Enhancement Package 5 New Functionalities for Indian payroll
Enhancement packages represent a new software delivery strategy which allows customers to modernize and innovate their business processes without the need of traditional upgrades. Enhancement packages for ERP include functional enhancements, industry-specific enhancements, UI simplifications, and enterprise service bundles. The first four generations of enhancement packages for ERP 6.0 have been delivered and successfully adopted in the market.
Enhancement Package vs Support Packages
SAP enhancement packages are optional packages that deliver new or improved business functions which can be selectively deployed. Support Packages on the other hand, contain corrections like bug fixes and legal or tax changes and are therefore mandatory. SAP recommends installing enhancement packages when applying a regular support package as a maintenance activity. This combined approach reduces the downtime and manual effort for the whole installation procedure and for the testing efforts.
1. Global Employee India
Transfer of employees across different country.
Data (wagetypes) is accepted and received from the Host Country to India payroll
Determination of resident status and its tax implication
For example, employees of your Indian firm are seconded to your subsidiary company in the USA. Employee receives payments (a part of salary and allowances) in India as well as in USA. Now, the employee still pays Income Tax in India during his or her overseas assignment. This amount is calculated in the Indian payroll run. But taxable income of the employee need to include payments paid in USA also. Hence these payments are sent from the USA, the sending payroll, to India, the receiving payroll. They are included in employee’s taxable income in India, and accordingly income tax is computed and deducted from the employee’s remuneration during payroll processing.
New two cummulation classes introduced
2. Payroll Correction Run
Payroll Correction run will allow retro calculation in off cycle payroll.
See the below screen shots new sub schema which will replace XLR0 with INR0
3. IT declaration on ESS
Declaration of tax related information
Income from other sources
Section 80C Deductions
Section 80 Deductions
Previous employment Details
Approvers can display, change, reject or approve the above mentioned requests.
Slabs and % based Calculation of Loans.
Recovery of Principal Part of Loan first
– Repayment reduces the principal
– Cumulates Interest amount
– Loan record created with 0% interest
Loans > 20,000 INR are to be perked.
Two New Housing Types – Remote Housing, and No Housing.
Tax Paid by Employer on Housing Perquisites
6. E- Separation
E-separation is a one stop shop for all Separation related activities in an Organization.
Tool to fasten the separation process of an employee.
Tool to reduce administrative work.
Mandatory HR Process
Legal Process (Absconding cases)