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OHACN_PHF008 - Define Contribution Base Indicator, Rate or Constant
TXBHW - Original Tax Base Amount in Local Currency General Material DataThis documentation is copyright by SAP AG.
In this step, you define the employee and employer contribution for each group of employees based on the combination of contribution area, industry, contribution group and level. You define the contribution by specifying a fixed amount or a percentage of the employee's salary based on a particular salary base indicator (within a particular range).
To create a new entry:
- Choose New entries.
- Enter contribution area, industry, contribution group and level.
- Enter the validity period.
- For employee/employer contribution, choose from indicator C, D, L, M, N, S, T or U.
- C: Current month salary
- Contribution base is from the wage type /150, which is the salary being prorated.
- D: Direct entry in the field Amount
- You define the final contribution amount in the field Amount.
- L: Social lowest monthly salary in the previous year
- The contribution base amount needs to be set in the next implementation step Maintain Base Salary Information in Calculation.
- M: Personal average monthly salary in the previous year (Old)
- Contribution base is from wage type /301 - /30D depending on the switch period of the contribution area:
| Switch period | Contribution base from wage type | ||
|---|---|---|---|
| 1 | /301 | ||
| 2 | /302 | ||
| 3 | /303 | ||
| 4 | /304 | ||
| 5 | /305 | ||
| 6 | /306 | ||
| 7 | /307 | ||
| 8 | /308 | ||
| 9 | /309 | ||
| 10 | /30B | ||
| 11 | /30C | ||
| 12 | /30D |
- The cumulation of monthly salary and the setting of /301 - /30D are customized in the implementation step Time Wage Type Valuation -> Averages.
- In case you have new hired employees or your system goes life, there are no history payroll results to calculate the average monthly salary in the previous year. You have to determine one manual input wage type for "Personal average monthly salary in the previous year" by processing class 69. The calculation rule CN69 reads processing class 69 to transfer wage type as a contribution base.
- By using this indicator, the calculated contribution base is the same for all social insurance types or public housing fund, that is, only one contribution base.
- N: Personal average monthly salary in the previous year (New)
- Contribution base is from wage type /315 - /365 depending on the social insurance type and public housing fund:
| SI type or PHF | Contribution Base from WT | Previous year average salary from WT | ||
|---|---|---|---|---|
| Pension Insurance (PI) | /315 | /316 | ||
| Unemployment Insurance (UI) | /325 | /326 | ||
| Medical Care Insurance (MI) | /335 | /336 | ||
| On-job Injury Insurance (II) | /345 | /346 | ||
| Maternity Insurance (BI) | /355 | /356 | ||
| Public housing fund (PHF) | /365 | /366 |
- The cumulations of monthly salary for different social insurance types or public housing fund are defined in the wage type /3X6 in the implementation step: Time Wage Type Valuation -> Averages.
- In every January, /3X6 gets the personal average monthly salary of the previous year and keeps using the amount for one year. Wage type /3X5 forms the contribution base amount which is changed in every switch period.
- For example, the switch period for a contribution area is July:
| Before July, 2002 | In July, 2002 | ||
|---|---|---|---|
| /3X5 = 2000's Pers.Ave.Mon.Sal | /3X5 gets amt. from /3X6 and keeps it till next June | ||
| * /3X6 is the Average Monthly Salary of 2001. |
- If you have new hired employees or your system goes life, there are no history payroll results to calculate the average monthly salary in the previous year. You should determine one manual input wage type "Personal average monthly salary in the previous year".
- You are highly recommended to use the indicator N if you do not have any customizing setting for the indicator M.
- S: Social average monthly salary in the previous year
- The contribution base needs to be set in the implementation step Maintain Base Salary Information in Calculation.
- T: Current contract salary
- Contribution base is from wage type /390 which is the salary without being prorated. Rule CNCO reads processing class 68 to evaluate the wage types and form /390.
- U: User input contribution base
- You should specify the wage type name and maintain it in the infotype 0014 with valid period for each employee.
