Table of Contents

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Preface
15
1 Objectives and Purpose
23
1.1 What Makes US Payroll Unique?
24
1.1.1 Functional Uniqueness
24
1.1.2 Technical Uniqueness
27
1.2 The US Payroll Process
29
1.3 Components of SAP US Payroll
30
1.4 Summary
32
2 US Payroll Infotypes: Master Data and Transaction Data
33
2.1 Master Data: Conceptual Clarity
33
2.2 Retroactive Accounting
34
2.3 Employee Master Data for US Payroll
36
2.3.1 Infotype 0007: Work Schedules
40
2.3.2 Infotype 0008: Basic Pay
40
2.3.3 Infotype 0009: Bank Details
41
2.3.4 Infotype 2010: Employee Remuneration
42
2.3.5 Infotype 0207: Residence Tax
43
2.3.6 Infotype 0208: Work Tax
43
2.3.7 Infotype 0167: Health Plans
44
2.3.8 Infotype 0057: Membership Fees
44
2.4 Employee Transaction Data: US Payroll
45
2.4.1 Infotype 0014: Earnings/Deductions Transaction Data
49
2.4.2 Infotype 0169: Savings Plans
50
2.4.3 Infotype 0015: Additional Payments and Deductions
50
2.4.4 Infotype 0267: Bonus and Off-Cycle
51
2.4.5 Infotype 0011: External Bank Transfer
52
2.4.6 Infotype 0210: Changes to W-4 Data
53
2.4.7 Infotype 0234: Additional Withholding Info
53
2.4.8 Infotype 0235: Other Taxes
54
2.4.9 Infotype 0554: Hourly Rate Per Assignment
55
2.4.10 Infotype 0027: Cost Center Distribution
55
2.5 Pre-Payroll Data Verification
56
2.6 Summary
59
3 Wage Types
61
3.1 Overview of a U.S. Paystub and the Concept of Wage Types
61
3.2 Lifecycle of a Wage Type and U.S. Wage Type Catalog
64
3.2.1 Wage Type Categories
68
3.2.2 Three Elements of a Wage Type
69
3.2.3 Wage Type Catalog
71
3.2.4 Wage Type Tables
74
3.3 Step-by-Step Configuration of a Wage Type
74
3.3.1 Earnings
75
3.3.2 Deductions
83
3.3.3 Taxes
89
3.3.4 Net Pay
93
3.3.5 Wage Type Configuration Tool
95
3.4 Testing Wage Types
97
3.5 Advanced Topics on Wage Types
101
3.5.1 Handling Cumulations
101
3.5.2 Setting Up Payment Models
103
3.5.3 Priority and Arrears
104
3.5.4 Posting of Wage Types
109
3.5.5 Valuation of Wage Types
122
3.6 Summary
123
4 Schemas and Rules
125
4.1 Examining the U.S. Payroll Driver (RPCALCU0)
125
4.2 Working with U.S. Schema U000
127
4.2.1 Schemas
130
4.2.2 Subschemas
130
4.2.3 U.S. Subschemas
132
4.3 Why, When, and How to Change the U.S. Schema
143
4.3.1 Copy and Modify Schema U000 using the Schema Editor
145
4.3.2 Running an Error-Free Schema
147
4.4 Overview of the U.S. Public Sector Schema Functionality
152
4.4.1 NRA: Non-Resident Alien Processing
153
4.4.2 Savings Bonds Processing
154
4.4.3 Public Sector Savings Plans: 403(B), 457(B)
154
4.4.4 Employer Benefits and Tax Allocation Rules
155
4.5 Overview of Non-Profit Organization (NPO) Payroll
155
4.6 Writing Rules in US Payroll
156
4.6.1 The Rules Editor
157
4.6.2 Creating Simple Rules
159
4.6.3 Creating Complex Rules
162
4.6.4 Running Error-Free Rules
170
4.7 Summary
173
5 Benefits Integration
175
5.1 Integration of US Benefits with US Payroll
175
5.1.1 Input
176
5.1.2 Processing
177
5.1.3 Output
177
5.2 Health Plan Integration
179
5.3 Savings Plan Integration
183
5.4 Insurance Plan Integration
190
5.5 Flexible Spending Account Integration
195
5.6 Sending Data and Remittance to Benefits Providers
197
5.6.1 Health Plans
197
5.6.2 Insurance Plans
198
5.6.3 Savings Plans
198
5.6.4 Sending Remittance
198
5.6.5 Sending Data
199
5.7 Summary
199
6 Time Management and Payroll Integration
201
6.1 Definitions
201
6.2 Time-Payroll Integration Infotypes
204
6.3 Time and Payroll Integration Scenarios
205
6.3.1 Scenario 1: SAP CATS + SAP Time Evaluation + SAP Payroll
207
6.3.2 Scenario 2: External Time Clocking + External Time Evaluation + SAP HCM and SAP Payroll
210
6.3.3 Scenario 3: External Time Clocking + SAP HCM and SAP Time Evaluation + SAP Payroll
212
6.3.4 Scenario 4: External Time Clocking + SAP CATS and SAP Time Evaluation + SAP Payroll
214
6.4 Challenges of Time Integration with Payroll
214
6.4.1 Using Custom Infotypes
214
6.4.2 Override Jobs
215
6.4.3 Override Cost Centers
215
6.4.4 Reconciliation Between External Time Clocking and SAP Payroll
