What is exempt from annual income limit in SAP SRD-HR-PAY - HCM-Payroll Processing?

SAP Term: exempt from annual income limit

• Component: SRD-HR-PAY

• Component Name: HCM-Payroll Processing

• Description: Employees whose annual income is above the legally defined annual income limit are allowed to go for private insurance in health and nursing insurance. Employees who are privately insured, but whose income is under the annual income limit, are allowed to stay in the private insurance, but the contribution calculation for private insurance will be based on the actual income of the employee and not on the annual limit.

Smart SAP Assistant

• Key Concepts: 
  Exempt from annual income limit is a feature in SAP HCM-Payroll Processing that allows an employee to be exempt from the annual income limit set by the company. This means that the employee will not be subject to any restrictions or limits on their salary or wages. 
  
  How to use it: 
  To use this feature, an employer must first set up an annual income limit for their employees. This can be done in the payroll processing module of SAP HCM. Once the limit is set, the employer can then select which employees should be exempt from this limit. This can be done by selecting the “exempt from annual income limit” option in the payroll processing module. 
  
  Tips & Tricks: 
  It is important to note that this feature should only be used for employees who are truly exempt from the annual income limit. If an employee is not truly exempt, then they may still be subject to the annual income limit and may not receive their full salary or wages. 
  
  Related Information: 
  For more information on setting up and using this feature, please refer to the SAP HCM-Payroll Processing documentation. Additionally, you can contact your SAP support team for further assistance.