voluntary contribution- one day salary deductions

[Former Member]

Dear All,

I have an urgent requirement to configure salary deduction of employee voluntary contribution towards calamity /disaster occurred recently in one state.

Requirements are as follows:

1. Employee may opt one day or two days or more days’ of salary deduction as per his wish.

2. This deduction to be displayed in the pay slip. ( I don’t know why client opt this)

3. This deduction to be exempted from Income tax.

So, how to configure this.

Next

1. Shall we go for off cycle pay roll or normal payroll run

2. What are the impacts on PF & other deductions

3. How to customize such scenario.

Please help me on the above subject.

Regards,

Sumana

[sai_siva]

Dear Sumana,

This can be done with simple configuration as defined below:.

Then in table V_T7IN01

1. In the above table we are clearly providing the Period - 8 which the one day salary is deducted in the month period of payroll run – ie Nov – 2013.
2. Actual Salary/ Calendar Days – where the no of days for the month of Nov are 30 so
   1. IT 0008 wage types with Processing class 77 are picked for calculations.
3. The multiplying factor is 1.00 hence it multiplies with (Amt/no of days)*1.00
4. As both employer and employee are contributing from the employee’s salary hence it  generates both / 3OE and /3OF wage types.

So the respective wage type will trigger in the RT.

BY providing /3OE and /3OF in payslip the same can be viewed in payslip also.

Thanks and Regards,

Sai

[former_member193210]

If the deduction is to be a Net Deduction (cumulates into /110), I would take it in a "normal pay", and as an employee, I  like to see all payments and deductions on my pay slip (Remuneration Statement).

I would copy a Charitable Donation Deduction WT (or an other Net Deduction WT) and change it's parameters in T511 to that it would require a number/unit (unit could be "Days") and not allow any amount.  I would make it available on IT0015 (for one time donation) and IT0014 (for a donation spread out over more than one pay period).

This would require a PCR that multiplies the number of days (from the Infotype) by the employee's daily rate.

If the deduction is to be a Gross Pay Deduction and the employee is not required to work on that day, then you would need to configure a special Absence to generate a distinct WT for reporting.  Note that this type of scenario generally implies an impact on Income Taxes, but not necessarily an impact on other Deductions (such as Group Insurance).

[Sanky]

Hi Sumana,

1st part.

Create one wage type for IT57 and assign it to required tax code table. So whatever deduction will happen it will go to exempted as per govt rule.

Better check the below thread for the same

2nd Part,

It's a deduction amount so it's better to process through regular payroll run and deductionable wage type is not impacting on PF calculation.

Regards,

Sankarsan