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Business blue print document EssayRecurring brookments/deductions info oddb every(prenominal) (0014) in which you beguile the expound of periodic/regular earnings or deductions. For Mastek, Indian paysheet, they pass on be Medical Reimbursement, Reimbursement of Books, pull out Without Pay, Guesthouse Deduction, Personal Courier and Personal STD/ISD Phone Call. special payments info theatrical role (0015) in which you capture the details of annual or irregular earnings or deductions. For Mastek, Indian payroll, they will be LTA and Performance Pay. Contract elements infotype (0016) Monitoring dates infotype (0019) Family details infotype (0021).Membership fees infotype (0057), which you nates alike set up to make payments to third-parties in particular cases Cost dissemination infotype (0027), which you basis too set up to assign the internal ordination number if the be of the employee is to go to the internal order number. You can to a fault assign the percentage so that notwithstanding that percentage of cost goes to the internal order. If this infotype is non maintained or the percentage assigned to the internal order in this infotype is not 100 percent, then the transcription picks the cost center assignment from infotype 0001 to attach the cost.Personnel IDs infotype (0185) These infotypes have been limited to handle Indian requirements. India-specific infotypes containing payment reading These infotypes have been created for India payroll only Previous employment tax revenueation details infotype (0580) Ho using (HRA/CLA/COA) infotype (0581) Exemptions infotype (0582) Car Conveyance infotype (0583) Income from other sources infotype (0584) Section 80 deductions infotype (0585) Investment details (Section 88) infotype (0586) presbyopic fund contri preciselyion infotype (0587).Other statutory deductions infotype (0588) Long term reimbursements infotype (0590) * Nominations infotype (0591) 1. 7 POSTING TO score mathematical so ur Reporting for lineup payroll results to explanation, otherwise known as peak to Accounting, is a subsequent bodily function that is carried out after a successful payroll mellow out. It usually takes station for apiece payroll period. During posting to Accounting, all posting entropy for the payroll results is selected, summarized, formatted, and then posted to the integrated dowers in Accounting.You can also archive the data created in posting to Accounting. integration Different R/3 components ar mired in posting to Accounting, and these components have different data requirements payroll department (PY) Financial Accounting (FI) General book of account Accounting (FI-GL) Accounts Payable (FI-AP) Accounts Receivable (FI-AR) Special Ledger (FI-SL) Controlling (CO) INTEGRATION OF THE COMPONENTS IN POSTING TO ACCOUNTING Payroll (HR) The principal organizational concept in Payroll is the betroth type.A betroth type classifies personnel expenses according to tax, ins urance, labour legislation, pay scales and other operational characteristics. In Payroll, earnings types argon also used for saving surplus information in the payroll results, for example, in the form of cumulation wage types (total pure(a) amount or gross tax amount), or in the form of wage types for other in-chief(postnominal) amounts (statutory sort out pay or transfer amount). The organizational assignments valid for all periods ar also created indoors Payroll as well as special cost assignments, and the wage types are assigned to this information.During payroll, additional wage types are created to reserve data for cost accounting and these are saved in the payroll results, for example, the portion of the wage that is not relevant on public holidays. Financial Accounting (FI) Financial Accounting is responsible for the flow of payments. The payment flows are posted to particular accounts depending on the type or identity operator of the receiver, and on the due date of the payment. Cost Accounting (CO) Cost Accounting splits the costs according to the type (cost type = G/L account) and assigns them to cost centers or to other cost assignment objects (additional account assignment). invoice to accounting accords you to post costs to the hobby account assignment objects Position in customer order Implementation Considerations To ensure that the process of posting to accounting is completed successfully and without problems, please make the followers settings Customize the components tortuous (wage types, accounts, other account assignment objects) Customize Reporting for posting to Accounting.The item-by-item components involved in posting to Accounting can be organized as follows All components are in the kindred clients of the R/3 System. The