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Multiple form 16 - Is it mandatory to implement

May 04, 2017 at 10:24 AM

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Hi Experts,

We are implementing SAP Payroll for a client which has group of companies and employees will be moved within these companies(different company codes). Could you please let me know if activating multiple form 16 is mandatory and also inputs on what is the use of multiple from16s functionality.

Thank you in advance,

Sanjay

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1 Answer

Best Answer
Niladri Bihari Nayak May 07, 2017 at 06:23 PM
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Dear Saisanjay,

Thanks for posting your query !!

SAP has given an option to activate Multiple Form 16 or not. As a Consultant, we would recommend using this standard functionality offered by SAP.

If you are implementing the SAP Indian Payroll across a group of companies, you can issue separate Form 16 to an employee for the period of his or her employment in each of these companies.

If you are already live with the SAP Payroll, you can enable Multiple Form 16 from the beginning of the financial year, example, from April 1, 2017.

As per SAP Best Practices, Once enabled Multiple Form 16, you should not revert it.

Example :

If an employee has been with the same group for discontinuous periods in the same financial year, the employee will get a separate Form 16 for each continuous employment with a Group.

For example, an employee has been with:

  • Group 1 of PQR between April 1, 2017 - July 31, 2017
  • Group 2 of PQR between August 1, 2017 - December 31, 2017
  • Group 1 of PQR between January 1, 2018 - March 31, 2018.

In this case, the employee will get three separate Form 16, two from Group 1 and one from Group 2.

Kindly refer below wiki for more details:

https://wiki.scn.sap.com/wiki/display/ERPHCM/Multiple+Form+16

Regards,

Niladri

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