1. Online | Classroom | Corporate Training | Certification | Placement | Support CONTACT US Call:+91-9052666559, +1-6786933994, +1-67869334 Mail: info@magnifictraining.com Visit: www.magnifictraining.com

2. Content:  Introduction to Sap & Hr  Organization Management  Enterprise Structure Personnel Structure  Basic Pay  Time Management  Benefits  Business events www.magnifictraining.com

3. Objectives and Purpose: Employees get paid by their employer. Employees pay taxes and deductions. Through the payroll process, employees receive a paycheck. Later in this Chapter, we will move the discussion to SAP’s US Payroll process and provide you with more detailed information. US Payroll is very unique in that you need to understand it from both a functional and a technical perspective. This chapter identifies the unique aspects of US Payroll. It gives you a necessary basic background for pay frequency, payroll control record, and overall payroll processes in the US. www.magnifictraining.com

4. Tax Data Maintenance – Unemployment Insurance: Every state in the US collects an unemployment tax to fund unemployment insurance claims. This is an employer-paid tax, so there is not effect on the employee. However, each state has its own tax rate and that tax rate can vary from one company to another in the state. The company-specific tax rate is call the ‘experience rate’ because it’s based on the state’s experience in paying out unemployment claims for employees laid-off from a company. The more people a company lays-off, the higher the experience rate. This experience rate can change every quarter. Client XXX does not pay unemployment taxes based on what is calculated in SAP. Instead, the total taxable unemployment wages are multiplied by the experience rate outside of SAP when the quarterly unemployment tax returns are filed. www.magnifictraining.com

5. Priority of Tax Wagetypes: When deducting tax, the system follows a certain order or priority, This is defined in the ‘Maintain priority of tax wagetypes’ step, or table t5us0. Generally there is no need to maintain this table, since it is delivered by SAP to take Federal taxes first, then state, then local. There are other settings in this table to control how taxes are deducted when not enough money is present, and whether or not the tax wage type is from regular income or tip income. Gross to Net Wagetypes: These wage types control the amount of cash the employee receives. The various wage types used to make payments and take deductions all cumulate, or add into these wage types. These gross-to-net wage types therefore may or may not have anything to do with taxable wages or taxes. They simply keep track of how much money to pay the employee. www.magnifictraining.com

6. Components of SAP US Payroll: The US Payroll driver RPCALCU0 (an ABAP program) runs the payroll using a custom schema and is controlled by the payroll control record for its various stages. The US Payroll schema U000 uses functions and rules to control the flow as well as actual calculations during the payroll process. The US Wage Types Catalog comes with delivered model wage types,which are used to create your own custom wage types. www.magnifictraining.com

7. Payroll Processing: In addition to keeping up with constantly changing regulations, withholding rates and government forms, payroll processing is a time-consuming and costly task for most businesses. Taking cue of your needs ADP does all the heavy lifting offering you the following benefits: End to end services from payroll induction of new joiners to full and final settlement for leaving employees. Fast and cost-effective payroll processing including reimbursement claims 100% compliance for payroll related taxes and other statutory deductions while processing payroll Delivery of bank advice statement and customized MIS reports. www.magnifictraining.com

8. Benefits: SAP’s Benefit module (BN) has functionality to handle US Benefits and its integration with US Payroll (PY) component. Benefit Administration in SAP enables us to enroll employees in benefit plans, terminate enrollment, monitor continuing eligibility for plans, monitor provisions for Evidence of Insurability, view information about current benefit enrollments, print enrollment and confirmation forms, transfer data electronically to 3 rd party plan providers and administer retire plans. www.magnifictraining.com

9. Finance Integration: SAP US Payroll offers an online real-time integration with the SAP Financials module. US Payroll has a built-in and configurable integration with the following areas of SAP Financials: General Ledger (GL) for expenses and balance sheet accounts postings. Accounts Payable (AP) for vendor postings as well as remittance of money for taxes and benefits deductions. Cost Center Accounting (CCA) for Cost Center postings in the Controlling(CO) module. www.magnifictraining.com

10. Summary: This chapter has given you an overview of SAP US Payroll, and touched on some of the more unique aspects of this module. You have now started to become familiar with the terminology such as schemas, drivers, and rules that SAP Payroll uses. Based on my earlier suggestion, please continue to refer to the standard SAP documentation for more information on conceptual details and basic understanding. In the interest of time. www.magnifictraining.com