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OHAUTX00430 - Maintain overtime wage types

ROGBILLS - Synchronize billing plans   Vendor Master (General Section)  
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In this Customizing activity, you determine which wage types should be considered overtime, for the purposes of Tax Type 106 for the City of Eugene.

Tax Type 106 is the Employee Payroll Expense Tax - Community Safety Employee Tax.

Background information

The Employee Community Safety Payroll Tax Rate is determined using the gross wages (less overtime) for the pay period. The tax rate is then applied to all subject pay period wages, including overtime.

Example

An employee receives a salary of US$1000.00 on a bi-weekly basis. In the current pay period he or she also received US$300.00 as overtime payments. To calculate the Tax Rate, all payments less overtime should be used (in this case US$1,000.00) which will result on a Tax Rate of 0.003. This rate should be applied to all payments (in this case US$1,300.00) that will result on a US$3.90 tax.

You define a wage type as overtime using either of the following options:

• Processing Class 86: Overtime wage types should have their processing class 86 set to value 2 (Cumulate the number of hours as overtime).

• Table view V_T596J, subapplication CSPT (Community Safety Payroll Tax).

To determine that a wage type shall cumulate as overtime, execute this Customizing activity and make entries in Table view V_T596J, subapplication CSPT (Community Safety Payroll Tax).

Important:

When calculating Tax Type 106 for the City of Eugene, view V_T596J works as an override on Processing Class 86. It means that you must maintain the overtime wage types configuration in a single place. If any entry is found in V_T596J under subapplication CSPT and Cumulation Wage Type OVRT, the Processing Class 86 value will not be considered for any Wage Type.

Note that this override only works for Tax Type 106. It does not affect other scenarios where Processing Class 86 is used.

CPI1466 during Backup   PERFORM Short Reference  
This documentation is copyright by SAP AG.

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