How tax will be calculated in U.S.

[Former Member]

Hi all,

I am new to U.S. Payroll. how income tax will be calculated in U.S. Payroll, kindly explain. Can we calculate tax without using U.S. tax factory.

Thanks in advance.

Naresh Jamwal

[former_member235056]

Hi Naresh,

There are set of BSI Quickformulae available in BSI TF that you can pull out and read as it gives you calculation steps with examples for each of tax authorities.

US taxes are calculated by function USTAX in schema where entire tax configuration as relevant for tax calculation that BSI needs is sent on BSI interface to BSI and BSI calculates taxes and sends back same to SAP.

BSI TF is tax engine for US tax calculations and taxes would not be calculated by system without having BSI RFC set-up.

Thanks,

Ameet

[Former Member]

ThanksMr. Ameet

[Former Member]

Hi naresh ,

In us payroll tax will be calculated based BSI tax factory.It's a third party tool to calculate taxes. BSI supports all tax authorities at the following levels federal,state,county ,city and school/district.

For calculation of taxes we have to be maintain the tax related infotypes 207(residence tax),208 (work tax area),209 (unemployment state) and 210 (withholding info) these are mandatory for payroll calculation in us .

UTX0 is the sub schema to calculate taxes.And the we see tax related wage types in v_512w_d table. And also see tax related processing classes 67,68,69,70,71 and 72. than

Thanks & Regards

Jagadish

[Former Member]

Thanks Mr. jagadish