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401k contribution to be reduced from gross up amount

Former Member
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I have a issue here need to create a bonus gross up wagetype for the bonus wagetype and the gross up wagetype should reduce the 401k contributionfrom the total gross up amount.

Eg if BONUS amount = 1000 and grossup is =1050 and out of which 100 is 401k contribution then the system has to calculate the gross up by reducing 401k

that is 1050 - 100 = 950

950 has to be in paid to the employee

can some one plz help me with this situation

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi,

If you want to pay bonus of 1000$, you would enter 1000$ in Bonus wagetype say 9BON and if the taxes are 50$ then SAP would gross the Bonus to 1050 and it will be stored in Gross Wagetype say 9BGU.

If the 401K is flat amount dedn of 100$ , then the standard SAP processing would reduce 1050 - 50$ (Taxes) - 100$(401K deduction) and SAP would give net of 900$ (wage type /560).

what do you mean by 950$.... think logically it should be either

900$ (as above - which is SAP standard) or

1000$ = where employer bears the 401K deduction cost also.

Let me know if it is 1000$ then I could help you configure.

Former Member
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Hi Amosha

Thanks for your input, the employer dosent want to bear the 401k contribution for bonus payment so he is requesting us for the creation of grossup wagetype by reducing the 401k.

let me know how to goahead with this

Thanks In Advance

Former Member
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As mentioned earlier please use standard config. This will meet your requirement:

1. Goto Pu30 and copy the model wage types M031 and M032 for gross up payment. create your custom wagetype.

2. Check T51P6 table for the links and correct them for your custom bonus wagetype linked to custom bonus gross up wagetypes

3. Enter the amount in IT15/267 and simulate payroll.

It should work.

For More details you can refer to PY-US Documentation or [read the Wiki from Karthik on gross ups|http://wiki.sdn.sap.com/wiki/display/ERPHCM/US+GrossUp]

Former Member
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Hi Amosha,

I did try to create a grossup wagetype using the standard wagetype, Know i just see that there is not much change in the grossup. I have simulated by processing the additional offcycle payment through IT267.

I did see the payroll log and from my understanding i still see the amount going to the 401k contribution, i did uncheck the cumulation class for the 401k, can you please tell me am i missing some thing.

My scenario as i told you is employer dosent want to pay the 401k contribution from his side while paying bonus.

Appreciate your help

Thanks

Former Member
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Uncheck the cummulation class 02 for the gross up wagetype. the /102 could be your 401K base.

Former Member
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Hi

I think i am just confusing out here,

i did process an offcycle for $1500 for the bonus grossup and it did calculate the grossup amount $XXXXand know i want the system to deduct the 401k contribution from the Net Amount $1500.

any solution for this

I am unable to get through that.

Former Member
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Sansai ....As mentioned earlier....401K deduction will happen automatically from the 1500.

Let me give an example ( this is simulated in a SAP system and validated)

IT0015 -- 9BON is 1500$

Payroll

Gross - Taxes - Pre Tax - Post Tax = Net

9BGU - /5u1 - 401K - 0 = /560

2,336.46$ - 836.46 - 120.00 - 0 = 1,380.00 (which is nothing but 1500 -120)

If you do not have 401K how the system will behave:

2,336.46 -836.46 - 0 -0 = 1500.00

This is STANDARD behavior!!!

Q1: Is your system generating the base wagetype for 401K like /102 or whatever the cumulation bases is

Q2: Do you have the valid 401K plan for this employee and check its validity date

Q3: is the cumulation class 02 is checked for 9BON wagetype

Q4: If you are processing the gross up payments through offcycle run, then check V_T51P6 view. It should have value 3 in arrears and 1 in Retro. Does it?

Q5: If everything above is set then check the log...please use cs and cjeck your UDDO, UTAX subschemas.

Q6: If still you dont have any thing then it is a problem with your 401K wagetype

Please send little bit of time and effort to do lttle research.

Former Member
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Answers (1)

Answers (1)

Former Member
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any solution for this ......