Symptom
BACKGROUND
When an employee has several employment contracts with the same employer, example, a Teacher is employed by the local authority and teaches part time in two separate schools, this is deemed to be
Multiple Employment for payroll purposes.
The Teacher has two contracts of employment with two different pay rates and potentially two different holiday entitlements, but their tax and national insurance calculation should
be based on their aggregated earnings. It is the same concept as Concurrent Employment but the SAP UK payroll has specific data requirements for the processing to work correctly.
Payroll processing needs to understand the priority of the different contracts that an employee has. The employee master data held in Personnel Administration (Infotype 0121)
needs to be populated for each contract showing which is the main contract and which are the secondary contracts. This priority influences the order the contracts are processed
through payroll.
The secondary contracts must be processed first and then the main contract – payroll must be executed for a second time. The payments are then aggregated on
the main contract so the correct tax, national insurance, and other deductions calculated. The main contract is then processed for RTI processing to HMRC.
The priority of the contracts can change. This could be because an employee resigns from a contract but equally could be that they change working hours so a previously secondary
contract becomes the main one requiring the employees master data to be updated from a given date. A history of previous priorities is required for retro payroll processing.
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Environment
- Human Capital Management (HCM)
- SAP ERP Core Component
- SAP ERP
- SAP enhancement package for SAP ERP
- SAP enhancement package for SAP ERP, version for SAP HANA
- SAP SuccessFactors Employee Central integration to SAP Business
- SAP SuccessFactors Employee Central Payroll
Product
Keywords
Multiple Employment, IT0065, IT0121, Concurrent Employment Employee Central, ME , KBA , PY-GB , United Kingdom , How To
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