Pension avc contribution

hi gurus can you help me out we have a problem with avc contributions
One employee on Maternity Leave from July, but processed in August, was getting one month additional AVC Salary Sacrifice. It looks like the wage type is calculating the percentage of her AVC (1%) based on her Basic Salary. However, employees do not get WT 0100 Salary during the month that they are on Maternity Leave. They get WT 1656 Company Maternity Pay and SMPN Paid SMP (non-recoverable) and SMPR Paid SMP (recoverable) which are linked to pension. The system does two calculations: one based on the employeeu2019s Basic Salary plus based on WTs 1656, SMPN and SMPR (although WT 1656 stops after 16 weeks but SMPN and SMPR continue up to 39 weeks).

Hi
Try this out
IT 0587, Make the correction as below
Employers details
Basis for contribution :Radio button Select PF Basis
Pension Tick the Contribution towards Pension scheme
Basis for contribution:select the radio button Eligible pay or PF Basis whichever is less
then run the payroll
with regards
partha

Similar Messages

Pension fund contribution and FPF Bais amount...

Hi Team,
I have a issue with PF at my client place.
As you know Pension contribution conditon is that employee whose basic is less then 6500 then the pension contribution ( /3F4) will be 8.33% of actual basic and if the basic salary of employee is >= 6500 then the Pension contribution (/3F4) should be 8.33% of 6500.
Here at my client place it is calculating in a different way .For employee whose basic salary >=6500 pension fund conribution is calculating on the actual amounts only.
Eg: Emplyees basic salary is 15000 and when i run payroll for this employee the results are like this:
/3F4= 1250
/3FC=15000
Kindly let me know what is the problem and what is the solution.
In IT0587 i am maintinaing only PF Trust id not Pension Trust id.Is this the problem?
Regards,
Vimal

Hi
Try this out
IT 0587, Make the correction as below
Employers details
Basis for contribution :Radio button Select PF Basis
Pension Tick the Contribution towards Pension scheme
Basis for contribution:select the radio button Eligible pay or PF Basis whichever is less
then run the payroll
with regards
partha

ER Contribution for Pension not Reflecting in Payroll.

Hi Experts,
I have an issue in Pension ER contribution in Payroll.
We have created a function to calculate the ER contribution and incorporated in Schema (INT). while running the payroll
ER contribution is not reflecting Payroll.
Note: We are passing the calculated result to WT0902 Pension ER contribution in RT directly by referring structure PC207.
Correct me if this is the rite approach.
Regards
Raj

Hi,
Insted of going through SCHEMA please configure this table in simple way and check whether your client need is getting fullfilled if it is for indian payroll.
V_T7INF1,V_T7INF5,V_T7INF5,V_T7INF3
Go to pa30 and choose infotype 0587 and fill the details and for pension you can either give percentage or the fixed amount and run the payroll
Thanks
Vibin

UK Payroll :Pension issue

Hi Experts,
This is related to Additional Voluntary contributions.When an employee is on whole month unpaid leave and there is an entry in InfoType 71,Additional Voluntary Contributions,Flat rate,this is calculated and shown on the payslip although the emp doesnt have sufficient amount (as he is on unapid leave whole month).
We tried putting the wage type in the arrears table(V_T51P6)So that it will not deduct that amount for the month he is on unpaid leave but still its deducting.
Any help on this would be appreciated with higher points?
Thanks in Advance,
Dharani

Hello
Please refer to the SPRO node of the IMG,where you need to maintain the entries for the pension scheme implementation.
Payroll>payroll great britain>Pension Schemes.
Here you need to maintain all required customising for the pension schemes.
Band numbers are used in the calculation of Percentage and Mixed-rate Pension Scheme contributions
Pension Band Level.
The band levels divide the pensionable pay into bands. The band levels can be set at the figures of your own choice.
The band levels are used in the case of Percentage Pension Schemes to calculate the percentage contribution amounts from each band.
With a Mixed-Rate Pension Scheme either a flat-rate or a percentage contribution will be calculated from each band of the employee's salary.
Regards

