Processing Reduced Gross Tax Amounts 
Processing Reduced Gross Tax Amounts
Use
If the deductions do not affect an employees gross tax amount then processing can take place as described in
Technical Procedure of Arrears ProcessingExceptions are deductions which are made from the net salary amount, but which still reduce the gross tax amount. This is the case with donations or company insurance, for example. The processing class that you use for this determines whether a wage type should be deducted from remuneration before or after taxation.
Features
If such a wage type results in a deduction, and part of the amount is placed in table DDNTK, then the system recalculates the gross tax amount. Previously the deduction that was not reduced was used to calculate the gross tax amount. Calculation of the gross tax amount using the new reduced deduction amount results in a higher gross tax amount.
The result of the higher gross tax amount, using the new tax calculation, is a changed net amount. The deductions are then made from this net amount.
Payment/deduction type |
Calculation 1 |
Calculation 2 |
Total gross amount |
3 000,00 |
3 000,00 |
Donations, deduction from remuneration before taxation |
500,00 |
300,00 |
Gross tax amount |
2 500,00 |
2 700,00 |
Net amount |
1 500,00 |
1 650,00 |
Garnishment. |
1 000,00 |
1 000,00 |
Loans |
200,00 |
200,00 |
Actual deduction for donation |
300,00 Remaining amount |
300,00 |
DDNTK |
200,00 |
…– |
Payment Amount |
150,00 |
Calculation 1
The total gross amount is reduced by the amount of the donation to the gross tax amount, from which the net amount is then calculated. The amounts for the garnishment and the repayment of loans are deducted from the net amount first, because they have a higher priority than the donation. Only 300,00 of the net amount remain for the deduction of donations. Since the donations amount to 500,00, the 200,00 which cannot be deducted is placed in table DDNTK.
Calculation 2
The gross tax amount must be redefined starting with reduced donation amounts. The loop must therefore be repeated again to process the new gross tax amount and the new donation amount.