What is incentive wages in SAP PY - Payroll?

SAP Term: incentive wages

• Component: PY

• Component Name: Payroll

• Description: A type of remuneration which is paid not just for the actual time that a person spends at work but also for the amount that the person produces or achieves during that time. Piecework wages and premium pay are both types of incentive wages.

Smart SAP Assistant

• Key Concepts: 
  Incentive wages are a type of payment that is given to employees in addition to their regular wages. This type of payment is usually based on performance or productivity, and is meant to reward employees for their hard work and dedication. In SAP Payroll, incentive wages are calculated and paid out according to the rules set up in the system. 
  
  How to use it: 
  In SAP Payroll, incentive wages can be set up by creating a wage type for the incentive wage. This wage type can then be used in the payroll calculation rules to determine how much of an incentive wage should be paid out. The amount of the incentive wage can be based on a variety of factors, such as hours worked, productivity, or performance. 
  
  Tips & Tricks: 
  When setting up an incentive wage in SAP Payroll, it is important to make sure that the rules are clear and easy to understand. This will help ensure that employees are properly rewarded for their hard work and dedication. Additionally, it is important to keep track of the incentive wages that have been paid out so that they can be accurately reported on tax forms. 
  
  Related Information: 
  Incentive wages are just one type of payment that can be set up in SAP Payroll. Other types of payments include bonuses, overtime pay, and vacation pay. Additionally, SAP Payroll also allows for deductions such as taxes and insurance premiums to be taken out of employee paychecks.