© 2006 Nova Scotia Government All rights reserved. Deferred Leave

© 2006 Nova Scotia Government All rights reserved. Logistics and Ground Rules u Training facility information (breaks, lunch, etc.) u Cell phones and blackberries on silent mode u No s during training u Participate in group activities u Respect time frames

© 2006 Nova Scotia Government All rights reserved. Deferred Leave Course Map Deferred Leave Overview Deferred Leave Contribution, Change and Withdrawal Deferred Leave Return Reports & Auditing Deferred Leave On

© 2006 Nova Scotia Government All rights reserved. Deferred Leave Objectives At the end of this course, you will be able to: u Explain and execute the procedure to start an employee contributing toward a Deferred Leave Plan u Explain and execute changing the contribution percentage and duration of the plan u Explain and execute the one time payment for the Deferred Pay Principal and Interest Memo when an employee withdraws from the plan u Explain and execute the Leave of Absence and Return from Leave of Absence Actions as it relates to Deferred Leave u Define and provide an overview of the important infotypes covered in these actions

© 2006 Nova Scotia Government All rights reserved. Overview Deferred Leave Overview Deferred Leave Contribution, Change and Withdrawal Deferred Leave Return Reports & Auditing Deferred Leave On

© 2006 Nova Scotia Government All rights reserved. Overview At the end of this module, you will be able to: u Explain the Leave of Absence and Return from Leave of Absence Actions with reason Deferred Leave u Describe the new terms and concepts related to the Leave of Absence and Return from Leave of Absence Actions

© 2006 Nova Scotia Government All rights reserved. The SAP R/3 Integration Model R/3 Client / Server ABAP Client / Server ABAP CO Controlling CO Controlling AA Asset Accounting AA Asset Accounting PS Project System PS Project System WF Workflow WF Workflow IS Industry Solutions IS Industry Solutions HR Human Resources HR Human Resources SD Sales & Distribution SD Sales & Distribution PP Production Planning PP Production Planning QM Quality Mgmt QM Quality Mgmt FI Financial Accounting FI Financial Accounting PM Plant Main- tenance PM Plant Main- tenance MM Materials Mgmt MM Materials Mgmt

© 2006 Nova Scotia Government All rights reserved. SAP HR Applications In Scope HR Human Resources HR Human Resources Personnel Administration Benefits Administration Time Management Payroll Organizational & Compensation Management Organizational & Compensation Management

© 2006 Nova Scotia Government All rights reserved. Employee Life-Cycle Separation Payroll Time Reporting N S EWTravel Benefits HiringHiring Life changes Employee Life-Cycle Org. Management Leave Of Absence

© 2006 Nova Scotia Government All rights reserved. Deferred Leave u The purpose of Deferred Leave is to allow employees to have the opportunity of taking up to one year leave of absence and to finance the leave through deferral of salary. u There are essentially two parts to Deferred Leave 1.The employee contributes towards the Deferred Leave Plan 2.The employee goes on Deferred Leave

© 2006 Nova Scotia Government All rights reserved. Deferred Leave (cont’d) u At any time an employee may withdraw from the plan –Withdrawal would result in a payout through Additional Payments (IT0015) u At any time during the contribution period an employee may adjust the period and amount of contribution u It is also important to note that with any leave a Return from Leave action must be processed when the employee returns to work

© 2006 Nova Scotia Government All rights reserved. Deferred Leave

© 2006 Nova Scotia Government All rights reserved. Module Review (User Guide 1-9) 1. What are the two parts to Deferred Leave? 2. What does Delimit mean? How does it apply to Deferred Leave?

© 2006 Nova Scotia Government All rights reserved. Answers to Module Review 1. What are the two parts to Deferred Leave? 1.The employee contributes to the Deferred Leave Plan 2.The employee goes on Deferred Leave 2. What does Delimit mean? Delimit is an indication to the system that a validity period has changed. All infotype records have a validity period, which consists of a start and end date. The validity period determines the length of time data and infotype records officially exist within the system.

