ex: April), it will choose all april record and join it together?

Hi kjleong,
Generally to say, it is not a good practice to store the same entity data individually for each day, there are many shortages, such as the problem you posted in this thread. You can put all of them into one table and tag them with a DATE column. Anyway
in this case, to achieve your requirement, you may refer the below stored procedure(SP).
CREATE PROC ProcGetSales
@Year VARCHAR(20),
@Month VARCHAR(20)
AS
DECLARE @Date DATE;
DECLARE @Days INT;
DECLARE @SqlStr NVARCHAR(MAX);
SET @Date = @Year+'-'+@Month+'-01';
SET @Days = DATEDIFF(DAY,@Date,DATEADD(MM,1,@Date)); --get the days of the specific month
create a temp table
CREATE TABLE #Temp
col1 int --you should put the columns after join in your real envrioment here
table join statement, put the join result into a temp table
I dont know the columns so I use * here and the join condition is just based on assumption
you should modify the statement basing on your real environment
SET @SqlStr= 'INSERT INTO #Temp SELECT * FROM [tblcustomer-WhichDay] tc JOIN [tblsales-WhichDay] ts ON tc.customerID = ts.customerID';
DECLARE @Counter INT = 1;
WHILE @Counter <= @Days --loop the tables named after the specific month
BEGIN
DECLARE @Sql NVARCHAR(MAX) = REPLACE(@SqlStr,'WhichDay',CONVERT(VARCHAR(8),CAST(@Year+'-'+@Month+'-'+LTRIM(STR(@Counter)) AS DATE),112));
EXEC sp_executesql @Sql;
SET @Counter = @Counter+1;
END
SELECT * FROM #TEMP
The SP is not ready to use, you have to make some modification basing on your real environment before it works.
If you have any question, feel free to let me know.
Best regards,
Eric Zhang
If you have any feedback on our support, please click
here.

Pension issue Mid Month Leaving

Dear All,
As per rule sustem should deduct mid month joining/leaving/absences or transfer scenarios, the Pension/PF Basis will be correspondingly prorated. But our system is not doing this. In RT table i have found 3FC Pension Basis for Er c 01/2010                    0.00           6,500.00.
Employee leaving date is 14.04.2010. system is picking pension amout as 541. Last year it was coming right.
Please suggest.
Ashwani

Dear Jayanti,
We required prorata basis pension in case of left employees and system is not doing this. This is the issue. As per our PF experts Pension amount should come on prorata basis for left employees in case they left mid of month.System is doing prorata basis last year but from this year it is deducting 541. I am giving two RT cases of different years.
RT table for year 2010. DOL 26.04.2010
/111 EPF Basis              01/2010                    0.00           8,750.00
/139 VPF Basis              01/2010                    0.00           8,750.00
/3F1 Ee PF contribution     01/2010                    0.00           1,050.00
/3F3 Er PF contribution     01/2010                    0.00             509.00
/3F5 Ee Mon PF contribution 01/2010                    0.00           1,050.00
/3F6 Ee Ann PF contribution 01/2010                    0.00          12,600.00
/3F9 PF adm chrgs * 1,00,00 01/2010                    0.00              96.25
/3FA PF basis for Ee contri 01/2010                    0.00           8,750.00
/3FB PF Basis for Er Contri 01/2010                    0.00           8,750.00
/3FJ VPF basis for Ee contr 01/2010                    0.00           8,750.00
/3FL PF Basis for Er Contri 01/2010                    0.00           6,500.00
/3F4 Er Pension contributio 01/2010                    0.00             541.00
/3FC Pension Basis for Er c 01/2010                    0.00           6,500.00
/3FB PF Basis for Er Contri 01/2010                    0.00           8,750.00
/3FC Pension Basis for Er c 01/2010                    0.00           6,500.00
/3FJ VPF basis for Ee contr 01/2010                    0.00           8,750.00
/3FL PF Basis for Er Contri 01/2010                    0.00           6,500.00
/3R3 Metro HRA Basis Amount 01/2010                    0.00           8,750.00
1BAS Basic Salary           01/2010                    0.00           8,750.00
RT table for year 2009. DOL 27.10.2009
                                                                                /111 EPF Basis              07/2009                    0.00           9,016.13
/139 VPF Basis              07/2009                    0.00           9,016.13
/3F1 Ee PF contribution     07/2009                    0.00           1,082.00
/3F3 Er PF contribution     07/2009                    0.00             628.00
/3F5 Ee Mon PF contribution 07/2009                    0.00           1,082.00
/3F6 Ee Ann PF contribution 07/2009                    0.00           8,822.00
/3F9 PF adm chrgs * 1,00,00 07/2009                    0.00              99.18
/3FA PF basis for Ee contri 07/2009                    0.00           9,016.00
/3FB PF Basis for Er Contri 07/2009                    0.00           9,016.00
/3FJ VPF basis for Ee contr 07/2009                    0.00           9,016.00
/3FL PF Basis for Er Contri 07/2009                    0.00           5,452.00
/3FB PF Basis for Er Contri 07/2009                    0.00           9,016.00
/3FC Pension Basis for Er c 07/2009                    0.00           5,452.00
/3FJ VPF basis for Ee contr 07/2009                    0.00           9,016.00
/3FL PF Basis for Er Contri 07/2009                    0.00           5,452.00
/3R4 Non-metro HRA Basis Am 07/2009                    0.00           9,016.13
1BAS Basic Salary           07/2009                    0.00           9,016.13
Now please suggest what to do. where is the problem ? If have also checked EXIT_HINCALC0_002 but nothing written in it.
With Regards
Ashwani

