Business blue print document Essay Example for Free

Business blue print document EssayRecurring payments/deductions infotype (0014) in which you capture the details of periodic/regular compensation or deductions. For Mastek, Indian paysheet, they provide be Medical Reimbursement, Reimbursement of Books, Leave With bring out Pay, Guesthouse Deduction, Personal Courier and Personal STD/ISD Phone C totally. Additional payments infotype (0015) in which you capture the details of annual or occasional earnings or deductions. For Mastek, Indian payroll, they will be LTA and Performance Pay. Contract elements infotype (0016) Monitoring dates infotype (0019) Family details infotype (0021).Membership fees infotype (0057), which you can excessively set up to perform payments to third- bulge outies in particular cases Cost distribution infotype (0027), which you can also set up to assign the inhering order number if the cost of the employee is to go to the internal order number. You can also assign the percentage so that only that per centage of cost goes to the internal order. If this infotype is not maintained or the percentage assign to the internal order in this infotype is not 100 percent, then the formation picks the cost c scratch assignment from infotype 0001 to attach the cost.force play IDs infotype (0185) These infotypes have been modified to incubate Indian requirements. India-specific infotypes containing payment info These infotypes have been created for India payroll only Previous employment revenue details infotype (0580) Housing (HRA/CLA/COA) infotype (0581) Exemptions infotype (0582) Car Conveyance infotype (0583) Income from otherwise sources infotype (0584) discussion section 80 deductions infotype (0585) Investment details (Section 88) infotype (0586) Provident fund contribution infotype (0587).Other statutory deductions infotype (0588) Long term reimbursements infotype (0590) * Nominations infotype (0591) 1. 7 POSTING TO ACCOUNTING excogitation floor for posting payroll results to Accounting, otherwise known as posting to Accounting, is a subsequent activity that is carried out after a successful payroll buy the farm. It normally takes place for each payroll period. During posting to Accounting, all posting entropy for the payroll results is selected, summarized, formatted, and then posted to the compound components in Accounting.You can also scroll the data created in posting to Accounting. Integration Different R/3 components are involved in posting to Accounting, and these components have unlike data requirements paysheet (PY) fiscal Accounting (FI) General Ledger Accounting (FI-GL) Accounts Payable (FI-AP) Accounts Receivable (FI-AR) Special Ledger (FI-SL) Controlling (CO) INTEGRATION OF THE COMPONENTS IN POSTING TO ACCOUNTING payroll (HR) The principal organizational concept in payroll department is the profits type.A wage type classifies personnel expenses according to tax, insurance, labour legislation, pay scales and other operative charac teristics. In payroll, wage types are also used for saving additional information in the payroll results, for example, in the form of cumulation wage types (total gross issue forth or gross tax amount), or in the form of wage types for other important amounts (statutory pelf pay or transfer amount). The organizational assignments binding for all periods are also created within Payroll as well as special cost assignments, and the wage types are assigned to this information.During payroll, additional wage types are created to provide data for cost accounting and these are saved in the payroll results, for example, the portion of the wage that is not relevant on cosmos holidays. Financial Accounting (FI) Financial Accounting is responsible for the flow of payments. The payment flows are 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 costs according to the type (co st type = G/L account) and assigns them to cost centers or to other cost assignment objects (additional account assignment).Posting to accounting allows you to post costs to the find outing(a) account assignment objects Position in customer order capital punishment Considerations To ensure that the process of posting to accounting is completed successfully and without problems, please make the following settings custom-make the components involved (wage types, accounts, other account assignment objects) Customize Reporting for posting to Accounting.The individual components involved in posting to Accounting can be organized as follows All components are in the uniform clients of the R/3 System. The accounting components are in a different agreement to the Payroll application component. This could be a different R/3 System, an R/2 System, or a third-party brass. If the individual components are distributed in various systems, see setting up Posting to accounting. Reporting f or posting payroll results to Accounting Posting documents In Customizing for Cross-Application Components under Scenarios Posting payroll results to Accounting.Features Posting to Accounting allows you to perform the following functions Post retroactive accounting runs Pension computer storage embrace for exempted Trusts (Though this is not applicable for Mastek, this is for the information only) 1. establish 4 Return of members leaving service 2. Form 5E Return of the members leaving service during the month 3.Form 6 Statement of contributions for the month ESI Reports 1. Form 6 2. Form 7 These reports are generated every half-year, in the months of October and April for the preceding contribution period. professional tax (PTax) Reports Payroll-India caters to the PTax Reports for the following put ups 1. Andhra Pradesh (Monthly) Not applicable for Mastek 2. Gujarat (Monthly) Not applicable for Mastek 3. Karnataka (Monthly) Applicable for Mastek 4. Maharashtra (Mont hly) Applicable 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 applicable frequency for those states where PTax is applicable. The selection screen captures the following information 1. The PTax report can be generated for a PTax grouping created for the Personnel Subarea. 2. The report is printed in the relevant format for each state as applicable and for those employees for whom the PTax and return is applicable. Labour Welfare Fund Reports Payroll-India caters to Labour Welfare Fund reports for the following states 1. Gujarat (Half-Yearly) Not applicable for Mastek 2.Using the standard muggins ADP link the gross payroll results shall be uploaded to ADP for the final processing. The SAP US Payroll allows MSI to process payroll for employees in the United States, using data from SAP Personnel Administration and Benefits under a wide variety of configurations. The SAP Payroll system also offers a number of standard payroll reports. The Tax Reporter component will allow MSI to generate all required state and federal tax forms, much(prenominal) as SUI reports and W-2s. Further reports can be generated using Ad Hoc Query in conjunction with an SAP Payroll Infotype.However bulk of MSI requirements for healthy reporting etc shall be met by ADP as the net payroll processing will be in their domain. Integration The Payroll component is integrated with other SAP HR components, much(prenominal) as Personnel Administration and Benefits. There are also ports to other SAP modules such as Financial Accounting and Controlling. 