cancel
Showing results for 
Search instead for 
Did you mean: 

Condition to deduct ESI

Former Member
0 Kudos

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

Accepted Solutions (1)

Accepted Solutions (1)

Sanky
Active Contributor
0 Kudos

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

Former Member
0 Kudos

Thanx for ur response .. let me explain the ESI deduction with an example..

lets consider 2 employees ..

  • Employee 1 with wagetype ''XXXX " and amount let say "220"
  • Employee 2 with wagetype  "XXXX" and amount "198".

Now for Employee 1 ESI shud be deducted as WT "XXXX" is greater than "200" and for Employee 2 ESI shud not be deducted as WT "XXXX" is less than "200".

Let me know if u want any more explanation .

Regards

Swapnil

Former Member
0 Kudos

Are you giving ESI deduction only on this 1 wage type or you are considering all the wage types from IT 0008 ? and this rule is for any specific EG/ESG or all the Employee's in the company ?

Former Member
0 Kudos

Hi Praneet,

Am supposed to deduct ESI for a few wagetypes but the condition is fr only one WT.  Out of these a few WTs, fr one WT, the ESI shud be deducted only if the amount of this particular WT is 200+.

And, this holds good for all the employees irrespective of any EG or ESG..

let me know of u need any more info

regards

Swapnil.

Former Member
0 Kudos

My understanding:

2100 -  5000/-

2200 -  5000/-

2300 -  4500/-

2400 -   220/-

here you want to deduct ESI for all first 3 wt's (2100+2200+2300 * 1.75% & 4.75%) and for the fourth wt 2400 = if it is more than 200/- then it has to calculate other wise no deduction.

ex. 2400 = 220/- (ie., 220 * 1.75%  EE  and 4.75% ER)

if 2400 = 180 / 200/- (No deduction)?

This is ur requirement right. confirm if this is ur exact req. or revert back with example.

Former Member
0 Kudos

Praneet,

Yes - u understood it correctly. This is my exact requirement.

Let me try and explain it once again to u by taking two employees.

Employee 1

2100 -  5000/-

2200 -  5000/-

2300 -  4500/-

2400 -   220/-

then, ESI = (2100+2200+2300+2400 * 1.75% & 4.75%)

AND if,

Employee 2

2100 -  5000/-

2200 -  5000/-

2300 -  4500/-

2400 -   180/-

then, ESI = (2100+2200+2300 * 1.75% & 4.75%)


Hope this explains better.


regards

Swapnil



Sanky
Active Contributor
0 Kudos

Hi Swapnil,

Got your requirement fully.Now you can design your custom this way based on the example provided by you.

Maintain CC 12 for WT2100,2200 & 2300 and place a below custom PCR before INESI function. Use this pcr with PIT function and Par2 as GEN.

*

  /112

          AMT=  2400 (Give two space after 😃

          AMT?KZESI  (ZESI is the constant which is carrying 200 and stored in constant tableT511K)

                <

                   ADDWT *

                *

                   AMT=  /112  (give two space after 😃

                   AMT+  2400 (give two space after +)

                   ADDWT /112(give one space after ADDWT)

  ****

         ADDWT *

Check and tell me.

Regards,

Sankarsan

Sanky
Active Contributor
0 Kudos

Hi,

If your query is answered then close the thread.

Regards,

Sankarsan

Former Member
0 Kudos

Hello Sankarsan,

What should I be doing so that ESI should not be deducted from this wagetype?

the processing class 72 of this wagetype is already 5 (Cumulate without prorating into ESI/PTX) but the ESI is still being deducted form this ... Should I be changing it to something else? Plz suggest me ASAP..

And to give u more clarification: Evaluation class 12 is 01 (Contributing towards ESI)

                                               Cumulation Wagetype 12 (ESI Basis) is tick marked

regards

Swapnil

Sanky
Active Contributor
0 Kudos

Hi ,

Untick the cumulation class 12.

Regards,

Sankarsan

Sanky
Active Contributor
0 Kudos

Hi,

If its answered then close the thread.

Regards,

Sankarsan

Answers (2)

Answers (2)

Former Member
0 Kudos

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.

Former Member
0 Kudos

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

Former Member
0 Kudos

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