A question from Suguna and the answer (Link: Initial Issues)
Dear Harry
“By referring to the issue, the end result will be a small amount of Tax deduction (pph21) in off-cycle pay result while then the rest would be brought forward into the next Regular Pay Run, in the same period, to recalculate the actual Tax deduction. The affect is that the employee salary in the next regular pay run could be less and/or becoming negative cause by the tax deduction.”
The above also happens in other situations such as this one below.
We have run regular payroll in 20th May, and we follow that with an off-cycle (Bonus) in May 26th. The employee has a transfer action on 1st May.
In this case, the tax is small in off-cycle pay result, while then the rest is eventually recovered in the following periods. In this case the employee is transferred for the 1st of the month. The Off-cycle is not in January, but in May.
Have you come across this type of situation.
Will SAP solve this issue, do you know.
And the Answer
Hi Suguna,
In what payroll country you’re dealing with?Me, for Indonesian Payroll (PY-ID).
In PY-ID, because Indonesia is using annualized method in their income tax calculation (PPh21) then actually there’re some factors that SAP use to calculate the income tax.
