US Tax

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Maintain work-related tax areas
In this step, you define work tax areas not included in the standard SAP system. Work tax areas are used in Infotype 0208 (Work tax area).

Example
AL0G (Birmingham, Alabama)

Since Alabama contains both city and county tax authorities, only the higher level of the two, counties, are loaded. For example, residence tax area AL0H (Jefferson County, Alabama) is loaded during the load process, but city tax authorities within Jefferson County are not loaded. Therefore, if you have employees working in such a city, you would have to create a new tax area here that includes the required city tax authority as well as the county, state and federal authorities.

Standard settings
The SAP standard provides tax areas that include the state tax authority and the highest level local authority within the state. For example, in Pennsylvania, many city tax authorities exist within county tax authorities. The delivered tax areas only include counties. For employees subject to city taxes within county tax authorities, you need to build new tax areas that include the cities (or any lower-level authorities such as school districts). You can then assign the new tax areas in Infotype 0208.

Recommendation
SAP recommends that you check that this view contains all localities required by your organization. Also, SAP recommends that tax areas not be deleted once the system is in use since they may be used in infotypes.

Activities
1. Enter the name of the lowest level tax authority to be included in the new area in the Tax Area field.
2. Enter the validity period for which the area should include the authority.
3. Enter the name of the state to which the area belongs.
4. Save your entries.

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IMG Path & Table: Tax Areas

In the following steps, you check and maintain residence and work tax areas valid for your organization. If your organization requires any areas not loaded by default, or if you created any custom tax authorities in the step maintain custom tax authorities then you must maintain all of the tax area steps in this section.


Path: Payroll -> Payroll: USA -> Tax -> Tax Data Maintenance -> Tax Areas -> Maintain work-related tax areas


Table: T5UTB

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Path: Payroll -> Payroll: USA -> Tax -> Tax Data Maintenance -> Tax Areas ->
Maintain tax authorities per work tax area

Table: T5UTW

In this step, you assign tax authorities to the work tax areas you defined in the previous step:

Example

Tax Area	Authority
AL0G	AL (State of Alabama)
AL0G	AL0G (Birmingham)
AL0G	AL0H (Jefferson)

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Recommendation
SAP recommends that you check that all work tax areas include the required authorities and that tax areas are not deleted once the system is in use, since they may be used in infotypes.

Activities
1. Enter the name of the lowest level tax authority to be included in the new area in the 'Tax Area' field.
2. Enter the name of the authority to be included in the area.
3. Enter the validity period for which the area should include the authority.
4. Repeat activities until all authorites have been included for the new area.

Further notes
Remember, the Federal tax authority must not be included in work tax areas.
When adding or removing authorities from tax areas, remember that every employee assigned to the area will be affected.

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Path: Payroll -> Payroll: USA -> Tax -> Tax Data Maintenance -> Tax Areas -> Maintain zip code ranges per work tax area

Table: T5UTG

In this step, you assign zip code ranges to new work tax areas. You may also maintain zip code ranges for existing tax areas

Note: IT0208 is proposed with applicable tax authorities from this table based on the zipcode in the employee’s address - IT0006

Example

Area Zip.............. Code Range
AL0G (Birmingham) 35200-0000 to 35299-9999

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Activities

To add new tax areas:
1. Enter the name of the tax area.
2. Enter the zip code range for the tax area.
3. Enter the validity period for the zip code range.

To refine existing zip code ranges:
1. Change the beginning of the zip code range.
2. If the end of the range must change, delete the existing record and add a new one with the correct range.

Further notes
The zip code ranges provided for each tax area, whether a state or a locality within the state, are the ranges for the entire state. You may define the ranges more narrowly for localities in this step.

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Path: Payroll -> Payroll: USA -> Tax -> Tax Data Maintenance -> Tax Areas -> Maintain residence-related tax areas

Table: T5UTA

In this step you define residence tax areas not included in the standard SAP R/3 system. Residence tax areas are used in infotype 207 (Residence tax area).

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Example
AL0G (Birmingham, Alabama)

Since Alabama contains both cities and counties, only the higher level
of the two, counties, are loaded. For example, residence tax area AL0H (Jefferson county, Alabama) is loaded during the load process, but city areas in Alabama are not loaded. If specific city areas are required by your organization, they must be created here.

Activities 1. Enter the name of the lowest level tax authority to be included in the new area in the 'Tax Area' field.
2. Enter the validity period for which the area should include the authority.
3. Enter the name of the state to which the area belongs.


