Business blue print document Essay

happen pass onments/ evaluate deductions info symbol (0014) in which you raptus the flesh out(a) of hang-upic/ timed pelf or deductions. For Mastek, Indian paysheet department department, they volition be Medical Reimbursement, Reimbursement of Books, Leave Without even off, Guesthouse Deduction, Personal messenger and Personal STD/ISD Phone C only(prenominal).  excess payments infotype (0015) in which you capture the details of annual or irregular earnings or deductions. For Mastek, Indian paysheet department, they will be LTA and Per plaster bandageance repair.   shorten elements infotype (0016) Monitoring pick ups infotype (0019)  Family details infotype (0021).Membership fees infotype (0057), which you layabout withal set up to pull back out payments to trey-parties in particular fonts Cost dissemination infotype (0027), which you basis in either case set up to assign the internal come in bite if the comprise of the employee is to go t o the internal redact payoff. You gutter to a fault assign the helping so that only that percentage of comprise goes to the internal order. If this infotype is non maintained or the percentage assigned to the internal order in this infotype is not hundred percent, so the administration picks the cost c go into fitting from infotype 0001 to attach the cost. effect IDs infotype (0185) These infotypes have been special to handle Indian requirements. India-particular proposition infotypes containing payment development These infotypes have been created for India paysheet only   preceding employment task details infotype (0580)   admit (HRA/CLA/COA) infotype (0581)  Exemptions infotype (0582)  Car & Conveyance infotype (0583)  Income from otherwisewise sources infotype (0584)   member 80 deductions infotype (0585)  Investment details (Section 88) infotype (0586)  Provident fund contribution infotype (0587). some other statutory deducti ons infotype (0588)  Long term reimbursements infotype (0590) * Nominations infotype (0591) 1. 7 POSTING TO ACCOUNTING decision enunciateing for posting payroll results to vizorancy, otherwise cognize as posting to Accounting, is a sequent activity that is carried out after a successful payroll recreate. It usu solelyy takes go chthonian for each payroll period. During posting to Accounting, entirely posting selective discipline for the payroll results is selected, summarized, take a hopatted, and accordingly affix to the integrated constituents in Accounting.You kindle also archive the info created in posting to Accounting. desegregation Different R/3 servings be rentd in posting to Accounting, and these voices have different information requirements   paysheet (PY)  fiscal Accounting (FI)   world spacious Ledger Accounting (FI-GL)  Accounts Payable (FI-AP)  Accounts receivable (FI-AR)  Special Ledger (FI-SL)  Controlling ( CO) consolidation OF THE COMPONENTS IN POSTING TO ACCOUNTING payroll department (HR) The principal organizational concept in paysheet is the benefit profit type.A rent type classifies forcefulness expenses according to tax, redress, bray legislation, pay scales and other operational characteristics. In paysheet, lucre types atomic number 18 also apply for saving additional information in the payroll results, for example, in the form of cumulation profits types (total unrefined centre or perfect(a) tax amount), or in the form of hire types for other alpha amounts (statutory wampum pay or conveyance amount). The organizational assignments valid for tout ensemble periods ar also created at heart payroll as healthy as special cost assignments, and the earnings types ar assigned to this information.During payroll, additional engage types argon created to provide selective information for cost method of accounting and these argon saved in the payroll results, for example, the portion of the wage that is not applicable on public holidays. Financial Accounting (FI) Financial Accounting is prudent for the flow of payments. The payment flows ar posted to particular accounts depending on the type or identity of the receiver, and on the due date of the payment. Cost Accounting (CO) Cost Accounting splits the cost according to the type (cost type = G/L account) and assigns them to cost centers or to other cost assignment objects (additional account assignment). handbill to accounting countenances you to post costs to the hobby account assignment objects   frame in customer order instruction execution Considerations To ensure that the process of posting to accounting is completed successfully and without problems, please make the following settings Customize the chemical elements involved (wage types, accounts, other account assignment objects)  Customize insurance coverage for posting to Accounting.The individual subdivisions involved in posting to Accounting undersurface be organized as follows  All components atomic number 18 in the corresponding clients of the R/3 system.  The accounting components ar in a different system to the payroll department application component. This could be a different R/3 System, an R/2 System, or a third-party system. If the individual components ar distributed in different systems, see setting up propertying to accounting.  Reporting for posting payroll results to Accounting  Posting documents In Customizing for Cross-Application Components under Scenarios Posting payroll results to Accounting.Features Posting to Accounting exclusivelyows you to perform the following functions  Post retroactive accounting runs Pension depot incubate for exempted Trusts (Though this is not applicable for Mastek, this is for the information only) 1. melody 4 Return of members divergence service 2. Form 5E Return of the members going away service dur ing 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. maestro tax revenue (P appraise) Reports payroll department-India caters to the P assess Reports for the following defers 1. Andhra Pradesh (Monthly) Not applicable for Mastek 2. Gujarat (Monthly) Not applicable for Mastek 3. Karnataka (Monthly) applicable for Mastek 4. Maharashtra (Monthly) germane(predicate) 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 endurance screen captures the following information 1. The PTax report whoremaster be generated for a PTax class created for the force-out Subarea. 2. The report is printed in the rele vant format for each state as applicable and for those employees for whom the PTax and return is applicable. Labour wellbeing livestock Reports paysheet-India caters to Labour Welfare Fund reports for the following states 1. Gujarat (Half-Yearly) Not applicable for Mastek 2. utilize the criterion conk out adenosine diphosphate touch on the gross payroll results shall be uploaded to automatic data treat for the final processing. The wash up US payroll department allows MSI to process payroll for employees in the unite States, victimization data from saphead strength Administration and Benefits under a wide transmutation of configurations. The jade paysheet system also offers a number of standard payroll reports. The Tax Reporter component will allow MSI to generate all required state and national tax forms, much(prenominal) as SUI reports and W-2s. Further reports can be generated using Ad Hoc motion in conjunction with an sucker Payroll Infotype.However bulk o f MSI requirements for legal inform etc shall be met by ADP as the crystallize payroll processing will be in their domain. integrating The Payroll component is integrated with other SAP HR components, such as force-out Administration and Benefits. in that respect are also user interfaces to other SAP modules such as Financial Accounting and Controlling. 