© 2006 Nova Scotia Government All rights reserved. Deferred Leave Contribution, Change and Withdrawal Deferred Leave Overview Deferred Leave Contribution, Change and Withdrawal Deferred Leave Return Reports & Auditing Deferred Leave On

© 2006 Nova Scotia Government All rights reserved. Contribution, Change and Withdrawal Objectives At the end of this module, you will be able to: u Explain the procedure to start an employee contributing toward a Deferred Leave Plan u Explain changing the contribution percentage and duration of the plan u Explain the one time payment for the Deferred Pay Principal and Interest Memo when an employee withdraws from the plan

© 2006 Nova Scotia Government All rights reserved. Contributing to the Deferred Leave Plan u The Employee: –signs a Deferred Leave contract –specifies what percentage will be used to deduct money towards the plan –determines the length of the deferral period u The Deferral Period: –maximum length will be six years u The Deferral Amount: –Maximum amount will be 33 1/3 % of salary

© 2006 Nova Scotia Government All rights reserved. Contributing to the Deferred Leave Plan u The contributions an Employee makes to the Deferred Leave plan are entered through Infotype 0014 (Recurring Payments/Deds.) u This ensures the deduction (contribution) is taken every pay period u The effective date must be the start date of a pay period u The end date must be the last day of a pay period u The deferred deduction is always a percentage and is recorded through wage type 2061 (Deferred Pay % Reg)

© 2006 Nova Scotia Government All rights reserved. Deferred Contributions – PA30 Recurring Payments & Deductions (IT0014) Indicates Text

© 2006 Nova Scotia Government All rights reserved. Recurring Payments & Deductions

© 2006 Nova Scotia Government All rights reserved. Maintain Text - Text Box

© 2006 Nova Scotia Government All rights reserved. Deferred Leave - Percentage and Duration Change u If an employee wishes to change the percentage of the contribution this will be processed through IT Delimit the existing infotype record 2.Create a new recurring deduction for the new percentage 3.The end of the contribution period must be entered as the To Date u If an employee wishes to change the duration of the contribution (IT0014) 1.The existing infotype is modified to change the end date (pencil)

© 2006 Nova Scotia Government All rights reserved. Withdrawal from the Deferred Plan u When an employee wishes to withdraw from the Deferred Plan the following steps must be completed: 1.Delimit the Recurring Deduction (IT0014) 2.Process a repayment through Additional Payments (IT0015)

© 2006 Nova Scotia Government All rights reserved. Additional Payments IT0015 The interest amount is recorded through wage type 1202 (Deferred Pay Int Lump). The principle amount is recorded through wage type 1206 (Deferred Pay Withd. Lump).

© 2006 Nova Scotia Government All rights reserved. 1.An Employee contributes to the Deferred Plan (Teaching and Non-Teaching) 2.An Employee wants to withdraw from the plan 3.An Employee wishes to modify their payments and duration of contribution 1.An Employee contributes to the Deferred Plan (Teaching and Non-Teaching) 2.An Employee wants to withdraw from the plan 3.An Employee wishes to modify their payments and duration of contribution Demonstration and Practice

© 2006 Nova Scotia Government All rights reserved. Module Review (User Guide 2-11) 1. What is the effective date on which an Interest Memo is paid? 2. Where can you enter information regarding the Deferred Leave Contract?

© 2006 Nova Scotia Government All rights reserved. Answers to Module Review 1. What is the effective date in which an Interest Memo is paid? The effective date will be the date on which the interest memo is received from the financial institution. 2. Where can you enter information regarding the Deferred Leave Contract? The Text field within an infotype can store information and specifics of an employee’s deferred contract

© 2006 Nova Scotia Government All rights reserved. Deferred Leave On Deferred Leave Overview Deferred Leave Contribution, Change and Withdrawal Deferred Leave Return Reports & Auditing Deferred Leave On

