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Income Tax on off cycle payroll

Hi All ,

This is regarding off cycle payroll and income tax calculation.

The scenario is :

We are paying incentive of Rs 50000 in off cycle period . The spot tax will be calculated on incentive component, but income tax should not deduct at time of off cycle payroll. This tax deduction should be reflected at time of regular payroll .

How to call off cycle payroll in schema.

Regards ,

Ashutosh Katekar

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  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Oct 12, 2015 at 05:45 AM

    The INBTD function probably gets called twice in your schema - once under the IF SPRN section. Comment it from this section. This will deactivate tax during offcycle run.

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  • Posted on Oct 12, 2015 at 04:52 AM

    Hi,

    Please check the INBTD function used for the tax code for the wagetype which is used for offcycle payroll in schema INN1. If the parameter 3 is checked as 'X' for the parameter 1 when it is BON1,BON4 and BON5 then the tax deduction will be based on the tax liability of the person.

    E.g : INBTD BON5 SBON X

    Kindly check the SAP documentation on the function "INBTD"

    Tax Deduction during Offcycle run at the Time of Payment

    Hope this will help you.

    Regards,

    Venkat Polisetty

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  • Posted on Oct 12, 2015 at 07:39 AM

    Go through below link, It may help you to resolve issue.

    TDS on Irregular Payment During Regular Payroll Process - Contributor Corner - SCN Wiki

    Regards

    Venkatesh

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