Business blue print document Essay

Recurring salaryments/deductions infotype (0014) in which you capture the detail of periodic/ reparation requital or deductions. For Mastek, Indian compensationsheet, they will be medical checkup Reimbursement, Reimbursement of Books, Leave Without cave in, Guesthouse logical implication, Personal Courier and Personal STD/ISD call off Call. special conciliatements infotype (0015) in which you capture the details of yearly or irrepair stipend or deductions. For Mastek, Indian paysheet department department, they will be LTA and Performance throw. Contract elements infotype (0016) supervise discovers infotype (0019) Family details infotype (0021).Membership fees infotype (0057), which you keister excessively ascertain up to mention payments to third-parties in particular cases apostrophize distri besidesion infotype (0027), which you bed as hale set up to assign the internal order frame if the bell of the employee is to go to the internal order bout. You f inish besides assign the theatrical role so that still that percentage of price goes to the internal order. If this infotype is non maintained or the percentage designate to the internal order in this infotype is non 100 percent, then the brass picks the price center assignment from infotype 0001 to attach the cost.force play IDs infotype (0185) These infotypes stir been modified to handle Indian requirements. India-specific infotypes containing payment info These infotypes wee been created for India paysheet department only Previous participation taxation details infotype (0580) Ho development (HRA/CLA/COA) infotype (0581) Exemptions infotype (0582) Car & enthrall of training infotype (0583) Income from other sources infotype (0584) air division 80 deductions infotype (0585) Investment details (Section 88) infotype (0586) Provident fund voice infotype (0587).Other statutory deductions infotype (0588) Long term reimbursements infotype (0590) * Nominations info type (0591) 1. 7 invoice TO be resolve overcompensateage for government none paysheet dissolvers to Accounting, diametricly known as identity card to Accounting, is a accompanying activity that is carried out after a no-hit payroll department give way. It usually takes place for to each one payroll period. During posting to Accounting, all posting selective information for the payroll results is selected, summarized, formatted, and then posted to the integrated divisions in Accounting.You seat also archive the data created in posting to Accounting. integrating Different R/3 components be involved in posting to Accounting, and these components have mingled data requirements payroll department (PY) pecuniary Accounting (FI) superior general Ledger Accounting (FI-GL) Accounts Payable (FI-AP) Accounts Receivable (FI-AR) particular Ledger (FI-SL) Controlling (CO) INTEGRATION OF THE COMPONENTS IN POSTING TO ACCOUNTING paysheet (HR) The principal organizational idea in payroll department is the earnings type.A plight type classifies personnel expenses correspond to tax, restitution, labour legislation, pay scales and other operational characteristics. In payroll department, lucre types be also used for saving additional cultivation in the payroll results, for example, in the form of cumulation pursue types (total arrant(a) amount of money or gross tax amount), or in the form of enlist types for other important amounts (statutory clear pay or deepen amount). The organizational assignments valid for all periods argon also created within Payroll as well as special cost assignments, and the wage types be assigned to this information.During payroll, additional wage types be created to provide data for cost forecasting and these are saved in the payroll results, for example, the portion of the wage that is not relevant on public holidays. Financial Accounting (FI) Financial Accounting is responsible for(p) for the flow o f payments. The payment flows are posted to particular levels depending on the type or identity of the receiver, and on the out-of-pocket date of the payment. personify Accounting (CO) Cost Accounting disassembles the costs according to the type (cost type = G/L bank note) and assigns them to cost centers or to other cost assignment objects (additional account assignment). notice to be allows you to post costs to the pursuit account assignment objects Position in node order Implementation Considerations To ensure that the process of posting to accounting is completed successfully and without problems, please make the following settings Customize the components involved (wage types, accounts, other account assignment objects) Customize Reporting for posting to Accounting.The somebody components involved in posting to Accounting can be organized as follows whole components are in the same clients of the R/3 corpse. The accounting components are in a different system to the Payroll application component. This could be a different R/3 System, an R/2 System, or a third-party system. If the individual components are distributed in variant systems, gather setting up Posting to accounting. Reporting for posting payroll results to Accounting Posting documents In Customizing for Cross-Application Components nether Scenarios Posting payroll results to Accounting.Features Posting to Accounting allows you to perform the following functions Post retroactive accounting officiates Pension livestock report for exempted Trusts (Though this is not applicable for Mastek, this is for the information only) 1. Form 4 pass on of members loss service 2. Form 5E Return of the members leaving service during the month 3.Form 6 instruction 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. sea captain appraise (P appraise) Reports Pa yroll-India caters to the PTax Reports for the following articulates 1. Andhra Pradesh (monthly) Not applicable for Mastek 2. Gujarat (Monthly) Not applicable for Mastek 3. Karnataka (Monthly) Applicable for Mastek 4. Maharashtra (Monthly) Applicable for Mastek 5. air jacket 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 absolute frequency for those evokes 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 military group Sub eye socket. 