Further notes
You may also define the default work tax area for a residence tax area using this view. That is, the authorities defined by the default work tax area will be used for generating work-related taxes.

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Path: Payroll -> Payroll: USA -> Tax -> Tax Data Maintenance -> Tax Areas -> Maintain tax authorities per residence tax area

Table: T5UTR

In this step, you assign tax authorities to the residence tax areas you created in the previous step or add tax authorities to existing areas:

Example:

Tax Area	Authority
AL0G	AL (State of Alabama)
AL0G	AL0G (Birmingham)
AL0G	FED (Federal)

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In this step, you assign tax authorities to the residence tax areas you created in the previous step or add tax authorities to existing areas.

Example
Tax Area Authority
AL0G (Birmingham, AL) FED (Federal)
AL0G AL (State of Alabama)
AL0G AL0G (Birmingham)

Activities
1. Enter the name of the lowest level tax authority to be included in the new area in the 'Tax Area' field.
2. Enter the name of the authority to be included in the area.
3. Enter the validity period for which the area should include the authority.
4. Repeat activities until all authorites have been included for the new area.

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Path: Payroll -> Payroll: USA -> Tax -> Tax Data Maintenance -> Tax Areas -> Maintain Zip Code ranges per residence tax area

Table: T5UTF

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Tax Models (First-Time Configuration Only)

The taxability model contains information used to calculate the appropriate taxes for the federal government, and state and local tax authorities. The model consists of a number of tables which reside in the background and can be accessed through a maintainance view in this chapter of the IMG.

Two tables are used to keep SAP and customer taxability model data separate. This ensures that customer changes are never automatically overwritten and that the SAP model is always available for reference.
In this section, you customize the taxability models to meet your company's needs.

Further notes
The report 'Expand Tax Models' enables you to expand tax authorities and display their respective tax types. You can access this report from the US Payroll menu: Info system -> Tax -> Tax Utilities.

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Define tax modifiers
In the first activity in this step, you define tax modifiers in rule UMOT (Modifiers for US tax calculation) for your employee groups. You can use these modifiers in the taxability model to differentiate between employee groups that are taxed differently by a tax authority. In the second activity in this step, you replace the call of rule UMOT with your copy of the rule in schema UTX0 (US Tax calculation).

Standard settings
As delivered, rule UMOT defines the default employee subgroup (and tax modifier) for all employees as 'U1'. If taxes are determined differently for groups of employees within your organization, you must maintain these groups in rule UMOT.

Activities
Modify rule UMOT:
1. Copy rule UMOT to the customer name range.
2. Modify your copy of the rule if necessary.
3. Save your changes.
Update schema UTX0
1. Wherever UMOT appears in schema UTX0, replace it with your copy of the rule.
2. Save and generate the schema.

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IMG Path & Table: Display/Change Taxability Model



Path: Payroll -> Payroll: USA -> Tax -> Tax Data Maintenance -> Tax Models (First-Time Configuration Only) -> Display/change taxability model


Table: T5US1

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Display/change taxability model
In this step, you can review the SAP-delivered taxability models to determine if they meet your company's needs, and customize them if necessary.

The SAP-delivered models are always available for reference. If you choose to change the models delivered by SAP, your changes are saved in a separate table. This ensures that your customized models are not overwritten when SAP delivers new taxability models.

Requirements
You must have defined your processing class 71 specifications in the Payroll USA IMG step:

Basic Settings -> Environment for Maintaining Wage Types -> Processing Classes and Evaluation Classes -> Maintain processing classes and their values.

You must have assigned these processing class 71 specifications to your wage types in the Payroll USA IMG step:

Tax -> Tax-Related Wage Types -> Maintain tax-related processing classes.

General navigation You can navigate between the display and change views by choosing SAP Models or All Models, depending on the screen you are in.

If you have customized the models in the past, the Custom indicator will appear checked for those models on the Taxability Model Key List screen.


Display the taxability model to ensure it meets your company's requirements:

1. On the Taxability Model Key List screen, select the combination of tax authority, residence/work/unemployment tax and tax modifier you want to review, and choose Details.
The Taxability Model Tax Type Details dialog box appears.
If there is additional information available for a tax type, the More indicator will appear checked.
2. Choose the arrow to the right of the tax type to display the taxability of the tax classes under the tax type.
The Taxability Model Tax Class Details dialog box appears. Here you review the taxability of each tax class for that combination of tax type and authority.

Activities
Customize the model, or review changes you have made to the model.