UK Payroll : Pension Fund Implementation

Dear Techies,
I am new in UK Payroll, Can you please guide me what are all the details we need from the core user as a part of configuration of Pension Fund.
As I know we need Pension Calculation Scheme & Pension Calrulation Rule to do the same, If anything else require apart from this kindly help me out.
What is Band No & Band Level , is it we need from user to maintain in IMG or this is sap standard.
Regards
M Swadhin
Edited by: M Swadhin on Jul 11, 2010 1:15 PM

Hello
Please refer to the SPRO node of the IMG,where you need to maintain the entries for the pension scheme implementation.
Payroll>payroll great britain>Pension Schemes.
Here you need to maintain all required customising for the pension schemes.
Band numbers are used in the calculation of Percentage and Mixed-rate Pension Scheme contributions
Pension Band Level.
The band levels divide the pensionable pay into bands. The band levels can be set at the figures of your own choice.
The band levels are used in the case of Percentage Pension Schemes to calculate the percentage contribution amounts from each band.
With a Mixed-Rate Pension Scheme either a flat-rate or a percentage contribution will be calculated from each band of the employee's salary.
Regards

Adding NSSF+Pension Fund Storing in other Wage type.

Hi Experts,
I have requirement with client.
I need to add two wage type for EE contribution and store in other Wage Type.
Find below the details:
1. 0507: NSSF Employee contribution
2. 0630: Pension Employee Contribution 5%
3. 0631: Pension Employee Contribution 7.5%
4. 0632: Pension Employee Contribution 10%
5. 9400: NSSF+Pension EE Contribution
My requirement is every month employee will contribute Pension Fund & NSSF Fund , based on the percentage he is in pension we need to add the Pension fund & NSSF fund and store in = 9400 - NSSF+Pension EE Contribution.
If employee has contributed 0630 i.e. 5% then
Add 0507 (NSSF) + 0630 (5%) and store in = 9400
else
If employee has contributed 0631 i.e. 7.5% then
Add 0507 (NSSF) + 0631 (7.5%) and store in = 9400
else
If employee has contributed 0632 i.e. 10% then
Add 0507 (NSSF) + 0632 (10%) and store in = 9400
Note:
1. Subject to the combined maximum allowable limit for NSSF and Pension Fund (KES. 20,000.00) per month
2. Pension is not part of total taxable income up to a maximum of KES. 20,000.00 per month or KES 240,000.00 per annum
Where i can store the limits for Pension Fund 20,000/-
I have not worked in PCR
Kindly assist me how can i write a PCR for this requirement.
Appreciate your early response.
Regards
Raj

Write a PCR for this in the below way
      WGTYP?
           0507
               AMT= 0507
               ADDWT9400
           0630
               AMT= 0630
               ADDWT9400
Try this logic
0507: NSSF Employee contribution
0630: Pension Employee Contribution
9400: NSSF+Pension EE Contribution
Best Regards,

ER Contribution should not Deduct from EE SAL and not Display in Payslip.

Hi Experts,
I have Pension ER contribution Wage type:
1. That should not deduct from Employee SAL
2. Should not display in Payslip.
3. Amount store in RT.
What changes i should do in V_T512W_D table
Appreciate your early response.
Regards
Raj

Hi,
We are maintaining the EE & ER contribution.
EE is working fine with all the validation & deducting from employee every month.
When we are handling ER contribution that amount is getting deducted from EE sal.
So we want to restrict ER contribution Deducting from employee sal and not to display in Payslip.
Figuring out how can we handle this thru Processing, Cumulating or Evaluation class.
Kindly advise
Regards
Raj

Error in Wage type /3F7

Hi Gurus,
I am getting error in wage type /3F7 - Employer contribution towards EDLI.
Ee PF contribution /3F1 is 611.00
Er PF contribution /3F3 is 102.00
Er Pension contribution /3F4 is 509.00
/3F7 EDLI contribution is 3,057,200.00
How to change this?
Thanks in advance.
Regards
K.Manjunath

