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author's profile photo Former Member
Former Member

Contract Employees

Hello All,

Our client has a large number of contract employees in their organization. The wages for these employees are not paid directly to the employees, but to their contractor. They do not appear on the payroll, but the timekeeping system does keep track of their clock times.

The client wishes to implement the following

1) The contract employees should appear in the Time Management component.

2) The client wants to run payroll for these employees (to determine how much to pay the contractor). However, the payroll for these employees is not to be paid .... it's for reference only. They payment to the contractor occurs outside the HR module (in FI).

3) Some of these contract employees are eligible for Provident Fund contributions, while some are not. These have to be calculated during the Payroll as well.

Could you provide some hints as to how these could be configured?

My ideas about a possible solution so far are:

  • Contract employees form one Employee Group, under which are two ESGs - one for those who are paid PF and the other for those who are not.

  • Contract employees would be assigned to a different payroll area and would be assigned to a different ES Grouping for CAP.

Any comments on these ideas?

Any useful hints or help would be appreciated and rewarded.

Thanks in advance,

Vivek T

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  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Jan 21, 2008 at 07:07 AM

    Your config ideas is good.

    But how does the posting happens for contractors and other employees in Payroll.

    will you maintain seperate cost centers. how contractors are assigned to orgunits/ positions in OM

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 20, 2008 at 06:38 PM

    A suggestion, something we did at a client:

    Use a seperate number range for the personnel numbers (pernr).

    For example 8xxxxxxx, so that it is obvious that you're dealing with a contractor.

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    • Former Member

      Hello Andy,

      That's a good suggestionand I will be using it. I didn't mention it earlier since the client already has this system in place. Permanent Employees have Employee Numbers beginning with numbers in the range 1-4, while Contract workers have the range 5 and above

      Thanks,

      Vivek

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