Administrating Master Data for Non-Resident Employee
For non-resident employees, special administration of master data is necessary. This section explains how each master data infotypes should be maintained for non-resident employees.
Employee Status of Non-Resident Employee : Events (Infotype 0000)
You need to define (customize) at least following two event and infotype groups to administrate master data for non-resident employee.
Organizational Assignment of Non-Resident Employee Organizational Assignment (Infotype 0001)
There are two types of non-resident employees: employees transferred from the domestic corporation to overseas corporations and employees transferred to an overseas division of the domestic corporation.
For employees transferred to overseas corporations, organization information handling follows the procedures of SYUKKO administration. For employees transferred to overseas divisions, the organization information handling follows the current transfer procedures.
Address of Non-Resident Employee : Address (Infotype 0006)
Present address: manages the current overseas address. The handling of taxation rate is performed using this address.
Basic Pay for Non-Resident Employee : Basic Pay (Infotype 0008)
Store overseas basic pay wage types in Japanese yen
Recurring Payments and Deductions (Infotype 0014)
Store allowances to be paid to the overseas employee as wage types in yen.
Ex.: housing allowance.
Additional Payments (Infotype 0015)
Store additional payments to be issued to the overseas employee as wage types in yen.
Ex.: overseas moving expense compensation
Bank Details (Infotype 0009)
As overseas payments are clearly divided into overseas and domestic portions, it is necessary to precisely specify the bank details used for transfers.
The domestic portion of the payment is assigned to the subtypes defined as the banks for normal domestic transfers.
These subtypes are newly created to store the banks for transference of overseas payments. However, as the FI module does not currently handles overseas transfers, this function will not support transfers of foreign currency to overseas accounts. In other words, this subtype is only used for transfers of overseas payments in Japanese currency. (this is valid for overseas payments transferred in yen, which are withdrawn from the bank’s foreign branch in foreign currency)
Monitoring of Dates (Infotype 0019)
Maintain the overseas employee’s assignment period (starting data and ending date).
Social Insurance Basic Data (Infotype 0140)
The majority of overseas employees choose to keep their social insurance acquired status. Accordingly, this status is also managed in the social insurance basic data. Data is managed as usual and therefore it is no different from regular employee.
As labor insurance has to be acquired at the place where work is actually work, as a rule overseas residents loose their insurance acquirement status. However, there is an alternative labor insurance policy called labor insurance special option, which makes it possible for the employee to extraordinarily join labor insurance abroad.
This special option can be selected in the Infotype 0140 Social Insurance Basic Data.
SI Premium Data (0141)
As mentioned above, it is usual to keep social insurance status during period of overseas assignment. So it is necessary to continue social insurance payments. In order to calculate those payments, the standard monthly compensation has to be managed as usual.
Residence Tax (0142)
Residential tax is paid to the local government where residence is registered on January, 1st.. The tax amount, which is calculated regarding payments effected in the previous year, is paid between June of the current year and May of the next year.
For this reason, even after leaving the country, the employee still have residential tax payments left. For example, employees leaving the country on December, still have to pay residential tax until May of the next year. Thus, it is necessary to maintain residential tax data until May.
Life Ins. Deduc. (0143)
Overseas employees may also be covered by insurance. Thus, if insurance fee are to be deducted from the salary, insurance data must be maintained during overseas assignment.
Property Accumulation Savings (0144)
There are a number of conditions that have to be met for overseas residents request to continue their property accumulation contracts. However, the logic to determine those conditions is not currently supported in the R/3 system. Only those property accumulation contracts that can be deducted from salary during overseas assignment should be maintained.
Income Tax (0145)
Residence status of non-resident employee is managed by the indicator for non-resident Non-Resdnc. With this indicator, the overseas residence period becomes clearly defined.
This indicator is also used in income tax calculation to see if wages to be paid to an employee is taxable or not. Thus, this is the most important information that must be set correctly in non-resident payroll accounting function.
Y.E.A. Data (0146)
Date in this infotype is used in the Year Adjustment process performed at the time of departure. So data in this infotype must be updated before processing the last payroll before departure even if the period is not the end of the year.
Family information must be maintained if an employee takes his/her family to overseas or not. This information can is the base of calculating of accompany family allowances or non-accompany family allowances.