PF- Mid month employees

Hi all,
I am facing some issue in the provident fund for the Mid month joined employees. As per the client requirement, SAP is not calculating. I need your help in this.
For all the employees we are maintaining the IT 0587 has whichever is less.
I go through some of the threads, still now I am not able to put condition in the PCR.
Ex: Employee hired in the month of april 15.04.2014 his Basic salary is 10,000 rps. When I run the payroll basic salary is prorated with the amount 5333.33 for 16 days in the april month. But, PF should calculate based on the amount 5333.33 but in the output it is showing as 416.
Actually, PF should deduct 640 rps but it is showing 416 rps. 224 rps different amount is coming. How to resolve this one.
Regards,
Vijay Kumar

Hi,
When employee joins in the middle of the month The provident fund will prorate on Rs 6500 according to PF Act and standard rule that was defined in SAP as per act. You cannot change the rule that has defined in standard. The user exist cannot be the right solution for this. The user exist which are there it will not override the standard functionality. The best way is to go according to Act that was defined in SAP.
Incase if you want Rs 780 to be deducted for the first month for mid month joinee employees This can be done by manually inputting the data in additional payment wage type There are several ways to adjust the amount. You can either create a PF Adjustment wage type in additional payment for mid joinee employees to adjust the amount.

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

Chennai Ptax calculation during Withdrawn stage in mid month

Hi Experts,
As i know chennai Ptax is calculated twice in a year 6th and 12th or 5th and 11th period.
But if employee resign during the mid cycle example:employee joined april and resigned in mid july, will ptax is calculated till that period or it will ignore ptax and run salary.
Appricate your response.
Regards
Sai

Hi Siva,
Professional tax cannot be prorated as it is not deducted on basis of attendance.
The Chennai professional tax is purely dependent on Gross Salary. For example an employee joined in the mid of the year for example an employee joined in the month of Feb and left in the month of august His/her gross salary is 10,000
According to rule it will divide 10000 by 6 months His professional will get deducted according to slabs
Many organizations deduct PT on a monthly basis by way of equal installments across a half –year period. For example, if an employee earns more Rs 15,000 each month (more than Rs 75,000 in a half-year), a sum of Rs 1095 should be deducted towards PT (please see the PT rate table above). Organizations following the equated monthly PT deduction method deduct Rs 182 (Rs 1095/6) each month towards PT in the monthly payroll. At the end of 6 months the organization will have deducted Rs 1095** for PT remittance. All is well.
**Rs 182 x 6 is actually Rs 1092 and not Rs 1095. This rounding-off problem can be easily solved by simply adding Rs 3 to the PT deduction amount during payroll in any of the months during the half-year period.
What happens if the employee does not work for the entire half-year period but leaves the organization at the end of say, 3 months? For example, let us assume that the employee works from 01-Apr-2012 to 30-Jun-2012 during the half-year period.
The company will have deducted Rs 546 (Rs 182 x 3) for the 3 months as per the equated monthly PT deduction logic. For the 3 months, the employee earned Rs 45,000 (this is the half-yearly salary since the employee leaves the organization), and for Rs 45,000 the organization should have deducted only Rs 235 as PT (please see the PT rate table above). In addition, Rs 546, the deducted PT amount, does not fall in any PT slab as specified by the Chennai Corporation. Ideally, the organization should refund Rs 311 (PT deducted in excess) to the employee. In practice, most organizations just remit whatever PT is deducted from employee salary. We have come across instances where PT authorities have questioned the basis of PT deduction when PT amounts do not fall under any PT slab.
There can also be instances when the equated PT deduction logic can lead to under-deduction of PT.
Let us assume that an employee earns Rs 7,000 per month (Rs 42,000 in a half-year period). The PT deduction for a half-year period should be Rs 235 (as per the PT slabs). As per the equated PT deduction logic, the organization will deduct Rs 39 per month (Rs 235/6). If the employee leaves the organization at the end of 5 months, the organization will have deducted Rs 195 as PT. However for an employee salary of Rs 35,000 (Rs 7,000 x 5 months), the organization should have deducted Rs 235. This is a case of under-deduction of PT.
The flaws of the equated PT deduction logic will come to the fore for any employee who does not work the entire six months in a half-year period.
If you are in favour of the equated PT deduction method and argue that you can always adjust the excess or short PT in the final settlement processing if an employee quits before the end of the half-year period, we will simply say that this will not be possible in case an employee absconds or does not have adequate settlement salary to recover the short PT in full.
In other words, the equated PT deduction logic is flawed and is better not followed. Of course, if an organization does not deduct PT each month but deducts PT only once every half year, this problem will not occur.

Mid month Relieving and joining

Similar Messages

Maybe you are looking for