What is contribution in SAP PY - Payroll?

SAP Term: contribution

• Component: PY

• Component Name: Payroll

• Description: Regular or once-only payments that are effected to ensure entitlement to specific benefits. The amount of the contribution can be determined either by law or by a contract. &EXAMPLE& Contributions to secure health insurance, pension insurance, unemployment insurance, or accident insurance.

Smart SAP Assistant

• Key Concepts: 
  Contribution in SAP Payroll is a payment made by an employer to a fund or organization, such as a pension fund, health insurance fund, or social security fund. It is usually a percentage of the employee’s salary and is deducted from the employee’s gross salary.
  
  How to use it: 
  In SAP Payroll, contributions are set up in the payroll configuration. The employer can define the contribution rate and the period for which it applies. The contribution rate can be set up as a fixed amount or as a percentage of the employee’s salary. The period for which the contribution applies can be set up as a one-time payment or as a recurring payment.
  
  Tips & Tricks: 
  When setting up contributions in SAP Payroll, it is important to ensure that the correct contribution rate and period are selected. It is also important to ensure that the correct account is used for the payment of the contribution.
  
  Related Information: 
  For more information on setting up contributions in SAP Payroll, please refer to the SAP Help documentation.