Recurring Payments and Deductions
Recurring payments and deductions constitute additional wage elements which are not usually effected or withheld in every payroll period. Unlike additional payments, however, they occur at a particular frequency. The system allows you to specify the frequency at which these payments or deductions take place.
Data for recurring payments and deductions is maintained in Infotype 0014 Recurring payments and deductions. You maintain this data using the hiring event when you create new personnel numbers and change them using direct infotype maintenance.
Unlike basic pay, recurring payments and deductions can have a different account assignment. For example, you can define a cost center instead of the master cost center to deal with costs that arise as a result of these payments and deductions.
Examples of recurring payments are as follows:
Examples of recurring deductions include tax paid on benefits, such as a company car, provided by the employer.
Maintaining Data for Recurring Payments and Deductions
Maintaining an Employee’s Deduction Information