Purpose
This report is to calculate pension payment and severance payment andalso including taxable amount for those retired or leaving employees.

• Pension payment:

Pension payment calculation covers two phases of the law: Factoryrule and Old pension.
With selective parameters, you can decide if the factory rule isincluded or not.
If the factory rule is not included, you calculate the employeeseniority for the service period under the factory rule according to Oldpension law.
If Factory rule is included, you calculate the seniority as following:seniority = service_years X 2 + (If service_months > 6, 2; Ifservice_months > 0 or service_days > 0, 1).
Note You can implement BAdI PC420001 to calculate the seniorityaccording to your own requirement).
For Old pension, the calculation formula is as the following:
If service_years <= 15,
seniority = service_years X 2 + (If service_months > 6, 2; Ifservice_months > 0 or service_days > 0, 1).
If service_years > 15,
seniority = 30 + (service_years - 15) X 1 + (If service_months > 6, 2;If service_months > 0 or service_days > 0, 1).
The maximum seniority is 45.

• Severance payment:

Severance payment calculation covers three phases of the law:Factory rule, Old pension, and New pension.
With the selective parameter, you can decide if the factory ruleincludes.
If Factory rule not included, we will calculate the employee seniorityfor the service period under the factory rule according to Old pensionlaw.
If Factory rule included, we will calculate the seniority is as thefollowing:
if 1 <= service_years < 2, seniority = 1.
if 2 <= service_years < 3, seniority = 2.
if 3 <= service_years, seniority = 3 + (service_years - 3)X10/ 30.
Note You can implement BAdI PC420001to calculate the seniority accordingto your requirement).
For Old pension, the calculation formula is as the following:
seniority = service_years X 1 + (service_months + (If service_days > 0,1)) / 12 X 1.
For New pension, the calculation formula is as the following:
seniority = service_years X 0.5
The maximum seniority is 6.

• Simulation run selection for Pension payment:

1. Service year >= 25
2. Age >= 60
3. Service year >= 15 & Age >= 55
Note You can implement BAdI PC420002 to replace the above conditionaccording to your requirement).

• Taxable amount calculation:

When you calculate tax for pension payments, the base amount equals thesum of the pension paid by the pension fund and pension paymentcalculated by this report.
You must fill out the fields Wage Type and Pension Paid byPension Fund on the selection screen. When you execute the report,the system determines the pension amount as follows:
If the wage type you specify is entered in the relevant infotypes, thereport uses the amount saved in the wage type for the calculation
If the report cannot find an infotype record with the specified wagetype, it uses the value you enter in the Pension Paid by PensionFund field for the calculation. In addition, the report creates aninfotype record using the wage type you specify to save this amount.
The system applies the following rules to determine the taxable amountfor both Pension Payment and Severance Payment:
If the total amount received in one lump sum is less than TWD 161,000multiplied by the number of years' service when an employee leaves thecompany, the taxable amount is considered zero.
If the total amount received in one lump sum is more than TWD161,000multiplied by the number of years' service at the time of separation,the taxable amount is half of the portion over TWD 161,000 but less thanTWD 322,000 multiplied by the number of years' service.
The portion of the amount over TWD 322,000 multiplied by the number ofyears' service is subject to tax.
The calculation of the last digit of the number of service years, if itis less than 6 months, shall be calculated as half a year, otherwise, asone year.
If the number of years'service is not a whole year, the system roundsthe value up to the next half month in line with legal regulations. Forexample, 2 years and 3 months equates to 2.5 years and 3 years, 8 monthsequates to 4 years.

Integration
This report reads data from the following infotypes
the Actions infotype 0000
the Organizational Assignment infotype 0001
the Personal Data infotype 0002
the New Pension (TW) infotype 0818 (only the subtype1, 2 are used)
This report used the standard function 'HR_ENTRY_DATE' to obtain theemployee hiring date in your company, you can configure the differentparameters for this function from IMG menu.
This report provides the BAdI PC420001 to calculate the seniority forthe service period under the different law phases. you can validate thisBAdI via IMG menu.
This report provides the BAdI PC420002 to determine which employees willbe selected for the simulation run. you can validate this BAdI via IMGmenu.

Prerequisites


• Payroll results are available and cumulation class 50, 51 of relevant
wage types are set correctly.
/150: Pension calculation base
/151: Severance Pay base

• You should have maintained relevant master data for new pension and old
pension properly.

• Hiring date: This report will use infotype 0041 or infotype 0818
to get the employee hiring date. Using infotype 0818 or infotype 0041will depend on your choice on the selection screen.
Choose infotype 0041:
you can define the feature 'ENTRY' to get the hiring date you wanted.
Choose infotype 0818:
for New Pension employee chose, the hiring date will get from
service from date in IT0818 subtype 1.
for Old Pension employee chose, the hiring date will get from
service from date in IT0818 subtype 2.