7 Replies Latest reply: Sep 9, 2011 6:31 AM by Ramesh Rao RSS

W2- Incorrect Box 18 Total Local Taxable wages

SAP 12009
Currently Being Moderated

I have 7 employees that for some reason the local taxes stopped being  deducted for all of them in August 2010. Box 18 on their W2"s will need to be corrected to show the total local taxable wages. When they file their local income tax , they will need to know the total local taxable wages, not the wages that they paid tax on.

 

How can I get their box 18 corrected? What would cause this to happen?

 

 

Thanks,

  • Re: W2- Incorrect Box 18 Total Local Taxable wages
    Mohamad Shafiq A
    Currently Being Moderated

    Opt#1: Do 221 and issue W2C

     

    Opt#2: In tax reporter, do manual entries ( PU19 - Utilities - Manual entries) and process W2s.

     

    For Taxes calculation, thats a separate problem - try to create a test case and see if the BSI is not returning the taxes or wages limit reached or emp locality changed or else check the USTAX function.

    • Re: W2- Incorrect Box 18 Total Local Taxable wages
      SAP 12009
      Currently Being Moderated

      Amosha thanks for replying. I already sent BSI the interface for several payperiods. BSI responded :

       

      The  withholdings  are both calculating in TaxFactory for pay period  according to this output. I do not know the results in SAP as they were not provided with the scripts. However, since TaxFactory is calculating, the issue is not with TaxFactory. Please check your SAP system to make sure these amounts are not there. If they are not there, please contact SAP to see what in SAP is override the calculating from TaxFactory

      • Re: W2- Incorrect Box 18 Total Local Taxable wages
        Mohamad Shafiq A
        Currently Being Moderated

        What is the tax type and authority?

        • Re: W2- Incorrect Box 18 Total Local Taxable wages
          SAP 12009
          Currently Being Moderated

          PARF (Gettysburg ASD)

           

          PBC6 ( Mount Joy Township.

           

          The IT 0207 record has both the township and the ASD listed with no changes since 2008.

           

          I just did the following,,,,,

           

          I  reviewed the last payperiod of the year 2010 for one of the employees. I went to the TCRT table and looked at the /701 PA and the amount that is in this field is correct on the W2.

           

          When I look at the /701 for the township and I look at the /701 for the Associated School District, I see the amounts that are pulling in on the W2 in box 18 for local wages. However, box 18 local wages amount is incorrect. This amount should reflect the total local taxable wages. Not just the wages the employee paid taxes on.

           

          Also, there has been no changes to the employees IT 0207 record. Also, the township and ASD both are set up on the IT 0207 record. Last changed 2008.

           

          Once again for some reason the calculation that BSI passed back to SAP somehow got overwritten. What is the possible causation?

           

           

          Thanks,

  • Re: W2- Incorrect Box 18 Total Local Taxable wages
    SAP 12009
    Currently Being Moderated

    This tax issue was caused by a switch in the BSI Tax Factory Client. We upgraded our software version. During the upgrade, the switch was turned off. The withholding taxes for the tax areas affected were residence only formulas. This kind of reciprocity is handled by the switch.

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