Travel management Integration to Payroll -

[Former Member]

Hi gurus

,

We plan to implement Travel management in SAP system. The payroll is implemented in ADP.

Here the employee can use Per Diems or Flat rates for Meales and incidentals or they can use receipts as well.

In case the employee use receipts which is more than the tax free amounts, does this information need to be fed to ADP?

Example

Break fast tax free per diem is 20 dollars

Employee gives s recipt and claims 30 dollars.

Then does 10 dollars(30 - 20) beccome taxable for the employee and does this information need to be passed to ADP ( paylroll system)??

Please advice

[Former Member]

closing the thread

[Former Member]

Guys,

Does any one have ideas on this one?

[Former Member]

Nandagopal,

Thanks for the reply, but am not sure I made myself clear here.

There are tax free re-imbursement amounts ( per diems) set legeally. What if an organization(public sector company in our case) pays more than the legally permitted tax free amounts as reimbursements?

Do the additional amounts become taxable to the employee and will they need to be passed to the payroll? I am on the same page that we do not want to have integration with Payroll but this what SAP documenttion says

"Regardless of whether payment is to be performed via payroll, transfer is necessary if the company gives its employees payment in kind in the form of meals, for example, or reimbursement rates that are higher than the statutory tax-free rates that must be recorded in payroll for taxation"

The expenses are reimbursed via FI here as well

Any thoughts on this one?

regards

[Former Member]

Hi,

We have implemented Travel expenses for US through AP (Accounts payable). It is not recommended integrating Travel expenses with Payroll. And also the payslip contains only earnings & deductions of the employees. These travel expenses will comes under reimbursement, so most of the countries or statelaw will not allow reimbursement amount comes in payslip.

Thanks,

Nandagopal C