Severance Payments (Infotype 0401)
Definition
Infotype 0401 is mandatory for each employee and enables you to record the information required for the processing of severance payments.
Use
This infotype is used to indicate whether the employee’s severance payments are to be deposited in a company’s bank account or with an external banking company account. Any interest generated is to be paid to the employee taking the following situations into account:
- The interest earned on severance payments deposited in a bank account is controlled by the bank and calculated according to the interest rate offered by that bank.
- The interest on severance payments kept in a company account will be controlled by the company and calculated according to the interest rate selected in the infotype. The Central Bank of Venezuela sets the interest rate, using the country’s six main commercial and universal banking companies for reference.
Structure
Infotype 0401 consists of the following sections:
Seniority Credit
This section includes the settings where you must specify whether the severance payment Deposit is to be made in a Company Account or with an External Banking Company.
Company Account: Settings
The information for calculating interest is recorded in this section, which has the following settings:
- Two radio buttons to specify the interest rate to be used in the severance payment interest calculation (the average lending rate or the average deposit and lending rates set by the Central Bank of Venezuela).
- A checkbox that must be filled if the employee has decided to capitalize the interest earned.
- A checkbox that must be filled if the employee must be paid annual seniority days at the end of the year. If you do not fill the checkbox, the amount corresponding to annual severance payment days will be capitalized.
External Banking Company: Bank Data
This section specifies the relevant data on the banking company with which the severance payment is to be deposited:
- Postal Code
- City
- Country
- Bank Code
- Bank Account No.
- Check Key