SAP Concurrent Employment Payroll

Concurrent Employment (CE) occurs when an individual holds more than one position (assignment) simultaneously at the University. Those assignments may have different funding sources, pay rates, work schedules and benefits attached. Many public sector clients will use delivered CE functionality for HR Payroll and has notified SAP of that intent per their requirement.

Each employee will be assigned a unique number called a Person ID. An employee with multiple assignments will have a Personnel number for each assignment, but only one Person ID.
One of the positions will be designated as the Main Assignment.

Pay for all assignments must be generated from the same payroll area for an individual. Paying an employee from multiple payroll areas has resulted in serious issues with existing live CE implementations. Employees must be assigned to one payroll area at a time in order to correctly calculate taxes, overtime, and benefit deductions. SAP has delivered “hard stop” functionality in Enhancement Pack 4 to disallow out of sync payroll areas at the time of entry. An SAP payroll requirement for concurrent employees is that when an employee switches payroll areas, the start date should be the begin date of new payroll area. Also, any person in the non-pay payroll area should not be hired and transferred into a paying payroll area.

In all CE-enabled programs, the user can enter either person ID or any of the active assignments personnel number. The program will pick up all other assignments for that employee and process the them together.

For each employee processed in Payroll, payroll results tables will be created for each assignment. An RT_PERSON table will store records for each employee. The gross pay, deduction and tax information are in the results table. The net pay, claim wage type, and 1042s year to date information are in stored in the RT_PERSON table.

SAP can be configured to share some Infotype Master Data for employees holding multiple assignments. Customizing defines which Infotypes and Subtypes have data sharing at the person, personnel assignment, or employer level.

For instance, an employee’s home address (Infotype 0006) would be shared at the person level. since it would not differ among assignments. Tax information would be linked at the employer level because personnel assignments would only share tax data if they were under the same tax company in SAP.

Benefits and deductions will be assigned to the personnel assignment level. If one assignment is terminated, a process will take place to determine if the deductions and benefits attached to that assignment are still valid. If they are still valid, the deductions and benefits will be transferred to another assignment. (This is not true for garnishments which are attached at the person level).

A person is only allowed to be in one benefit area in SAP. Upon the termination of one assignment, the benefit eligibility may drop. SAP standard reports will be executed to monitor any changes to the employee’s eligibility. If the main assignment is being terminated, and a concurrent assignment is benefit-eligible, the benefits workbench will be used to choose the next qualifying position as the main assignment for benefits. This will allow benefits to continue without interruption.

When an employee has concurrent assignments and one of the assignments is terminated, payroll will need to run for the terminated assignment to the end of the year for accurate reporting of year to date balances on reports and payment advices. In the termination action, the field “Run Payroll up to” in Infotype 0003 will need to be filled with 12/31/XXXX (year of termination). This will be an enhancement to SAP that will be handled by a user exit.

Taxation on multiple assignments will be on one employer tax ID. The taxes can be distributed according to the gross amount (taxable gross) to each assignment. Only one W-2 will be generated per employee with all assignments combined.

The pay stub will display the information for the employee and each personnel assignment. This will allow the employee to have a clear understanding of their earnings and deductions. Accrual balance display on the pay stub will combine accruals from all assignments to show the total accrued, used and available hours balance.

CE challenges include the fact that some delivered reports are not CE enabled, (Payroll Journal and Cost Center Reports) using the splitter program (used to expedite processing large quantities of data), and making sure decentralized users understand the importance of performing actions and master data changes with precision. Incorrect master data entries (or combinations of entries) will affect payroll calculation and results.