1. On the Taxability Model Key List screen, choose Custom Data.
The Change View: Taxability Model Key List screen appears. Here you have the following change options:
Copy one model to another. This is especially useful if you are creating a new model that is very similar to an existing model. You can copy the model and then adapt it accordingly.

Note: When you copy a model from one authority to another, only those tax types that are valid for both the original authority and the target authority are copied. The system will not insert any tax types into the copy that do not exist in the model from which you are copying.

Add a new model. If you choose this option, you will have to define all of the tax types and relevant tax class taxability manually.

Delete a model. You can only delete custom models (those where the Custom indicator is checked).
Choose Details and customize the tax classes of that model to fit your needs.


2. Save your changes.


3. Once you have made all of the changes you need to make and are ready to use the model productively, save the changes and choose Generate Tax Model.

4. Define a date from which the model should be effective on the Effective Date dialog box that appears, and choose Continue.

Note: If you have assigned any new tax types to a tax authority, you will have to create a new entry for this tax type/authority combination and assign an employer identification number to it.

This can be done in the Payroll USA IMG step: Tax -> Tax Data Maintenance -> Employer Identification Number -> Define federal/state/local employer ID number.

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Tax Models (Subsequent Maintenance)
This section of the IMG allows you to maintain taxability model data after you have completed the initial, one-time configuration in the "Tax Model (First-Time Configuration Only)" section of the IMG.

The combination of the following steps enables you to designate tax types based on the type of payment, type of employee, residency or work, and tax authority.

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Define tax authority model
In this step, you assign each tax authority to a tax model.

Example
Authority Model
NY01 (New York City) 01

Activities
1. Enter the name of the tax authority.
2. Enter the tax model number.
3. Enter the period for which this tax model is valid for this authority.

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IMG Path & Table: Define Tax Authority Model

Path: Payroll -> Payroll: USA -> Tax -> Tax Data Maintenance -> Tax Models (Subsequent Maintenance) -> Define tax authority model
Table: T5UTE

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Define taxability model

In this step, you define tax models for each combination of type of payment, type of employee, and residency or work. Each combination determines a set of tax types to be used for the model.

Example
Model Res/Wrk EmpTyp Payment Combination
01 R U1 1 10
01 W U1 1 10
01 R U1 2 11

Activities
1. Enter the tax model number.
2. Enter whether the model is applicable for residency, work or unemployment.
3. Enter the employee group for whom the model is applicable.
4. Enter the taxability class of the model.
5. Enter the tax type combination for the model.

Further notes
The default EmpTyp for all employees is 'U1'. If taxes are determined differently for groups of employees within your organization. You must maintain these groups in personnel calculation rule UMOT.

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IMG Path & Table: Define Taxability Model

Path: Payroll -> Payroll: USA -> Tax -> Tax Data Maintenance -> Tax Models (Subsequent Maintenance) -> Define taxability model

Table: T5UTM

In this step, you define tax models for each combination of type of payment, type of employee, and residency or work. Each combination determines a set of tax types to be used for the model.

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Define tax type combinations
In this step, you define combinations of tax types.

Example
Combination TaxType
10 01 (Withholding)
10 03 (Employee OASDI)
10 05 (Employee medicare)
11 01 (Withholding)

Activities
1. Enter an identification number for the combination.
2. Enter the tax type to be included in the combination.
3. Repeat the activities until all required tax types are included in the combination.

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IMG Path & Table: California SDI Tax

Employees in the state of CA may elect to participate in the state sponsored disability insurance plan or the voluntary or company sponsored disability insurance plan.
The default system setting will be to withhold tax types 41 and 48 for employees that reside in California.

Depending on the client requirements the following changes have to be made in the system.


Attached the doc.

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IMG Path & Table: Unemployment Insurance

Path: Payroll -> Payroll: USA -> Tax -> Tax Data Maintenance -> Unemployment Insurance

Due to the configuration of BSI version 8.x, company specific experience rates must be entered directly into BSI. The worksite information will be dependent on the company’s requirements and therefore no sample entries are provided.

Unemployment insurance is a self-adjusting tax. If this tax was under withheld in a period, the system will try to make up for it in the next period. The system uses the tax rates defined here when performing the self-adjustment. The ceilings and rates defined here ensure continuity when an employee moves to a different state with a different tax rate for self-adjusting taxes.

This means the system takes the different tax rates and ceilings into account when looking at the year-to-date unemployment insurance tax withheld to determine if an underpayment was made in a previous period.