2. 1 payment FOR ground forces PAY plate face During the discussions it was realized that across Mastek Group, the hire compensable to the employees is divided into the following classifications 1. Technical superior 2.Technical Semi-professional 3. Non-Technical Professional 4. Non-technical Semi-professional 5. Others Professional 6. Others Non-professional The akin will be configured as the Pay musical scale Types in the SAP R/3 system. PAY SCALE part The Pay Scale part will remain same as we have delimitate our Personnel Areas. pastce the following will be the Pay Scale Areas in the SAP R/3 system 1. Sa nta Clara 2. Dallas payroll department AREA & PAYROLL PERIOD In MSI, a semi monthly payroll period shall be employ for data track the payroll. Hence the payroll area delimit in the SAP R/3 system for MSI is 02 Semi Monthly USA PAY SCALE GROUP The Pay Scale Group will be in ground of grades in the organization. The angle of inclination 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. temp PAY SCALE LEVEL at that place is no sub-classification of Pay Scale Groups, which can be playped to the Pay Scale Level. At Mastek the salaries are defined in terms of Total Annual raw (TAG) and then the money is divided into the sundry(a) 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 plinth location. The location is also considered for the US compensation package. To start the compensation polish up, first Mastek has to map the US scotchs 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 subject area is done by an external bureau and the salaries are fixed based on that.There are four study heads under which the salary is fixed for the review 1. beginning Salary 2. Location gross profit margin 3. Skills 4. Performance Pay NOTE MASTEK has immovable 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 inclining of grades for the same. The Reviewed salary is remunerative 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 loca tion, the amount for Location Allowance is fixed on the basis of the location the employee is scheduled to conk out in. For finalizing the location allowance the following factors are taken into account 1. Accommodation Cost, 2. expatriate 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 overhaulable as to how the compensation review takes place for the US nationals in USA. 2. 2 USA particularized BENEFITS ADMINISTRATION COBRA COBRA stands for the Consolidated Omnibus work out Reconciliation Act of 1985.It requires the vast absolute majority of employers to offer continuation of coverage to cover employee and their dependents who, due to certain COBRA qualifying events, support group health invent coverage. Infotype 0211 COBRA equal Beneficiary Infotype 0212 COBRA wellness Plan Infotype 0270 COBRA Payments > MSI pays 100% for its employees health insurance premiums. Employees dependents ar e eligible to participate in the same health insurance, however its the employees right to pay the premium costs. > Anthem Health provides both Medical and Dental insurance for MSI employees and their dependents.LIFE INSURANCE > MSI provides life remnant and dismemberment insurance coverage for all of its employees through UNUM Life Insurance company effective from the date of joining MSI. > The donee will receive two propagation the employees annual base salary. 401 K computer programme > All employees are eligible for this design > MSI does not make any contributions to this plan > Employee can contribute up to 25% to a maximum of USD 10,000 per calendar year. CAFETARIA course of study > Also known as Section 125 Plan. > Employees can pay for medical exam 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 say towards this plan. > This is solely and e mployee contributed benefit. 2. 3 STANDARD SAP US PAYROLL FEATURES SAP Payroll allows MSI to run payroll for employees in all states. Requisite statutory reports, such as federal official forms 940, W-2, W-3, and all state SUI forms are also supported by the SAP system. Payroll does not just involve the computing of wages, but consists of a variety of processes that are becoming increasingly important due to the employers increased arrangement 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 received by an employee. These payments and deductions are include in the calculation of the payment 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 carry 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 earn 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 Payroll in Dialog Mode pop the question The payroll program is run at a specific point in time, not only to calculate an employees basic remuneration but also any special payments, overtime payments or bonuses that must be effected for the period in question. You can follow the routine of payroll directly in negotiation method. Payroll in dialog mode is particularly suited to simulate a payroll run for an individual payroll area or individual personnel numbers. Payroll in a telescope OperationUse When you have defend out all the settings for the payroll run, and have well-tried the run in a trick run, you can perform the payroll run in a background 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 payrol l 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 hearty 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 wa ge 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 refractory 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 intervals. 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 door The R/3 HR Payroll System provides all regulative 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 chest of drawers of Labor Statistics. Additional payroll reports are available 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 access information from all HR Infotypes and evaluate data from HR Time M anagement and HR organizational Management as well as HR Personnel Administration. Features R/3 Payroll offers numerous internal and regulatory reports, including New Hire Reporting Tax Reporter for federal and state reports natural law requires companies to report the results of their payroll calculation to several(prenominal) tax authorities, including the federal government and more state and local governments.This component enables you to make grow 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 trusty for running net payroll and doing all calculations and deductions for the same.