216
6.5 Time Schemas
217
6.6 FLSA and Rate Calculation Impact
219
6.6.1 Minimum Wage
220
6.6.2 Overtime
220
6.6.3 Tracking of Hours Worked and Record-Keeping
220
6.7 Summary
221
7 Garnishments
223
7.1 Configuring Garnishments
224
7.2 Disposable Net Income
228
7.2.1 Definition of Disposable Net Income
228
7.2.2 Example
230
7.3 Managing Wage Types for Garnishments
232
7.3.1 Garnishment Deduction Wage Types
232
7.3.2 Impact of Other Wage Types
233
7.4 Garnishment Subschema
233
7.4.1 Rule UGIT
234
7.4.2 Rule UGDN
236
7.4.3 Function UGARN
238
7.5 Summary
239
8 Tax Processing
241
8.1 Introduction to U.S. Tax Processing
241
8.1.1 Tax Infotypes
242
8.1.2 Earnings and Deductions
244
8.1.3 Relevant Processing Classes for Wage Types
245
8.2 Tax Models
247
8.2.1 Tax Authorities
247
8.2.2 Tax Areas
248
8.2.3 Tax Types
249
8.2.4 Tax Classes
250
8.2.5 Tax Models
250
8.3 Year-End Tax Adjustments and Workbench
255
8.3.1 Starting the Year-End Workbench
257
8.3.2 Running Payroll
262
8.3.3 Verification
264
8.4 Overview of the Tax Reporter
265
8.4.1 Preparation Work
265
8.4.2 Quarterly Reports
266
8.4.3 Annual Reports
268
8.5 Tax Services
270
8.6 BSI Tax Factory
271
8.6.1 Installing BSI Tax Factory 9.0
272
8.6.2 Configuration of SAP for BSI
273
8.6.3 How to Apply BSI TUBS
274
8.6.4 Tax Locator
274
8.6.5 Handling Reciprocity
275
8.7 Summary
277
9 Advanced Topics
279
9.1 Overpayments and Claims Handling
279
9.1.1 Why Claims Are Generated
280
9.1.2 Identifying Claims in Payroll
282
9.1.3 Strategy with Claims
284
9.1.4 Clearing Claims: Payroll-Forgiven
284
9.1.5 Clearing Claims: Payroll-Not-Forgiven
285
9.1.6 Clearing Claims: Accounts Taxes (Employee Pays Single Check)
286
9.1.7 Clearing Claims: Accounts Taxes (Employee Pays by Payment Plan)
288
9.2 New Overpayments Functionality
290
9.2.1 Differences Between Old and New Functionality
290
9.2.2 Running New Overpayments Functionality
292
9.3 Accruals
298
9.3.1 Accruals Configuration
299
9.3.2 Accruals Process and Posting
302
9.4 Interfacing with Third-Party Payroll Systems: Gross to Net
306
9.5 Third-Party Remittance (Accounts Payable Processing)
312
9.5.1 Required Configuration
313
9.5.2 Financial Account Management
314
9.5.3 Running a Third-Party Process
316
9.6 Expatriate Payroll
319
9.6.1 Scenario 1: Payroll in SAP US Payroll for an Expatriate
319
9.6.2 Scenario 2: Payroll in SAP US Payroll and SAP Germany Payroll for an Expatriate
320
9.7 Implementation Tips for US Payroll
321
9.7.1 Go-Live Calendar
321
9.7.2 Volumes and Complexity
323
9.7.3 Resource Planning and Knowledge Transfers
323
9.8 Summary
324
10 Cutover, Implementation, and Post-Go-Live
325
10.1 Implementation Lifecycle
325
10.1.1 Structure to Discuss Payroll Implementation and Cutover
326
10.1.2 Implementation Challenges for Payroll
327
10.2 Cutover Planning
331
10.2.1 Configuration Teams
332
10.2.2 Payroll Operations
333
10.2.3 Interface Management
333
10.2.4 Training and Change Management
334
10.2.5 Finance and Other Integrated Applications
335
10.2.6 Security and Roles
335
10.2.7 Legacy Teams
335
10.2.8 Technical Teams
336
10.3 Typical Cutover Plan
336
10.3.1 Step 1: Pre-Cutover Activities and Tasks
337
10.3.2 Step 2: Cutover of Configuration
337
10.3.3 Step 3: Conversions
338
10.3.4 Step 4: Business Cutover
339
10.3.5 Step 5: Go-Live
340
10.3.6 Step 6: Post-Go-Live
341
10.3.7 Typical Implementation Challenges
341
10.4 Testing
342
10.4.1 System Integration Test
343
10.4.2 Parallel Testing
345
10.5 Post-Go-Live Challenges for Payroll
352
10.5.1 Housekeeping Activities
355
10.5.2 Best Practices to Maintain Wage Types, Schemas, and Rules
358
10.6 Summary
359
Appendices
361
A US Payroll Schema U000
363
B Wage Type Template
375
B.1 Part 1: To Be Completed by Requestor
375
B.2 Part 2: To Be Completed by Person Configuring
376
B.3 Approvals and Testing
378
C Commonly Used Technical Wage Types
379
D Commonly Used Model Wage Types
409
E Commonly Used Processing Classes and Specifications
427
F Useful Payroll Operations
439
G The Author
449
Index
451