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Define unemployment worksites
In this step you define the names and addresses of all worksites for your company. Worksites are used in unemployment state (Infotype 0209) records. This information is used to provide unemployment authorities with statistical information.

Recommendation
Only use this if your company is required to provide multiple worksite reporting or needs to file Form NC-9901: Report of Organization.

Activities
Enter worksite codes in accordance with the relevant unemployment authority guidelines.

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Define BSI tax company experience rates

In this step, you specify state experience rates for each tax company you defined in the previous step.

Activities
After completing all customization steps, you must also maintain the same table entries in the BSI database with the BSI client GUI.

Further notes
For further information on BSI, please refer to Note 100944 in the Online Service System (OSS).

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Tax Overrides
In this section, you define tax overrides for a group of employees. If your organization does not need to override any taxes, you can ignore this section.
SAP recommends that wherever possible you do NOT use this function.

Define employee group
In this step, you define employee groups for tax overrides. After completing all customizing in this step, you must also maintain the same table entries in the BSI database with the BSI client GUI.

Further notes
The employee groups defined here can be used to process withholding overrides within the Additional Withholding Information US infotype (0234).

Define employee overrides
This data is no longer maintained in the SAP system and must be maintained directly in the BSI client. For further information, please refer to the BSI online documentation.

Define override formulas
This data is no longer maintained in the SAP system and must be maintained directly in the BSI client. For further information, refer to the BSI online documentation.

Further notes
Any override amount entered in Infotype 0234 Withholding Overrides has precedence over this tax method override. If both an override amount and a tax method override are defined for a particular withholding tax, the override amount will supercede the amount derived from the tax method override.

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Symbolic Account Split Based on Tax Authority
In this section, you can split single tax wage types into various wage types, based on tax level or authority. You can then assign a symbolic account to each newly mapped wage type.

Example
Wage type C1 Tax Auth. Total amt.
/401 01 FED $ 500
/401 02 CA $ 200
/401 03 OK $ 300

If symbolic account '1130' is defined for /401, $1,000 must be posted to the single symbolic account '1130'.
With the symbolic account split functionality, the system will "split" the /401 wage type into various wage types based on the Tax Authority:

Wage type C1 Tax Auth. New Mapping Wage type*
/401 01 FED > T001 $500
/401 02 CA > T002 $200
/401 03 OK > T003 $300

*You will need to create custom mapping wage types in the customer naming range. This is carried out in the next step. In this example, we will use T001, T002, T003 for FED, CA, and OK.
Because the tax amount is copied into tax authority level wage types, you can assign a separate symbolic account for each tax authority.

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Maintain priority of tax wage types
In this step, you set up deduction priorities and rules for tax wage types.
For more information about tax priority functionality, please refer to the documentation of Function UTPRI (Tax priority (USA)).

IMG Path & Table: Maintain Priority of Tax Wage Types

Path: Payroll à Payroll: USA à Tax à Maintain priority of tax wage types
Table: V_T5US0

Requirements: You have already configured your tax authorities.

Recommendation: Only perform this step if you have particular priorities for a tax authority.

Activities
1. Enter the combination of tax authority and tax wage type into the table.
2. Specify the priority and deduction rule.
3. Save your entries.

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Example

Case 1: Only tax level is used to sort tax authorities.
CM L Auth Wage type From To 1 2 3 O R

+--+-+----+----+---------------+----------+----------++--+----+-++-+-*
10 A /401 Withholding tax 01/01/1995 12/31/9999 01 3 2 2
10 A /403 Employee OASDI 01/01/1995 12/31/9999 01 1 2 2
10 A /405 Employee medica 01/01/1995 12/31/9999 01 2 2 2
10 B /401 Withholding tax 01/01/1995 12/31/9999 02 2 2 2
10 B /441 Disability Tax 01/01/1995 12/31/9999 02 1 2 2
10 C /401 Withholding tax 01/01/1995 12/31/9999 03 2 2 2
10 C /451 Occupation tax 01/01/1995 12/31/9999 03 1 2 2
10 D /401 Withholding tax 01/01/1995 12/31/9999 04 2 2 2
10 D /451 Occupation tax 01/01/1995 12/31/9999 04 1 2 2

The priorities will be:

