Individual payments are used to calculate the amount of gross remuneration. Gross remuneration forms the basis for the calculation of various insurance contributions, tax, and the amount of net remuneration.
The system uses the characteristics of individual payments to assign them to categories and to assign them different amounts of money, using wage types. One of these categories has an infotype in which you enter wage types.
The system determines the appropriate wage types for other categories, based on specific criteria (for example, overtime, leave, or substitution), by accessing Customizing settings used to define the collective agreement. For further information, refer to Time Management and the section Technical basics of payroll accounting.
This section describes the most important types of payment in more detail.
Recurring Payments and Deductions