Calculation of Payments in Kind (SAP Library

Calculation of Payments in Kind

Use

When payments in kind are made, the company is obliged to make an employee employment tax payment.

Integration

Payments in kind are integrated into the employment tax deduction and payment (IRPF) calculation.

Requirements

In the payroll Implementation Guide, under IRPF ® Identify wage types for imputed income, you have identified the relevant wage types for payments in kind, assigning them the corresponding cumulations. Likewise, under Determine constants for imputed income, the payment in kind constants have been set, both for the maximum deduction-free amount and for the minimum deduction percentage.

Note

Deduction rate for payments in kind: given that the legal percentage to be applied depends on the individual interpretation of the law, in the infotype Fiscal Data (0062), both options appear. You can determine the percentage to be applied through the constant PPAES of the table T511K in the IMG activity Set percentage applied for payments in kind. Leave the value of the constant blank if you want the percentage to always be the calculated percentage. Otherwise, if you want the percentage used to be the applied percentage, you should give the constant the value ‘1’.

Functional Characteristics

In the SAP system, the deduction-free amount for payments in kind received is specified by the PEILR constant in the view "IRPF amount constants" (V_T5EI4). If the payment in kind estimation for the fiscal period in question is greater than the amount specified for this constant, an employment tax deduction payment is calculated from the first payment.

If the deduction percentage is lower than the value of the IMPES control constant in the view Control Constants (V_T5EI3), the later is then applied.

Deduction-free monetary compensation, as provided for in article 45 of the New Employment Tax Deduction Act of 2/5/1999, is processed in the system through the Deduction-Free Amounts table T512C. This table determines the corresponding deduction-free amount based on either a wage type, a constant, or the value maintained in the table.

When the payroll schema is triggered, the ESC0 rule (Delimit Wage Types According to Table T512C) calls the E512C transaction for all the wage types with the value '1' in processing class 8. This transaction processes all the affected wage types of the IT for which entries are maintained in table T512C. As a result, the corresponding taxable and tax-exempt wage types are generated. Likewise, the system accumulates the deduction-free amount already used in another wage type and, if the distribution class value of this wage type is 3, it also detects the jump when the compensation exceeds the deduction-free amount previously set.

Activities

In payroll, the payment in kind wage types are automatically assigned to the correct taxable basis depending on the tax modifier and the payment key of the infotype Fiscal Data (0062).

Example

The wage types corresponding to the payment keys A, B and E are allocated to wage type /156 (Taxable Basis for Separate Payments in Kind). The wage types corresponding to payment key G are allocated to wage type /158 (Taxable Basis for Separate Payments in Kind from Professional Activities).