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Function documentation Off-Cycle Payroll - Integration for India  Locate the document in its SAP Library structure

Use

This function enables you to process the following additional off-cycle activities for India:

·       Batch update of Additional Off-Cycle Payments infotype (0267) for off-cycle bonus payments and reimbursements, to your employees.

·       Tax calculation on the off-cycle bonus payments.

Integration

You can process the off-cycle payments through the:

·       Off-cycle Workbench transaction (PUOC_40) for a single employee

·       Payroll Driver (HINCALC0) for a batch of employees

Note

You must have updated the Additional Off-Cycle Payments infotype (0267) for the selected batch of employees.

Features

·       You can process a batch update of Additional Off-Cycle Payments infotype (0267) for:

¡      Off-cycle bonus payments, through the India specific Bonus calculation report (HINCBON0)

¡      Off-cycle reimbursements, through the Reimbursement for Employees transaction (PC00_M40_REMP)

You can use the payroll driver or the off-cycle workbench to make off-cycle bonus payments or reimbursements to the employees for whom you have updated the Additional Off-Cycle Payments infotype (0267) record.

·       In case of off-cycle bonus payments to employees belonging to the states of Madhya Pradesh or Karnataka, the Cumulation of PTax basis rule (INPB) calculates the Professional Tax Basis and generates the following wage types:

¡      PTax Basis wage type (/118)

¡      PTax Basis Nominalwage type (/119)

Note

·        You can configure the Cumulation of PTax basis rule (INPB) to calculate Professional Tax Basis for states other than Madhya Pradesh and Karnataka, if required.

·        If you want the system to consider the off-cycle payments and reimbursements, other than bonus payments, for Professional Tax calculation, you must set the cumulation class of the wage types for these payments to:

·        18, if you want the system to generate PTax Basis wage type (/118)

·        19, if you want the system to generate PTax Basis Nominal wage type (/119)

·        During an off-cycle payroll run, the Professional tax basis computation payroll function (INPTB) reads the value of either PTax Basis wage type (/118) or PTax Basis Nominal wage type (/119), to generate the Professional Tax Basis wage type (/3P2). During the regular payroll run for the period, the system reads the value of this wage type for Professional Tax calculation.

·        The system does not calculate Professional Tax during an off-cycle payroll run.

·       In case of off-cycle bonus payments, the Income Tax Deduction at Source for OffCycle Bonus Payment payroll function (INBTD) calculates the applicable Tax Deduction at Source (TDS). This payroll function has two parameters:

¡      The first parameter determines the method of tax calculation.

¡      The second parameter is the tax code. You have been provided with the bonus tax code, SBON. But, in case you are making more than one off-cycle bonus payments in the same off-cycle payroll run, you must maintain your own tax codes for bonus.

For an off-cycle bonus, you also have the option of maintaining your own tax rates. To do so, go to the IMG under Payroll India ® Bonus ® User Exit: Determine Income Tax Rate on Bonus Paid through Off Cycle.

See also:

Off-Cycle Activities (PY-XX-OC)

Off-Cycle Bonus Accounting

Bonus

Professional Tax

 

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