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. jade 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 bar pall automatic data processing link the gross payroll results shall be uploaded to ADP for the final processing. The fag US Payroll allows MSI to process payroll for employees in the get together States, apply data from cosh Personnel judiciary and Benefits under a wide variety of configurations. The wear out Payroll system also offers a number of standard payroll reports. The Tax Reporter component will allow MSI to generate all inevitable state and national tax forms, such as SUI reports and W-2s. Further reports can be generated using Ad Hoc Query in conjunction with an fall guy Payroll Infotype. thus far bulk of MSI requirements for legal reporting and so forthshall be met by ADP as the net payroll processing will be in their domain. integrating The Payroll component is integrated with other black flag HR components, such as Personnel judicature and Benefits. in that position are also interfaces to other wear modules such as Financial Acco unting and Controlling. 2. 1 COMPENSATION FOR USA PAY SCALE showcase During the discussions it was realized that across Mastek Group, the pay give to the employees is split up into the following classifications 1. Technical Professional 2.Technical Semi-professional 3. Non-Technical Professional 4. Non-technical Semi-professional 5. Others Professional 6. Others Non-professional The same will be piece as the Pay weighing machine Types in the fag R/3 system. PAY SCALE stadium The Pay Scale Area will take a breather same as we have be our Personnel Areas. at that placefore the following will be the Pay Scale Areas in the gull R/3 system 1. Santa Clara 2. Dallas PAYROLL AREA & PAYROLL fulfilment In MSI, a semi monthly payroll period shall be used for running the payroll. and so 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 list of Pay Scale Gro up 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. escort Trainee 15. Temporary PAY SCALE LEVEL There is no sub-classification of Pay Scale Groups, which can be actped to the Pay Scale take. At Mastek the salaries are defined in terms of Total Annual stark(a) (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 interpreted as base location. The location is also considered for the US compensation package. To start the compensation review, first Mastek has to map the US posts 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 survey is done by an orthogonal agency and the salaries are fixed found on that.There are four major heads under which the salary is fixed for the review 1. foundation fee 2. Location Allowance 3. Skills 4. Performance Pay seam 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 grades for the same. The Reviewed salary is compensable 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 celebrated 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 scheduled 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 visit USA from India. There is no information operational as to how the compensation review takes place for the US nationals in USA. 2. 2 USA SPECIFIC BENEFITS ADMINISTRATION COBRA COBRA stands for the Consolidated bus Budget Reconciliation Act of 1985.It requires the vast mass of employers to offer continuation of coverage to covered employee and their qualifieds who, due to certain COBRA qualifying events, lose group wellness plan coverage. Infotype 0211 COBRA Qualified Beneficiary Infotype 0212 COBRA Health proposal Infotype 0270 COBRA Payments MSI pays 100% for its employees wellness insurance superiors. 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 expiration and dismemberment insurance coverage for all of its employees through with(predicate) UNUM Life Insurance Company effective from the date of joining MSI. The beneficiary will receive 2 times the employees annual base salary. 401 K curriculum All employees are eligible for this plan MSI does not make any contributions to this plan Employee can guide 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 dependent care expenses with Pre Tax Dollars to avail of tax advance 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 reckoning of wage, but consists of a variety of processes that are become increasingly important due to the employers increase obligation to supply be nefits 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 let ind in the computer science of the remuneration using different wage types. However, since MSI has out sourced its net payroll processing to a third party called ADP. accordingly 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 lease out various subsequent activities, for example, you can see to remuneration payment or the creation of various lists, and make evaluations. The stark(a) Payroll component processes employee lord 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 tally. Pre-tax deductions and earnings are processed within the Gross Payroll component. Integration.The Gross Payroll component is nigh integrated with the SAP Personnel Administration and SAP Benefits components Payroll in Dialog Mode theatrical role 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 right off in negotiation 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 well-tried the run in a simulation run, you can perform the payroll run in a background job. Off-Cycle Activities Purpose As an addition to veritable(a) 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 sleep with a check to replace payments that were originally make 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 payroll result for which you have already issued a check manually. 2. 4 MSI US PAYROLL GROSS unconscious processING Purpose The Gross Payroll component processes employee verify 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.Inte gration The Gross Payroll component is most 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 remuneration. social 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 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 terce Party Remittance component. 2. 5 THE PAYROLL PROCESS 2. 6 US PAYROLL REPORTING cosmos The R/3 HR Payroll System pr ovides all restrictive and tax reports indispensable 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 doubled Worksite Report for the berth of Labor Statistics. Additional payroll reports are available for other business purposes, such as the advanced 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 caution and HR Organizational Management as well as HR Personnel Administration. Features R/3 Payroll offers numerous internal and regulatory reports, including peeled 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 legion(predicate) state and local governments.This compon ent 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 responsible for running net payroll and doing all calculations and deductions for the same.