SAP PAYROLL

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Understanding Payroll Payroll is used to calculate the remuneration for work done for each employee. SAP Payroll delivers powerful and efficient gross-to-net, net-to-gross, regular and off-cycle payroll processing. SAP's complex Payroll process handles everything including vacation policies, compensation programs, work schedules, Holidays, overtime pay etc. SAP's ESS (Employee Self Service) function allows employees to view, create and maintain data anytime, anywhere, via Web-based technology and interactive voice response functionality. ESS is an effective means for providing real-time access and data maintenance capabilities to the source or owner of the data. It has the ability to offload much of the data entry and related customer service activities that may be typically performed in an organization's human resources, payroll, benefits and purchasing departments. Payroll accounting calculates the payment of work done by an employee. Payroll function does the following: Compute employees gross salary Make necessary deductions Calculate Net salary Generate Checks or direct deposits. Payroll components include: Payroll area - groups employees based on the frequency of their paydates. eg. Z1 for salaried staff paid monthly. Control Record - It determines the current payroll period for a payroll area. Period Modifier - Period in which payroll accounting is carried out. eg. 10 - for monthly pay periods. Date Modifier - Distinguishes periods with same frequency but different date. Eg. 10 - for monthly pay period but with the pay date being 5th of every month. Payroll Calendar - Generating calendars for cumulating wage types to get monthly, quaterly or yearly sum totals. Payscale type - used for segregation of employees payscales based on the type of union contracts in a company. Eg. 10 - non union workers 20 - collective agreement for secretaries contract. Payscale area - Differentiates payscales based on geographical area. Eg. 10 - California. Payscale group - Differentiates employees payscales based on functionality. Eg. GR01 - grouping for junior clerks, GR02 - for senior clerks. Payscale level - Subdivision of employees payscales. Eg. L1 - level 1 clerk, L2 - level 2 clerk. Wage types - The payments and deductions for an employee are coded as wage types. Eg. A001 - salary payment, B001 - 401K deduction. Payroll Infotypes: Payroll data is stored in various infotypes, which includes, 0001, 0007, 0008, 0009, 0207, 0208, 0209, 0210, 0234. These infotypes maintain personal details, payment and deduction info, benefits data, garnishment data, tax data, etc. Payroll Process involves: Maintaining payroll related infotypes Periodic payroll run Transferring data to FI/CO Transferring third party remittance data to Accounts Payable Tax reporting Standard reporting Payroll program name: RPCALCx0
SAP PAYROLL INFOTYPES LIST Infotype Description 0000 Actions 0001 Org Assig 0002 Personal Data 0003 Payroll Status 0006 Address (all stypes) 0007 Plan Work Time 0008 Basic Pay 0009 Bank Details 0014 Recur Pmts & Ded 0015 One Time Pmts 0017 Travel Privileges 0041 Date Specifications 0105 Communications 0167 Health Plans 0168 Insurance Plans 0169 Savings Plans 0170 Flex Spend Account 0171 Gen Benefit Info 0194 Garnishment doc 0195 Garnishment order 0207 Resident Tax Area 0208 Work Tax Area 0209 Unemployment State 0210 W4/W5 Withhold Info 0216 Garnishment adjust 0221 Payroll results adjust 0267 Off Cycle One Time 0377 Miscellaneous Plans 2001 Absences 2002 Attendances 2005 Overtime 2006 Absence Quota 2007 Attendance Quota 2010 EE Remuneration
Payroll functionality Payroll Hours Entry · Electronic Time Cards/Automated o Start and End Time input o Hours verification § Reports § Electronic notification (at time of user punch in/out) § Timing (when should Payroll notification occur) o Manual entry and corrections o Real time operation o Conversion of current bar-coded badge system · Manual Entry o Number of screens involved and efficiency of entry o Carry forward of information entered on one screen to the next o Check and balances to verify entered information – Reports and/or screen totals § Employee totals § Dept. totals § Batch totals Payroll Gross Wage Calculation · Compensation o Correctly calculate wages for different shifts and salaried personnel o Recognize and calculate shift differentials § Different differential within the same pay period o Calculate overtime § Based on employee’s individual schedule § Previous hours worked and type of hours during pay period · holidays · sick Time · vacation § Special double time considerations o Track Vacation/Holiday/Sick time § Vacation · Automatic accrual · Usage · Manual adjustments · Checks so that it can not go below zero § Holiday · General business holidays · Floating personal holiday accrual · Floating personal holiday usage tracking § Track Sick time within the system § Maternity/Family leave · Mass Wage Updates/Changes o Annual percentage increases across the board § To select groups § All employee’s o Holiday pay · Pay For