Thread: US Tax
View Single Post
Payroll Time OM & PA Portal Payroll Fixes Career Tips SuccessFactors
  #1  
Old 05-03-2010, 11:29 AM
welcomewiki welcomewiki is offline
Member
 
Join Date: Dec 2008
Location: India
Posts: 80,566
Default US Tax

  1. Taxability Model
  2. With the taxability model, user will be able to configure which tax authorities and tax types that a particular wage type should be taxed.

    With the taxability model, user will be able to have wage type M123 only taxed for Federal withholding but not other tax authority or tax types.
    There are 3 steps to define the tax model for a particular tax authority.
    a. Define Tax Type Combinations
    User will first define the tax type combination, which contains the tax types that apply for a wage type.

    If a particular wage type will be taxed for tax type 01, 03, and 04, the following tax type combination should be defined:
    Tax Type Combination
    Tax Type
    Description
    1
    01
    Withholding
    1
    03
    Employee Social
    1
    04
    Employer Social Security Tax
    b. Tax Model
    The next step will be to define the tax model based on Res/Work/UI, tax modifier, and the taxability classification defined in processing class 71.

    To define a tax model for Resident, tax modifier U1, and taxability classification E which only tax for tax type 01, 03, and 04 (Tax combination 1 defined in the last step), it should look like the following:
    Tax model
    Res/wrk/Ul
    Tax modif
    Tax Class
    Tax Type Comb
    1
    R
    U1
    E
    1
    c. Tax authority model
    The last step is to assign the tax authority to the tax model defined in the last step.

    To assign tax authority "FED" to tax model "1":
    Tax Authority
    Tax model
    From
    To
    FED
    1
    01/01/1900
    12/31/9999
Reply With Quote