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!
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).
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.