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OHADSVC02 - Define Calculation Type for ER HI Allowance

OHADSVC02 - Define Calculation Type for ER HI Allowance

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In this step, you can change the level of the employer's contribution and the tax-exempt employer's contribution.

When doing this you should bear the following in mind:
If you pay a higher employer's contribution than the tax-exempt employer's contribution, the amount in excess is taxable and liable for contributions.

The tax-exempt employer's contribution is laid down by law. Please do not make changes to the calculation of this amount which do not comply with the legal requirements.

The values are set up in such a way that the Tax-exempt employer's contribution is paid as the Employer's contribution.

The Tax-exempt employer's contribution is half of the total contribution for employees who are insured with a statutory health insurance fund.
(This does not apply to HI-exempt employees whose annual remuneration is below the annual renumeration limit. For information on this, see the subsequent step 'Calculation of constant values').
For privately insured persons, the tax-exempt employer's contribution is half the private insurance contribution but at most half the comparison amount.

If as a rule you would like to pay only the Tax-exempt employer's contribution as the employer's contribution, only the following case is of interest to you:

For some statutory health insurance funds, the fixed contribution is higher than the percentage for voluntarily insured persons. You obtain this percentage by multiplying the contribution rate of the health insurance fund by the HI assessment threshold. In payroll accounting, half of the fixed contribution is paid with the default setting as an ER allowance, however, the employer is only legally obliged to pay half of the percentage as an ER allowance.

If you would like to change the default setting for this reason, proceed as follows:

  1. Choose the entry with HI key 5, the indicators "Private" and "Exempt" not checked off and with with determination of amount of contribution F.
  2. In the area 'Calculation of ER contribution', change the entry in the Contribution amount calculation field from F to P1 and enter a 2 in the Contribution base field.
  3. This change must also be made in the area 'Calculation tax-exempt employer's contribution'.

The tax-exempt employer's contribution is controlled by law. Please ensure that you do not illegally change the calculation of employer's contribution.

Tax and contributions are paid automatically on the taxable employer's contribution in payroll accounting.






PERFORM Short Reference   General Material Data  
This documentation is copyright by SAP AG.

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