Income Tax/Annual Perk Computation for rehired employee is incorrect

Hi All,
One of our employees retired on 30.9.11 was rehired on 30.11.2011 with the same employee number. After rehiring we had delimited IT 581 up to 30.9.11 and further a new entry was maintained from 1.12.2011. In the salary slip for Dec 11, in the Income tax yearly computation six months Rent has been deducted from the Annual gross, which is not required.
Kindly suggest how this issue can be rectified.
Sunil

Hi All,
    I raised an OSS for the issue. SAP support has provided me with a solution. The steps are as follows:
     1. When rehiring period split for payroll accounting indicator in view V_T530_All is to be set for the action type and action reason which you use.
      2. Run the payroll for this person by doing force retro from 01.04.2011. With the force retro, /460(Income Tax for the month) will not change but the projection and all the other things will be changed.The pay slip will not change as pay slip checks the specified month data. But Form 16 will show the correct values (the total amount will be displayed in the Form 16).
      3. The following SAP Notes will have to applied for generating Form 16 correctly:
          1607827
          1614257
          1615579
          1679799
Regards
Sunil

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While processing the march-2015 payroll, I found wrong income tax computation for few employees in form 16. system is working fine for rest employees, as per my understanding it may be due to master data issue. I have checked the thing again and again but not able to resolve.
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* /101 Total gross                                                   112,227.00
* /110 Net payment                                                        10.00-
* /115 COA/CLA Bas01                                                  60,627.00
* /117 Superannuat                                                    36,418.00
* /121 Nom. ExGrat                         100000.00                  36,418.00
* /124 Mon Reg Inc01                                                  60,627.00
* /129 Voluntary R01                                                  36,418.00
* /130 Exemption U                                                    21,064.64
* /138 Form 217 2(                                                   112,227.00
* /3F1 Ee PF contr0101                                                 4,370.00
* /3F3 Er PF contr0101                                                 3,120.00
* /3F4 Er Pension 0101                                                 1,250.00
* /3F5 Ee Mon PF c                                                     4,370.00
* /3F6 Ee Ann PF c                                                    21,122.00
* /3F8 EDLI adm ch0101                                                     0.75
* /3F9 PF adm chrg0101                                                    65.55
* /3FA PF basis fo0101                                                36,418.00
* /3FB PF Basis fo0101                                                36,418.00
* /3FC Pension Bas0101                                                15,000.00
* /3FD Mon perk (e                                                        61.00
* /3FE Interest ac                                                       291.00
* /3FG Ann perk (e                                                       148.00
* /3FJ VPF basis f0101                                                36,418.00
* /3FL PF Basis fo0101                                                15,000.00
* /3I1 Deduction u                                                    34,854.00
* /3I2 Gross amoun                                                    24,630.00
* /3P1 Prof Tax - 01010101          I                                    200.00
* /3P2 Professiona01010101                                            60,627.00
* /3P3 Prof Tax -                                                        200.00
* /3R2 Non-metro H                                                    18,209.00
* /3R4 Non-metro H                                                    36,418.00
* /422 Empmnt tax                                                      1,000.00
* /4E4 HRA Annual                                                     21,064.64
3 /090 /128-LEAVE 01                        1,213.93
3 /091 /128-LEAVE 01                        2,101.04
3 /092 /128-LEAVE 01                        1,820.90
3 /111 EPF Basis 01                                                  36,418.00
3 /112 ESI Basis 01                                                  60,627.00
3 /113 ESI Basis N01                       100000.00                  60,627.00
3 /114 HRA Basis 01                                                  36,418.00
3 /116 Gratuity Ba01                                                  36,418.00
3 /118 PTax Basis 01                                                  60,627.00
3 /119 PTax Basis 01                       100000.00                 112,227.00
3 /120 Nom. ExGrat                         100000.00                  36,418.00
3 /125 Mon Irr Inc01                                                  51,600.00
3 /128 Leave Encas01                                                  36,418.00
3 /134 Annual Non-01                                                  51,600.00
3 /136 1DSD Basis 01                                                  36,418.00
3 /137 1DSD Basis 01                                                  36,418.00
3 /139 VPF Basis 01                                                  36,418.00
3 /180 /124-BONUS 01                                                  36,418.00
3 /807 Partial per01                       100000.00                      24.00
3 /808 Partial per01                       100000.00                      31.00
3 1004 M230-HRA   01                                                  18,209.00
3 1016 M200-SPECIA01                                                   6,000.00
3 6009 B301-EX-GRA01                                                  51,600.00
* /410 Ann Reg Inc                                                   293,030.50
* /411 Ann Irr Inc                                                    51,600.00
* /416 Gross Salar                                                   344,630.50
* /418 Balance                                                       323,565.86
* /424 Aggrg Deduc                                                     1,000.00
* /426 Incm under                                                    322,565.86
* /430 Gross Tot I                                                   322,565.86
* /432 Agg of Chap                                                    34,854.00
* /434 Total Incom                                                   287,710.00
* /4MI Monthly Tax                                                   169,663.00
* /403 Marginal ta                             10.00
* /437 Tax credit                                                      2,000.00
* /436 Tax on tota                                                     3,771.00
* /446 Tax payable                                                     1,771.00
* /404 Mrgnl tax r                             10.30
* /450 Tax payable                                                     1,824.00
* /449 Education C                                                        35.00
* /447 Sec and Hig                                                        18.00
* /458 Net tax pay                                                     1,824.00
* /460 Income Tax                                                      1,824.00
* /4MS Monthly Sur
* /4ME Monthly Edu                          1,941.75                      35.01
* /4MH Monthly Hig                            970.87                      17.50
* /4MT Monthly Tax                         97,087.38                   1,771.49
Ritu

Income tax computations

Dear Gurus,
Last month (June) we have deducted the Income tax through MVT1 wagetype for all the employees .As the master data has been changed for the previous month , so when i executed this month payroll with standard INTAX, system is triggering the retro. In case of retro system is genrating only /460 not /4MT
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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.
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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.
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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.
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Hi experts,
we have updated our patch lvl upto 86. Budget Changes Note is applied already. Now the Problem is with one employee.
Out of 1000 employees for one employee /436, /446 and /450 generated correctly with correct figure. But /460 is not generated.
I can see in the log /451 is generated with the amount exactly as /450.
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Nasim

Well the reaults are surprising as cross financial arrear /616 is only 1385.96 and relief generated by this is 18776. Which is simply not possible. Even in FY 2010-2011 relief should not be generated as relief only comes when employee is end up paying more taxes than last year tax on arrears. Now since tax slabs are increased, relief will not be egenrated.
This issue you can check with OSS message.
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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,
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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,
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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,
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Thanks and regards
Mohan .V
Edited by: mohantamilan on Sep 26, 2011 2:52 PM

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)
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Income Tax/Annual Perk Computation for rehired employee is incorrect

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