Payroll Philippines- Income projection till LWD for annual tax method

[former_member253175]

Hi,

Payroll Philippines- Income projection till LWD for annual tax method.

If employee quits in mid of FY, system is projecting income till end of financial year instead of projecting the income till Separation date.

For eg:

FY Jan-2020 ~ Dec-2020

Employee separation date: 30-Jun-2020

Employee salary per month = 10000 PHP

System projection = 10000*12=120000 (projecting for whole FY)

Expected projection = 10000*6=60000 (to be projected only for those months till LWD)

Checked function TAXCA, TAXWT , IT0041 - N0 subtype but not supported.

(expecting similar to India payroll income projection where system projects income till future separation date in a FY or IT0041-N0 date type.)

Please let me know if anyone worked on it or let me know how to handle this requirement.

Regards,

Velvendhan D.

[sikindar_a]

SAP should revert to you on the following. As for Indian tax, we have nomial and actual tax projection the same should happen in your case

[BalaAP]

Please debug your payroll schema using abaper's help. Keep a break point in your payroll function and check how the tax is calculated. Also check for any legal note in sap support portal.

[former_member253175]

Hi Balasubramanian,

Thanks for your reply 🙂

Post debugging TAXCA function we got to know there is no logic written to project income till LWD, Hence we raised an OSS to SAP and SAP also confirmed that Philippines payroll driver is not capable to stop projection till LWD.

Hence posted in SCN if anyone can help sharing the solution how they handled to achieve the same scenario.

[BalaAP]

You may have to write some custom PCR to manipulate tax wage types (by inputting some flag WT in IT15 to reduce the tax amt). Or you can write a PCR to override tax amount.

[former_member253175]

Hi Balasubramanian,

Custom PCR for adjusting tax or override can be done but it needs a manual calculation for quit employees.

Anyway SAP not helped to stop projecting the income and they said most of the customers are using Perioding average method.

Hence we will also move to PRD method.

Thanks for your revert 🙂

Regards,

Velvendhan D

[former_member253175]

Any update on this ?