PY_IN_How to create Gross Up wage type?

[Former Member]

Dear experts,

I am needed to create one Award wage type for India, where in gross up tax needs to be paid out. The Award wage type is paid using IT15, but needs to be mapped to both earning and deduction, so that it adds to gross only for tax computation. The gross up amount should be calculated as 30% tax.

Has anyone does such config for India? What PCRs you have used?

Highly appreciate your suggestion.

Best Regards

Lalitha

[raghu_c]

please have a look at SAP Note 1024284 and configure your system accordingly to get the desired results.

RAghu

[Former Member]

Yes Tania, 857. We will need to calculate this before INTAX and this should be added to earnings and again taxed.

Do you know the PCR for this formula? I think I will need to insert this PCR after P0015 in Schema.

One more condition, this should be paid out only if Award amount is >=5000.

I just started my career with SAP HCM, not very clear on writing PCR.

Best Regards

Lalitha

[Former Member]

I have never worked with Gross up before, so require a few clarifications on the functionality. Could you confirm the below:

1) Check if award>= 5000, if yes calculate gross up tax

2) The actual Award (5000) should be added to taxable income as well as paid to the employee.

3) The gross up tax should also be added to the taxable income but not paid to the employee.

If you have any documentation on the process, please share it.