Tax on Off cycle Paymet made

[Former Member]

Hi All,

We have configured the system for off cycle payroll run.

Off cycle payroll is running successfully but system is not deducting the Income tax to be deducted on one time payment amount.

Please suggest.

Regards,

Aman

[Former Member]

Hi Aman,

If this is specific for India Payroll... if you using some other country version then let me know.

Tax computation of off-cycle payment will happen through INBTD Payroll function.

So if you want deduction for that then u have to configure INBTD accordingly as mentioned below -

Parameter 1 -

This parameter determines the bonus calculation method for an off-cycle payroll run. There are five calculation methods available

for bonus calculations.

BON1. BON2, BON3, BON4 AND BON5. (check and configure as per the requirment)

Parameter 2 -

here you have to maintain the Tax Code. In the SAP system, the standard Tax Code for bonus is SBON. You can however, maintain your own Tax Codes for bonus.

If the wage type is not a bonus wage type, the function will not deduct any tax from the bonus payment. The bonus wage type for the employee is based on his/her Pay Scale Grouping for Allowances.

You maintain the bonus wage type in the table view V_T7INA9, and the tax code for bonus in the table view V_T7INT9.

Parameter 3 -

The parameter 3 checks the tax deductible on the off-cycle bonus payment and limits the same to the tax liability of the employee. If the parameter has the value as X, the function checks for and limits the tax deductible on the off-cycle bonus.

If you do not maintain the value as X for the Param 3, the function will compute the Tax Deductible at Source for the off-cycle bonus payment, without checking the tax liability.

For more details, go through the documentation of the INBTD payroll function.

Regards,

Praveen

PS Don't forget to uncomment INBTD for offcycle in ur schema.

Edited by: Praveen on Oct 5, 2009 12:32 PM

[Former Member]

Hi All,

We have configured the system for the off cycle paymet.

But system is not deductiing the Tax on the Paymet made through the off cycle payroll run,.

please help me on this.

Regards,

Aman

[Former Member]

can u let me know what are the configuration you have done till now

[Former Member]

hi

thanks for the inputs, i have put the "X" in the 3rd Parameter for function INBTD in schema ZNN1, and generated it, but still system is not deducting any tax during off cycle payroll run

Also i could not fine the INBTD for off cycle payment.

Earlier we have configured the System for deducting Tax in irregulat payment in the same payroll itself, which is working fine.

Please help

Regards,

Aman

[Former Member]

Hi Aman,

In the 'Begin Gross to Net calculation' subschema after setup of projection factor PCR INN0 u can get the Following code

IF SPRN If offcycle run ?

PIT INPB NOAB Cum'n of bonus to PTax basi

INPTB Population of Ptax basis

INBTD BON2 SBON Tax deduction at source for <------ this is the INBTD for offcycle

ELSE Else, Regular run (Gross to

[Former Member]

hi Parveen

its working, thanks a ton.

Regards,

Aman

[Former Member]

ohhh gr8

[Former Member]

Had you maintain the cummulation class of the wage type for tax? How the payroll log show on tax calculation?

[sikindar_a]

Once Check the Processing Class 70 abd 71 in Table V_512w_D

and also check V_T7INT9 whether the wage type is maintianed or not in that table