What is contributions to employee pension capital formation in SAP PY-DE - Germany?

SAP Term: contributions to employee pension capital formation

• Component: PY-DE

• Component Name: Germany

• Description: A monetary benefit provided by the employee that is a further development of capital formation savings payments. This monetary contribution specifically allows an additional pension to be formed.

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• Key Concepts: 
  Contributions to employee pension capital formation is a component of the German payroll system in SAP. It is used to calculate the contributions that employers must make to their employees’ pension capital formation accounts. This component also calculates the contributions that employees must make to their own pension capital formation accounts. 
  
  How to use it: 
  In order to use this component, employers must first enter the relevant information into the system. This includes the employee’s salary, the employer’s contribution rate, and any other relevant information. Once this information is entered, the system will calculate the contributions that must be made to each employee’s pension capital formation account. 
  
  Tips & Tricks: 
  It is important to ensure that all relevant information is entered accurately in order for the system to calculate the correct contributions. Additionally, employers should be aware of any changes in legislation that may affect their contributions. 
  
  Related Information: 
  This component is part of the German payroll system in SAP. Other components of this system include wage types, deductions, and taxes. Additionally, employers should be aware of any changes in legislation that may affect their contributions.