Calculation of Employment Tax in the Payroll (SAP Library

Calculation of Employment Tax in the Payroll

In the SAP R/3 system, you calculate employment tax deductions and payments in the payroll process for a specific tax period.

If you have defined an applied deduction rate in the infotype Tax data (0062), the system will take this as the employment tax deduction rate. Otherwise, if you have not defined an applied deduction rate, the system specifies a deduction rate according to the regional code and the payee key and subkey (calculated rate).

The calculation of the employment tax deduction and payments includes retroactive accounting and payments in kind through the assignment of the value corresponding to the EST00 function within the tax calculation subschema.

The correct processing of employment tax deductions and payments in the payroll process is linked to the system check of data entered in the infotype 'Tax data' (0062).

Settings in the Implementation Guide

So that the tax calculation can be integrated correctly in the payroll process, in the personnel management Implementation Guide you must first have entered the necessary settings corresponding to the master data of the employment tax calculation management. Equally in the Payroll Implementation Guide all the setting relating to the calculation of employment tax in the payroll itself should have been carried out: You can make these settings in Payroll ® Employment Tax:

Identify relevant wage types
Identify wage types for payments in kind
Fix applied percentage for payments in kind.
Specify constant for payments in kind
Configure estimate of full payments
Configure adjustment of employment tax deduction (IRPF) percentage
Configure arrears of previous fiscal years

Description of the process

Processing of data for the employment tax deduction and payment calculation is specified in the main payroll schema ED00 by the subschema EST0. This subschema processes the corresponding calculation rules and functions. In general, the employment tax deduction (IRPF) calculation process follows the following steps:

Reading of employee basic data (work center, basic pay, etc.) as well as the corresponding tax data.

Specification of relevant wage types according to the settings made in Customizing.

Reading of time-limited parameter carrier tables (minimum deduction percentages, payments in kind, etc.).

Estimate of compensations in kind and determination of relevant wage types.

Determination of possible changes of retroactive nature in employee deduction conditions and calculation of corresponding retroactive accounting.

Calculation of deduction amounts.

Posting of results to financial accounting and cost accounting.

Printing of corresponding evaluations.

See also:

The Spanish payroll schema