accounting components are in a different constitution to the Payroll application component. This could be a different R/3 System, an R/2 System, or a third-party system. If the individual componen ts are distributed in unhomogeneous systems, see setting up Posting to accounting. Reporting for posting payroll results to Accounting Posting documents In Customizing for Cross-Application Components down the stairs Scenarios Posting payroll results to Accounting.Features Posting to Accounting supports you to exercise the following functions Post retroactive accounting runs Pension Fund report for exempted Trusts (Though this is not applicable for Mastek, this is for the information only) 1. Form 4 Return of members leaving service 2. Form 5E Return of the members leaving service during the month 3.Form 6 Statement of contributions for the month ESI Reports 1. Form 6 2. Form 7 These reports are generated any half-year, in the months of October and April for the preceding contribution period. Professional Tax (PTax) Reports Payroll-India caters to the PTax Reports for the following responsibilitys 1. Andhra Pradesh (Monthly) not applicable for Mastek 2. Gujarat (Monthl y) Not applicable for Mastek 3. Karnataka (Monthly) Applicable for Mastek 4. Maharashtra (Monthly) Applicable for Mastek 5. West Bengal (Monthly) Applicable for Mastek 6. Tamil Nadu (Half-Yearly) Applicable for Mastek 7.Madhya Pradesh (Annual) Not applicable for Mastek These reports are to be generated at the relevant frequency for those states where PTax is applicable. The selection screen captures the following information 1. The PTax report can be generated for a PTax grouping created for the Personnel Sub subject field. 2. The report is printed in the relevant format for each state as applicable and for those employees for whom the PTax and return is applicable. Labour Welfare Fund Reports Payroll-India caters to Labour Welfare Fund reports for the following states 1. Gujarat (Half-Yearly) Not applicable for Mastek 2.Using the standard deplete adenosine diphosphate link the gross payroll results shall be uploaded to adenosine diphosphate for the final processing. Th e SAP US Payroll allows MSI to process payroll for employees in the United States, using data from SAP Personnel Administration and Benefits under a wide variety of configurations. The SAP Payroll system also offers a number of standard payroll reports. The Tax Reporter component will allow MSI to generate all required state and federal tax forms, such(prenominal) as SUI reports and W-2s. Further reports can be generated using Ad Hoc Query in conjunction with an SAP Payroll Infotype.However bulge of MSI requirements for legal reporting etc shall be met by ADP as the net payroll processing will be in their domain. desegregation The Payroll component is integrated with other SAP HR components, such as Personnel Administration and Benefits. There are also interfaces to other SAP modules such as Financial Accounting and Controlling. 2. 1 COMPENSATION FOR USA sacrifice SCALE TYPE During the discussions it was realized that crosswise Mastek Group, the compensation paid to the employees is divided into the following classifications 1. Technical Professional 2.Technical Semi-professional 3. Non-Technical Professional 4. Non-technical Semi-professional 5. Others Professional 6. Others Non-professional The same will be configured as the Pay racing shell Types in the SAP R/3 system. reach SCALE AREA The Pay Scale Area will remain same as we have defined our Personnel Areas. Therefore the following will be the Pay Scale Areas in the SAP R/3 system 1. Santa Clara 2. Dallas PAYROLL AREA PAYROLL PERIOD In MSI, a semi monthly payroll period shall be used for running the payroll. hence the payroll area defined in the SAP R/3 system for MSI is 02 Semi Monthly USA PAY SCALE GROUP The Pay Scale Group will be in terms of grades in the organization. The list of Pay Scale Group that is to be customized as under 1. T2 2. T3 3. G2 4. G3 5. G4 6. G6 7. G8 8. G10 9. G12 10. G14 11. G16 12. G18 13. G20 14. Project Trainee 15. Temporary PAY SCALE LEVEL There is no sub-cl assification of Pay Scale Groups, which can be mapped to the Pay Scale Level. At Mastek the salaries are defined in terms of Total Annual Gross (TAG) and then the money is divided into the various wage types of the employee.For the purpose of customization, one Pay Scale Level will be defined For the US compensation, Dallas has been taken as base location. The location is also considered for the US compensation package. To dismount the compensation review, first Mastek has to map the US Grades with the Indian Grades. The US Grades are as follows D2 D1 C2 C1 B2 B1 A2 A1 How they are mapped Indian Grade US Grade G4 D2 