General description

Configuration

Employee data

Exemptions related to cessation

Impact on Other functionality

Separation process serves to

Delimit relevant infotypes when employee

leaves the company

Compute notice pay

Computation of various components payable

to employee at the time of termination

Compute relevant exemptions after payroll

processing

Notice Period & Notice Pay

Configure wage types

► Taxability of wagetypesTaxability of wagetypes

Infotype 0016

Infotype 0041

Infotype 0185

Report for Termination processing

Voluntary Retirement Exemption Wagetype: /4E6

Computed as minimum of

1. Voluntary retirement benefit (Payment wagetype)

2. Tax exemption limit (Defined in V_T7INT9 )

3. Number of years of service * a multiplication factor * basis salary.

Multiplication factor determined by constant MFPVR defined in V_T511K

Basis Salary Determined by wagetype /129

4. Number of balance number of months * basis salary.

Number of balance number of month is based on infotype 41 data captured for

Normal Retirement date.

Gratuity Exemption Wagetype: /4E8

Computed as minimum of

1. Gratuity benefit (Payment wagetype)

2. Tax exemption limit (Defined in V_T7INT9 )

3. Number of years of service * a multiplication factor * Nominal salary.

Multiplication factor & Nominal Salary Depends on Payment as per Gratuity

Act or otherwise.

In case of Payment as per Gratuity Act wagetype /129 is used

Otherwise average salary is determined.

Wagetype for entering legacy data

Leave Encashment Exemption Wagetype: /4E7

Computed as minimum of

1. Leave encashment (Payment wagetype)

2. Tax exemption limit (Defined in V_T7INT9 )

3. Average Monthly Salary * 10 (Multiplication Factor)

4. Average Monthly Salary * Remaining leave in months

Wagetype for entering legacy data

The Termination workbench program populates the relevant wagetypes in Infotype 0015, which are treated in payroll and give rise to various exemptions and impacts the Gross and taxable salary as per the wagetype configuration.