Topic 30: Hiring

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Infotype 0014 (Recurr. Bens/Deducs)

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Infotype 0015 (Additional Payments)

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Do the same way for other non-mandatory info types like.,

Infotype 0016 (Contract Elements)

Infotype 0021 (Family)

Infotype 0023 (Previous Employment)

Infotype 0024 (Qualifications)

Infotype 0027 (Cost Distribution)

Infotype 0041 (Date Specifications)

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US Legislative Overview

USA has the following legislative components that are handled through the USA Payroll System.

ØFair Labor Standards Act (FLSA)
oPayment of the minimum wage;
oOvertime pay for time worked over 40 hours in a workweek;
oRestrictions on the employment of children; and
oRecordkeeping.

ØNew Hire Reporting
The Personal Responsibility and Work Opportunity Act of 1996, commonly known as the Welfare Reform Act, requires employers to report newly hired employees in all states. This program generates a list for each tax company and each state containing the following federally mandated information:
oEmployer name, address, and identification number (EIN)
oEmployee name, address, and Social Security Number

The list also contains additional information, such as employee date of birth, date of hire, and employer state unemployment insurance number, depending on each state's requirement.

ØTax
oFederal income tax withholding
oState income tax withholding
oSocial Security and Medicare taxes
oFederal unemployment tax act (FUTA).
oState unemployment tax act (SUTA).

In Addition if required by the client:

ØFamily Medical Leave Act (FMLA) must grant an eligible employee up to a total of 12 workweeks of unpaid leave during any 12-month period for one or more of the following reasons:
ofor the birth and care of the newborn child of the employee;
ofor placement with the employee of a son or daughter for adoption or foster care;
oto care for an immediate family member (spouse, child, or parent) with a serious health condition; or
oto take medical leave when the employee is unable to work because of a serious health condition.


Ø401(k) Non-discrimination Testing
o401(k) plans at your company,
odetermines whether they comply with current regulatory guidelines,
oAlso identifies HCEs (highly compensation employees) within your organization.

ØERISA 5500
o7 - number of participants in the plan
o21 - check if substantiation guidelines from Revenue Procedure 93-42 are being applied
o32 - plan income, expenses, and changes in net assets for the plan year

ØGarnishment reports
oHistory
oStatistics

ØHealth Insurance Portability and Accountability Act Reporting (HIPPA)
This report generates a letter to any employee who has recently lost a medical benefit.
omedical coverage data,
othe beginning and end dates of the coverage
oDependent information

The employee/former employee can then show this letter to his or her next employer in order to ensure continuous coverage under HIPAA guidelines.Reporting

ØOccupational Safety & Health Administration (OSHA)
oRecordkeeping
oReporting

ØWorkers’ Compensation - The report includes summary information in SAP List Viewer form for the
Following:
oWorkers' Compensation state
oWorkers' Compensation code
oTotal number of employees per Workers' Compensation code with
the group of selected employees
oTotal Workers' Compensation wage of all employees per Workers
Compensation code.
oTotal Workers' Compensation premiums due for the group of
selected employees.

Workers’ Compensation states, codes and rates are configured in Personnel Administration. Configuration along with payroll results is used to produce the report. Configuration is based up the client’s insurance rates and the states of operation. Codes are attached to organizational units, jobs or positions as required by the client.

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• Residence Tax Area (Infotype 0207)

The Residence Tax Area establishes the tax authorities that may levy tax on an employee.


Residence Tax Area (Infotype 0207)


Definition
The residence tax area is the group of authorities to which an individual employee pays tax.




Use
As long as a particular combination of local, state and federal tax authorities has been maintained in the relevant section of the Implementation Guide, all the tax authorities to which the employee must pay tax, based on their residence, will be displayed by the system in this infotype.
For further information, please see the Tax areas section of the US Payroll Implementation Guide.

Suppose that an employee lives in San Francisco, California. You enter the code CA01 for that tax area. The system will then display the San Francisco, state of California, and Federal tax authorities to which the employee must pay tax.