Skip to Content
avatar image
Former Member

Condition to deduct ESI

Hi Experts,

I have a situation where my client is asking me to deduct ESI on a wagetype only if the amount is 201 and above. - If the amount  is less than or equal to Rs. 200/-, no deduction of ESI shud happen on the same.

Need expert guidance as am new in SAP HCM.

Also, My client is asking me not to deduct any TDS for any of the employees - Currently the TDS is being deducted for the employees who fall in TDS bracket. How can I reconfigure the system so that TDS will not be deducted when I run payroll. Am running India payroll.

thanks in Advance

Swapnil

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

3 Answers

  • Best Answer
    Dec 26, 2014 at 10:42 AM

    Hi,

    1.Please clarify the ESI requirement in details.

    "to deduct ESI on a wagetype only if the amount is 201 and above. - If the amount  is less than or equal to Rs. 200/-, no deduction of ESI", please clarify this line what is amount 201 and from where it will come.

    2.  "No deduction for TDS" for this you can find INTAX function in subschema INN1 in the standard schema IN00. Comment this function then system will not deduct the tax.

    But i would suggest you don't go for in the mid of financial year if it's still deducted tax so far. Go wuth the new changes from the financial year.

    Regards,

    Sankarsan

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Dec 26, 2014 at 07:48 AM

    For TDS issue, you can copy the schema IN00 to ZN00, in schema INN1, you will find Function INTAX. Comment that by copying the INN1 schema to ZNN1. In IT0015, Subtype MVT1, you can maintain the manual value which you want the system to deduct.

    ESI, it is not possible to change the value. If still if you want to do this, then in the same schema as above, you will find Function INESI. Comment that too.

    For manual values of ESI, in IT0015, you can create the custom wage type and enter amount in the same (though this is a wrong practice and not advisable. Try to convince the client first that such a scenario is not possible. Otherwise you can use this way).

    Regards,

    Bhagyashree

    Add comment
    10|10000 characters needed characters exceeded

    • Former Member

      Hi Bhagya,

      Thnx fr ur input. So if I comment INTAX, TDS wont be calculated? and the same applies to ESI if I comment INESI.

      And, Entering manually in IT0015 wont be a good option as the number of employees in my client is huge. I ll try convincing my client else I ll have to have LSMW upload.

      Any other suggestions u give?

      regards

      Swapnil

  • avatar image
    Former Member
    Dec 26, 2014 at 09:19 AM

    Hi,

    1. To stop TDS de-activate the function INTAX in the schema INN1 sub schema of std indian payroll schema IN00. for this you need to cost to custom schema and do as per the requirement.

    2. ESI can be done through custom PCR and what exactly the requirement.

    ESI will be calculated on Gross of the month and it is not individual wage types like PF (only on Basic & DA). give your specific req. for ESI.

    Add comment
    10|10000 characters needed characters exceeded