Non-resident alien 1042 processing in private sector US payroll schema

[former_member81035]

Hi

Currently SAP has the non-resident alien payroll processing (using infotypes 0048, 0094 and 0556) to be processed in subschema QPTX which is part of the US public sector payroll schema QP00. Currently I don't see any place in the payroll schema U000 that considers the tax treaties exemption in the payroll tax calculation. Is subschema QPTX compatible with main private sector payroll schema U000?

Can anyone of you have implemented the non-resident alien payroll processing for generating 1042-S forms in the private sector payroll schema? appreciate if someone from SAP can let us know what could be the best approach to accommodate the non-resident alien payroll functionality in the private sector payroll schema U000.

regards

salman

[former_member235056]

Hi Salman,

Currently USTAX function under sub-schema UTX0 for U000 main schema is able to read Non-Resident Alien (NRA) functionality using IT0210 for FED.

FED IT210 has a check box called "Non-resident tax calculation" which needs to be checked for this calculation and suitable formula needs to be identified and entered under "Alternative formula" for same.

This will calculate your NRA tax by sending the flag from SAP via BSI interface to BSI and BSI would return tax calculations based on the flag and formula.

Hope this helps.

Thanks,

Ameet

[former_member81035]

Hi Ameet

I know about IT 210 check box "non-resident tax calculation" that sends the flag to BSI in code which takes care of adding additional amount to the taxable earnings before calculating the taxes for the non-resident aliens.

But my question is more on the tax treaties of different countries with US which is accommodated in IT 00556 (it also has other Infotypes 0048, 0094) and is available in SAP specific to public sector as per SAP documentation. so I want to know if someone has accommodated this public sector specific functionality in the private sector SAP payroll schema U000.

There is a specific sub schema QPTX as part of main public sector payroll schema QP00 in which it processes IT 0048, 0094, 0556 to take care of the country specific treaties tax exemptions. I am not sure if SAP has similar functionality for the private sector or no solution available. I would like to know if someone had used QPTX sub-schema in private sector U000 payroll schema.

regards

salman 

[former_member235056]

Hi Salman,

For Private Sector which uses U000 schema, the only way is the one that I have suggested as we have been using this option for NRA processing.

I am unsure if you can use IT0048, IT0094 and IT0556 in U000.

If you may still want try considering the function used by Public sector where you can try use the same in your U000 schema.

This is not recommended but you can go back to SAP and check on solution that they propose.

Thanks,

Ameet