Calculating Imputed Income 

Use

The interest saving for a loan, that results from a particularly reasonable interest rate, can be remuneration in the form of imputed income. The SAP system automatically calculates the imputed income (or interest rate advantage), that an employee incurs from a loan. This results from the difference between the debit interest and the reference interest rate, as the debit interest given by the employer is often significantly less than the usual reference interest rate at the bank.

To find out the statutory bases for inputed income, see the employment tax guidelines.

Prerequisites

The prerequisites correspond to those for interest calculation. You have also selected the Interest rate advantage field in the Conditions view in Payroll Customizing under Loans ® Master Data ® Maintain Loan Types .

Features

Exemption Limit for Germany

The exemption limit, which is currently 2,600 EUR is taken into account during payroll.