Legal limits for per diem rates

[emiliabrzosko]

Dear All!

There is a requirement to mantain the legal limit rates for per diem, and afterwards send two wage types to payroll (one with the amount under legal limit and the other with amount exceeding the limit), to calculate tax on it.

Could you please instruct me on how should I do it?

Thank you & Regards,

Emilia

[Former Member · Accepted solution]

Hi Emilia,

You can achive this in table T706B2. In this table for your expense type you specify the max amount allowed and in Amount type select the 'Distribution of receipt amount to different wage types'. See below

Basically if the maximum value for expense type is exceeded specified in this table then the system splits the amount into two parts:

The first part, which is no higher than the maximum value defined, is allocated to the first wage type. The second part of the receipt amount represents the excess value beyond the maximum value configured for your expense type. The system allocates this value to the second wage type.

Hope this helps.

[emiliabrzosko · Accepted solution]

Hi Ankur,

Thank you for your replay. I´ve checked the table you´ve indicated. Seems like it´s for expenses only. Actually the legal limit amount I need to settle is regarding only the daily allowance rates (we will not sett max. amounts for any expenses) Different amounts will be set for all countries in this case.

For per diems,should this be done in "Maximum amounts for meals"? (V_706V_B)

I believe I can upload the amounts from file, just as for the company flat rates for per diem, is it so?

thanks & regards

Emilia

[Former Member · Accepted solution]

Hi Emilia,

I guess the requirement is to have legal amount of per diem in one wage type and above that legal amount the remaining goes to payroll wage type.

It can be done when you configure the per diem rates. When you do the same you need to define in tax-free amount - legal max rate which is tax free. Then in reimbursement amount you define the total per diem.

When you define the wage types for VERP expense type, you need to define two wage types:

One for tax free amount - taxfree wage type(max legal amount) and

Wage type for add amount: This will be your payroll wage type for amount above max legal rate.

These two wage types will flow as per requirement via symbolic accounts.

Let me know if any doubts

Thanks

Alok

[emiliabrzosko · Accepted solution]

HI Alok,

Thank you for your answer.

I did it this way, by entering these two amounts (tax-free and reimbursement) in T706V, and it´s working fine, meeting the requirement.

Thank you & regards,

Emilia