In this section you will setup all payment wage types that are to be taxed to accumulate into the taxable gross wage type. During the payroll process, only the taxable gross wage type will be considered for the tax calculation.
Example
Wage Type Taxable Non-Taxable
Weekly Salary (P010) PHP 5000.00
Overtime 125% (P050) PHP 1000.00
Rice Allowance (P200) PHP 300.00
In this example, you would consider configuring the wage type cumulation class "01" Total Gross and "11" Taxable Gross.
Wage Type Cumulation class 1 Cumulation Class 11
P010 X X
P050 X X
P200 X
Therefore the following totals will be generated into the resulting wage types:
Standard settings
In the standard SAP R/3 system, samples of configured taxable and non-taxable wage types are provided as default.