Code Wage Types as Tax and SI-Liable Gross Amounts

In this menu option, you determine on which of your wage types taxes and contributions are to be paid. You also determine how contibutions and taxes are to be calculated for your wage types.

Note

Processing class 71 with specification 1 and cumulation 73 are used to calculate the SI contributions for low-income earners (you must set SI attribute 24 in the Social Insurance infotype). Please make sure that either processing class 71 with specification 1 or cumulation 73 are flagged in the relevant infotypes. Make sure that cumulation 73 is not flagged for infotypes that are valuated by means of average value calculations (encoded processing class is 15), or by a valuation basis that uses a secondary wage type. In such cases, the amounts are formed using processing class 71 in the wage types entered in infotypes 0008 (Basic Pay), 0014 (Recurring Payments/Deductions) and 0015 (Additional Payments).

Example

You make a special payment to your employees in the form of a vacation allowance. Contributions and taxes must be paid on this special payment as further remuneration.

Activities

Encode your wage types correspondingly.