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Tax on Bonus pay in regular Payroll

Former Member
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Dear Experts,

I have one scenario that:

We are paying Bonus thru regular payroll and the TAX to be deducted:

1.as per slabs , If EE total gross for tax is in the 10% slab then 10% tax on Bonus, if slab is 20% then 20% tax on Bonus..........)

2.No projection for rest of the months

The current results:

1.Maintained flat rate 30% in the V_T511K ,if not tax is not deducting on bonus.

2.maintained Tax code is as SBON using INBTD function in regular payroll run

Please guide me to reach the same

Thanks

Cheera

Edited by: sreecheera on Oct 25, 2011 12:50 PM

Edited by: sreecheera on Oct 25, 2011 12:51 PM

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
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Hi,

See SAP Note 1024284 for TDS deduction on irregular payments and configure accordingly,and in schema maintain Func=INBTD,Par1= BON5, Par2=ZTDR and Par3=X and check it this way,also maintain bonus as total gross & irregular payment in V_512W_D.

Though Bonus is paid thru Offcycle you can try with regular payroll,this should help you.

Salil

Former Member
0 Kudos

Dear Salil,

Thanks for quick reply!!!

we already did this ,but my query is as below:

Example: Let say Male EE and month is April'

Case 1: Total taxable income is: 4,20,000

Bonus = 10,000

Tax for 12 months = 24,000 (10% on 2,40,000)

Tax for the current month = 2,000

Now Tax should calculate on bonus as per 10% . i.e tax = 1,000 (10% on 10,000)

Total tax = 3,000

Case 2: Total taxable income is: 5,20,000

Bonus = 10,000

Tax for 12 months = 32,000 (10% upto 3,20,000)

Tax for 12 months = 4,000 (20% on 20,000)

Tax for 12 months = 36,000

Tax for the current month = 3,000

Now Tax should calculate on bonus as per 20% . i.e tax = 2,000 (20% on 10,000)

Total tax = 5,000

Is there any way to achieve this method of tax calculation ? If yes please share your views.

Thanks

Cheera

Former Member
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Hi,

What are the details you maintained in your Schema let us know.Also if possible maintain bonus WT in 267 and check the taxation as you have already configured as per SAP note.

Salil

Former Member
0 Kudos

Dear Salil,

we have copied INBTD function to regular payroll in subschema INN1 as

INBTD BON1 SBON and maintained tax constant in V_T511K = 30%

We did thru offcycle IT0267 ,however tax is calculating as per EE slab in regular payroll of previous month,

But if you pay bonus in regular payroll, tax is calculating as per V_T511K %,

Thanks

Cheera