Component documentation Payroll India (PY-IN) Locate the document in its SAP Library structure

Purpose

This component enables the running of the payroll for all employees in line with Indian legal and business requirements.

Implementation Considerations

The SAP HR Payroll India component must be implemented in cooperation with project teams implementing other areas of SAP Human Resources (HR), in particular SAP HR Personnel Administration.

Integration

The SAP HR Payroll India component integrates with other SAP HR components such as Personnel Administration and Personnel Time Management. There are interfaces to Financial Accounting and Controlling. You can run payroll using a combination of SAP and third-party products.

Features

The component uses data from other areas of SAP HR for calculating all statutory and non-statutory additions and deductions for your employees. SAP HR Payroll India offers a number of standard reports used in payroll, superannuation, leave, advance payments and taxation.

In addition to the standard payroll functions, the payroll processing for India also comprises the following country-specific functions:

·        Indirect Evaluation

·        Reimbursement, Allowances and Perks

·        Basic

·        Dearness Allowance

·        Housing

·        Car and Conveyance

·        Long Term Reimbursements

·        Claims

·        Bonus

·        Income Tax

¡        Section 80

¡        Section 88

¡        Section 89(1)

¡        Third Party Deductions

¡        Income from Other Sources

¡        Tax on Arrears

¡        Exemptions

§         Exemption on Leave Travel Allowance

§         Exemption on Medical Reimbursements

§         Exemption on Medical Insurance

§         Exemption on Child Education Allowance

§         Exemption on Child Hostel Allowance

§         Exemption on Other Allowances and Reimbursements

§         Exemption on Leave Encashment

§         Exemption on Voluntary Retirement Scheme

¡        Previous Employment Tax Details

·        Professional Tax

·        Provident Fund

·        Employee State Insurance

·        Labour Welfare Fund

·        Nominations

·        Minimum Net Pay

·        Recovery of Rounding off Amounts

·        Loans Enhancement

·        One Day Salary Deduction

·        Mid Year Go Live

·        Termination Work Bench

·        Gratuity

·        Superannuation

·        Form 24

·        Form 16

·        Form 217(A)

SAP HR Payroll India supports retroactive accounting. This function automatically recalculates payroll in the event of changes to master data and time data in periods for which payroll has already been completed.

 

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