15.9.11

SAP Note 27471 - Late payment to leavers in the same leaving period

Symptom:

When there is a need to have a payment made to a leaving employee and then make a second payment after they have left, but in the same period, then there are differing tax and NI rules required to be used in the calculation.
In addition it was felt that rather than using special wage types to calculate late NI in terms of it being regular or irregular (model company wage types A090 and A095), the normal payment wage types should be able to be used and the payroll automatically detect when we are in the 'Late payment to Leavers' situation.

Cause and prerequisites

There is an assumptions made to realise this solution. In actual fact it is the issue of the P45 that should determine when any future payments to the employee need to be calculated in the 'Late payment to leavers' way. Therefore an employee could have left but if not having yet recieved their P45 the any payments are normal. The development of an automatic 'P45 issued' indicator is in process but in the meantime we have to assume that the leaving event (rendering the employee inactive) means that the 'Late payment to leavers' method of calculation will be used.

Solution
The key to solving the problem is to have two sets of payroll results in the same period. There is a way to achieve this at the event level.
To enable this creation of two payroll results in one payroll period please either maintain the leaving event or create a leaving event with a specific reason in T530. The table entry either way should have the split field marked.
In addition, all payment wage types must have either cumulation class 32 or 33 marked. The reason being that we can then determine on these normal wage types in which way (regular or irregular) NI should be calculated on detection after leaving. All these payment wage types should still retain the cumulation class 31 mark also.
An example of this would be on model company wage types A090, A095:
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Additional key words

An example of where this may occur, is when the user wishes to make one payment to cover the part period renumeration and then before the end of the current payroll period, make a supplementary run to pick up redundancy payments for the current period that have to be taxed at basic rate on basis week 1 month 1.

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