Gross-Up Functionality in SAP HR Payroll

Gross-Up wage types are created in order to make available  the whole net amount to the employee and the taxes will be borne by the employer. 

·         The concept behind the gross up functionality is that the net amount will be entered on the infotype and when payroll runs it takes the net amount and grosses up the taxes and adds that to the net to get a gross amount (taxes + net). 

·         Three wage types are needed to perform this:

1.       Wage Type Gross-Up – Net amount available to the employee

2.       Wage Type Tax Gross – Up – Tax Amount

3.       Wage Type Gross -Up Result  – Total Gross income 

·         Wage type Tax Gross-Up Results and Wage Type Tax Gross-Up needs to be assigned as 1st derived wage type and 2nd derived wage type against the Wage Type Gross-Up in the table V_ 512W_B (Valuation Bases).

 

 Note*: Wage type creation procedures are same like normal wage types.

4 thoughts on “Gross-Up Functionality in SAP HR Payroll

  1. Anonymous says

    How do it works?<br />SAP has given standard Model wage types M031 and M032 but thats not working for certain groups of EE because additional Master maintained.<br />Could you provide brief procedure on this.

  2. Anonymous says

    Hello,<br />When the net amount WT is positive,the gross up works fine. But when the net amount WT is negative, the taxes are not calculated.

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