3 Replies Latest reply: Mar 3, 2012 9:24 PM by Ameet Jassani RSS

/711 not reporting Supplemental payment for PA

Rishiraj Rane
Currently Being Moderated

Hi Gurus,

 

We are experiencing the following issue

 

We are on TUB 60 BSI 9.0, when we pay an employee a Supplemental payment of 100,000 (via IT 15) over the regular period salary of $ 3500, we expect the following:

 

/411 = $42 (which we see in the RT)

/711 = $ 7000 (instead we see an amount of 3500 odd)

 

This means that Supplemental Wages are taxable but not reportable, but we dont have the procesing class 69 as such; it is 1 (Taxable earning)

 

/411 is considering a sum of supplemental wages of $100,000 and its basic salary $ 3500 for reaching $42 ($7000.00 *0.6% = $42.00); but the same is not reflected on /711

 

TUB 57 updated as -

 

TAXAU / TAXTY CEILG     TXRTE

PA        /  11         7000       0.006

 

Your help is much appreciated!

  • Re: /711 not reporting Supplemental payment for PA
    Ted Dinh
    Currently Being Moderated

    For MI, tax type 11 calculates based on /710 YTD (YW), not /711 (as per note 1422655). I suspect it would be the same for other authorities including PA.

     

    If this is the case, check if your supplemental wt (pclass 71) is configured for tax type '11' in tax model. More than likely, it's only set up for FUTA (tax type 10), but not '11' . It would explain /711 ytd is only $3,500.00 (exclude amount for this supplemental wt), and yet /411 is calculated to be $42.00 (based on /710 amount).

  • Re: /711 not reporting Supplemental payment for PA
    S Karthik
    Currently Being Moderated

    Hello,

     

    What you are experiencing in your system is standard behaviour of it. Kindly find the explanation below

     

    About Tax Type 11:

    As you may know, in BSI Tax Factory script we have a parameter Year Wages (YW:), that is nothing else than the total of taxable wages for this tax type/tax authority, or in other words wage type /7** from TCRT table for the corresponding tax company/tax authority/tax type.

     

    For tax type 11, SAP payroll sends to BSI Tax Factory Script the year wages of tax type 10 - Federal.

     

    What happens here: if you configure tax type 11 in tax model after employee reaches ceiling for tax type 10 Federal, payroll will send to BSI Year Wages of $ 7,000. As tax type 11 is a self-adjusted tax type, BSI will calculate the tax amount for $ 7,000, which is the ceiling for tax type 11 as well. If you force a retro from Period 01, you will send the Year Wages according to each payroll period, and, therefore, wage type /711 will be calculated accordingly.

     

    This is the way that the SAP and BSI systems were designed to work.

     

    With Regards,

    S.Karthik

  • Re: /711 not reporting Supplemental payment for PA
    Ameet Jassani
    Currently Being Moderated

    Hi,

     

    Please verify if tax type 11 for PA is set up in table T5UTX and also in BTXRATE if there is any override rate.

     

    If it is in BTXRATE then please verify if it set up on BSI.

     

    Thanks,

    Ameet

Actions