termination workbench
TRANSCRIPT
General description
Configuration
Employee data
Exemptions related to cessation
Impact on Other functionality
Separation process serves to
Delimit relevant infotypes when employee
leaves the company
Compute notice pay
Computation of various components payable
to employee at the time of termination
Compute relevant exemptions after payroll
processing
Notice Period & Notice Pay
Configure wage types
► Taxability of wagetypesTaxability of wagetypes
Infotype 0016
Infotype 0041
Infotype 0185
Report for Termination processing
Voluntary Retirement Exemption Wagetype: /4E6
Computed as minimum of
1. Voluntary retirement benefit (Payment wagetype)
2. Tax exemption limit (Defined in V_T7INT9 )
3. Number of years of service * a multiplication factor * basis salary.
Multiplication factor determined by constant MFPVR defined in V_T511K
Basis Salary Determined by wagetype /129
4. Number of balance number of months * basis salary.
Number of balance number of month is based on infotype 41 data captured for
Normal Retirement date.
Gratuity Exemption Wagetype: /4E8
Computed as minimum of
1. Gratuity benefit (Payment wagetype)
2. Tax exemption limit (Defined in V_T7INT9 )
3. Number of years of service * a multiplication factor * Nominal salary.
Multiplication factor & Nominal Salary Depends on Payment as per Gratuity
Act or otherwise.
In case of Payment as per Gratuity Act wagetype /129 is used
Otherwise average salary is determined.
Wagetype for entering legacy data
Leave Encashment Exemption Wagetype: /4E7
Computed as minimum of
1. Leave encashment (Payment wagetype)
2. Tax exemption limit (Defined in V_T7INT9 )
3. Average Monthly Salary * 10 (Multiplication Factor)
4. Average Monthly Salary * Remaining leave in months
Wagetype for entering legacy data
The Termination workbench program populates the relevant wagetypes in Infotype 0015, which are treated in payroll and give rise to various exemptions and impacts the Gross and taxable salary as per the wagetype configuration.