HI
Check this
   1.      Define the different PF trusts that your company is registered with, and specify the Trust Type. You also need to configure the wage types, trust wise, for storing the:
¡        PF contribution by the employee (Ee PF contribution model wage type /3F1)
¡        VPF contribution by the employee (Ee VPF contribution model wage type /3F2)
¡        PF contribution by the employer (Er PF contribution model wage type /3F3)
¡        Pension fund contribution by the employer (Er Pension contribution model wage type /3F4)
¡        EDLI contribution (EDLI contri * 1,00,000 model wage type /3F7)
¡        EDLI administrative charges (EDLI adm chrgs * 1,00,000 model wage type /3F8)
¡        Administrative charges for PF (PF adm chrgs * 1,00,000 model wage type /F39)
You can configure these details through the IMG under Payroll India ® Statutory Social Contribution ® Provident Fund ® Define Trust Details for PF (V_T7INF1).
       2.      Maintain the rates at which your company contributes to the employee PF. The PF contribution of an employer can vary depending on the employee Pay Scale Grouping for Allowances. If the rate is less than the statuory rate, then the statutory rate is applicable.
Maintain the PF contribution rates of your company in the IMG through Payroll India ® Statutory Social Contribution ®Provident Fund ® Assign Company Rates for Provident Fund.
       3.      Specify whether an EDLI payment is valid for the trust(s) that you have configured in the table view Trust Master (V_T7INF1).
You can specify the validity of the EDLI payment in the IMG under Payroll India ® Statutory Social Contribution ® Provident Fund ® Define PF Trust Validity Period.
       4.      Assign the following components to the different trusts that you have configured:
¡        Contribution type
¡        PF Reference number
¡        Pension Reference Number
Based on this configuration, the system determines the contribution percentages of the employer and the employee towards the different PF components such as Pension, PF, EDLI contribution and EDLI Administration charges.
You can assign the components using the Determining Cont type,PF Ref no and Pen Ref no feature (40EPF). To do so, go to the IMG under Payroll India ® Statutory Social Contribution ® Provident Fund ® Maintain Contribution Details towards PF.
       5.      Specify, for a particular Contribution Type, the contribution percentage for the different PF components such as the Employer PF, Employee PF, Employer Pension contribution, and EDLI contribution. The contribution types are determined by the Determining Cont type,PF Ref no and Pen Ref no feature (40EPF).
To specify the contribution percentages for a Contribution Type, go to the IMG under Payroll India ® Statutory Social Contribution ® Provident Fund ® Define Contribution type for Statutory rates for Provident Fund.
Manoj Shakya.

Pension Contribution not deducting correctly and Arrears

Dear Experts!
I am facing with a big problem with calculation Pension Contribution in India Payroll.
First, the issue with employee join into company in middle month, i have modified EXIT_HINCALC0_002 and it's right.
However, the problem when a employee has an arrears of last month, so my customer requires that: base on /111 + arrears to decide the amount of Pension Contribution.
If /111 + arrears >= 6500 so assigning /3FC = 6500
Else /3FC = /111 + arrears.
But I don't know, how to calculate arrears in FUINEPF to choose the suitable value for /3FC.
Please help me. Thank a lot.

Thank for your reply.
I have read the note and see that: this is the problem when employee joined in the middle month <not from 1st of month>. However, I have fixed this problem. And the result is OK.
The issue now is to decide value of /3FC not only base on /111 but also amount of Arrears. I don't know how to calculate Arrears, especially in FUINEPF.

Pension Contribution

Hi
I am working on International Payroll.
When an employee is hired in the mid-month, the Employee and Employer pension contribution is not getting calculated and not getting deducted in the payroll.
Kindly resolve this issue.
Thanks
vish

Hi sunny,
The system is not throwing any error.
The system is not calculating and deducting the pension contribution for employees in the payroll who are hired in mid-month.
For Eg: Employees who are hired on 10th or 15th or 20 th of a month.
Actually the pension contribution has to be calculated on prorata basis.
Thanks
Vish

Pension contributions UK Payroll

Hi Experts,
This Issue related to "Pension Contribution"
Scheme reference 001
Local Government Pension Contributions are not being taken where existing employees are being opted into the scheme.
Detail
Employees are being opted into the LGO pension scheme via personnel actions, PA40
Info type 71 looks ok
No contributions are being collected from pay.
Examples in production 5400 Armstrong and 6000 Alexander.
I have copied D Exton 6500 into Qulaity and tested and cannot get SAP to deduct contributions.
I have run her record through to Jan 2010 to get results.
Nov - was in LGO scheme - conts. taken
Dec - taken out of scheme wef 1-11-09 conts. refunded correctly
Dec - Opted back into the scheme via personnel actions wef 1-12-09. No conts deducted
Jan - Opted back into the scheme via maintain and info type 71 wef 1-1-10. No conts deducted.
Kind Regards
Githa

