The system is not calculating a provision for ER taxes when computing the bonus accrual.

[pk8]

The system is not calculating a provision for ER taxes when computing the bonus accrual. This led to a material underaccrual.

We need to accrue:

Med: 1.45% All Wages (No limit)

Fica:6.2% (117K)

Any input on resolution will be appreicated.

Thanks

[Former Member]

Hi PK

Can you please be more specific?  I feel this as tax combo issue.

You mean to say your Bonus is not considered for Fica taxes?  If you can be elaborate then it might be helpful.

BR

Upen

[pk8]

Hi Upen

So we have monthly bonus accrual, that is not calculating ER medicare and Social Security.

I am thinking I will have to write a rule:

I will save medicare 1.45% and social security 6.2% in constant T511K

Then have the bonus accrual wt pull that value from T511K and multiply 1.45% into  a new wt.

Then for limit on FICA(i dont know where to check for this), if limit 117K met, then no change. If limit not met, then have bonus accrual wt pull value from T511K and multiply 6.2% into  a new wt.

So I now need help in writing this rule..

Also dont know if there is another way to think on this one..

Suggest plz..

Thanks

[Former Member]

Hi PK,

That is a fine idea of writing a rule, but let us check the standards, so here we go

the tax calculations is done by BSI and not SAP so we have to understand that this Bonus accrual WT is not going to specific box of SAP and in turn to BSI to be considered for calculating the FICAs. What you do is, the whole thing is repetitive from my previous threads.

1.  Check the Tax model for your authority in T5UTE

2.  Check the Processing Class 71 specification for the Bonus accrual WT and its existence in T5UTM table and the tax combo mapped against that.

3.  Check the Tax types 4 and 6 are maintained or not against the tax combo, if not maintain them.  And then check in simulation PY, this solve the issue.

BR
Upen