G6 D1 G8 C2 G10 C1, B2 G12 B1 G14 A2 G16 A1 The salary resume is done by an external agency and the salaries are dogged based on that.There are four major heads under which the salary is strict for the review 1. Base Salary 2. fix Allowance 3. Skills 4. Performance Pay NOTE MASTEK has decided that Indian grades shall be applicable globally and the US grades shall be mapped to equivalent Indian grades. However MASTEK is yet to provide the mapped list of grades for the same. The Reviewed salary is paid as Base salary and the relevant amounts are paid under the other heads. Thus the salaries are finalized for each and every employee in USA. It is to be noted that the salary survey report is Grade based in USA.As Dallas is taken as Base location, the amount for Location Allowance is fixed on the basis of the location the employee is scheduled to work in. For finalizing the location allowance the following factors are taken into account 1. Accommodation Cost, 2. Transportation Cost, 3. Tax Rate, and 4. Food Cost. All this is relevant to the Indian employees who visit USA from India. There is no information available as to how the compensation review takes place for the US nationals in USA. 2. 2 USA SPECIFIC BENEFITS ADMINISTRATION COBRA COBRA stands for the Consolidated Omnibus Budget propitiation Act of 1985.It requires the vast majority of e mployers to offer continuation of coverage to covered employee and their dependents who, due to certain COBRA going events, lose group health plan coverage. Infotype 0211 COBRA Qualified Beneficiary Infotype 0212 COBRA Health Plan Infotype 0270 COBRA Payments MSI pays 100% for its employees health insurance premiums. Employees dependents are eligible to participate in the same health insurance, however its the employees responsibility to pay the premium costs. Anthem Health provides both Medical and Dental insurance for MSI employees and their dependents.LIFE INSURANCE MSI provides living death and dismemberment insurance coverage for all of its employees through UNUM Life Insurance Company legal from the date of joining MSI. The beneficiary will receive two times the employees annual base salary. 401 K PLAN All employees are eligible for this plan MSI does not make any contributions to this plan Employee can contribute up to 25% to a maximum of USD 10,000 per calendar ye ar. CAFETARIA PLAN Also known as Section 125 Plan. Employees can pay for medical and dependent care expenses with Pre Tax Dollars to avail of tax benefit under this plan. Employees may choose to have designated amount of their income directed towards this plan. This is solely and employee contributed benefit. 2. 3 beat SAP US PAYROLL FEATURES SAP Payroll allows MSI to run payroll for employees in all states. required statutory reports, such as national forms 940, W-2, W-3, and all state SUI forms are also supported by the SAP system. Payroll does not just involve the calculation of remuneration, but consists of a variety of processes that are becoming increasingly important due to the employers increased obligation to supply benefits and medical welfare.You can also control the financial system of third-party providers. The System calculates the gross and net pay, which comprises the individual payments and deductions that are calculated during a payroll period, and are recei ved by an employee. These payments and deductions are included in the calculation of the remuneration using different wage types. However, since MSI has out sourced its net payroll processing to a third party called ADP. Hence only the gross payroll shall be run and an interface shall be provided to send data to ADP for net payroll processing and deduction of Taxes etc.After the remuneration payroll you can mob out various subsequent activities, for example, you can see to remuneration payment or the creation of various lists, and make evaluations. The Gross Payroll component processes employee master data from SAP Personnel Administration and generates wage types and amounts to be used by the Net Payroll component, or to be exported to a third-party product for net calculation. Pre-tax deductions and earnings are processed within the Gross Payroll component. Integration.The Gross Payroll component is well integrated with the SAP Personnel Administration and SAP Benefits component s Payroll in Dialog Mode theatrical role The payroll program is run at a specific token in time, not only to calculate an employees basic remuneration but also any special payments, overtime payments or bonuses that essential be effected for the period in question. You can follow the procedure of payroll directly in dialog mode. Payroll in dialog mode is particularly suited to simulate a payroll run for an individual payroll area or