A FED Federal /403 Employee OASDI 01 1
FED Federal /405 Employee medica 01 2
FED Federal /401 Withholding tax 01 3
B AL Alabama /441 Disability Tax 02 1
AL Alabama /401 Withholding tax 02 2
AR Arkansas /441 Disability Tax 02 1
AR Arkansas /401 Withholding tax 02 2
...
WI Wisconsin /401 Withholding tax 02 2
WV West Virginia /401 Withholding tax 02 2
C IN01 Adams /401 Withholding tax 03 2
IN02 Allen /401 Withholding tax 03 2
...
D AL01 Attalla /451 Occupation tax 04 1
AL02 Bessemer /451 Occupation tax 04 1
...
Case 2: Puerto Rico taxes are prioritized lower than other state tax authorities.
CM L Auth Wage type From To 1 2 3 O R
+--+-+----+----+---------------+----------+----------++--+----+-++-+-*
10 A /401 Withholding tax 01/01/1995 12/31/9999 01 3 2 2
10 A /403 Employee OASDI 01/01/1995 12/31/9999 01 1 2 2
10 A /405 Employee medica 01/01/1995 12/31/9999 01 2 2 2
10 B /401 Withholding tax 01/01/1995 12/31/9999 02 2 2 2
10 B /441 Disability Tax 01/01/1995 12/31/9999 02 1 2 2
10 PR /401 Withholding tax 01/01/1995 12/31/9999 02 0001 2 2 2
10 PR /441 Disability Tax 01/01/1995 12/31/9999 02 0001 1 2 2
10 C /401 Withholding tax 01/01/1995 12/31/9999 03 2 2 2
10 C /451 Occupation tax 01/01/1995 12/31/9999 03 1 2 2
10 D /401 Withholding tax 01/01/1995 12/31/9999 04 2 2 2
10 D /451 Occupation tax 01/01/1995 12/31/9999 04 1 2 2

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Tax Reporter (If need do change, if not not need to change) In this chapter, you set up tax reporting for your company.

The SAP HR tax reporting process consists of three main steps: Tax Reporter preparation. Evaluation of tax form wage types and storage of their amounts

Tax Reporter generation. Evaluation of the stored tax form wage type amounts
Output. Issuance of tax forms on either paper or magnetic media (tape or diskette)

In the first section of this chapter, you maintain a number range for the tax interface tables, define which tax company you will use to transmit your tax forms, and define personnel events for transferring employees in and out of Tax Reporter.

In the second section, you define your tax form groups. This involves defining which wage types (which can vary according to tax authority) are used for the various tax forms.

In the third section, you define your tax forms. This involves defining the reporting periods for which each wage type must be cumulated and output, and the tax authority to which the tax form must be submitted.

In the last section, you define the layout of your tax forms.

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Define reporting tax company
If multiple tax companies in your organization are assigned to one Employer Identification Number (EIN), you must designate a reporting tax company. The tax data for all tax companies assigned the relevant EIN is combined and reported under the tax company you specify in UTXRP. To this end, you must modify feature UTXRP to identify your chosen tax company as the reporting tax company.

Activities
Modify feature UTXRP so that the tax data from all tax companies is reported under the chosen tax company. See the feature documentation for further details.

Further notes
Be sure to activate the reporting tax company for your tax form classes when you generate your tax form data. To do so, select a tax form class from the Tax Reporter: Generation screen, and choose Tools->Variant->Additional params.. In the Reporting tax companies field, enter feature UTXRP. Choose Enter.

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Define transmitting tax company
If you want to transmit tax forms for multiple tax companies to a single tax authority, you must define which one of those tax companies is to be listed as the transmitting tax company. The name and address of that tax company appears as the transmitter in the accompanying documentation for your magnetic tapes or forms. For example, when you generate W-2 forms for multiple tax companies, the transmitting tax company's name and address appear on the accompanying 6559 form.

To this end, you must modify feature UTXTM and adapt it to properly identify your chosen tax company.

Standard settings: As delivered, feature UTXTM designates the tax company for which a form is generated as the transmitting tax company.

Activities
1. Modify feature UTXTM so that it designates your chosen transmitting tax company. See the feature documentation for further details.
2. Be sure to activate the transmitting tax company designation for your tax form classes in the Tax Reporter component by carrying out the following step:
a) Select a tax form class from the Tax Reporter: Generation screen, and choose Additional parameters. In the Transmitter of forms field, enter feature UTXTM. Save your entries.

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Define fill job split parameters
Each tax company is automatically submitted as one (RPCTRCU0) job when the PCL4 data clusters are created. However, for tax companies with large numbers of employees, this can result in very long run times. To improve the performance of the fill job process, the ability to split one tax company into several smaller CU0 jobs has been provided.
In this step, you define how each tax company should be split into several CU0 jobs using feature UTRJS. You can do this in one of two ways:

Split a tax company into several jobs, based on (X) number of employees per job, or
Split a tax company into a specific (Y) number of jobs.

