Ansicht
Dokumentation

HCNCTXY0 - Blind Spot Detection for Year-End Bonus

ROGBILLS - Synchronize billing plans   Fill RESBD Structure from EBP Component Structure  
This documentation is copyright by SAP AG.

Title

Blind Spot Detection for Year-End Bonus

Purpose

Based on the tax calculation for year-end bonus (YEB) in China, there are cases when an employee's YEB increases but the YEB net pay decreases. This happens when the employee's YEB falls in one of the blind spots in YEB tax calculation.

You use this report to check whether an employee's YEB falls in a blind spot and, if it does, to suggest a new YEB amount for the employee. By using the suggested YEB amount, you can avoid lower net pay of YEB under higher YEB for the employee.

Integration

Prerequisites

You have maintained the following infotypes for selected employees:

• Income Tax (0531)

• Additional Payments (0015) or Additional Off-Cycle Payments (0267) for year-end bonus

Features

Selection

Standard Variants

Output

Activities

To access this report, on the SAP Easy Access screen, choose Human Resources -> Payroll -> Asia/Pacific -> China -> Subsequent Activities -> Annual -> Reporting -> Blind Spot Detection for Year-End Bonus.

Example

Employee B has a YEB of 18,000 yuan. With the following calculation, the net pay is 17,460 yuan:

Check Tax Rate Table for tax rate: 18,000/12 = 1,500 tax rate is 3%

Calculate Tax: 18,000 * 3% - 0 = 540

Calculate Net Pay: 18,000 - 540 = 17,460

But for employee A who has a higher YEB of 18,001 yuan, the net pay is 16,305.9 yuan with the following calculation:

Check Tax Rate Table for tax rate: 18,001/12 = 1,500.08 tax rate is 10%

Calculate Tax: 18,001 * 10% - 105 = 1,695.1

Calculate Net Pay: 18,001 - 1,695.1 = 16,305.9

Although A's YEB (18,001 yuan) is higher than B's (18,000 yuan), A's net pay is lower than B's: 16,305.9 < 17,460.

When you run this report, the report calculates the tax and net pay for both employees and suggests a new YEB amount, with corresponding tax, for employee A.

Notes

For performance reason, the report does not simulate payroll run but uses the Monthly Salary Wages (/4M0) wage type to calculate the tax exemption for YEB.

To generate the /4M0 wage type for an employee, you can either get it from the latest payroll result or manually enter a value for this wage type in the Additional Payments (0015) or the Additional Off-Cycle Payments (0267) infotype. If you have done both, the manual input value of /4M0 prevails. And if both Additional Payments and Additional Off-Cycle Payments infotypes have records, the latest valid record in the Additional Payments infotype is used for the /4M0 calculation.

Therefore, the report results might not be accurate in the following situations:

• An employee's salary has changed since the last payroll run.

• An employee, for example, a new hire, has no payroll records in the system, and the /4M0 wage type has not been maintained for the employee in the Additional Payments or the Additional Off-Cycle Paymentsinfotype.

In this case, the report calculates the YEB tax without any tax exemption, even if the employee's monthly salary is lower than the amount of tax exemption.

BAL_S_LOG - Application Log: Log header data   RFUMSV00 - Advance Return for Tax on Sales/Purchases  
This documentation is copyright by SAP AG.

Length: 4020 Date: 20240531 Time: 233607     sap01-206 ( 67 ms )