Bonus Configuration

[sudhansu4sap]

Hi experts,

I am new to Indian Payroll. My client has paid bonus (Fixed amount) for all employees bonus is already paid during Oct' 2017. And the same has been maintained in section 80C deductions for total gross amount. Accordingly, Income Tax amount is getting deducted ( annually & monthly). I have to run payroll or all employees w.e.f 01.04.2018 onwards.

now my issue is-

1- I have to maintain this bonus amount either in IT 0267 or, IT 0015 in HR master data. If so, then in which date I will mainatin the record ?

2- Should I take salary projection from the previous year (2017-2018) & calculate IT amount accordingly /

I am bit confused. Please suggest me.

Thanks & regards,

Sudhansu sekhar Behura

[sikindar_a · Accepted solution]

You need to pay Bonus as an additional payment via IT-00015 and this should be actual amount which is being paid to the employee after excluding lop days , for the month of Oct 2017.

Where the Tax amount on the bonus to be projected for the rest of the months or should be taxable for that month , you have to take the call.

[sudhansu4sap]

Thanks Sikinder.

I went as per your suggestions. Now my issue is resolved. Closing this thread.

Thanks to all.

Sudhansu Sekhar

[BalasubramanianAP]

Hi,

Your question is bit confusing. I presume, you had already paid bonus with two options:

1)If Paid with out using SAP, now you want to reverse it (you can enter an adjustment wage type with -ve sign

to reverse it).

2) If Paid through SAP payroll (if off-cycle, use function INBTD with proper parameter. If paid through regular salary,

then, it is automatically taken care in taxation).

Please explain with chronology, so that, we can suggest some idea.

regards

Bala

[sudhansu4sap]

Thanks Bala, for your prompt response. Yes I am a bit confused myself. Let me explain,

1- Bonus has already been paid ( outside SAP) during Oct' 2017 .

2- Amount of Bonus is fixed by the management for each & every employee.

3- Bonus amount=14,200 INR fixed for 365 days of work, amount will be proportionately calculated as per no. of LOP days.

i.e, Bonus = 14,200/365* No of working days( after deducting LOP days).

4- No off-cycle payment , bonus was paid in the month of Oct' 2017 at a time along with monthly salary for Oct' 2017.

Now, the question is, I have to run payroll w.e.f April '2017. I have to calculate Income Tax ( annually) taking in to consideration previous year ( 2017-18)'s U/S 80C declaration. It means, I have to take in to consideration previous year's Total Gross

Total Gross=( Gross salary+ Bonus- P Tax) & accordingly Income Tax amount will be calculated ( annually & monthly).

My query is that, how to maintain this Bonus amount in master data ?

1- Whether as a salary projection ? & if so, then how to maintain & on which date I have to maintain this bonus amount 14,200 INR .

Experts, requesting you all please suggest me how to map this ?

Thanks & regards,

Sudhansu Sekhar Behura

[BalasubramanianAP]

Hi,

You can try with cross-financial year retro concept (as said by Sikindar Sir, enter in infotype 15 in oct'17). You may have to reclaim/charge additional tax under section-89 (if it was not claimed).

You can check this blog for some idea: https://wiki.scn.sap.com/wiki/display/ERPHCM/S89+Relief+Calculation

regards,

Bala