Example
1. Tax company US01 has 100,000 employees. You want to submit one CU0 job for every 1000 employees. Feature UTRJS should have the following value:

TXCMP: US01 ------> 1000

This will generate 100 CU0 jobs with 1000 employees each.
2. Tax company US02 has 50,000 employees. You want to submit 10 CU0 jobs to process these. Feature UTRJS should have the following value:

TXCMP: US02 ------> /10

This will generate 10 jobs with 5000 employees each.

Standard settings: If you do not maintain feature UTRJS, the default value is " 5000/ ".
This means that one CU0 job is submitted for every 5000 employees in one tax company.

Recommendation
It is not practical to submit a small number of employees for one job, as any increase in performance is offset by the large number of jobs trying to access the database to write the summary results. The same thing happens when a small tax company is split into several jobs.

Activities
Modify feature UTRJS to define how each of your tax companies should be split and submitted as CU0 jobs. For more information on this procedure, see the feature documentation.

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Define personnel actions for transfer in/out
In this step you define your transfer in and out personnel actions in feature TRANS.

Example
A company is going live with SAP Payroll in phases. Consequently this company has half of its organization running payroll on a legacy system and half on SAP. In this situation, the company will inevitably have the need to transfer employees from one system to another, as employees change positions or worksites within the organization.

Requirements: You must have created personnel action types for Infotype 0000 for transfer in and transfer out.

Standard settings: The structure of the return value is &TRANS=xx/yy, where
xx = transfer in action
yy = transfer out action

Activities
1. In feature TRANS, select 10 USA node of the decision tree, and choose Change.
2. On the dialog box that appears, enter personnel action values for transfer in and transfer out; where XX = personnel action transfer in value, and YY = the personnel action transfer out value.
3. Save.

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Specify authorization code for spool request
Use this feature to specify Tax Reporter spool authorization codes. The US Tax Reporter creates spool requests for SAPscript and HR forms output. The authorization code you specify in this feature will be attached to Tax Reporter spool requests.

Example
Example entries could be:
Variable Key F C Operations
D TXCMP
US01 D TFRCL
US01 A100 &UTXSP=HR_TRUS01W2,
US01 **** &UTXSP=,
**** D TFRCL
**** **** &UTXSP=,

The example above shows how to configure this feature so that authorization code 'HR_TRUS01W2' is attached to the spool files of the W2 form (tax form class A100) of tax company US01. For other US01 forms and other tax companies, no authorization code is attached.

Activities
Under the Variable key, specify the tax company and the tax form class.
Under Operations, specify the spool authorization code. If you do not want an authorization code in the spool files, leave this field empty. The maximum permissible length of the authorization code is 12 characters.

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Switch on Tax Reporter authorization check
In this step, you can activate and deactivate Tax Reporter transaction security checks. If you set the return value to 'ON' for a certain tax company, the Tax Reporter checks if the user has the proper authorization to perform test and productive runs for this tax company.

Other functionalities, such as Print copies, transfer in/out are not affected.

Example
Variable Key F C Operations
D TXCMP
US02 &UTXSS=ON,
US01 &UTXSS=ON,
**** &UTXSS=OFF,

The example above shows how to configure the feature so that an authorization check is run for Tax Companies US01 and US02. For all other Tax Companies, no authorization check is run.

Activities
1. Under Variable Key, specify the tax company that is to be secured by authorization check.
2. Under Operations, specify value 'ON' to activate; value 'OFF' to deactivate the authorization check.

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Tax Form Groups

When you run payroll, the results are stored in wage types. For tax reporting purposes, these wage types are combined into tax form groups, which map the wage type values to corresponding boxes on government forms.

In the first step of this chapter, you define tax form groups containing tax wage types. In the second step, you define those containing all other wage types.

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Define tax form groups containing tax wage types

In this step you define tax form groups containing tax wage type amounts. How you proceed with this step depends on whether you define a custom tax form group or use one delivered with the standard SAP system. The procedures for defining custom and SAP delivered tax form groups are outlined below.

Creating and defining custom tax form groups containing tax wage types
This process involves:

Creating new tax form groups (if you require additional tax form groups not delivered with the standard system)
Assigning tax types (which are linked to wage types) to the tax form groups
Defining how the tax form groups are evaluated in Tax Reporter

To create tax form groups:
1. On the Change View "Tax form groups": Overview screen, choose New entries.
2. On the screen that appears, enter your custom tax form group name and description.
3. Save your entries.

