Benefit Calculations on Company Car 

Purpose

This process computes tax benefits on the Company Car provided to an employee.

The following processes invoke the Company Car benefit calculations:

·       Creation of the Company Car infotype (0442) records.

These are temporary calculations and the database does not store the results of these calculations.

·       Payroll Processing

The system stores the results of the calculations in the appropriate results table.

·        The function module HR_IMPUTE_CC_CALC_FI performs the benefit calculations for both master data as well as payroll data. During calculations, the function module reads information from the table views Payroll Constants (V_T511P) and Age groups for company car (Finland) (V_T7FIC0).

·        During payroll calculations, the Company car calculation subschema FICR, under the Payroll accounting schema for Finnish payroll program (HFICALC0) schema (FI00) processes the Company Car benefit calculations. It uses the function module HR_IMPUTE_CC_CALC_FI for the benefit calculations.

·        If an employee registers the privately driven kilometers, instead of using the lump sum option, you can specify the mileage in the Recur. Payments/Deds. infotype (0014) or the Additional Payments infotype (0015). In this case, the calculations take place after the import of the Deductions wage types in a payroll run.

Prerequisites

·        You have made the necessary configurations through the IMG under Payroll Finland ® Company Car.

·        Employee records exist in the Company Car infotype (0442)

·        You have configured the required payment model in the table views Payment model (V_T549W) and Payment Periods (V_T549X).

Process Flow

Parameters

Benefits calculation involves two parameters:

·       Key Date

For master data calculations, the function module HR_IMPUTE_CC_CALC_FI takes the system date as the Key Date. It computes the benefit value of the Company Car as of today’s date.

For payroll calculations, the function module uses the End Date of the current payroll as the Key Date for benefit calculations.

·       Age Group of the Car

The function module HR_IMPUTE_CC_CALC_FI calculates the benefit on Company Car depending on the age of the car. The system classifies the Company Cars into the following age groups:

¡      A - Cars that are less than three years old.

¡      B – Cars that are older than three years, but purchased after 1991.

¡      C – Cars purchased latest on December 31, 1991.

Car Regulation

The benefit calculations depend on the Car Regulation that you select in the Company Car infotype (0442). The different types of Car Regulations are a combination of the following criteria:

·       Employee registers the privately driven kilometers or the employee uses the lump sum alternative.

·       Company provides a chauffeur for the Company Car or the employee drives the car.

·       Employee pays for part of the usage of the Company Car or the company completely bears the cost of maintenance. For example, the employee pays for the gasoline.

Retroactive Benefit Calculations

Retroactive changes to the Company Car infotype (0442) triggers a retroactive payroll. When you change the values of the Company Car constants in the following tables, you must trigger a Forced retroactive accounting on the Payroll driver (Finland) (HFICALC0):

·       Payroll Constants (T511K)

·       Payroll Constants (T511P)

·       Age groups for company car (Finland) (T7FIC0)

Result

·       Master data calculations

The database does not store the results of the master data calculations.

·       Payroll calculations

The payroll calculates Company Carbenefit using the subschema Company car calculation (FICR) and the function module HR_IMPUTE_CC_CALC_FI. The calculations result in the creation of the following wage types:

¡      Company car benefit(/4C0)

¡      Company car reg paym(/4C1)

¡      Company car driven km(/4C2)

See also:

Maintain Company Car Information