Employee Transfer Mid Month Singapore

[former_member91669]

Hi,

We have an employee that is transferred in the middle of the month from Entity A to Entity B, I would think that from ECP, his pay and income tax reporting for the month will be split by the number of days that he spent in Entity A and B respectively? It seems this is not the case and Entity B seems to be bearing the full cost, is this behavior correct as labor law in Singapore does not restrict movement cross company at any time.

In addition, we were also told that we should not group companies together (even though in the same country) to perform ECP runs?

[ankitaecp]

Hi, 

Mid-month legal entity transfers are not advisable as Singapore standard solution doesn't support this and neither SAP. Singapore standard solution support legal entity transfer at the beginning of the month(1st of the month). 

If you transfer an employee on Feb 15th, the system will treat it as March 1st, meaning when you will generate IR8A, It will generate 2 IR8A forms but for Feb the amount will not be prorated in the form as its not supported. 

This is due to the reason that SG payroll area executed on a monthly basis and standard tables has 1 record for each month only. 

[BalasubramanianAP]

Hi, In general sap practice, employee transfer from one legal entity to another will be treated as "re-hiring" with new employee number. You can also check with "Concurrent Employment" feature in sap. Your system behaviour depends on the how the replication is done with EC to ECP on this situation. In India payroll, this situation is handled with "Multiple Form16". In inter-company employment, there will be accounting journal entries should be passed manually to adjust the cost of the employee between company codes. You may have to check with SAP support and your finance legal team for handling this situation.

[former_member91669]

Hi,

While i think this can solve the issue, another issue will arise. I will lose all the employment history for the employee if i use a new employee number?

[BalasubramanianAP]

Hi, We used to resolve this kind of re-hiring with the following additional info:

1) Rehire with back-date (date of joining will be his first company's initial hiring date), but keep him

in non-accounting payroll area '99' for those historical period in new company code.

2) Keep his employment history in infotype 41 date specifications with special date types, so that he will not

lose his seniority information.

[former_member91669]

Hi,

Correction, they are under different legal entities but the same company code, if i assume the company code you are referring to here is the one in use when we select company structure.

[former_member91669]

Hi,

They are under the same payroll area and the company codes are different

[siddharthrajora]

do they have same payroll area or different Payroll area?

company codes are different?