© 2006 Nova Scotia Government All rights reserved. Deferred Leave On Objectives At the end of this module, you will be able to: u Explain delimiting the contribution to the plan u Explain the Leave of Absence Action with reason Deferred Leave u Explain the bi-weekly recurring payments for the Deferred Pay Principle and Interest u Explain the wage types recorded through IT0014 & IT0015 as they apply to Deferred Leave

© 2006 Nova Scotia Government All rights reserved. Going on Deferred Leave u When an Employee goes on Deferred Leave: –The period of the leave will be a period from 6 months up to 1 year u Short Term Deferred Leave –This plan indicates that the employee can defer a percentage of pay to be paid over one or two months (this applies to some non-teaching groups who work less than 12 months, as applicable per collective agreement )

© 2006 Nova Scotia Government All rights reserved. Going on Deferred Leave u IT0014 must be reviewed to ensure that any applicable records are delimited (for example, the contribution percentage) before the Leave Action can be processed. u Placing an employee on Deferred Leave is processed through PA40 (LOA-Active Status). u The effective start date of the action is the first day of leave for the employee. u On the Create Absences screen an end date is recorded for the employee’s anticipated last day of leave. u Monitoring of Tasks will be used to monitor the employee’s date of return.

© 2006 Nova Scotia Government All rights reserved. Deferred Leave PA 40 Reason for LOA Action

© 2006 Nova Scotia Government All rights reserved. Deferred Leave On Checklist Monitoring of Tasks Absences Recurring Payments/Deductions Impact on Quotas Benefits

© 2006 Nova Scotia Government All rights reserved. End of Leave – Monitoring of Tasks

© 2006 Nova Scotia Government All rights reserved. Create Deferred Absence

© 2006 Nova Scotia Government All rights reserved. Deferred Pay Principle u The Deferred Pay principle is recorded through Recur. Payments/Deds. (IT0014) u A Wage type is used to pay the employee a principle bi-weekly amount –WT 1200 Regular Deferred Leave –WT 1203 Short Term Deferred Leave u The effective date is the start date of the employee’s leave u The amount entered is the amount the bank has provided divided by the appropriate amount of pay periods

© 2006 Nova Scotia Government All rights reserved. Create Deferred Payment

© 2006 Nova Scotia Government All rights reserved. Deferred Leave Interest Payment u The Deferred Leave Interest payment is recorded through Recur. Payments/Deds. (IT0014) u Wage type 1201 (Deferred Pay Interest) must be chosen to pay the employee u The effective date is the start date of the employee’s leave u The amount entered is the amount of interest to be paid bi-weekly (provided by the financial institution)

© 2006 Nova Scotia Government All rights reserved. Create Deferred Interest Payment

© 2006 Nova Scotia Government All rights reserved. Deferred Leave u Some infotypes to keep in mind for Deferred Leave include: –IT0014 Recurring Payments/Deductions –IT0015 Additional Payments u The associated Wage Types to keep in mind for Deferred Leave: –2061 – Percentage of deduction for contribution –1202 – Deferred Pay Interest Memo –1206 – Deferred Pay with Lump Sum –1200 – Deferred Pay Principle Regular –1203 – Short Term Deferred Pay Principle –1201 – Deferred Leave Interest Payment

© 2006 Nova Scotia Government All rights reserved. 1. Place a Teacher on Deferred Leave 2. Place a Non-Teacher on Deferred Leave 1. Place a Teacher on Deferred Leave 2. Place a Non-Teacher on Deferred Leave Demonstration and Practice

© 2006 Nova Scotia Government All rights reserved. Module Review (User Guide 3-11) 1. Which wage types are recorded through Recurring Payments/Deductions (IT0014)? 2. Which wage types are recorded through Additional Payments (IT0015)? 3. What date is entered to delimit the employee’s contribution to Deferred Leave and why?

