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10/6/2015 Third Party Deductions Payroll India (PYIN) SAP Library http://help.sap.com/saphelp_erp2005/helpdata/en/72/99f0032fc9463ea3df7af9fd1c57b7/content.htm 1/2 !a11y> Third Party Deductions Purpose This component provides for the calculation of Section 80 deduction and Section 88 rebate when payments to external parties are made directly from the payroll of the employee. For example, LIC Premium, Mediclaim. These deductions are in addition to the declarations that an employee makes for the Section 80 and Section 88 contributions through Section 80 Deductions infotype (0585) and Investment Details (Sec88) infotype (0586), respectively. You do not require to maintain the details in these two infotypes for the the Section 80 and Section 88 deductions processed through the payroll. For Third Party Deductions, you can make an entry through Basic Pay infotype (0008), Recur. Payments/Deds. infotype (0014), Additional Payments infotype (0015) and Membership Fees infotype (0057). If the Third Party Deductions are made through Membership Fees infotype (0057), along with the past and the present payments, the projected payments will also be considered while calculating tax. The amount the employee proposes to contribute in the future months of the financial year is also taken into consideration, by the system, while calculating the total Section 80 and Section 88 contributions. If you make the Third Party Deductions through Basic Pay infotype (0008), Recur. Payments/Deds. infotype (0014) or Additional Payments infotype (0015), the system will only consider the past and present contributions while calculating tax and not the projected contributions. Integration · The different types of deductions through Membership Fees infotype (0057) have to be maintained as subtypes of the infotype. To do this, go to the IMG under Payroll India ® Tax ® Third Party Deductions ® Define Membership/Deduction Types . · If you are making Third Party Deductions through the Membership Fees infotype (0057), you must maintain the wage type for this infotype through the IMG for under Payroll India ® Tax ® Third Party Deductions ® Check entry permissibility for Membership Fees Infotype (0057) . The Third Party Deductions payroll function (INTPD) reads the internal tables S80, S88, P0057 and the wagetypes in the internal table, and updates the internal tables S80 and S88. The BestRun Businesses Run SAP Enterprise Management SAP ERP 6.0

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Page 1: Third Party Deductions - Payroll India (PY-IN) - SAP Library.pdf

10/6/2015 Third Party Deductions ­ Payroll India (PY­IN) ­ SAP Library

http://help.sap.com/saphelp_erp2005/helpdata/en/72/99f0032fc9463ea3df7af9fd1c57b7/content.htm 1/2

!­­a11y­­>

Third Party Deductions 

PurposeThis component provides for the calculation of Section 80 deduction and Section 88 rebate whenpayments to external parties are made directly from the payroll of the employee. For example, LICPremium, Mediclaim. These deductions are in addition to the declarations that an employee makesfor the Section 80 and Section 88 contributions through  Section 80 Deductions  infotype (0585) andInvestment Details (Sec88)  infotype (0586), respectively. You do not require to maintain the detailsin these two infotypes for the the Section 80 and Section 88 deductions processed through thepayroll.

For Third Party Deductions, you can make an entry through  Basic Pay  infotype (0008),  Recur.Payments/Deds.  infotype (0014),  Additional Payments  infotype (0015) and  Membership Feesinfotype (0057).

If the Third Party Deductions are made through  Membership Fees  infotype (0057), along with thepast and the present payments, the projected payments will also be considered while calculating tax.The amount the employee proposes to contribute in the future months of the financial year is alsotaken into consideration, by the system, while calculating the total Section 80 and Section 88contributions.

If you make the Third Party Deductions through  Basic Pay  infotype (0008),  Recur.Payments/Deds.  infotype (0014) or  Additional Payments  infotype (0015), the system will onlyconsider the past and present contributions while calculating tax and not the projected contributions.

Integration·  The different types of deductions through  Membership Fees  infotype (0057) have to be

maintained as subtypes of the infotype. To do this, go to the IMG under  Payroll India  ®  Tax®  Third Party Deductions  ®  Define Membership/Deduction Types .

·  If you are making Third Party Deductions through the  Membership Fees  infotype (0057), youmust maintain the wage type for this infotype through the IMG for under  Payroll India  ®  Tax®  Third Party Deductions  ®  Check entry permissibility for Membership Fees Infotype (0057) .

The  Third Party Deductions  payroll function (INTPD) reads the internal tables S80, S88, P0057 andthe wagetypes in the internal table, and updates the internal tables S80 and S88.

The Best­Run Businesses Run SAP

Enterprise Management SAP ERP 6.0

Page 2: Third Party Deductions - Payroll India (PY-IN) - SAP Library.pdf

10/6/2015 Third Party Deductions ­ Payroll India (PY­IN) ­ SAP Library

http://help.sap.com/saphelp_erp2005/helpdata/en/72/99f0032fc9463ea3df7af9fd1c57b7/content.htm 2/2

FeatureIf you are making Third Party Deductions and you want the system to calculate tax after takingSection 80/Section 88 contributions into consideration, you must configure the wage types for thedifferent:

·  Divisions or the subsections through the IMG for  Payroll India  ®  Tax  ®  Third PartyDeductions  ®  Configure Wagetypes for Section 80 .

·  Types of contributions through the IMG for  Payroll India  ®  Tax  ®  Third Party Deductions  ®Configure Wagetypes for Section 88 .

See also:

Membership fees infotype (0057)

 

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