Tax calculation issues for rehired employees (INDONESIA)

[Former Member]

Hi Experts,

I'm facing an issue with the tax calculations for Rehired EE's

When the EE is rehired within the same tax year,the system generates /4P* WT's which contains total taxable regular income from previous employment period.

However cumulated year-to-date income is stored in CRT and is observed to be carried across employment periods within the year.

During tax calculation the generated /4P* amounts are added to cumulated year-to-date income evaluated in CRT. This result in doubling of the taxable annual regular net income

It is observed that the /4P* wage types are carried forward into each subsequent payroll period after re-hire, causing this doubling to be repeated for each payroll period to the end of the calendar year. It is the same amount in /4P*.

Below is the annual income projection formula..

annual_reg_net_income = annual_factor * projection_factor * ( reg_net_income

+ reg_net_income_ytd ) + prev_reg_net_income.

[Former Member]

What I know so far, SAP Payroll Indonesia does not support reentry in the same year using the same personnel no.

So, if you force to do that, payroll will give incorrect tax calculation.

Alternatively, you can use "re-hire" (actually just new hire) with different personnel no. and use Infotype 0694 to store previous income and tax.