Exclude wage type amount from Net pay

[Former Member]

Hello Experts,

We have been using Canteen Allowance, which is fully taxable. Now meal coupon need to be implemented which will be Non taxable.We have created one custom Wage type for Meal coupon. We are deriving amount for meal coupon through a function and deducting same amount from Canteen Allowance.

Everything we have done is working fine but amount in Meal coupon WT is added to Net Salary (/560). We are not using any Cumulation class (all are unticked) for this new wage type. Need help to understand, how this wage type is added to /560? Does Processing class and Evaluation class also impact /560?

Any help is appreciated.

Regards,

Amitesh

[Former Member]

Hi Amitesh,

I think you may have added custom function for meal coupon related calculation after Net pay calculation. I mean your canteen allowance get added into Net pay and then your deducting meal coupon amount from it so it is not impacting net pay. Share the schema snap where you added custom function for meal coupon.

Regards,

Jay

[Former Member]

Check cumulation class 1 for the meal coupon wage type. It is probably selected. Do not select it if it should not be added to the employee's salary.

[Former Member]

Hi Tania,

Thnaks for your help. But as I mentioned all cumulation class has unchecked.

Meal coupon WT we copied from another wage type, which has same properties but reference wage type is part of net pay.. So after copy we unchecked all cumulations class and from T511 unchecked "Add to total", however processing class and Evaluation class are unchanged. I am not sure about processing classes are maintained correct or not, documentation for some processing class are not clear. Is there any processing class which may affect /560.

Regards,

Amitesh

[Former Member]

Hi,

if you unchecked all the CC wage type will not add to the gross. run and check once. PC are for processing of wage type in the payroll (considering LOP, etc...)

[Former Member]

The only standard way any wage type will be added to net pay is if you check CC 1. The reasoning behind this is that this setting adds the wage type to /101 which is monthly gross. Net pay=Gross - Deductions.

So can you confirm if the wage type is added to /101?