Performance o Distribution based on company’s financial performance. Deductions from Wage · Benefit Plans o Company Contributed Benefits § Health Insurance § Vision Coverage § Dental § Life Insurance · Basic · Dependent · Optional additional coverage · Accidental death and dismemberment § Disability Coverage · Short-term · Long-term · Optional long-term § Flex Pay (for those that do not elect company sponsored benefits) § Tuition reimbursement § Parking reimbursement o Employee Contributed Benefits and/or Reimbursement Accounts § 401k § Daycare Reimbursement § Health Care Reimbursement · Garnishments – Tax, Child support, Legal, Miscellaneous o Entry process § Automatically discontinue when fulfilled o Tracking o Reporting § On screen § Printable reports · Savings bonds o Multiple bonds o How payroll deducted funds are applied to the bonds · Savings/Checking · Miscellaneous o Shoes o Uniforms o United Way · Tax o State o Federal o County o City Payroll Processing · Manual Checks o Entry o Printing o Controls · Normal Processing by Business Area (location) o Timing § When should payroll be processed § Closing of periods when complete o Processing payroll § Entered by business area (location) and processed at corporate § Steps involved § Manual corrections if necessary § Checks printed by location (business area) at location · By shift · By department · How to print checks o Controls § Reconciliation tools within process · Error/Warning Reports o Checks over $$ o Multiple to same name · On line options · Totals Reports by o Overall pay run o Department o Business Area o Company code Miscellaneous Reporting · Online and Hardcopy Reporting o Employee information § Wage information (current and termed employees) · Wage information for a set period · YTD wage information · Hours paid for and type o Vacation o Holiday o Sick o Overtime · History of pay increases · Select information by cost center · Various sort options · Quarterly Reporting o Samples of reports and processes · Annual Reporting o Samples of reports and processes (if different than quarterly) o W-2’s § Processing of § Corrections § Printing Human Resources Application Entry Online o Through web-based technology o Directly into system within controlled screen o Confirmation process/everything entered correctly Conversion/transfer to new employee status Conversion of termed employees to new hire/active. Employee Information Benefit Information o Overall Data Entry Issues Number of screens involved Templates to help reduce redundant entry Conversion of past information from termed employees to new hire/active status o Tax information W4 What if screens View results of tax information changes before committing Ability to convert if acceptable o Benefit Plan Options § Health Insurance § Vision Coverage § Dental § Life Insurance · Basic · Dependent · Optional additional coverage · Accidental death and dismemberment § Disability Coverage · Short-term · Long-term · Optional long-term § Flex Pay (for those that do not elect company sponsored benefits) § 401k (when eligible) § Daycare Reimbursement § Health Care Reimbursement o Savings bonds o Savings/Checking · Employee Deductions o Garnishments § Tax § Child support § Legal o Miscellaneous § Shoes § Uniforms § United Way · Position Information o Job Title § Job description § Job code · Encoded to show o Where they work o Hourly or salaried o Shift o Salary Grade/Schedules o Shift § Current Shift § Rotation § Differential Reporting/Printed Documents · Benefit Reporting o Health Insurance § Plan premium report (from which payment is made) § On screen review § Weekly reporting to Prescription Care Services o Vision Coverage § Plan premium report (from which payment is made) § Downloadable to disk (once per month) o Dental § On screen review § Plan premium report o 401k contribution reporting/payment o Service Awards o Anniversary Reports § Years of service § Performance review notices o Open Enrollment document showing available benefits for distribution to employees § Employee cost (if applicable) § If current employee, current coverage selections o Confirmation document for distribution to employees § Current selections and cost o Labels § Internal distribution for employee information · By shift · By department · By status o Full-time o Part-time o Temporary o All · Government o Government Reports § New Hire Report · Bi-weekly report sent to government for garnishment purposes § EEO o HIPPA letters o COBRA letters · Management/Planning o Salary Reports/Planning § Planning by salary grades § Salary survey reports o Supervisory Reporting § Ability to provide supervisory and management with detailed employee/payroll information restricted to their area(s) of responsibility · Training o Conversion of current data o Tracking of training received § Program, course and class information § Cost of training § Review of course taken § Certification if received · Expiration/renewal date if certification need to be renewed § History of classes taken o Reporting by § Individual § Cost Center § Department § Business Area § Company