individual personnel numbers. Payroll in a Background OperationUse When you have checked all the settings for the payroll run, and have tested the run in a simulation run, you can perform the payroll run in a cathode-ray oscilloscope job. Off-Cycle Activities Purpose As an addition to regular payroll, which carries out payroll at fixed regular intervals, this function enables you to carry out specific off-cycle payroll activities for individual employees on any day. You can issue a check to replace payments that were originally made to an employee by check or by transfer but which the employee did not receive, or if the check is in an unusable condition (for example, torn).You can reverse payroll results that were created by a regular or off-cycle payroll run. You can enter a check number into the system retrospectively for a payroll result for which you have already issued a check manually. 2. 4 MSI US PAYROLL GROSS PROCESSING Purpose The Gross Payroll component processes employee master data from SAP Personnel Administration and generates wage types and amounts to be used by the Net Payroll component, or to be exported to a third-party product for net calculation. Pre-tax deductions and earnings are processed within the Gross Payroll component.Integration The Gross Payroll component is closely integrated with the SAP Personnel Administration and SAP Benefits components Payments The individual payments form the basis for the calculation of an employees gross remuneration, which is the core part of payroll. Gross remuneration is the starting point for the calculation of social insurance and tax payments, and also for the calculation of net remuneration. Structure In the R/3 System, payments are split into the following categories according to their characteristics Basic pay.Basic pay consists of the fixed wage and salary elements that are paid in every payroll period. You enter them in the form of wage types in the basic pay (0008) infotype. Recurring payments and deductions Recurring payments and deductions are paid or retained with fixed frequency. The system determined the payments using factors such as overtime, leave or substitutions. The wage types that illustrate these factors are entered in the recurring payments and deductions (0014) infotype. In the processing stage the system uses the Customizing settings representing the collective agreement. Additional Payments.Additional payments are remuneration elements that are not usually paid in each payroll period, and that are not paid at regular int ervals. You enter them in the Additional Payments (0015) infotype. Benefits Integration to Payroll Purpose Users of the R/3 Benefits component can use Benefits Integration to streamline the payroll calculation process for their employees. The Benefits Integration component allows benefits-related deductions and contributions entered in master data to be processed during net payroll processing. Integration This component integrates the Payroll component with the Benefits component.Deduction and contribution amounts can be remitted to benefits providers using functionality from the Third Party remitment component. 2. 5 THE PAYROLL PROCESS 2. 6 US PAYROLL REPORTING Introduction The R/3 HR Payroll System provides all regulatory and tax reports required by U. S. federal and state law, such as SUI reports for state unemployment agencies, W-2 reports for the federal and state governments, and the Multiple Worksite Report for the Bureau of Labor Statistics. Additional payroll reports are a vailable for other business purposes, such as the New Hire Report.These reports allow efficient evaluation of payroll data and ensure compliance with government regulations. Integration Payroll reports annoy information from all HR Infotypes and evaluate data from HR Time Management and HR organizational Management as well as HR Personnel Administration. Features R/3 Payroll offers many internal and regulatory reports, including New Hire Reporting Tax Reporter for federal and state reports faithfulness requires companies to report the results of their payroll calculation to several tax authorities, including the federal government and many state and topical anaesthetic governments.This component enables you to produce regulatory reports for government authorities in the format required by each authority. Reports that Tax Reporter supports include Form 940 Employers Annual Federal Unemployment Tax Return, Form 941 Employers Quarterly Federal Tax Return, Form W-2 Wage and Tax Statement, the 1099-R form and the Multiple Worksite Report. NOTE-In case of MASTEK the above reports may be provided by ADP since ADP shall be responsible for running net payroll and doing all calculations and deductions for the same.