To assign tax types to tax form groups:
1. On the Change View "Tax form groups": Overview screen, select the desired tax form group.
2. Choose Assignment of tax wage types.
3. On the Change View "Assign tax types to tax form groups": Overview screen, select a tax type from the list and choose New entries.
4. On the New Entries: Details of Created Entries screen, enter the desired tax type and other relevant information.
5. Save.
6. Repeat this process for each tax type you wish to assign to your custom tax form group.

To define how tax form groups are evaluated in Tax Reporter:
1. On the Change View "Tax form groups": Overview screen, select the desired tax form group.
2. Choose Evaluation of tax form groups.
3. On the Change View "Evaluation of tax form groups": Overview screen, choose New entries.
4. On the New Entries: Details of Created Entries screen, enter the appropriate information.
5. Save.
6. Repeat Steps 1-5 for each tax level associated with your tax form group.

Defining SAP delivered tax form groups
These tax form groups come preconfigured with wage types already assigned to them, so in this step you need only to define how these tax form groups are evaluated in Tax Reporter. To complete this process, follow the procedures in the section directly above.

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Define tax form groups containing non-tax wage types
In this step, you define tax form groups containing non-tax wage type amounts.

The process involves:
1. Creating new tax form groups (if you require additional tax form groups that are not delivered with the standard system)

2. Assigning wage types to tax form groups
3. Defining how tax form groups are evaluated in Tax Reporter
For details on configuring tax form groups for Form W-2, refer to the section titled

W-2 Tax Form Group Configuration.
1. To create new tax form groups, perform the following steps.
a) On the Change View "Tax form groups for other wage types": Overview screen, select New entries.
b) On the following screen, enter the name and description of your custom tax form group.
c) Save your entries, and exit the transaction.
2. To assign wage types to tax form groups, perform the following steps.
a) On the Change View "Tax form groups for other wage types": Overview screen, select the desired tax form.
b) Choose Assignment of wage types containing no tax amount.
c) On the Change View "Assign wage types to tax form groups": Overview screen, choose New entries.
d) On the New Entries: Details of Created Entries screen, enter the appropriate information:

Select a wage type you want to assign to this tax form group
Determine whether a number, a rate, or an amount will be taken from the payroll results
Specify how this item will be stored in the tax interface table; as taxable, tax, tax and deposit, penalty, or as interest
Indicate whether the wage type will be added or subtracted in the field
e) Save your entries.
f) Repeat this process for each wage type you wish to assign to the tax form group.

3. To define how tax form groups are evaluated in Tax Reporter, perform the following steps.
a) On the Change View "Tax form groups for other wage types": Overview screen, select the desired tax form group.
b) Choose Evaluation of tax forms.
c) On the Change View "Evaluation of tax form groups": Overview screen, choose New entries.
d) On the New Entries: Details of Created Entries screen, enter the appropriate information:
Specify whether or not employee information is required
Indicate a time range in which the data is stored
Specify how amounts will be recorded for retrocalculation
e) Save your entries, and exit the transaction.

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Tax Form Definition
In this section, you make settings that determine how Tax Reporter evaluates the payroll results (wage types) output in each type of tax form.

For example, for original tax forms, you determine the periodicity of each form to be submitted. For SUI forms, you define the tax authority to which the report is submitted. These settings allow you to flexibly define tax forms for your company.

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Number Ranges: In this IMG step, you maintain number ranges for Tax Reporter form numbers, control numbers and log activities.

Assign number ranges for tax pay dates
Use: In this step, you set up number ranges for tax pay dates.

Activities
Assign the number ranges as follows:

No	From number		To number		Current number		Ext
10	000001		999999

Assign number ranges for form numbers
In this step, you set up number ranges for form numbers.
You need to set this up as follows:

No From number To number Current number Ext
01 000001 555555 --
99 900001 999999 --
Number range 900001 to 999999 is reserved for simulation runs. Therefore, you should not use a number range above 900001 for your productive runs.

Assign number ranges for control numbers
In this step, you set up number ranges for control numbers.
You need to set this up as follows:
No From number To number Current number Ext
01 00001 55555
99 90001 99999

Assign number ranges for log numbers
In this step, you set up number ranges for log activities.
You need to set this up as follows:

No From number To number Current number Ext
01 0001 8999
99 9000 9999

Assign number ranges for temse files
In this step, you set up number ranges for temse file names.
You need to set this up as follows:
No From number To number Current number Ext
01 0000000001 9999999999

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Custom Form

[welcomewiki]

Hi

ANY QUESTIONS.

