Recoverable SMP at 103% instead of 92%

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Recoverable SMP at 103% instead of 92%

Post by PYman » Tue Mar 13, 2012 5:43 pm

I am currently working on a county council SAP PY project and I have come across a specific requirement/scenario with regards the recoverable amount of SMP.

Some of the business areas which had been part of the council have left the council, similar to schools becoming academies. Although they have returned to the county council for payroll services hence the council act as a payroll bureau. Up to this point a new company code had been created within SAP for Bureau payroll and all the separate business areas (which have left the council) have been represented as separate Personnel Areas.

BUT the problem is that some of these business areas are quite small and HMRC stipulate that the amount of SMP which is recoverable depends on the total gross employers plus employees, class 1 NICs in the last complete tax year. So if the annual liability for class 1 NICs is £45,000 or less the entitlement will be 103% (made up of 100% of SMP and an additional amount as compensation for the NICs paid on SMP at a rate of 3%)- instead of the normal 92% recoverable amount.

As anyone experiences this requirement before? and if so how was it dealt with?

Thanks in advance

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Re: Recoverable SMP at 103% instead of 92%

Post by Sleepyjoe » Fri Mar 23, 2012 10:08 am


We have a couple of personnel calculation rules using our own constants (SAP provided constants, eg SMPCS and SMPRS, but they aren't accurate enough) and we calculate 3%, 100% and 103% values for posting, payroll journal and EOY purposes. Our 'private' customers have their own payroll area so we make a decision using payroll year and OUTWPAYSB (payroll area) but it looks as if you could use a decision based on OUTWPLANT (personnel area) and follow a similar process.


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