HRA 50% and 40%

[Former Member]

Hi,

I have One Payroll area (PN)

And One Payroll type (IN)

However some employee is eligible for 50% HRA and some for 40% HRA.

If I copy 2 WT, lets Name it HRA1 for 50% and HRA2 for 40% from M230.

And default it in T539J.

My question is

1) If I Update HRA from IT581, would it take HRA1 or HRA 2 in IT8?

Lets suppose if it take HRA1, can I overwrite HRA2 (for people Eligible for 40%). And system would do entire calculation for HRA exemption?

2) What should I do with allowance Grouping (T7INA9)? Should I maintain both WT for HRA?

Company is at one location and EE are at different location. People according to location are paid HRA.

3) In T7INT9 both WT should be there?

Ashish

[Former Member · Accepted solution]

Here you are forgetting, one thing, to get the exemption, a Tax code is supported to only one wage type, whereas you have taken two (HRA) wage type and might be using one tax code (SHRA). That means, exemption wont be given.

Further, system will automaticlly give the exemption based on employee location, you no need to do any thing (if emplyee comes under metro it will give 50% whereas non-metro 40%). If you other requirement that is not matching in standard, you need to write a rule,

[Former Member · Accepted solution]

Hi consultant,

If exemption is given to only one WT, In that case we should maintain one WT for HRA (40%) and Overwirte the amount manually for 50%?

I hope this would solve all the problem?

Correct me if I am wrong?

ashish

[Former Member · Accepted solution]

Ashish,

Let me brief, HRA exemption is given based on city category (this you need to define in IT0581), even if it comes under Metro it will give 50% whereas non-metro 40%. right.... You give the payment anything, but exemptionwill be given as per employee city category, system will calculate by self.

Hope you understand now.

[Former Member · Accepted solution]

Hi Consultant SAP HR,

That is absolutely fine, But how do I default one WT (HRA) for 50% and 40%. keeping one WT exemption would be given?

ashish

[Former Member · Accepted solution]

Ashish:

Let me tell you one thing i mistakenly type IT0587 instead of that it should be IT0581,

Secondly about query, see to default WT of HRA say WT 1010 to one category of employee you need to create one WT Model in V_t539A and assingn here 1st HRA WT along with others and then assign the same to feature LGMST and Table V_T7INA9 accordingly then automatically your IT0008 will get defaulted to the employee category wise. you need to segregate your Model WT and assign WT HRA according. I mean two Model WT you need to create for this case and each HRA WT to be assign each.

In this case, IT0008 will contain only one HRA WT for one employee at a time and your IT0581 will maintain accordingly. So there is no question of doubling of HRA WT in IT0581 for exemption case.

Hope you undestood.

All the best.

Regards,

TATA

Edited by: Prashantkumar Tata on Aug 10, 2011 12:43 PM

[Former Member]

Ashish:

I feel your query is how to segregate both the HRA to different employees like for one emp, he is getting HRA of 40% whereas thee other emp. is eligible HRA only but he shud get 50%, so nw you want to segragate this .....

Is this wat your question????? if yes.

In this case you need to create 2 HRA WT e.g. WT 1010 - HRA (1st HRA wt) and othe is WT 2010 - HRA (2nd HRA wt), you have to create both the HRA by coping M230 only.

but what i feel is if one category of employee is eligible 40% then the same category may not eligible 50 % the other category is eligible for 50% and vice-versa. In this case you need to create your WT model in V_T539A in such a way that category wise if 1 employee is eligible for 40% then the same employee is not eliglble 50% like this and according to V_T539A table your V_T7INA9 table will be designed. One more thing in V_T7INT9 you need to maintain both WT 1010 & 2020 for Tax code SHRA, based on this system will take care 0587 IT automatically.

Hope I cleard your doubts. let me knw if any more doubt is their.

Regards,

TATA

[Former Member]

Hi Prashant,

You are absolutely right. In understanding my requirement. However Kindly check what Consultant SAP HR has written. Only one WT would be eligible for exemption.

which means If i Copy 2 WT 1010 (50%) and 1020 (40%) and maintain for some EE 1020 and for some 1010. In that case I would have to maintain T7INT9 for both WT.

However exemption would be given only to one WT (That is what consultant SAP HR has written). And he is right, even I know this.

Now to deal with this situation we will have to create one WT 1020 40% for EE eligible and over right the amount for EE eligible for 50% with same WT 1020.

Correct me if i am wrong?

Now my another question is, there are almost 3000 EE at different location. How long user would maintain manually?

ashish

[Former Member]

HI,

1) If I Update HRA from IT581, would it take HRA1 or HRA 2 in IT8?

It is based on the assignment of WT in V_T539A for Payscale groupings.

2) What should I do with allowance Grouping (T7INA9)? Should I maintain both WT for HRA?

better maintain both WT

3) In T7INT9 both WT should be there?

have to maintain this table for both WT

If you maintain both WTs in all above tables would be also fine, But while maintain IT0581 you get IT0008 dynamically which shows both WT and so that can delete unwanted WT for that EE (manual corrections)

Thanks

Cheera

[Former Member]

Hi,

1)You must have assigned wage type (eg xxxx) which are applicable to IT8 in wage type grouping right. & accordingly to Inval IT8 wage type will be changed and reflected

2) it depends on company policy. Get it more clarified how it is going to be paid.

3) In T7INT9 both WT should be there?:- in this table u need to maintain both wage-type.

Rgds,

Zara

[Former Member]

Hi,

Your Employees can have HRA 40% & 50% depending upon how you do config for IT 0008,however the exemptions for HRA will be based on your selection of Metro City(50%) and Non Metro(40%) in IT 0581as per standard system calculations.The HRA WT maintained in IT 0008 will be considered for employees for whom you maintain IT 0581.

To know more about how system calculates HRA Exemption maintain these details and check INHRA in payroll log for that employee.

Salil