on 11-01-2007 10:42 PM
Can anyone plz help me understand the Difference between /3, /4, /5, /6,/7 Wage Types..
Thanks
Charlene
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,
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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
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