Payroll

Payroll Tax Models in SAP HR

Tax models drive how wages are taxed in the SAP US payroll calculation. SAP supplies a general tax model with the system, but if you do business in local tax authorities or have complex taxation rules then you will most likely have to configure your own tax models.

There are several steps and basic settings that define what is taxable, non-taxable, or adds to a taxable wage base. Several items on the tax jurisdiction (i.e. tax authority) have to be set up and then that is matched to the appropriate processing class values to achieve proper taxation.

ORGANIZING SAP PAYROLL PROCESSING

How many programs does your organization run to pay your employees? Depending on how many separate systems with which you interface, the list could be quite long. There are programs to drive the payroll, print the checks, create the bank file, post the payroll, send payments to vendors to name a few. With the introduction of SAP release 4.x came a new utility called ‘process models’ which order and organize payroll processing. Visually, the process model is a flow chart of the programs in your payroll process. Process models can be created at least for regular payrolls, off-cycle payrolls, reversals, check replacements and bonus payments. The user initiates a process directly from the process model workbench or through the off-cycle workbench. Once the process is started, containers that carry necessary output from the previous program as selection criteria for the subsequent program. For instance, if running a regular payroll, the output container for the pre-DME program would be the payment run date and payment identification. This would also be the input container for the check-printing program. As the process is running, the user can see the status of each program by how many personnel numbers are processed and how many are incorrect.

SAP Payroll Basics Part 3 - Commonly Used Operations in SAP Payroll

Overview

Previously we presented an overview of the foundation of payroll processing and information on the central functions in the payroll schema. So you know the structure of payroll processing and the major functions - now we will look at payroll operations, where most of the real work gets done. This subject area is very large and we are only scratching the surface here.

Types of Operations

Like functions, documentation for operations can be found via transactions PDSY or PE04. Operations can be placed in two broad groups - those that make decisions and those that manipulate wagetypes. Some of them fit into both groups. Manipulating Wagetypes Working with wagetypes in a rule is sort of like working with internal tables in ABAP. The function that called the rule (PIT, PRT, P0014 or whatever) loops through the table, placing each row, one at a time, in a 'header' space. You work with the wagetype in that header space, and when finished add it back to the table.

SAP Payroll Basics - Part 2: Central Functions in the Payroll Schema

Overview

Previously we presented an overview of the foundation of payroll processing - the basic structure of schemas, rules, function and operations. Now let's take a look at the major functions in the payroll schema.

Common Functions

Functions can have up to four parameters, and usually the SAP documentation does a good job telling you what each parameter does. Documentation for functions and operations can be found via transactions PDSY or PE04.

COPY This is the same as 'include' in ABAP and other programming languages. COPY just inserts the schema contained in parameter 1 when payroll is executed. Good programming style and good schema configuration style are basically the same - put commonly used logic in an 'include' so that it can be used in several places and to improve readability.

BLOCK As of release 4.0 the schema log is organized in a collapsible tree structure. BLOCK BEG starts a node and BLOCK END ends the node. Everything between BEG and END is contained within the node. BLOCK BEG/END can be nested several levels deep. Again, place the BLOCK BEG/END functions appropriately to make the log easy to read.

SAP Payroll Basics - Part 1

Overview

The area most often overlooked when training people on SAP Payroll is the basic, fundamental meaning and usage of payroll schemas, rules, wagetypes and their associated processes. We will try to correct that. First, we will present an overview of the basic parts of the payroll process, then in subsequent articles we’ll go into more detail on each one. Not every possibility will be covered – that would be a multi-volume hard-back series of books, not an easily read web-based article. But we will cover the basics in a way that gives you a good understanding of SAP schemas and rules – from there you can use that knowledge base to learn as much as you want about the rest of this subject.

Schemas and Functions

In SAP Payroll, functions provide the high-level logic for payroll calculations. Functions perform general processing – such as calculating payroll taxes on a given set of wages, reading wagetypes from specific infotypes, calculating benefits premiums, and storing the results of the payroll calculation. There are dozens of functions in SAP payroll, some are country-specific and others are not. Each function is defined and documented via transaction PE04; you can also view the function documentation via transaction PDSY in releases 4.5 and greater, or with report RPDSYS00 in earlier versions.