Taxation for Bonus Off-cycle payment

[former_member210568]

Dear Experts,

We are paying the bonus to the employees through off-cycle. We have maintained the wage types in IT 0267.

Also have maintained all the possible entries in respective tables i.e T7INT9 and maintained the percentage in T511K tables.

We have our own tax code and this Tax code is maintained against Taxation method INBTD BON2 Z001

We did maintain the same PCs, CSs and ECs to the all the wage types.

But only one wage type is processed with the tax and other's not.

In Rt table I can see the cumulation of amount of the wage types in to the Ptax.

But in wage type /4MI, only one wage type is got taxed and not the other one.

Please give me the solution.

Thanks

Sagar

[former_member210568 · Accepted solution]

Dear Prasad,

Thanks for replying on the issue. Its helpful for me, but still there is some problem with the Wage types that are being processed in Off-cycle payroll.

Infact among three Wage types one Wage type is getting tax deduction and it is resulted in the RT table.

My only problem is all the other Wage types are also processed but the tax is not being deducted.

Please suggest me on this. How can I make deduction for the rest of the Wage types.

Once again thanks for your response and the help on this issue.

Thanks and Regards,

Sagar

[former_member792858 · Accepted solution]

Hi Sagar,

Please check the Cumulation class 25( monthly irregular income ) for other Wage types are also processed but the tax is not being deducted in Table V_512w_d.

Nasim

[Former Member · Accepted solution]

Hi,

Create 2 more different Tax codes for these 2 wagetypes and link those as you have done for the one earlier in schema and check.

Salil

[former_member210568]

Dear Experts,

Thanks for your response for my issue.

My issue got solved.

Once again thanks every one.

Sagar

[Former Member]

Hi,

set the processing and cumulation class of the wage type, as that of the wagetype for which tax is deducted

Thanks

Peter

[Former Member]

Hi,

You are doing off-cycle run then there will be only IT - 0267 wage type will be processed at that time. After doing the off-cycle run, you need to do the regular run for that month in which the TAX will be calculated.

In off-cycle run the TAX will not be calculated in the system, but in the regular payroll run that amt will be taken into consideration & tax will be calculated.

Also, check the BONUS wage type is ticked for cummulation type 25, so it will be taxable.

For eg. Test one employee in which dnt pay the bonus & run payroll for 2 months & take screen shot of the payslip. Now delete the cluster for the 2nd month, pay bonus in that month & do off-cycle run & after that do a regular run in the system.

Now check the Tax for that employee & compare with the screen shot which was earlier taken. You will find the difference in TAX for that emp in both the payslip.

Regards,

Prasad Lad