Taxing Multiple states due to work travel in BSI

[Former Member]

We are in the process of tracking employees when they work in multiple states.

Our employees enter the Tax Area in CATs and the percentage is captured on the info type 208.

The percentage is allocated between the normal work state and the travel state and equals 100%.

The issue is that when BSI returns the taxable information it is doing the percentage allocations for the work states as well as taxing the resident state at 100%. It is double taxing the employee.

The taxable information should only be the work states not resident state.

How do we get BSI not to return the resident state taxes?

[former_member235056]

Hi Juanita,

You need to look at IT2010 functionality called Work Tax Area Override which allows you to enter hours for work done in different tax areas.

Thanks,

Ameet

[Former Member]

Thank you Ameet

[former_member235056]

Hi Juanita,

Further to add on this, you can get this functionality activated by activating BADI PC10_PAY0004.  Please use SAP note 618795 which tells how to activate it. Also go through SAP note 643595 for more functionality related details.

Additionally wage types that needs to be paid for different work states entered in IT2010 should have Processing class 67 and 70 set-up so functionality applies to those wages.

Thanks,

Ameet