Rehiring 

Purpose

This component allows the system to rehire an employee in the company:

·        With the same Personnel Number as in the previous employment term

·        Within the same financial year

Integration

An employee can be rehired using Action Type: Reentry Into Company. You have to enter the required data in the following infotypes associated with this Action Type:

●      Organizational Assignment infotype (0001)

●      Recur. Payments/Deds. infotype (0014)

●      Membership Fees infotype (0057)

●      Family Member/Dependents infotype (0021)

●      Housing(HRA / CLA / COA) infotype (0581)

●      Other Statutory Deductions infotype (0588)

●      Long term reimbursements infotype (0590)

If the employee records are not already delimited, then delimit the records to the termination date. Create new records with the employee’s rehire date.

When you run payroll for a rehired employee, payroll function ININI:

...

       1.      Checks the employee’s employment status.

For this, the payroll function reads the employee’s employment status for previous payroll runs in the current financial year. System maintains employment statuses in Internal Table COCD. If the present status is active, preceded with a withdrawn and active status within the same financial year, the employee is considered as a rehired employee.

       2.      Reads Results Table (RT) and Cumulative Results Table (CRT) for employee’s previous term data such as:

○       Earnings

○       Deductions

○       Exemptions

This data is then stored in Internal Table F16.

Previous Employment Tax Details payroll function (INPET) processes employee’s previous employment tax details.

This payroll function reads:

●      Previous Employment Tax Details infotype (0580) to generate the following wage types:

¡        Wage types /4V1 to /4V9

These wage types contain information of an employee’s term in another company during the current financial year.

●      Internal Table F16, which has data of the employee’s previous term in the same company, to generate the following wage types:

¡        Wage types /4VA to /4VG

These wage types contain information of an employee’s previous term in the same company during the current financial year.

Features

When an employee is rehired, the system calculates tax for the employee. The system calculates the following components of an employee’s tax:

●      Exemptions on:

¡        Child Education Allowance (CEA)

¡        Child Hostel Allowance (CHA)

¡        House Rent Allowance (HRA)

¡        Leave Travel Allowance (LTA)

●      Perquisites such as:

¡        Company Leased Accommodation (CLA)

¡        Company Owned Accommodation (COA)

¡        Loans

The system also calculates the following for the employee:

●      Deductions:

¡        Section 80 deductions

¡        Section 89 relief

●      Provident Fund and Pension Fund

●      Professional Tax (PTax)

●      Employee State Insurance (ESI)

●      Labour Welfare Fund (LWF)

If you rehire an employee on any day other than the first of the month, you should enable spilt payroll run. To do this, configure the IMG activity under Payroll India ® Basic Settings ® Enable Split Payroll Run.

System executes split payroll for the following periods:

●      From first of the month to one day before employee is rehired

●      From rehiring date to end of the month

An employee is terminated on August 24, 2006 and rehired on October 17, 2006. For the month of October, payroll will be run twice:

●    For period between October 1, 2006and October 16, 2006

●    For period between October 17, 2006 to October 31, 2006