Taking the Exemption Limit for Non-Monetary Remuneration into Consideration

Scope of Functions

Since the 1st January 1996, a monthly exemption limit of 50DM (§8 Para.2 last clause, EStG) applies for non-monetary remuneration. If the total of non-monetary remuneration exceeds the limit of 50DM, the total amount is liable to tax and contributions. In addition to non-monetary payments that use up the exemption limit, further tax-liable non-monetary payments have to be taken into consideration for compliance with the exemption limit. Non-monetary remuneration that is taxed at a flat-rate, is not included. Calculation of this exemption limit is now included in the SAP Standard System.

New Wage Types

The new model wage types M610 und M611 are provided for the two various types of non-monetary remuneration.

• M610: Non-monetary remuneration (§8 Para.2)
  This wage type serves as a model for non-monetary remuneration that can make use of the exemption limit of 50DM.

• M611: Tax-liable non-monetary remuneration
  Model wage type for tax-liable non-monetary remuneration that must be taken into consideration when checking the 50DM limit.

Both wage types M610 and M611 can be entered using the Recurring Payments/Deductions (0014) and Additional Payments (0015) infotypes.

• /44S: Value of non-monetary remuneration §8 Para. 2
  Technical wage type that contains the value of non-monetary remuneration in accordance with §8 Para.2 EStG. The wage type is required for checking the 50DM exemption limit for non-monetary remuneration.

New Constants

The FRSGB constant (non-monetary remuneration exemption limit §8 Para.2) is also delivered. The constant contains the limit of the exemption limit which is 50DM at the moment.

Effects on Customizing

To copy the model wage types M610 (non-monetary remuneration §8 Para.2) and M611 (tax-liable non-monetary remuneration) from the client delivered to your productive client, you must adjust the following views:

• Allowed Wage Types (V_T512Z)

• Wage Type Characteristics (V_T511)

• Permissibility of Wage Types (V_511_B)
  For more information on this, see the Implementation Guide (IMG), under Personnel Administration -> Payroll Data -> Recurring Payments and Deductions -> Wage Types -> Check the Wage Type Catalog in the units:

• Check Entry Permissibility Per Infotype

• Check Wage Type Characteristics

• Define Wage Type Permissibility Per PS and ESG

To copy the model wage type M610 (non-monetary remuneration §8 Para.2), you must also adjust the view Wage Types to Be Split (V_T512C) accordingly. For information on this, see the Implementation Guide (IMG) Payroll Germany -> Taxes -> Processing -> Allocate wage types into tax-exempt/tax-liable shares

You must also compare the schema DST0 (Gross Tax Preparations) with your customer schema. The schema DST0 was enhanced with the following lines:

Fkt Par1 Par2 Par3 Par4 D Text

PIT DSCS GEN NOAB Calculate Value of Non-Monetary Remuneration