Tax Data (Infotype 0065)
This infotype stores employee PAYE details.
One of your required start-of-year activities is to create a new Tax Data record for each employee.
The Payroll Accounting component uses the employee tax code to calculate tax deductions or refunds.
If you do not create a Tax Data (Infotype 0065) record for a new employee before running payroll, deductions are calculated on a week1/month1 tax basis, using a default tax code.
For more information, see the Implementation Guide (IMG) for Payroll Accounting (Basic Settings ® Employers’ Tax and CA Registration Details ® Assign PAYE reference to payroll area).
Retroactive accounting is not triggered if you create a Tax Data record after you include the employee data for payroll accounting. For further information, seeTax and Retroactive Accounting.
When you create a tax record for an employee, the cumulative tax basis appears as the default. If necessary, change this to a week1/month1 tax basis.
Tax refunds are withheld from employees who are on strike. They can be paid out when the employee either resumes work or leaves the company. You must create a new tax record for employees who are on strike. When you do this, remember to set the On strike indicator for the period of industrial action.
It is important that you create a new tax record for an employee whose tax code has changed or who is on strike. The validity begin date of this record must be the date from which the new code is valid, or on which the strike action commenced.
Here you enter the figures from the new employee’s P45 or from the P6 sent by the tax office.
The system checks if the calculation of the employee’s taxable pay is correct. It also checks the tax code and the tax paid on the P45in the last tax period. If any of the information is inconsistent, a warning message appears and the correct figures are displayed.
P45 data is only used for calculations made during the financial year in which the employee joins your company.
To issue a P45 when an employee leaves the company, set the P45 been issued indicator and enter the date on which the form was issued. This ensures that Payroll Accounting uses the basic rate to deduct tax if a late payment is made to the employee.
If you use the Sample P45 Slip (RPCP45G0) report, the system automatically creates a new Tax Data record containing the employee’s leaving details for the date when the P45 is issued.
See also:Creating a Tax Data Record (Infotype 0065) for a New Employee Changing an Employee’s PAYE Details Changing PAYE Details for an Employee on Strike Changing PAYE Details for an Employee Back at Work after Strike Action Changing PAYE Details for a Leaver