2. 1 COMPENSATION FOR USA fabricate SCALE TYPE During the discussions it was realized that across Mastek Group, the compensation paying(a) to the employees is shared out into the following classifications 1. Technical Professional 2.Technical Semi-professional 3. Non-Technical Pro fessional 4. Non-technical Semi-professional 5. Others Professional 6. Others Non-professional The said(prenominal) will be configured as the Pay home plate Types in the SAP R/3 system. PAY SCALE AREA The Pay Scale Area will remain same as we have defined our Personnel Areas. Therefore the following will be the Pay Scale Areas in the SAP R/3 system 1. Santa Clara 2. Dallas paysheet AREA payroll department PERIOD In MSI, a rigging monthly payroll period shall be used for running the payroll. Hence the payroll area defined in the SAP R/3 system for MSI is 02 Semi Monthly USA PAY SCALE GROUP The Pay Scale Group will be in terms of grades in the organization. The arguing 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. Temporary PAY SCALE LEVEL There is no sub-classification of Pay Scale Groups, which can be mapped to the Pay Scale Level. At Mastek the salari es are defined in terms of Total Annual porcine (TAG) and then the money is divided into the various 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 base fix. The location is also considered for the US compensation package. To start the compensation review, first Mastek has to map the US crops 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 recompense survey is done by an external agency and the salaries are fixed based on that.There are quadruple major heads under which the salary is fixed for the review 1. Base Salary 2. Location Allowance 3. Skills 4. Performance Pay NOTE MASTEK has decided 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 list of g rades for the same. The Reviewed salary is paid 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 location, the amount for Location Allowance is fixed on the basis of the location the employee is plan to work in. For finalizing the location allowance the following factors are taken into account 1. Accommodation Cost, 2. Transportation Cost, 3. Tax Rate, and 4. Food Cost. All this is relevant to the Indian employees who view USA from India. There is no information available as to how the compensation review takes place for the US nationals in USA. 2. 2 USA SPECIFIC BENEFITS organization COBRA COBRA stands for the Consolidated Omnibus Budget Reconciliation Act of 1985.It requires the vast majority of employers to offer continuation of coverage to covered employee and their opens who, due to certa in COBRA qualifying events, leave out group health plan coverage. Infotype 0211 COBRA Qualified Beneficiary Infotype 0212 COBRA Health Plan Infotype 0270 COBRA Payments MSI pays 100% for its employees health insurance premiums. Employees dependents are eligible to participate in the same health insurance, however its the employees responsibility to pay the premium costs. Anthem Health provides both Medical and Dental insurance for MSI employees and their dependents.LIFE INSURANCE MSI provides life finale and dismemberment insurance coverage for all of its employees through UNUM Life Insurance Company effective from the date of joining MSI. The beneficiary will receive deuce times the employees annual base salary. 401 K PLAN All employees are eligible for this plan MSI does not make any contributions to this plan Employee can impart up to 25% to a maximum of USD 10,000 per calendar year. CAFETARIA PLAN Also known as Section 125 Plan. Employees can pay for medical and depe ndent care expenses with Pre Tax Dollars to avail of tax benefit under this plan. Employees may choose to have designated amount of their income directed towards this plan. This is solely and employee 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 forms 940, W-2, W-3, and all state SUI forms are also supported by the SAP system. Payroll does not just involve the calculation of remuneration, but consists of a variety of processes that are get increasingly important due to the employers increased obligation to supply benefits and medical welfare.You can also control the financial system of third-party providers. The System engineers 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 included in the calculation of the remune ration 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 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 Payroll in Dialog Mode Purpose 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 procedure of payroll directly in dialog mode. Payroll in dialog mode is particularly suited to simulate a payroll run for an individual payroll area or individual personnel numbers. Payroll in a Background OperationUse When you have checked all the settings for the payroll run, and have tested the run in a simulation 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, tor n).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 payroll 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 social insurance and tax payments, and also for the calculation of net remuner ation. 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 wage 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 determined 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 contour 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 Remittance component. 2. 5 THE PAYROLL PROCESS 2. 6 US PAYROLL REPORTING Introduction The R/3 HR Payroll System provides all regulatory 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 Bureau 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 an d ensure compliance with government regulations. Integration Payroll reports access information from all HR Infotypes and evaluate data from HR Time Management 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 Law requires companies to report the results of their payroll calculation to several tax authorities, including the federal government and many state and local governments.This component enables you to produce 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 resp onsible for running net payroll and doing all calculations and deductions for the same.