Tax calculation in off cycle payment bonus

[Former Member]

Dear Experts,

My client want to deduct income tax on off cycle payroll run How to calculate income tax in off cycle payroll i.e.(bonus). It must be shown in Form no 16 also.

Please help me to resolve this issue.

Thanks & Regards

Ratan

[Former Member]

Hi,

Follow the below steps

1. Define the tax code in table V_T7INT7

2. Assign this tax code to your wagetype in table V_T7INT9

Hope you have already carried out the above steps.

Then

3. In your Gross to net calculation Schema (INN1 in standard) insert the function INBTD under IF SPRN (Offcycle ) statement.

The syntax will be INBTD BON5 XXXX, where parameter one- BON5 is used for marginal rate tax calculation and XXXX is your tax code.

Please Check the documentaion of INBTD function is PDSY transaction before you use.

Hope this will help you.

Regards

Raviiiiiii

[Former Member]

Dear Ratan,

Kindly check the SAP Note 1024284 - TDS on irregular payments during regular payroll run,this will give you a fair idea also search the forum,there are threads like this

which shall help you.

Regards,

Salil