Applying the
Principle of Origin to Non-Recurring Payments 
Use
Up to now, tax and insurance contributions for non-recurring payments in the SAP system were generally calculated according to the inflow principle: the non-recurring payment was integrated into the payroll process.
From release 4.6C you can also apply the principle of origin when calculating tax and insurance contributions for non-recurring payments in the form of imputed income or non-monetary remuneration. This is always useful when imputed income or non-monetary remuneration was paid out in a previous payroll period but will only appear in the master data in the current period.
Example for the Application of the Principle of Origin
In January of the current year an employee buys
a new car. Because he belongs to your company he receives a discount.
The personnel department enters the imputed income that the employee receives
as a result of the discount in February, retroactively for January.
Up to now it was not possible in such a case to
retroactively calculate the insurance contributions and tax for January.
Insurance contributions and tax were always calculated according to the inflow
principle for the month of February.
So that you can now calculate insurance contributions and tax for such a case
according to the principle of origin, release 4.6C contains new model wage
types and new cumulation wage types for tax and insurance
contributions.
New Model Wage Types
- M613 (Imputed income
from a non-monetary remuneration)
You can use the model wage type M613 to retroactively process the imputed income from a non-monetary remuneration - as described in the example above - for a previous payroll period and to process tax and insurance contributions according to the principle of origin. The model wage type M613 is included in the new cumulation wage types /175 (Non-recurrent payments social insurance according to principle of origin) and /176(Other groß tax amounts according to the principle of origin).
- MX51 (Net imputed
income from a non-monetary remuneration)
You can use the model wage type MX51 in the same way as model wage type M613 in the case of a guaranteed net amount for the non-monetary remuneration. The model wage type MX51 goes through gross/net iteration and is then also included in the cumulative wage types /175 and /176.
New Cumulative Wage Types
- /175 (Non-Recurring
Payments, SI According to Principle of Origin)
The cumulative wage type /175 cumulate wage types whose insurance contributions are to be retroactively calculated according to the principle of origin.
- /176 (Other Gross
Tax Amount According to Principle of Origin)
The cumulative wage type /176 cumulates wage types that are to be retroactively taxed according to the principle of origin.
- /177 (Gross Tax
Amounts over Several Years, Principle of Origin)
You can use the cumulative wage type /177 like wage type /176 to calculate payments over several years that are to be taxed according to the principle of origin.
Effects on Customizing
If you want to apply the principle of origin to
the calculation of tax and contributions for customer-specific wage types, you
must cumulate these wage types in the above-mentioned cumulative wage types.
For further information, see the implementation guide under
Payroll Germany -> 
Code Wage Types as Tax and SI Liable Gross
Amounts.
To allow the calculation of tax and contributions according to the principle of origin, the following personnel calculation rules have been changed:
- DV20 (Deciding on the Principle of Origin or the Inflow Principle)
- DV25 (Cumulation of Non-Recurring Payments)
- DV00 (Special Processing of SI Gross Amounts)
Adjust the changed personnel calculation rules in your productive client.
In addition, there is a new personnel calculation rule: DS42 (Rerouting of Other Gross Tax Amounts, Principle of Origin). The personnel calculation rule is found in the personnel calculation schema DSTB (Tax (D) Calculation). To transfer the new rule, compare the changed schema DSTB with your productive client.
Further Notes
Note the connection between the new cumulative wage types for the principle of origin and the existing cumulative wage types for the inflow principle.
| Cumulative Wage Type Principle of Origin | Cumulative Wage Types Inflow Principle |
|---|---|
| /175 (Non-Recurring Payments, SI Prin. of Or.) | /103 (Non-Recurring Payments SI) |
| /176 (Other Gross Tax Amounts, Prin. of Or.) | /111 (Other Gross Tax Amounts) |
| /177 (Gross Tax Amounts Sev. Years, Prin. of Or.) | /113 (Gross Tax Amounts over Several Years) |
In the results table RT are the cumulative wage types for the inflow
principle and the corresponding cumulative wage types for the principle of
origin. The cumulative wage type for the priciple of origin is added to the
cumulative wage type for the inflow principle.
The cumulative wage type for the inflow principle (for example /103) therefore
contains the total recurring payments that were processed according to the
principle of origin plus the total recurring payments that were processed
according to the inflow principle.
The cumulative wage type for the principle of origin (for example /175) only
contains the non-recurring payments that were processed retroactively
according to the principle of origin.
Note the following restrictions relating to the taxation of imputed income according to the principle of origin. Such taxation is only possible if the corresponding wage type was processed
- in the current calendar year, or
- in the year before the employment tax statement was issued.