Understanding SAP HR Infotype 580: Previous Employment Tax Details

In SAP Human Capital Management (HCM), Infotypes are essential building blocks for storing specific categories of employee data. Infotype 580 is particularly important, especially within the context of payroll processes in India. It’s designed to capture an employee’s Previous Employment Tax Details, facilitating accurate tax calculations and payroll compliance.

What is Infotype 580?

Infotype 580 enables HR personnel to record the following crucial tax-related details from an employee’s previous employment:

• Gross Salary: Total salary earned by the employee in their last job.
• Income Tax Deducted: The income tax deducted at source by the previous employer.
• Professional Tax (Ptax): State-level tax levied on an employee’s income.
• Provident Fund (PF): The employee’s contribution to the provident fund in the previous job.
• Surcharge and Education Cess: Additional taxes are calculated on the income tax amount.

Why is Infotype 580 Important?

1. Accurate Tax Computations: The details in Infotype 580 help your SAP system calculate the employee’s overall tax liability for the current financial year. It considers income from all sources to prevent over or under-taxation.
2. Form 16 Generation: In India, employers must issue Form 16 – a tax deduction at source (TDS) certificate – to their employees. Infotype 580 is critical in populating this form with the previous year’s tax details.
3. Compliance: Infotype 580 ensures that your payroll process adheres to the Indian Income Tax Act regulations and avoids potential penalties for miscalculations or non-compliance.

Infotype 580 Configuration and Use

Configuring Infotype 580 typically falls within the responsibility of SAP HCM functional consultants. It involves customizing the info type and its fields to align with your organization’s requirements.

HR professionals are the primary users of Infotype 580. They are responsible for entering and maintaining the details for each employee within the SAP HCM system.

Key Points to Consider

• Start and End Dates: It is advisable to maintain Infotype 580 records based on financial years (April 1st – March 31st)
• Data Validation: It’s vital to implement measures to ensure the accuracy and integrity of the data entered into Infotype 580, as errors can directly impact tax calculations.
• Integration: Infotype 580 data is typically integrated with other SAP HR modules, particularly payroll.

In Conclusion,, Infotype 580 is a cornerstone for streamlined and compliant payroll operations within SAP HR for India-based organizations. By correctly configuring and utilizing this Infotype, you can ensure accurate tax calculations, effortless Form 16 generation, and overall adherence to income tax regulations.