Income tax issue

[Former Member]

Hi,

When employee is locked say in the month of November and then in the month of december when the locked is release and the payroll is processed normally, the net tax payable by the employee is deducted fully and does not get pro-rated.

For eg: if the net tax payable by the employee is 16043, then when the payroll is processed in the month of December, the income tax should be 16043/4=4010.75, but it is deducting the full 16043 as income tax.

Could you please provide the solution to get this prorated?

Cheers,

Ayyaps

[Former Member]

Hi Sukumar,

1. Check if gross income is projected till April or its only projected till Dec.

2. Check what is the projection factor /401?

2. If gross income is projected till December then check 1. Employment status or 2. IT0041 - Date specification (N0)

Regards

SD

[Former Member]

Hi,

Could you please check if any Termination action is there for the employee.

Upon termination, the entire tax is calculated in current month.

Hope this helps.

Regards,

Prabha

[Former Member]

Hi All,

Thanks for the reply.

But the employee in question is an active employee. For some reasons, his id was locked in last month's payroll and no salary was paid to him. He resumed work this month, so we released the lock and processed the salary for the current month and that is where his income tax is getting deducted fully.

cheers,

Ayyaps

[Former Member]

Hi Ayyaps,

U need to chk 2 things there:

1. When employee is absconding, we need to change the Payrolll area into non-active payroll area.

2.Upon returning, we need to have action type as Return from absconding where he is back to Active payroll area.

Well, that's a practice I shared.

In Payroll status Infotype :

Could you please check the fields accounted upto and run payroll upto fields.

As these fields might also impact.

In the payroll status, could you please analyse if there is any date impact.

I think the link can be there also.

Hope this helps. if not in the payroll Log check the /401-Projection factor is it set to 4.

Regards,

Prabha

[Former Member]

Hi AyyapS,

What i understood is, system taking period as a last payroll period. Hence it is deducting whole amount if i am right.

i would like suggest on period parameter assignment for your payroll area.

Any assignment changes happend for your payroll area Please check.This might be the reason, if i am right.Please check it out

MVR

Edited by: MVRmvr on Sep 7, 2010 1:41 PM

[Former Member]

Hi Teresa,

Thx for the rply.

if not in the payroll Log check the /401-Projection factor is it set to 4.

where exactly do i look for this projection factor in the log?

cheers,

Ayyaps

Edited by: Ayyaps sukumar on Sep 7, 2010 2:29 PM

Edited by: Ayyaps sukumar on Sep 7, 2010 2:29 PM

[Former Member]

You can check INTAX in payroll log.....Output .../401 Proj factor ....You are running for Dec ..so I hope proj.factor 4 is correct.....and check what are the other wagetypes is generating in the log with /4*** series. Go through the INTAX Processing and output log ....compare the log with previous cluster ...identify if any new WT generated or any deviations....

Mohan

[Former Member]

Hi All,

Thx for the reply.

I have checked the projection factor and the it is showing correctly.

I donot see any other wagetypes generated aswell.

thanks,

Ayyaps

[former_member1200659]

HI,

Please also check the below link

http://help.sap.com/saphelp_470/helpdata/en/c0/98f615f6d54b559d4e351b80cc3364/content.htm

[Former Member]

Hi,

i suppose, employment status has been changed for this employee. it might be the reason. Please check