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PAYROLL

WAGE TYPE

WAGE : Amount / Rate / Number

WAGE TYPE : Basic or HRA or Washing Allowance or Bus Pass All

Wage Type Group = Basic + HRA + Washing Allowance etc

Infotypyes = 0008 = Basic Pay 0014 = Recurring Payments and Deduction 0015 = Additional Payments and Deductions

PAY SCALE STRUCTURE

• Pay scale information is stored in infotypes 0008, 0014, 0015. Wage maintenance is stored in IT 0052. Which pay scale or CG is valid in PST or PSA. Pay scale groupings : PSG for allowances. These groupings are used to select employees based on their eligibility compensation benefits.

• Pay scale structure means creation of • Pay Scale Type – It is particular type of industry for which CAP

applies for ex Chemical or Metal industry• Pay Scale Area – The Area for which CAP applies – Uppal,

Nacharam• Pay Scale Grade – The particular Grade to which allowance applies• Pay Scale Level – Levels are divided from the grade for which

allowance applies.

BASIC SETTINGS

• Period Parameter - It specifies the period on which the payroll is run. For ex weekly, Bi weekly, Monthly, Bi monthly, Quarterly etc.

• Data Modifier – It specifies the date on which the payment is made eg. 1st, 5th, 10th etc.

• Payroll Area – Area in which a group of employees for whom payroll is run on particular period and specific date.

• Control Records this which control records and every payroll area have control records.

• The payment is mentioned in currency

WAGE TYPES • Time Wage is a type of remuneration is paid for attending work

(hours / months) irrespective of amount for produces • Valuating BWT is used to value your WT, if it depends on some

% of other WT. Say HRA some 20 % of Basic• Wage types : Wage type allows for the assignment of payment

and deductions and the control of pay rolls program. Money and time units are in the calculation of employee remuneration. It is based on the company’s requirement.. Wage types are payroll objects used to store in payroll components which include the amount number and rate. Wage types are permitted to be stored in pay roll infotypes only if theses added to the WT group 0008. Transaction PU95 is used to edit WT groups. You need to assign the WT to respective employee subgroup grouping and personnel sub area groupings.

. • Primary wage type / Model wage type /Dialogue Wage type. They are Standard wage types. It starts with Alphabetic like M,N etc.. They are used to copy and copied one is used in customizing client requirement. These wage types can be stored values in WT through the permissible payroll infotype. These WT entered for an employee when master data is maintained.

• For Ex MB10 – Basic pay, M230 – HRA• These wage types can be copied • Primary Wage type Copied Wage

type • MB 10 2SSS• M230 4444

.• Secondary / Technical Wage types. It starts with (slash / ) - /114 HRA etc.

• This wage type cannot possible to copy. It is generated by the system while running payroll. The system defines their values and these wage types are not the part of the employee data

• Customer / Copied Wage types It is copied from the Standard / Model / Primary wage Type. It starts with Numeric No. only 2sss, 2222, 4g66

• Copied wage types are used to meet client requirements.

• All above wage types Can be recognized with four digit code

RECURRING PAYMENTS

• Recurring payments and deductions are additional wage elements that aren’t necessarily used in every payroll period like holiday pay, transportation allowance, and Christmas bonuses

ALLOWANCE GROUPS

• Allowances groups are defined based on location.

• For ex allowance for Bonus

Uppal - 10%

Nacharam – 15%

Amerpeet - 25%

• The annual year starts from March 1st to February end date.• The PF deduction will be made on Basic + DA • The PF will interest on contributed shares of Rs 12 to 10% fixed by the

Central Govt. • There are three types of eligibilities of deductions• 1) The employee whose salary is below 6500/- is eligible for full contribution on the BASIC + DA• 2) Whose salary crosses 6500/- it is the management decision to be full on BASIC + DA which may be 20000/- 2400/- 3) Whose salary crosses 6500/- it is management decision will be restricted on 6500/- only i.e 780/- 4) Management will pay on the employees whose amount is 6500/- are below only

PROVIDENT FUND

PF CONTRIBUTIONS contd.

• It is central Act. The applicability is same all over India. • Contributions 12 %-Employee • 12% - Employer • 1.1%-Admn charges on PF• .5% on EDLI Scheme• .01% Charges on EDLI• 25.61% to be paid by the emr to PF• PF Pension FundEmployee 12%Employer 3.67% 8.33%

15.67 % 8.33%

PF PENSION ELIGIBILITY contd..

• Employee who has contribution of 10 years before 50 / 58 years is eligible for pension. The 10 years contribution may be in one company or many companies. The Pension after 50 years is called reduction pension i.e will get 60 to 70% amount and after 58 years is called full pension i.e will get 100% pension. Once pension starts who is not eligible for contribution even he his pension.

• The feature for EPF is 40 EPS the default value is standard -

/ER REF NO /ER PENSION REF NO

EMPLOYEE STATE INSURANCE CORPORATION

• The employee whose gross salary is Rs. 15000/- & below is eligible for ESI benefits.

• The contributions is made on earning gross salary of an employee of that particular month

• Contributions • Employee is 1.75%• Employer is 4.75%• Employer has to pay 6.50% to the ESIC dept. • It has two periods April to Sep and Oct to

March

PROFFESIONAL TAX

• It is a Central Act but Slabs are differ to state to state

• The area has its own Division, Circle, Range, Zone & their own certificate no. etc.

• The tax period is from April – March every year

PT SLABS contd..

• The slabs are a follows

• 15000 – 20000 - 150/-

• 20000 & above is Rs. 200/- each