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Procedure documentation PY-TW Creating Labor Insurance (LI) Details  Locate the document in its SAP Library structure

Prerequisites

You must setup the respective rates before entering data in the record.

For more information, see Labor Insurance (LI) section of the Implementation Guide (IMG).

Procedure

To setup a record for LI contributions in Labor Insurance infotype (0354):

  1. On the SAP Easy Access screen, choose Human resources à Personnel management à Administration à HR master data à Maintain. The Maintain HR Master data screen appears.
  2. Enter the employee’s personnel number.
  3. Select Labor Insurance infotype (0354) by entering the name or number in the Infotype field.
  4. Choose Create. The Labor Insurance screen appears.
  5. Select the Status and Report ID number.
  6. Enter the Class. This field determines the employee's and employer's premium based on the range of salary set in the Insurance Amount Category (T7TW1B) and Payroll Constants (V_T511K) tables.
  7. The Branch code is defaulted from company parameters.
  8. Save.

Results

LI records are created for the employee. These enable the payroll to calculate the LI contributions.

Example

According to the reference table issued by the LI bureau, for an employee with class '21' the LI amount and contribution rates are as follows:

Employee LI premium:

Formula :

LI insured amount * LI rate * employee contribution rate

NT$40,100 * 6.5% * 20%

= NT$521

Employer LI premium:

Formula :

LI insured amount * LI rate * employer contribution rate

NT$40,100 * 6.5% * 70%

= NT$1,825

 

 

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