US Tax

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IMG Path & Table: Display/Change Taxability Model



Path: Payroll -> Payroll: USA -> Tax -> Tax Data Maintenance -> Tax Models (First-Time Configuration Only) -> Display/change taxability model


Table: T5US1

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Display/change taxability model
In this step, you can review the SAP-delivered taxability models to determine if they meet your company's needs, and customize them if necessary.

The SAP-delivered models are always available for reference. If you choose to change the models delivered by SAP, your changes are saved in a separate table. This ensures that your customized models are not overwritten when SAP delivers new taxability models.

Requirements
You must have defined your processing class 71 specifications in the Payroll USA IMG step:

Basic Settings -> Environment for Maintaining Wage Types -> Processing Classes and Evaluation Classes -> Maintain processing classes and their values.

You must have assigned these processing class 71 specifications to your wage types in the Payroll USA IMG step:

Tax -> Tax-Related Wage Types -> Maintain tax-related processing classes.

General navigation You can navigate between the display and change views by choosing SAP Models or All Models, depending on the screen you are in.

If you have customized the models in the past, the Custom indicator will appear checked for those models on the Taxability Model Key List screen.


Display the taxability model to ensure it meets your company's requirements:

1. On the Taxability Model Key List screen, select the combination of tax authority, residence/work/unemployment tax and tax modifier you want to review, and choose Details.
The Taxability Model Tax Type Details dialog box appears.
If there is additional information available for a tax type, the More indicator will appear checked.
2. Choose the arrow to the right of the tax type to display the taxability of the tax classes under the tax type.
The Taxability Model Tax Class Details dialog box appears. Here you review the taxability of each tax class for that combination of tax type and authority.

Activities
Customize the model, or review changes you have made to the model.

1. On the Taxability Model Key List screen, choose Custom Data.
The Change View: Taxability Model Key List screen appears. Here you have the following change options:
Copy one model to another. This is especially useful if you are creating a new model that is very similar to an existing model. You can copy the model and then adapt it accordingly.

Note: When you copy a model from one authority to another, only those tax types that are valid for both the original authority and the target authority are copied. The system will not insert any tax types into the copy that do not exist in the model from which you are copying.

Add a new model. If you choose this option, you will have to define all of the tax types and relevant tax class taxability manually.

Delete a model. You can only delete custom models (those where the Custom indicator is checked).
Choose Details and customize the tax classes of that model to fit your needs.


2. Save your changes.


3. Once you have made all of the changes you need to make and are ready to use the model productively, save the changes and choose Generate Tax Model.

4. Define a date from which the model should be effective on the Effective Date dialog box that appears, and choose Continue.

Note: If you have assigned any new tax types to a tax authority, you will have to create a new entry for this tax type/authority combination and assign an employer identification number to it.

This can be done in the Payroll USA IMG step: Tax -> Tax Data Maintenance -> Employer Identification Number -> Define federal/state/local employer ID number.

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Tax Models (Subsequent Maintenance)
This section of the IMG allows you to maintain taxability model data after you have completed the initial, one-time configuration in the "Tax Model (First-Time Configuration Only)" section of the IMG.

The combination of the following steps enables you to designate tax types based on the type of payment, type of employee, residency or work, and tax authority.

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Define tax authority model
In this step, you assign each tax authority to a tax model.

Example
Authority Model
NY01 (New York City) 01

Activities
1. Enter the name of the tax authority.
2. Enter the tax model number.
3. Enter the period for which this tax model is valid for this authority.