SAP HCM UK Payroll

[Former Member]

Hi,

Currently we are facing an issue in Uk Payroll System is recovering an overpaid amount on tax but not refunding the NI deduction amount.

Retro is not refunding the NI contribution for the period 5 days in July and remaining months ( Aug, Sep, Oct ) .

Now processing November month payroll for the employee.

Anyone come across this scenario, need your suggestion / inputs..

Note : We are creating 2001 record ( from 25/07/2015 to 04/12/2015 ) in November payroll.

Regards

Raja

[antoine_foucault · Accepted solution]

Hi Ramesh:

You can use Payment made in error (0793) infotype or Predetermination PAYE and NIC Adjustment (0874) infotype for this purpose.

Infotype Payment Made in Error GB (0793) - Payroll Great Britain (PY-GB) - SAP Library

Predetermination PAYE and NIC Adjustment (Infotype 0874) - Payroll Great Britain - SAP Library

Best,

Antoine

[Former Member · Accepted solution]

Hi Antoine,

Thank you for your reply, could you please elaborate on ( 0793), this will be included in any technical wage type, how it will be included in the year end.

Regard
Raja

[antoine_foucault · Accepted solution]

Hello:

I have not used yet IT0793 as I found 0874 easier to manipulate; however if you follow the link I gave you there is a pretty neat example. Looks at this scenario, it state how NIC is affected:

NIPE Process Scenario - Payroll Great Britain (PY-GB) - SAP Library

Used IT0874 a couple of times; it adjust or not Tax paid wage type (/501) Employee NIC wage type (/301) Employer NIC wage type (/302) depending if you have set an amount in the corresponding Inoftype screen field.

Year to end, nor other processes are affected since it adjust directly the final secondary wagetype representing either NIC or Tax that legal reporting is reading to output.

Best.

[Former Member · Accepted solution]

Hi Antoine,

I have gone through the link, here the scenario we are facing is employee NIable pay is in Negative, in this case the NI is not calculating for the current period and how do we calculate the NI for the period (July 5 days and Aug, Sep, Oct entered the Un paid absence in November for those past 4 months) we have already deducted from employee.

For the Month of November payroll employee net is in Negative. How NI will be handled  in this scenario.

Thank you for your information.

Regards

Raja

[antoine_foucault · Accepted solution]

Hi Ramesh:

Simply sort out how much NIC you want to pay in November run (including changes from all the period you are mentioning) and predetermine this amount in payroll using IT0874.

Use this to make your computations: HM Revenue & Customs: Class1NICs-Session Ended

Antoine

[Former Member]

Hi Antoine,

Thank you for the information it is really helpful so for the period ( Aug, Sep, Oct monthly and for the July 5 days shall I take weekly computation from HMRC site.

Example I have to given the amount in IT0874 as 422 in negative as employee contribution ? it will refund to employee.

Regards

Raja

[jayantvenkata]

Hello Raja

Kindly check SAP note 956533- Predetermination :Tax and NICS, this will explain how you will need to do the adjustment.

Thanks and Kind Regards

Ramana

[antoine_foucault]

Hi Raja:

You should take whatever basis (Weekly/Monthly or cumulative basis) set in IT0065 or ask the payroll clerk to specify it for you.

Whatever amount you put into NIC EE will be the final amount so your calculation need to work out exactly the excess paid in previous payroll period, the amount to pay in the current payroll period and combine them together.

So that means if you worked out 422 GBP paid in excess for a past payroll period then you need to subtract it from the NIC EE of the current payroll period and input it uner IT0874 EE NIC. If let say you have 60 GBP for this period, then 60 - 422 should be what you have to "predetermine".

Usually when EE NIC is to be adjusted it also applies adjustment of ER NIC but that is not mandatory.

Good luck.

[antoine_foucault]

great stuff Ramana! Thank you

It summarize in a "SAP approach" what I have been describing in earlier posts.

Very easy to use I must say !

956533 - Predetermination:Tax and NICS