Bonus 

Purpose

This component enables the processing of employee bonus. You can compute both regular and off-cycle bonus.

Integration

·         Additional Payments infotype (0015)

The SAP system updates this infotype after a regular bonus computation.

·         Additional Off-Cycle Payments infotype (0267) for off-cycle bonus

The SAP system updates this infotype after an off-cycle bonus computation.

Features

·        India specific Bonus calculation report (HINCBON0)

This report computes the employee bonus. You have the option of computing bonus:

¡        As per the Payment of Bonus Act

¡        On a monthly salary basis or an annual salary basis

¡        For ex-employees

¡        As a regular bonus or an off-cycle bonus or both

·        Off-Cycle Taxation

When the bonus is as an off-cycle payment, the SAP system will compute the applicable Tax Deduction at Source (TDS). The Income Tax Deduction at Source for OffCycle Bonus Payment payroll function (INBTD) determines the rate of Tax Deduction at Source (TDS) for an off-cycle bonus. This function has the following parameters:

¡        Param 1 - Determines the TDS computation method. Param 1 can have the following values:

...

                                                  i.       BON1 – Tax at a standard company wide rate

                                                ii.       BON2 – Tax before bonus payment and at the marginal rate of tax, for individual employees. It is exclusive of surcharge.

                                               iii.       BON3 – Tax before bonus payment and at the marginal rate of tax, for individual employees. It is inclusive of surcharge.

                                               iv.       BON4 – Tax after bonus payment and at the marginal rate of tax, for individual employees. It is exclusive of surcharge.

                                                 v.       BON5 – Tax after bonus payment and at the marginal rate of tax, for individual employees. It is exclusive of surcharge.

¡        Param 2 - Determines the Tax Code for bonus. The standard SAP system has the Tax Code for Bonus as SBON. You can maintain your own tax code for Bonus through the table view Taxability of wage types (V_T7INT9).

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.

For more information see, Off-Cycle Activities.