Use
Wage types generated during the deferred payment period are renamed to become the carry-over wage types to be paid in the next month’s payroll.
According to the naming convention, a time wage type is changed into a carry-over wage type by adding 001 to its wage type number. Similarly, by adding 001 again, the carry-over wage type is changed into a deferred wage type.
The time wage type M001 becomes the carry-over wage type M002 and the carry-over wage type becomes the deferred wage type M003.
There are two methods available to evaluate time wage types. The evaluation base is determined by the value of processing class “61.”
Value |
Description |
1 |
Deferred payment occurred month’s valuation base |
2 |
Deferred payment with the last valuation base |
Deferred payment wage types are calculated using the valuation base of the monthly payroll in which the deferred payment occurred. As a result, even if there is an increase in the basic salary in the next month, the deferred payment is not affected.
Deferred wage types are calculated using the valuation base of the next month. If there are some other valuation bases in the next month’s payroll because of, for example, an increase of basic pay, the last valuation base is adopted.
See also:
Deferred Payment for Monthly Wage Earner