Hi,
PLease check the configuration for the same
please check the table V_T5G36_A
Regards,
Kapil Kaushal

Incorrect contribution value after rate change in pension scheme

Hi Guys,
I have come across a peculiar thing while changing the rates for the employee and employer contributions for a pension scheme.
We have a pension scheme called "Opt60" which is implemented by having a recurring pre-tax deduction element. The formula attached for this element calculates the employee and employer contributions and directly feeds the parent element for employee contribution an indirectly feeds an employer contribution element(non-recurring and employer charge classification).
The rates for the employee and employer contributions are stored in 2 globals (13% for EE and 12.5% respectively).
Now, when running the quickpays from april to june correctly calculates the EE and ER contributions. But when i change the global values(EE= 18% and ER=9.8%) on 01-JUL-2011 in update mode. The EE and ER contributions are coming something else(incase of EE it is neither 13% nor 18%) for the month of July. But when i run quickpays for subsequent months like Aug, Sep, Oct, Nov and so on, they are correctly calculated at 18% for EE contributions and 9.8% for ER contributions.
Also, if i do a balance adjustment for the month of July for EE and ER contribution then, for the next month ie.Aug, they are coming exactly same as July months and from now the subsequent months like Sep, Oct, Nov and so on, it is correctly calculated at 18% for EE contributions and 9.8% for ER contributions.
Can you take a look at this and suggest me something i have be overlooking.
Also, the Balance value used in the formula is of dimension ASGTD_YTD. Does this have an effect on the outcome of the above mentioned % contributions?
With Regards
Sachin S.

Is the same WT being used for the pension deduction?
Does that WT appear in the employee's RT?
In the Benefits Processing part of your Payroll Schema, I presume that you are using function P0169 to process the Pension Plan. What is the processing happening in function P0169?

UK Pension Auto Enrolment: minimum contribution per month vs year

Hi all,
just interested to know how you are dealing with cases, where the pensionable pay doesn't include the same variable payments as the legal qualifying earnings do, but due to higher percentages or no lower limit, the minumim threshold is still reached on an annual basis.
In those scenrios, it can easily happen that the contribution is to low in one month, when a bonus or a lot of overtime are paid. The standard behaviour of function GPENS under PAE is then to stop payroll and require a higher contribution in that month. However, the company thinks they don't need to do that, because the annual thrshold will be reached in the end, as contributions will be above the minumum in other months.
Is there a way to get the system testing this on an annual basis only? Or is this a faulty definition and is teh legal requirement really based on monthly numbers?
Would be keen on hearing any solutions - technical or otherwise - or even discussions / failed attempts for solutions on this point.
kind regards
Sven

HI,
For your first query under S80CCD check sap note no: 1507799

Contribution to Certain Pension Funds

Hello Experts,
As we are nearing the fiscal year end, Income tax details are being updated in SAP.
We are maintaining Contribution to Certain Pension Funds in IT 585 for one employee, but the amount maintained against that head is not considered while computing payroll.
The amount against that head is not getting exempted for Income tax.
We have IT 587 (PF) with Contributions towards Pension Scheme activated for all employees, does this issue has something to do with the pension scheme in IT 587.
Please advice.
Regards,
Kiran Amrute.

Hi
Decalre INFOTYPE
Goto SE37 - Find FM -
READINFOTYPE*

Sap note 1507799 - Sec 80CCD - pension contribution notified by central gov

Dear
I have applied the sap note 1507799 - Sec 80CCD - pension contribution notified by central govt. and have done the necessary manual config steps as mentioned in the sap note.
When i am trying to check this pension contribution notified by central govt item in IT0585 and IT 0586.
i am unable to get this item.
Regards
Vish

Hi ,
First do the manual changes & then apply the note. You will get "Contribution to pension scheme of Central Goverment" this option in IT 585
Regards,
Mahesh

Pension avc contribution

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