Wage and Salary Contribution Charges in Payroll
Social insurance contributions are determined, transferred and documented in the standard system as part of the monthly payroll run. The starting point is a payroll period. In Germany, this payroll period is one month.
The wage and salary elements that an employee received in the month are taken into account. If there are retroactive changes for time periods where payroll has already been run, these periods are recalculated by the system (retroactive accounting).
You calculate contributions is linked to conditions that the standard system must check during the payroll run for this period:
Which type of pay does an employee receive ?
The system must recognize whether an employee receives regular pay (contributions are calculated according to the principle of origin), or a one-time payment (where contributions are calculated according to the inflow principle).
To calculate contributions for regular pay, you must also create the SI income threshold deficit that is used as the income threshold for one-time payments.
See:
Social Insurance Payments Law SI Income Threshold Deficit
How many SI-liable days did the employee have in this period ?
The system must be able to calculate how many SI-liable calendar days the employee worked in the pay period. In this way, you can determine the number of SI days. It is possible that there are several part-periods within a payroll period that must be specially processed.
See:
Social Insurance-Liable Days and Part-Periods Absences and Social Insurance
Which income thresholds are valid for each part-period, and how high was the basic gross assessment amount?
The system must determine the income threshold and the gross assessment amount for each SI category in each payroll period. You must also determine the income thresholds and the gross assessment amount in relation to SI days for each part-period.
See:
Income Thresholds Gross Assessment Amounts
How are the employer and employee contributions calculated?
You calculate these either with a percentage (usually for compulsorily-insured employees), or with a fixed contribution, determined using a contribution class.
You must use the employee-specific master data from the Social Insurance D (0013), Supplementary Pension D (0126) and SI Additional Insurance D (0079) infotypes.
See:
Employer and Employee Contributions
The social insurance amounts determined in a payroll run (income thresholds, gross assessment amounts, and contributions), are stored in
secondary wage types. The following section describes the most important secondary wage types for social insurance. In addition, each section has a list of all relevant secondary wage types.