Payroll

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.

Overview

Note: This is one of our most popular articles, and you may see illegal copies of it posted on other sites. However, this article can only legally be shown on our site - www.insightcp.com - any other sites that have it have done so illegally, violating our copyright. I hope you enjoy the article - but please don't copy and repost it -- Steve Bogner, Managing Partner, Insight Consulting Partners.

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.

Overview

Note: This is one of our most popular articles, and you may see illegal copies of it posted on other sites. However, this article can only legally be shown on our site - www.insightcp.com - any other sites that have it have done so illegally, violating our copyright. I hope you enjoy the article - but please don't copy and repost it -- Steve Bogner, Managing Partner, Insight Consulting Partners.

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.