- By using the report "China PHF/SI contribution base retrieve/upload", you are able to do batch maintaining wage types in the infotype 0014 for a group of employees. You can access the report from the Payroll menu by choosing Human Resources -> Payroll -> China -> Subsequent Activities -> Period-independent -> PHF / SI Contribution Base Retrieve/Upload.
- Choose the rounding indicators which specify the rounding method of:
- Employee contribution base
- Employee contribution amount
- Employer contribution base
- Employer contribution amount
- Specifically, there are six kinds of rounding methods:
- 1: Commercial rounding to Yuan
- 2: Commercial rounding to Jiao
- 3: Round down to Yuan
- 4: Round down to Jiao
- 5: Round up to Yuan
- 6: Round up to Jiao
- Choose whether implement the special regulation about Public Housing Fund tax deduction
- If you set the value in the Emt contri. rate field, the system use the special regulation to calculate the PHF tax deduction.
- There are four possible combinations involving the exempted contribution rate and exempted multiplier.
- The exempted contribution rate and exempted multiplier both have a value. The system calculates the exempted contribution amount as follows:
- The exempted contribution amount = exempted contribution base x exempted contribution rate
- When the contribution base is greater than the multiplier times the social average monthly salary of the previous year, the exempted contribution base equals the multiplier times the social average monthly salary of the previous year.
- When the contribution base is less than or equal to the multiplier times the social average monthly salary of previous year, the exempted contribution base equals the actual contribution base.
- The actual contribution amount = contribution base x actual contribution rate
- After calculation, if the actual contribution amount is less than the exempted contribution amount, the actual contribution amount is not taxable. If the actual contribution amount is greater than the exempted contribution amount, the difference should be added to wage type /103 to calculate income tax.
- For example, if the exempted contribution rate is 12%, the exempted multiplier is 3, the employee's average monthly salary in the previous year is CNY 10,000, the actual rate is 12%, and the social average monthly salary of the previous year is CNY 3,000, the calculations are as follows:
- Since CNY 10,000 is greater than CNY 9,000 (3 x 3000), the exempted contribution amount is CNY 1,080 (9000 x 12%).
- The actual contribution amount is CNY 1,200 (10000 x 12%).
- The difference for the employee then equals CNY 120 (1200-1080) and is added to Taxable Salary wage type (/103) to calculate income tax.
- Any positive difference for the employer is also added to wage type /103.
- The exempted contribution rate has a value but the exempted multiplier is empty.
- In this case, the exempted contribution base has no upper limit. The relationship of the contribution base to the multiplier times the social average monthly salary of previous year is not relevant. The exempted contribution base always equals the contribution base.
- For example, if the exempted contribution rate is 12%, the exempted multiplier is empty, the employee's average monthly salary in the previous year is CNY 10,000, the social average monthly salary of the previous year is CNY 3,000, and the actual contribution rate is 15%, the calculations are as follows:
- The exempted contribution amount is CNY 1200 (10000 x 12%)
- The actual contribution amount is CNY 1,500 (10000 x 15%)
- The difference for the employee then equals CNY 300(1500-1200) and is added to wage type /103 to calculate income tax.
- Any positive difference for the employer is also added to wage type /103.
- The exempted contribution rate and the exempted multiplier are both empty. In this case, the system runs according to the previous logic. The entire contribution amount for PHF is exempted.
- The exempted contribution rate is empty but the exempted multiplier has a value. This input is not permitted, and an error occurs.
- Save your entries.
Notes
For the indicator S, L, C, T, M, N and U, you may enter a constant in the field Amount, thus the base calculation follows the formula:
Contribution amount = Contribution base * Contribution rate + Constant
SUBST_MERGE_LIST - merge external lists to one complete list with #if... logic for R3up Fill RESBD Structure from EBP Component Structure
This documentation is copyright by SAP AG.
Length: 15257 Date: 20240524 Time: 014647 sap01-206 ( 156 ms )