© 2006 Nova Scotia Government All rights reserved. Answers to Module Review 1. Which wage types are recorded through Recurring Payments/Deductions (IT0014)? –2061 – Percentage of deduction for contribution –1200 – Deferred Pay Principle Regular –1203 – Short Term Deferred Pay Principle –1201 – Deferred Leave Interest Payment 2. Which wage types are recorded through Additional Payments (IT0015)? –1202 – Deferred Pay Interest Memo

© 2006 Nova Scotia Government All rights reserved. Answers to Module Review 1. Which wage types are recorded through Recurring Payments/Deductions (IT0014)? –2061 – Percentage of deduction for contribution –1200 – Deferred Pay Principle Regular –1203 – Short Term Deferred Pay Principle –1201 – Deferred Leave Interest Payment 2. Which wage types are recorded through Additional Payments (IT0015)? –1202 – Deferred Pay Interest Memo –1206 – Deferred Pay with Lump Sum

© 2006 Nova Scotia Government All rights reserved. Answers to Module Review 3. What date is entered to delimit the employee’s contribution to Deferred Leave and why? The effective delimit date is the start date of the employee’s leave. This will stop the deduction the day before the employee goes on leave.

© 2006 Nova Scotia Government All rights reserved. Deferred Leave Return Deferred Leave Overview Deferred Leave Contribution, Change and Withdrawal Deferred Leave Return Reports & Auditing Deferred Leave On

© 2006 Nova Scotia Government All rights reserved. Return from Deferred Leave Objectives At the end of this module, you will be able to: u Explain the Return from Leave of Absence Action with reason Deferred Leave u Explain the impact to Benefits and Quotas

© 2006 Nova Scotia Government All rights reserved. Return From Deferred Leave u Returning an employee from Deferred Leave is done through PA40 - Return from Leave of Absence u The effective date is the date the employee is returning to work u The delimit absence infotype will not appear in this action because an end date was set on the absence infotype when they were put on leave

© 2006 Nova Scotia Government All rights reserved. Return from Deferred Leave – PA40

© 2006 Nova Scotia Government All rights reserved. Recurring Payments and Deductions u Any recurring payments that were delimited before the leave, may need to be re-started by creating the record in PA30, IT0014 (for example United Way)

© 2006 Nova Scotia Government All rights reserved. Impacts on Quotas and Benefits u In some cases quotas such as sick leave are given up front, at the beginning of the contract year. A quota correction may be required. u In some cases leaves have an impact on Benefits; the Benefits Administrator may have to maintain the employee’s benefits as required. For example, some Collective Agreements may require the employee pay both portions of the benefit while on leave.

© 2006 Nova Scotia Government All rights reserved. 1.An Employee Returns from Deferred Leave Demonstration and Practice

© 2006 Nova Scotia Government All rights reserved. Module Review (User Guide 4-6) 1. What would constitute a Quota Correction? 2. What would constitute a Benefit Change on a Return from Leave Action?

© 2006 Nova Scotia Government All rights reserved. Answers to Module Review 1. What would constitute a Quota Correction? In some cases quotas such as sick leave are given up front, at the beginning of the contract year. A quota correction may be required to claw back unearned sick leave. 2. What would constitute a Benefit Change on a Return from Leave Action? In some cases leaves have an impact on Benefits; the Benefits Administrator may have to maintain the employee’s benefits as required. For example, some Collective Agreements may require the employee pay both portions of the benefit while on leave.

© 2006 Nova Scotia Government All rights reserved. Deferred Leave Return Deferred Leave Overview Deferred Leave Contribution, Change and Withdrawal Deferred Leave Return Reports & Auditing Deferred Leave On

© 2006 Nova Scotia Government All rights reserved. Reports & Auditing u The following reports and processes will allow you to validate your Deferred Leave Actions: –School Board Audit Report –Payroll Simulation –Quota Overview –Monitoring of Tasks

© 2006 Nova Scotia Government All rights reserved. WEB SITE INFORMATION To view answers that have resulted from the Parking Lot, for any training session, our Web Site is:

© 2006 Nova Scotia Government All rights reserved. The Sandbox For access to the School Board Sandbox System, please send an to:

© 2006 Nova Scotia Government All rights reserved. Please complete the course evaluation sheets. u Your input will help to shape future enhancements in the SAP Training Program. Evaluation