Superannuation Calculation for Employee Contribution

[Former Member]

Hi Experts,

I have a requirement to have different logic in Payroll Calculations for Superannuation salary sacrifice % maintained in PA0220-EMPCN.

Basically in the standard payroll calculations, the Superannuation calculations return the Superable salary Wagetype as the base for both Employer (SGC) and Employee contributions (Salary sacrifice). For the Employer Contribution (SGC), the Wage Type is fetched only for Base salary and no overtime or allowances taken into consideration.

Our business requirement is to take the Gross Salary (includes all earnings) as a base to work out the Employee contribution (Salary sacrifice). Could anyone please outline how to achieve these two different logics in Payroll calculations using SUPER Function?

Thanks.

[viswanathappa · Accepted solution]

Hi Raghu,

Could you please let me know if you were able to resolve the issue?

Was my recommendation helpful?

Thank you

Viswa

[Former Member · Accepted solution]

Hi Viswa,

Apologies for delay in response. I have had a discussion with Business and they are happy with the solution. I guess it is more stable solution for the requirement. Few things I faced in Development clients while testing this are:

• Created new Superannuation Fund Called 'Salary Sacrifice' with NIL SGC contribution % also with no Contribution WT.
• Used WT /GPT (Payroll Taxable Earnings) for Ordinary Time Earnings to calculate Super % as shown below.

I haven't keyed in Outflow/Inflow WTs as this fund was copied from Standard Fund. When running Payroll it throws error saying no Outflow/Inflow WT assigned for /GPT in Retro runs.

I tried to find some information about these Outflow/Inflow WTs. But unable to find anything about that. I'm bit confused with the these Outflow/Inflow concepts. Could you please able to clarify? Also let me know what WTs i can use to get rid of the error that I'm facing.

Thanks in advance.

Karthik

[viswanathappa · Accepted solution]

Hi Karthik,

From the above screenshot, what I see is that you have maintained /GPT in the OTE wage type, which is incorrect. /GPT is a standard SAP wage type.

You have to maintain the superable earnings wage type in the OTE wage type field.

The concept of inflow and out flow wage type is as follows:

SAP from the financial year 2012 made changes to superannuation contribution calculations according to ATO.

The changes are on how the contribution are calculated in retro scenarios.

Earlier the contributions used to calculate in the for period when there is a retroactive change in superable earnings.

But from 2012 financial year the difference in superable earnings is brought forward to the current period through inflow out flow wage types and calculate the contribution in the in period.

Example

If your OTE wage type is a standard wage type like /172, you need not maintain the in flow and out flow wage types. The QSUEA function in the Factoring schema should take care of generating the inflow and out flow wage types

If it is a custom wage type like /195 you need to maintain the inflow and out flow wage types.

The outflow and inflow wage types for /195 should be /A95 and /Z95. so if it is /196 they should be /A96 and /Z96......

Please let me know should you require further information.

Kindly mark the reply as helpful or answered if you are happy with the resolution.

Thank you

Viswa

[Former Member · Accepted solution]

Hi Viswa,

Thanks for the extensive reply again. It was really helpful.

I have used /GPT (Payroll Taxable) because it is a Gross payments and my requirement for Salary Sacrifice payments is based on Gross payments.

If I cannot use /GPT, what are the steps to create a WT to use Superable Salary for Sal Sacrifice?

I have tried to copy /GPT to custom WT but its not being pulled up in Payroll Calculations. Please advise on this. Thanks.

Regards,

Karthik

[viswanathappa · Accepted solution]

Hi Karthik,

Thank you.

Please refer to the master note 1878102 and specifically the note 1852639 explains you the new concept of in flow and out flow wage types.

I think /GPT is an SAP standard wage type.

My advise is create a new cumulation class.

Find out with the business what wage types cumulate to for the superable salary for salary sacrifice.

Mark all the wage types to the new cumulation class.

For example if you have created cumulation class 95, your superable salary sacrifice wage type will be /195.

So your OTE wage type will be /195 and your out flow and in flow wage types will be /A95 and /Z95 respectively.

If you still insist to use /GPT, try to create the out flow and inflow wage types as /APT and /ZPT.

Create these wage types by copying the /A42 and /Z42.

Maintain these wage types in the table  V_T5QSF

Let us try and see if this works

Thank you

Viswa

[Former Member · Accepted solution]

Hi Viswa,

Thanks again for the info.

I have tried to create cumulation WT copied from /101 to /194 in OH11 and it did create Cumulation '94' automatically. However, this new WT is not getting pulled in the Pay results. Am I missing any step here?

Is there any implication if i use /GPT? This Superable WT is only used to calculate in Pay result right? If the cumulation doesn't work this is the only option I've got.

Kind regards,

Karthik

[viswanathappa · Accepted solution]

Hi Karthik

I think you should not use /GPT. /GPT is used in function QPWCT (Workers compensation)

Rather check the wage types that are cumulating into /GPT and tick the same wage types for /194 as well.

Then the wage type /194 will be generated in payroll.

I am not sure why you have used /101 to copy /194, the best wage type to copy would have been /172, which is the standard superable wage type.

At the end its a simple configuration.

Just analyse the working of the current super fund.

Let me know for further queries.

Thank you

Viswa

[Former Member · Accepted solution]

Hi Viswa,

Thank you very much for the usefull response everytime.

I have copied /172 to /194 and the cumulation automatically created. Then I have ticked all the wage types that has tick mark next to '/101 - Gross Income' as per business requirement. Its all working perfectly now.

Really appreciate your help.

Kind regards,

Karthik

[viswanathappa]

Hi Raghu,

From your requirement what I understood is you need two superable wage types- one for calculating employee contribution and the other for employer contribution, Please confirm.

Thank you

Srivi

[Former Member]

Hi Srivi,

You are right. Currently, we got wage type /172 for Superable OTE being used in SUPER function to calculate both Employer (SGC) and Employee (Salary Sacrifice) contributions.

I really do not know how to seperate the new Superable Salary for Salary Sacrifice.

Please advise. Thanks.

Regards,

Karthik

[viswanathappa]

Hi Karthik,

My worry is on the latest changes that SAP has done to the Super solution.

The OTE wage types now have the inflow and out flow wage types concept.

Even if we create a new wage type for calculating Employee contribution how do we manage the inflow/outflow, which is performed in function QSUEA

Keeping in view the SAP standard and making sure that your payroll system is not disturbed with all this customization.

I would prefer creating two Super Funds one for Employer contribution and the other for Employee contribution.

Create a new cumulation class, which will create the /1** wage type. Use this wage type as OTE wage type.

Please review and let me know if you see any issues with this solution.

Thank you

Srivi