Thanks
Wiki

[brk.saphr]

could you please let me know the difference..

screen shots which you have provided in Wiki for taxation is great

[welcomewiki]

Hi

Please be more specif regarding "could you please let me know the difference.."

Thanks
WIKI SAP TIER I

Originally Posted by brk.saphr

could you please let me know the difference..

screen shots which you have provided in Wiki for taxation is great

[brk.saphr]

what are the reports that we use for US Payroll?

In India Taxation is standard.. whereas in case of US Payroll we need to configure some wagetypes ...

[welcomewiki]

Hi

Sure, our trainers are preparing documents, will reach you soon.

Thanks
WIKI SAP Tier 1

Originally Posted by brk.saphr

what are the reports that we use for US Payroll?

In India Taxation is standard.. whereas in case of US Payroll we need to configure some wagetypes ...

[blancasa]

Thanks.
1. Please provide a document on configuring taxes.
2.Is there a curriculum showing topics for this course?

[welcomewiki]

Hi

We have forwarding your request to Trainers.

Curriculum is never end for this program, trainers keep adding.

Thanks
Wiki SAP Tier I

Originally Posted by blancasa

Thanks.
1. Please provide a document on configuring taxes.
2.Is there a curriculum showing topics for this course?

[blancasa]

what is your refund policy?

[welcomewiki]

Hi

Please explain your issue in more clear.

Are you taking about Refund wage types?


Thanks

Wiki SAP Tier I

Originally Posted by blancasa

what is your refund policy?

[blancasa]

..i have no documentation to use as a guide. For example, Ch 1, taxation, all i see are screen shots. Do you have documentation for each subject that i can download and use as a guide as i follow along the screenshots. if you do not have documents for student to follow, this class is not for me and i would request a refund. thanks. i can tell this is an awesome class but without documentation to follow along, i am lost.

Originally Posted by welcomewiki

Hi

Please explain your issue in more clear.

Are you taking about Refund wage types?


Thanks

Wiki SAP Tier I

[blancasa]

..disregard the rant of a newbie..i appreciate u guys.

Originally Posted by blancasa

..i have no documentation to use as a guide. For example, Ch 1, taxation, all i see are screen shots. Do you have documentation for each subject that i can download and use as a guide as i follow along the screenshots. if you do not have documents for student to follow, this class is not for me and i would request a refund. thanks. i can tell this is an awesome class but without documentation to follow along, i am lost.

[welcomewiki]

Hi

We are proving documents too in each and every screen shot.

You point is noted and we will add additional documents soon. Thank you.

Regards
Wiki SAP

Originally Posted by blancasa

..i have no documentation to use as a guide. For example, Ch 1, taxation, all i see are screen shots. Do you have documentation for each subject that i can download and use as a guide as i follow along the screenshots. if you do not have documents for student to follow, this class is not for me and i would request a refund. thanks. i can tell this is an awesome class but without documentation to follow along, i am lost.

[blancasa]

,,good presentation on tax. had to read 2x. Thanks

[blancasa]

Originally Posted by welcomewiki

Hi

We are proving documents too in each and every screen shot.

You point is noted and we will add additional documents soon. Thank you.

Regards
Wiki SAP

..wiki, are these topics for us freshers to begin with? that's why i was asking at least for guide on the curriculum n matching topics #s so we can use to guide us through. like i noticed 2 topics listed as topic 1 and these topics goes straight into tax, garnishments, etc..

[welcomewiki]

Hi

First of all All General topics are in one order then again US payroll started with 01.

We will arrage in a order soon.

Hope all documents + Screen shots are good?

Thanks
Wiki

Originally Posted by blancasa

..wiki, are these topics for us freshers to begin with? that's why i was asking at least for guide on the curriculum n matching topics #s so we can use to guide us through. like i noticed 2 topics listed as topic 1 and these topics goes straight into tax, garnishments, etc..

[blancasa]

Originally Posted by welcomewiki

Hi

First of all All General topics are in one order then again US payroll started with 01.

We will arrage in a order soon.

Hope all documents + Screen shots are good?

Thanks
Wiki

..now i've been ahead of myself reading the wrong document..no prob..with a guide/curriculum, we can know where to start reading, like intro to SAP, ASAP, etc and progress. I saw topic 1 and started.Then i saw other general topics and realized i had to ask questions. as a newbie, please email me topics to start reading and practice as a guide until the training team label the topics. the screen shots and document are outstanding.