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Difference between /3, /4, /5, /6,/7 WT

Former Member

Can anyone plz help me understand the Difference between /3, /4, /5, /6,/7 Wage Types..

Thanks

Charlene

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi,

Wage type /550 (Statutory net pay) is created in the net cumulation part of payroll accounting.

Combination of Secondary Wage Types /550, /560 and /562 for 'Statutory

Net Pay'

Wage type /550 (Statutory net pay) is created in the net cumulation part

of the accounting schema for Payroll. The specification set for

processing class 5 determines whether the amounts for the wage types

created up to that point are to be cumulated in wage type /550

(Statutory net pay), and if so, in which way this is to be done. The

amount for wage type /550 is then added to wage types /560 (Net pay) and

/562 (Remaining net pay). After this has taken place, no further changes

are made to the amount for wage type /550.

Wage type /551 (Recalculation difference) is a secondary wage type

created during retroactive accounting.

Note

Wage type /551 is always formed on the basis of the values from the

original period.

Example

The employee receives an amount of 100.00 for the period 01/97. When

retroactive accounting is run, this amount increases to 110.00. The

amount 10.00 is created in wage type /551. When retroactive accounting

is run again, the amount is reduced again to 100.00. This time, wage

type /551 is not created since the amount no longer differs from the

original net pay.

Combination of secondary wage types /551 and /552 for 'Retroactive

accounting'

When retroactive accounting takes place, the system creates wage types

/551 (Recalculation difference) and /552 (Subsequent adjustment from

previous month). The difference between the old net pay (wage type /560)

and the new amount calculated is stored in wage type /551 (Recalculation

difference) in the payroll period for which retroactive accounting was

run. The amount is then transferred from wage type /551 (Recalculation

difference) to wage type /552 (Subsequent adjustment from previous

month) in the original period. Both wage types are stored in results

table RT at the end of the payroll run, wage type /551 with its +/- sign

reversed.

Wage type /551 (Recalculation difference) is the offsetting entry on the

credit side for a difference amount on the debit side. Since its +/-

sign is the opposite of this difference amount when transferred to the

results table, it must be posted to debits if it has a plus sign and to

credits if it has a minus sign. If it is preceded by a plus sign, wage

type /552 (Subsequent adjustment from previous month) is transferred to

the payroll results with the opposite sign from wage type /551

(Recalculation difference) and posted to debits, and if not, it is

posted to credits.

Reward points if helpful,

Thank You,

Former Member
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Thanks Arun and Narasimha, the answers were helpful for me to understand the basics n begin..

Former Member
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You could as well share all the points to encourage us to give big answers.

Thanks

Narasimha

Former Member
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Hi Arun,

             then what is /553 technical wagetype?

Answers (1)

Answers (1)

Former Member

Hi Charlene,

The last two digits of the /3, /4, /5, /6, /7 wage types represent the tax types. Table T5UTT contains all of the SAP tax types. For example if you look in T5UTT you will see that tax type 10 = Employer Unemployment Tax. /4 represents employee tax taken; therefore, /410 represents employer unemployment tax taken. I've outlined a description of common tax types below.

- /3XX - Total gross wages. Does not reduce wages by any pre-tax deduction wage types. For example, if salary is $1,000 and the 401(k) deduction is $200, /3xx will be $1,000. (/CXX - Tip income processing).

- /4XX - EE Tax calculated and returned by BSI (/DXX - Tip income processing.

/401 01 = EE Federal taxes taken

/401 02 = EE state taxes taken; Subtype 02 usually represents state taxes for /401

/401 03 = EE Local taxes taken; Subtype 03 usually represents local taxes for /401

/403 = EE Social Security taken

/404 = ER Social Security taken

/405 = EE Medicare taken

/406 = ER Medicare taken

/410 = ER Unemployment taken

- /6XX - Gross wages less pre-tax deduction. For example, if salary is $1,000 and the 401(k) deduction is $200,/6xx will be $800. SAP passes this amount to BSI for tax calculation. (/EXX - Tip income processing)

- /7XX - Reportable taxable amount calculated by BSI. If ceilings on taxable amounts exist and are exceeded, BSI will return a reportable taxable amount of zero. (/FXX - tip income processing).

- /NXX - Tax calculated, but not taken. (/HXX - Tip income processing)

- /IXX - Deduction from a previous period that was not reduced.

- /QXX - Wages that are taxable but not subject to withholding. (/UXX - Tip income processing). Example: Safety Awards.

If this helps, pl do reward.

Thanks

Narasimha