Leave Encashment & tax deduction as per slab through off cycle pay roll

Scenario: For paying Leave encashment through off cycle &

Deducting tax on flat rate based on employee’s annual income range.

Solution:

1.Copy wage type MLE0 to some custom name space

2.Do the necessary configuration for IT 0416

3.Do the necessary configuration for Off cycle

4.Maintain the custom wage type in V_T7INA7 as Allowance/Reimbursement, also maintain V_T7INT9 table with tax code STDR for the custom wage type.

5.Write a custom PCR for holding the base amount for calculation of EL encashment & insert it in the main schema, before IT table get refreshed.

6.Write another PCR to calculate the EL Encashment Amount & insert it it XT00 Subschema,

7.Modify the Subschema INN1

Note:

Basic Pay =17120

DA=17565

(BASIC+DA)/30*10=34685/30=1156.16*10=11561.66=11562*20%=2312.4

Modification In INN1 Schema

Maintain IT 0416 for the employee

Cross check his annual gross Income

Check the applicable slab code for his annual income range

Check the table for annual income range & respective tax liability maintained for the same.

Run the pay roll in off cycle mode,& Verify the out put

Validate the output

Thanks & Regards,

Prashanti Swain