Payroll runs are distinguished by their assignment to various types and categories:
The payroll type is a technical distinction for the payroll driver. Based on the payroll type, the payroll driver can distinguish how payroll is to be run.
The following pay types exist:
The off-cycle reason is a distinction based on business considerations. In Customizing activity, you specify the reasons that are valid for your enterprise. You assign each off-cycle reason to a category. The assignment to a type of off-cycle reason and to a payroll type is done by the SAP System.
The assignment of off-cycle reasons to categories provides a technical grouping of off-cycle reasons for the SAP System. This ensures that identical payroll processes are handled in the same way.
If the bonus is paid periodically (for example, every three months), you set it as periodic bonus.
If the bonus is paid without any cycle, you set it as non-periodic bonus.
This off-cycle payroll category gets proper data from the Time Quota Compensations infotype (0416) and pays compensation for unused leave quota.
With this off-cycle payroll run, you perform the tax adjustment. You do not have to create your own off-cycle reason for this category. You should keep in mind that this off-cycle payroll has to be run in the year following the current taxation year. For example, if you want to perform the taxation adjustment of 1999, you run it after 01/01/2000. In addition, you cannot run this more than once. For re-adjustment taxation, the SAP System makes the adjustments retro-actively function. If this retro-active feature does not fit your business process, you have to alter the system settings to prevent it from triggering the retro-active accounting process before the first day of the following year.
When an employee resigns from the company before the regular payroll run date you must perform this retirement liquidation payroll. For example, if your employee resigned on 06/05/1999 and the regular payroll run date is 20th of every month, then you should run this off-cycle payroll. The employees accounted for using this category have to be excluded from the regular payroll.
When an employee resigns from your company after the regular payroll run you must perform this retirement liquidation payroll. For example, if your employee resigned from the company on 25/06/1999 and your regular payroll run date is 20th of every month (that is, you have already run the regular payroll), then you should run this off-cycle payroll separately.
This triggers the retro-active accounting if there are changes in master data related to the retro-active accounting.
After running the off-cycle payroll category 0007 or 0008, if the resigned employees rejoin your company, then you can run the payroll with off-cycle category 0005 in the next year with the same pattern as the normal employees. The SAP System adjusts taxation for the whole year.
This off-cycle payroll calculates the separation payment by collecting payroll history and considering the service period of employees. It also performs the special tax calculation for separation payment.
This off-cycle payroll calculates the separation payment but does not make any payment to employees. Instead, it creates wage type which could be used to allocate fund for future separation payment of resigned employees.
This off-cycle payroll is exactly the same with 0009 (Separation payment). You perform this payroll run in case you want to pay mid-separation payment to employees.