Business Add-Ins for Child Care Voucher Plans

Definition

A Business Add-In (BAdI) is a code segment in an SAP program that is defined by software developers and used for enhancements by a third party, for example, an SAP customer. A BAdI enables the user to enhance and modify programs, menus, and graphics without modifying the original SAP objects. The enhancements are located in a namespace that belongs to the customer and are not modified automatically when the system is upgraded. BAdI technology ensures that the enhancements can communicate with the enhanced program using defined interfaces.

For more information on Business Add-Ins, see the SAP Library under: my SAP Technology Components → SAP Web Application Server → ABAP Workbench (BC-DWB ) → Changing the SAP Standard (BC ) → Business Add-Ins .

Use

You may wish to implement your own rules and calculations governing child care voucher plans. SAP has delivered two specific Business Add-Ins (BAdIs) for this purpose:

  1. BAdI PFBN0001:NIC Cost Neutrality Calculation for Childcare Voucher Plan
  2. BAdI PFBN0002: Taxation Deferred Item Wage Type for Childcare Voucher Plan

These two BAdIs can also be used when implementing any other Flexible Benefits forGreat Britain(GB FlexBens) plan, where you wish to create your own specific rules and calculations.

Structure

BAdI PFBN0001

This BAdIallows you to implement your own rules for calculation of employee cost or employee credit and NI Cost Neutrality within childcare voucher benefits plans.Childcare plans are not currently subject to Employer Class 1A NICs and it is possible therefore that you may wish to pass these NIC savings back to your employees.

This BAdI is called each time a benefit plan cost is calculated in theGB FlexBens system. For example:

  • When a user wishes to display the plan maintenance detail screen generated using transaction HRFBN0001 and ESS transactions PZ63, PZ64, and so on.
  • When a user wishes to display a cost summary from the plan cost summary screen using transaction HRFBN0001 and ESS transactions PZ63, PZ64, and so on.

Default Settings

There is no standard implementation delivered for this BAdI.

As there is no standard implementation for this BAdI, it is not possible to activate it without modification.

If there is no active customer implementation, National Insurance (NI) neutrality is controlled by the existing customising settings.

This BAdI is not filter-dependent.

This BAdI is not reusable.

BAdI PFBN0002

This BAdIallows you to implement your own rules governing administration charges for voucher plans and to re-calculate the values to be reported on the P11D form for each affected employee.

In GB FlexBens, there may be benefits that employees receive that must be reported on the P11D form, as part of your End-of-Year reporting requirements to the Inland Revenue. Childcare voucher benefit plans are one such P11D-reportable plan. In addition, providers may levy an administration charge which would usually be paid for by the employer. The value of the benefit-in-kind and the value of the administration charge must be reported on form P11D.

The SAP-delivered BAdI PFBN0002 enables you to implement your own rules to set the percentage of the administration charge and to re-calculate the values processed for P11D forms. This will ensure you correctly report on form P11D, for all employees participating in a childcare voucher benefits plan (and for any other applicable benefits plans).

Therefore, this BAdI is called when you wish to create your own calculation rules for the value of the benefit-in-kind and for the value of the administration charge that must be reported on form P11D.

Prerequisite

You must have previously defined a wage type in the P11D field of the applicable benefits wage type.

Default Settings

  • This BAdI is not activated in the standard system.
  • If this BAdI is activated without first being modified, the values reported on the P11D form will be determined by default coding.
  • Default code is executed when there is no active customer implementation.
  • This BAdI is not filter-dependent.
  • This BAdI is not reusable.

Integration

You implement these two BAdIs in the Benefits Administration IMG , under: Toolset → Business Add-Ins (BAdIs) for GB FlexBens

Example

BAdI PFBN0001:NIC Cost Neutrality Calculation for Childcare Voucher Plan

Your organisation wishes to apply it own cost rule for the calculation of NIC Cost Neutrality for a child care voucher plan. During enrolment, an employee opts for childcare vouchers at a value of GBP 100. This plan also receives a 5% subsidy from your organisation.

Before Implementation of Business Add-In (BAdI) PFBN0001 (GBP):

Standard Value

0.00

Flexed Value

95.00

Cost Difference

95.00

NIC Cost Neutrality

10.78

Cost to Employee

*84.22

*Value calculated by system

Your organisation wishes the employee to cover a percentage of the administration fee levied by the plan provider. In order to do this, it is decided to reduce the value of the NIC Neutrality payback to employees by 50%. The results of using the Business Add-In (BAdI) PFBN0001 are as follows:

After Implementation of Business Add-In (BAdI) PFBN0001 (GBP):

Standard Value

0.00

Flexed Value

95.00

Cost Difference

95.00

NIC Cost Neutrality

**5.39

Cost to Employee

**89.61

**Value corrected by operation of BAdI

The BAdI therefore reduces the value of the NIC Cost Neutrality from GBP 10.78 to GBP 5.39 and increases the employee cost from GBP 84.22 to GBP 89.61, which will be used to part-cover provider administration charges.

BAdI PFBN0002:Taxation Deferred Item Wage Type for Childcare Voucher Plan

An employee enroled in a childcare voucher plan chooses GBP 100 childcare per month. The provider of this benefits plan applies a 3% administration charge for this option and your organisation applies a 5% discount for the employee. Therefore, after benefits enrolment:

The employee's gross salary is reduced by GBP 100 - 5% discount = GBP 95

The P11D value is GBP 100

However, you wish the P11D value to be GBP 100 + 3% (GBP 103) to reflect the administration charge.

In this situation, you must write your own coding using BAdI PFBN0002 (CALCULATE_P11D_TAX_DEFER) to ensure the value for the field tax_defer_per_period is calculated as GBP 103.