How to find if a wage type is taxable or not ?

[Former Member]

Hi Experts,

I have a requirement to identify the list of taxable and non-taxable wage types, for a custom payroll solution implemented.

I have been checking the processing classes for each wage type but couldnt make out any idea.

Below given are the processing class maintained or used for this custom payroll solution:

1 Assignment to valuation bases      -->CYCL.X010

3 Cumulation and storage of time wage types -->CYCL.X020

4 Summarize WT acc.to TX and SI periods    -->CYCL.X025

5 Create net remuneration and total expenditure -->CYCL.X030

6 Enter wage type from old payroll account in LRT -->CYCL.X006

10 Mark wage types for monthly factoring     -->CYCL.XVAL

15 Valuation according to principle of averages -->CYCL.X016

17 Overtime compensation (personnel calculation rule TC10 or TC20)

18 Processing for work center-related remuneration

20 Cumulation and storage at end of gross part

22 Translation of 'Amount' / 'Rate' Wage Type Fields

24 Transfer control              -->CYCL.X055

25 Processing at end of payments/deductions -->CYCL.X045

30 Cumulation update             -->CYCL.X080

31 Allocate monthly lump sums to cost distribution -->CYCL.XCM0

32 Only used for conversion

35 Shift change compensation for substitutions

41 Cumulation and storage of wage types to delimit

45 Import wage types from VD to IT or vice versa

46 Process time tickets for incentive wages   -->CYCL.XW10

47 Special infotype processing 0014/0015         -->CYCL.X011

48 Automatic special payment -->CYCL.XSPD

50 Deduction processing using 'Balances and Totals'

79 Process month end accruals / modifier D

90 Tax credit wagetype

99 Debit/Credit (for pay slip)

I have checked for processing class 90 given here and that only gives the percentage value of tax to be credited for the wage type.

Please guide.

Regards,

Vicky.

[former_member193210 · Accepted solution]

Use program RPDLGA20 (t-code = PC00_M99_DLGA20) to analyze your WTs.

Execute it for your Country Code, without any WT selection.

In the report, select the Cumulation WTs by double clicking on it.

Double click on a Cumulation WT (such as /102) to see all WTs that cumulate into it.

Note that you can do the same with Processing Classes, and that you can have the report in a Tree Structure.

[former_member187570]

Please check T512W_D , for the wage types having Procesisng class - 71 maintained. that will be the  decission point to think it is taxabl eor not.

In table t5utm  we link each taxable wagetype to a tax model. The link to the wagetype is via processing class 71 – called the taxability class. For each taxability class we specify if the wagetype is taxable for the tax authority an employee lives in, works in, and for unemployment taxes.

[Former Member]

Hi Chaudhury,

Thanks for your reply. Let me check the settings in table T5UTM and get back to you.

Regards,

Vicky.

[Former Member]

Hi Chaudhury,

I have checked the settings and find that there is nothing linked from the table T5UTM to this payroll solution. Also the processing class 71 is not mainatained for any wage types.

This is for Nigeria payroll, where the International payroll driver has been copied and modified.

Please let me know, if any other suggestions.

Regards,

Vicky.

[Former Member]

Hi Vicky,

Could you check Cumulation class 21 - Taxable pay for each wage type to see if it adds into taxable pay or not?

Thanks

Liam

[Former Member]

Hi Liam,

Thanks for your reply. But there is no processing class 21 or cummulation class 21 maintained for any of the wage types.

Regards,

Vicky.