Calculation of Employment Tax Deduction in the Payroll (SAP Library

Calculation of Employment Tax Deduction in the Payroll

You calculate employment tax deduction income and deductions, in the SAP R/3 System, in the payroll process frame for a specific fiscal period.

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

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 employment tax deduction payment and deduction processing in the payroll process is linked to the system check of data entered in the infotype Fiscal Data (0062).

Settings in the Implementation Guide

So that the employment tax calculation can be correctly integrated in the payroll process, the settings relating to the master data and employment tax must have been made in the personnel management implementation guide. Likewise, the settings corresponding to employment tax must have been made in the payroll implementation guide.

Description of the process

Data processing 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 fiscal 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.).
Estimation of compensation and specification of relevant wage types.
Specification of possible changes of retroactive nature in employee deduction conditions and the 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