0 Replies Latest reply: Dec 20, 2010 4:17 PM by Shobha Singajogi RSS

Recording Pension Contributions in SAP

Shobha Singajogi
Currently Being Moderated

There is a process that End User currently does on a manual basis each pay period, using Excel, that  want to build into the SAP/ADP payroll process.  Before we proceed with a project, like you to assess what is needed.  The following information should help you.


Benefits and payroll configuration needed

Company makes pension contributions for ESG 28 employees to the IBEW District 9 Pension Plan.  This plan is known as a "defined contribution" plan .

The maximum annual contribution, at this time, is $1,040.00 per employee

Payment is predicated on hours paid; the contribution is $0.50 per hour paid.  Company contributions need to be calculated for each pay period for each ESG 28 employee with hours paid.

In the payroll cluster, the hours paid are not shown by a single wage type (that I saw).  We'll need to build the definition so hours are accumulated for this pension plan but for your preliminary work just use "hours paid" as the basis.

Amounts need to be recorded in the payroll cluster so they can be sent to ADP for inclusion on the pay check.

This plan has some similarities to what we call a 401K plan but in this case, the characteristics are different, i.e. there are no employee contributions just the employer contribution and the payment is based on "cents per hour" not a "percentage of salary".  Current 401K plans are managed using IT0169.  However, payment calculations for these are done in ADP.  For this plan, I want to keep all calculations in SAP so we can do management reporting in SAP.