The company Hörmann Legnica sp. z o.o., operating in the manufacturing industry and using the SAP ERP system, decided to fully automate the process of grossing-up payroll components in SAP HCM. The goal was to eliminate manual calculations in Excel and improve the way of calculating net allowances so that instead of estimated amounts, an exact surcharge of contributions and tax could be obtained directly in SAP. In other words – payroll Gross-up Automation in SAP HCM. Thanks to this, the employee receives payment in the declared net amount, and the HR department gains consistency, time savings, and data security.
The implementation of gross-up mechanisms required close integration of the solution with the SAP payroll schema, development of new payroll functions, and precise modifications of the payroll schema.
Solution: Automation of Payroll Gross-up in SAP HCM
The client entrusted the implementation of the project to Haergi. As long-term experts in the field of SAP HCM (PY), we proposed the extension of payroll mechanisms with a dedicated function for calculating the surcharge amount, ensuring calculation accuracy down to 1 cent.
The scope of implementation included:
- Introduction of changes to the payroll schema – modification of the existing SAP schema so that it handled new calculations related to payroll gross-up.
- Development of payroll report extensions – creation of dedicated mechanisms that automatically determine the correct gross amount, guaranteeing the expected net amount after contributions and taxation.
- Unit tests on a sample of employees – checking the correctness of the solution, also on A/B runs and retrocalculations, to ensure full compliance with payroll practice.
- Applying corrections according to the payroll team’s comments – optimization of the mechanism and increasing its stability based on test results.
- Support during production transfer – assistance in migration to the production environment, ensuring smooth implementation and no downtime in HR processes.
Results of Implementation
The gross-up process implementation project was completed on schedule and without disruptions in payroll calculation. The new functionality:
- significantly accelerated HR and payroll processes,
- automated and standardized the calculation of net allowances,
- ensured maximum calculation accuracy, eliminating the risk of manual errors.
The implementation of payroll gross-up at Hörmann Legnica sp. z o.o., with the support of Haergi, brought measurable benefits:
- increased speed and accuracy of payroll processing,
- full compliance with tax and insurance regulations,
- optimization of HR processes,
- reduction of the HR payroll department’s workload through elimination of Excel and manual calculations.
Hörmann gained a tool in SAP HCM that not only facilitates the daily work of the HR team but also supports efficient management of payroll calculation.
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