Question { Cap Gemini, 14378 }

What is the difference between exempt employee and non
exempt employee?

Answer

The Fair Labor Standards Act (FLSA)by US department of labor
requires that companies classify jobs [not position] as
either exempt or nonexempt. Nonexempt employees are covered
by FLSA rules and regulations, and exempt employees are not.
OM Infotype 1610 (US job attributes) table V_T5U13_C is
where exempt or nonexempt info is stored.

Exempt (no minimum wage/no over time/white collar): are
excluded from minimum wage, overtime regulations, and other
rights and protections. Get a salary rather than an hourly
wage. Typically only executive, supervisory, mangers
positions are exempt.

Nonexempt (federal minimum wage/overtime/blue collar): are
not exempt from FLSA requirements. Employees who fall within
this category must be paid at least the federal minimum wage
for each hour worked and given overtime pay of not less than
one-and-a-half times their hourly rate for any hours worked
beyond 40 each week.

Note :
1. no difference in how exempt and nonexempt employees are
taxed.
2. nonexempt employees receive more protection under federal
law than exempt employees.
3. both exempt and nonexempt employees can collect
unemployment benefits

Question { Cap Gemini, 6761 }

what is meant by Residence Tax Area and Work Tax Area and what is the difference the between these two and what are you going to maintain in Residence Tax Area and Work Tax Area

Answer

Residence Tax Area (Infotype 0207): Stores the tax area/tax
authority areas where the employee resides (group of
authorities to which an individual employee pays tax they
can be Fedral/State/County/City/Special)
Eg. Employee resides in Los Angeles, CA therefore tax
area set to California. The system will then display the Los
Angeles, state of California, and Federal tax authorities to
which the employee must pay tax.

Work Tax Area (Infotype 0208): Stores the tax
area/allocation/tax authority areas where the employee
works.The Work Tax Area infotype records the amount of time
an employee spends in each locality other than their
Residence Tax Area (Infotype 0207) throughout the tax period.

Question { SAP Labs, 7359 }

Several infotypes can use one wage type without defining any
permissibility.


a) True
b) False

Answer

False

V_T512Z table maintains permitted wage type for Infotypes.
Without entry in this table wage type cannot be used in any
infotype.

Question { 10049 }

why do we enter payroll area twice in payroll driver
PC00_MXX_CALC

Answer

They are in 2 different sections a) PY period b) Selection

PY period : is used to determine Payroll period eg weekly ,
biweekly or monthly [ ie. you can also choose to run an
biweekly employee in a weekly period ]

Selection : is used to select the EE/PERNR's for whom PY
needs to be run [ you cannot make a choice here if you have
PY area for New Jersey monthly EE's you cannot select New
York monthly EE's Or New York weekly EE's here ]

Typically both the selections need to be entered as same PY
areas , variation of PY area under PY period selection is
only used for testing not in production.

Question { 6039 }

can you create/copy a technical WT

Answer

There are two categories of wage types:

1.Primary/Master/Model Wage Types
Primary wage types include:
a)Dialog wage types:that you enter when maintaining
master data in the infotypes.
b)Time wage types:that the system forms using time
information or that you enter online.

2.Secondary/Technical Wage Types
Secondary wage types:are technical wage types generated by
the system in Payroll during the payroll run

The technical name of a secondary wage type always starts
with the character (/) both in the SAP standard range and in
the customer name range., for example, /001 - Total Gross
/115 -
Bonus Wages

Note : Secondary wagetypes are system generated and can not
be maintained online. You can change the text in V_T512T.

You can copy the technical WT's and customize. Use Tcode:OH11
(Copying a Technical WT is similar to copying any Model WT.)
Then go for properties in V_512W_D .
After you create/copy, you should make sure that the new
WT's parameters respond to your requirements.

Question { 15003 }

what is bank transfer...DME and PRE-DME

Answer

Preliminary Data Medium Exchange (Pre-DME) [PY Process]
Data Medium Exchange (DME) [ FICO process ]

Pre-DME evaluates payroll results and creates payment data
file to be used by DME.
DME is the process of sending payment data to the bank.


After payroll is run , we do a two step process that will
transfer payment amounts to employee’s bank account. To
answer you bank transfer question you need to complete 2 steps

1) Pre-DME

TCode: PC00_MXX_CDTA , XX = Country Molga


This processes both information from the HR master data
(IT0001,IT0002,IT0006,IT0009..) and information from the
payroll results(WPBP and BT) for an employee & prepares the
results for the DME (Data Medium Exchange) process.

It must creates a file that contains data which complies
with bank regulations.

Output: The preliminary program DME creates a payment run
that contains payment data. You can clearly identify every
payment run using a combination of the Program Run Date and
Identification Feature. The Identification Feature
originates from the 6 digit system time, when you started
the preliminary program DME. The system replaces the last
digit of the 6 digit system time in the Identification
Feature with a P.

2) DME

Transaction : PC00_MXX_FFOT , XX = Molga

This program uses the successful file created by the
preliminary DME program.

It produces a Payment Summary, a DME Accompanying Sheet, and
a DME File (per company code) for each paying bank.

The DME File may need to be uploaded into designated
software that enables a bank transfer between your company
and your paying bank.

Question { 9026 }

explain US tax Models

Answer

Tax Models falls under "Tax Data Maintenance "

The Tax Model is where we define the taxability of wages in
SAP Payroll. The ‘model’ is a set of three SAP configuration
tables. Tax-ability Model itself refers to three tables:

T5UTE
T5UTM
T5UTY


1. The first step ‘Define tax authority model’ (table T5UTE)
is where we associate each tax authority with a two digit
model number. The model number is just an arbitrary two
digit number that was chosen at the time the system was
first setup. If a tax authority changes the way it taxes
earnings or deductions, then you would create a new tax
model for it, using the effective dates in T5UTE.

2. The second step is ‘Define taxability model’, or table
T5UTM. In this table we link each taxable wagetype to a tax
model. There are four aspects to this link – the resident,
work and unemployment taxation of the wagetype, and the
taxation for different groups of employees (the tax
modifier). The link to the wagetype is via processing class
71 – called the taxability class. For each taxability class
we specify if the wagetype is taxable for the tax authority
an employee lives in, works in, and for unemployment taxes.
These three settings can be customized per tax modifier. For
example, we may tax wages for every tax authority for
regular employees, but only tax wages for Federal for
expatriates. In that case, we put expatriates and regular
employees in different tax modifiers, and control the
assignment of wagetypes to tax authorities via table t5utm.

3. The third step is where we tell SAP which types of tax to
use for each row in t5utm. Table T5UTY (define tax type
combinations) is where we define codes to represent a set of
tax types. In t5utm, if a tax class is taxable for a
particular combination of resident, work, unemployment and
tax modifier, the system then gets the tax type combo value
and looks it up in T5UTY to see which types of tax to use.
This is how SAP knows which /3xx wagetypes it needs to
build. For example, tax type combo 06 would tell the system
to build wagetypes /303, /304, /305 and /306.