SAP PY-ID:Off-Cycle Payroll in the beginning of Tax Year (2)

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.


1. SAP will always calculate the total income along the year until the existing period then multiply it by its projection factor in the current payroll period. So globally the formulas will become as these:

/416 = /414 + /415 or
Annual Total Net = Annual Regular Net + Annual Irregular Net

While:
/414 = (/412 + prev /412 ytd) * /402 or
Annual Regular Net = (Regular Net Income + previous Regular Net Income year to date) * Projection Factor

And
/415 = /413 + prev /413 ytd or
Annular Irregular Net = Irregular Net Income + previous Irregular Net Income year to date

(**Note: prev /413 ytd is /413 from CRT table in previous period)

Off-cycle payroll wage types is often defined as Irregular Net Income (that is cumulated into irregular taxable income) by SAP Customer. SAP will not calculate this irregular taxable income wage type with the projection factor in the their future tax calculation, only the regular taxable income does.
So it explains why the total tax in off-cycle period is becoming very small when it is run in the beginning of year although it will be adjusted in the next payroll period. This is treated as my case as I’ve already explained at above.

2. In PY-ID (indonesian Payroll), the income tax will be paid and reported to the Tax Office (KPP or Kantor Pelayanan Pajak) where the employee located or in other words, where the company code (NPWP:Nomor Pokok Wajib Pajak) is registered in their local tax office. How we define the tax office, it closely related as how we define our Enterprise Structure configuration, that are Company Code-Personnel Area – Personnel Sub Area (I’ll try to explain more about this enterprise structure config detail in separate treat later). So, in your case, I assume the transfer action is across the personnel area that lead to the difference Tax Office Grouping. Therefore SAP will try to calculate the total income from the beginning again means the total income from the previous period until the transfer date will not be calculate in the transfer period and later, since it belongs to the previous Tax Office reporting. That’s why when you run the off-cycle bonus soon after the transfer action, the total income tax will be small or very small, if I may say. It will be adjusted into the next payroll period off course.
So from the above explanation, in PY-ID, whenever there’re such transfer action in the mid of year that may lead to the different Tax Office reporting. Then, in the year-end, SAP will produce The 1721 A1 (SPT pajak tahunan) as many as the tranfer action across tax office grouping has done. In Summary, the grouping in the year-end Tax Report are Tax Office Grouping, Employee Number (Pernr).

Hope it can answer your issue, should there’re some other opinions and ideas are welcome.

Regards,

Harry Poe

6 Responses to “SAP PY-ID:Off-Cycle Payroll in the beginning of Tax Year (2)”

  1. Mike Harmon Says:

    I came across your blog on Technorati. Nice site layout. I will stop by and read more soon.

    Mike Harmon

  2. bottie Says:

    So? is the bonus paid already?🙂 …

  3. test Says:

    boleh numpang nanya ttg pelaporan pajak (SPT 1721 A1)?

    kalau ada perpindahan npwp yg identik, misal:
    januari-maret di cabang A
    april – sept di cabang B
    nov – dec kembali ke cabang A

    pelaporan SPT 1721A1 nya jadi bagaimana ya?

    trims..

  4. harrypoe Says:

    Wah maaf baru ngeliat ada comment untuk article ini. Saya coba jawab ya. Tentu dalam lingkup SAP R3 system.

    Scope:
    Bagaimana anda mendefinisikan cabang2 perusahaan tersebut. Dalam scope, personnel area/sub areas kah?

    Pada dasarnya, di dalam SAP, proses pelaporan pajak akan sangat tergantung dalam hal tax office grouping, yg sangat erat kaitannya dengan pendefinisian enterprise structure. Spt. Company Code, Personnel Area/Sub Areas.
    Prinsipnya , total pendapatan berikut pajak setor nya akan dilaporkan ke kantor pajak (Tax office grouping) dimana dia berada . Dalam kasus anda, saya coba pecah ke dalam 2 kasus :
    1. Januari-Maret di cabang A –> Kantor pajak A
    April – Sept di cabang B —-> Kantor pajak B
    2.Nov – Dec kembali ke cabang A —-> Kantor pajak A

    Dalam kasus anda yg pertama, saya asumsikan masing2 cabang mempunyai NPWP terpisah dan pelaporan ke kantor pajak yg berbeda. Maka:
    Total Pendapatan + pajak dibulan Januari – Maret, dilaporkan ke kantor Pajak A
    Total Pendapatan + pajak April – Sept, dilaporkan ke kantor pajak B. Sampai disini, seolah2 si karyawan ybs akan di perlakukan sebagai “Mulai” bekerja di bulan April terhadap kantor pajak B. Idealnya, kita juga bisa memaintain IT 694 (previous employment detail) untuk memasukkan total Regular Income and Regular Tax that has been submitted. Ini diperlukan untuk menjaga jangan sampai ada kelebihan pemotongan pajak untuk karyawan ybs terkait kepindahannya ke cabang B. Walaupun, SAP sudah cukup bagus dg menggunakan projection factor untuk menyetahunkan perhitungan pajak. Tapi tetap ada potensi kelebihan pemotongan pajak terhadap di bulan terakhir bagi karyawan ybs. Yg bisa saja tidak ter akomodir di kantor cabang barunya. Dg menggunakan IT 694, diharapkan adanya kesinambungan total pendapatan dalam bulan berjalannya.

    Dalam kasus ke dua, ini cukup rumit dan kurang lebih potensi masalahnya sama dengan kasus orang yg sudah berhenti/diberhentikan tapi kemudian di re-hire lagi dengan menggungakan “EMPLOYEE NUMBER” yang “SAMA”
    (Lihat bahasan saya di topik sebelumnya)
    Pada kasus kedua ini, jika menggunakan employee ID yg sama, dapat dipastikan bakal error dalam hal perhitungan pajaknya. SAP akan salah dalam hal mendefinisikan projection factor nya. Kondisinya adalah sbb:
    Dalam 1 personnel area/sub area atau tax office yg sama
    Jan – Maret —– IDDLE / Non Aktif (selama di cabang B) — Nov – December
    SAP Akan menghitung total pendapatan/taxable income mulai dari Januari sampe Maret, dengan menggunakan projection factor di bulan november. Hasilnya adalah SAP OSS note yg menjelaskan bahwa SAP tidak bisa deal with kasus seperti ini.

    Solusi nya adalah (tapi tetap tergantung bagaimana pendefinisian enterprise structure nya yah), adalah menggunakan employee id yg berbeda untuk setiap action transfer in dan out antar personnel area/sub areas atau terhadap kepindahan pelaporan kantor pajak.

    Pada akhir tahun, SAP akan menggrouping form SPT 1721 A1 nya terhadap tax office nya. Maka bagi karyawan ybs akan mendapatkan 3 SPT 1721 A-1 yg akan melaporkan total pendapatan/pajak setor untuk masing cabang. Dan kemudian si karyawan ybs (atau dibantu oleh bagian accounting/HR) harus melakukan rekonsiliasi ke 3 dokumen tsb ke dalam 1 SPT 1721 A1.

    Demikian penjelasan saya, bagi yg punya ide atau pemikiran atau pengalaman yg sama, bisa ikutan urun rembug.

  5. satya sembiring Says:

    pusing saya….
    pengen belajar

  6. gta Says:

    numpan 222xxxx

    hhahhahhahhahhahha

    yaialllllach


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