AHP Calculation in Holiday Pay Payment Period 

Purpose

This process calculates the Advance Holiday Pay for an employee during the Holiday Pay Payment Period (HPPP).

During HPPP, the system:

·        Processes the payments and deduction wage types in the Input Table (IT) according to the Advance Holiday Pay Processing Class (71) settings.

·        Calculates Advance Holiday Pay.

·        Stores the amount to be paid during the Holiday Pay Return Period (HPRP) in the Gross Results Table (GRT).

Prerequisites

●      Compare and adjust the customer specific sub-schemas as per the following modified sub-schemas:

¡        Gross to Net processing (Ireland) sub schema (IENT)

○       Final processing - INTERNATIONAL sub schema (IEND)

○       Monthly factoring and storage (cumul.of gross amount) (Ireland) sub schema (IEAL)

●      Assign the required specification in Advanced Holiday Pay processing class (71) for each payment or deduction wage type. (Refer to Features for further information on Advanced Holiday Pay processing class (71))

●      Assign Basic Pay Wage type processing class (72) specification 1 to basic pay wage type(s). (Refer to Features for further information on Basic Pay Wage type processing class (72)).

Process Flow

●      In Additional Payments infotype (0015):

¡        Enter /HOL wage type in the Wage Type field.

¡        Enter the number of periods the employee is on vacation in the Number field.

¡        Enter a date that falls during the Holiday Pay Payment Period (HPPP).

●      During a payroll run, Advance Holiday Pay schema (IEAH) calls Payment Period Checkrule (IEPY) to determine whether the current payroll period is HPPP.

If the current period is HPPP, the schema calls the Holiday Pay rule (IEKT). This rule processes each of the wage types in the Input Table (IT) as per the Advance Holiday Pay processing class (71) settings. During HPPP, the rule processes the wage types assigned to the specifications as follows:

¡        1 – Multiplied and Moved to GRT

If the wage type is set to specification 1, the amount is paid during HPPP. The Holiday Pay rule (IEKT) multiplies the value of the wage type with the number of pay periods for the purpose of payment or deduction. The number of pay periods refers to the total number of vacation periods plus the current period.

○       3 – Not Multiplied and Not Moved to GRT

A wage type set to this specification is not relevant for AHP.

○       6 – Added to Holiday Pay in GRT during HPPP

This specification is mainly for basic pay wage type. The Holiday Pay rule (IEK2) processes the value of a wage type with this specification to form Advance Holiday Pay wage type (/HPY). This amount is paid in HPPP.

Tax on AHP

Advance Holiday Pay payroll function (IEAHP) calculates the AHP period’s tax for the employee. It has the following limitations:

●      If the employee is on emergency tax basis, this function does not check the tax credit that is currently available for the employee or the tax credit that should be assigned to the employee in the future periods.

·        If the employee’s AHP period falls over the financial year end, the function uses the employee’s current year tax credits.