US Tax

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IMG Path & Table: Unemployment Insurance

Path: Payroll -> Payroll: USA -> Tax -> Tax Data Maintenance -> Unemployment Insurance

Due to the configuration of BSI version 8.x, company specific experience rates must be entered directly into BSI. The worksite information will be dependent on the company’s requirements and therefore no sample entries are provided.

Unemployment insurance is a self-adjusting tax. If this tax was under withheld in a period, the system will try to make up for it in the next period. The system uses the tax rates defined here when performing the self-adjustment. The ceilings and rates defined here ensure continuity when an employee moves to a different state with a different tax rate for self-adjusting taxes.

This means the system takes the different tax rates and ceilings into account when looking at the year-to-date unemployment insurance tax withheld to determine if an underpayment was made in a previous period.

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Define unemployment worksites
In this step you define the names and addresses of all worksites for your company. Worksites are used in unemployment state (Infotype 0209) records. This information is used to provide unemployment authorities with statistical information.

Recommendation
Only use this if your company is required to provide multiple worksite reporting or needs to file Form NC-9901: Report of Organization.

Activities
Enter worksite codes in accordance with the relevant unemployment authority guidelines.

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Define BSI tax company experience rates

In this step, you specify state experience rates for each tax company you defined in the previous step.

Activities
After completing all customization steps, you must also maintain the same table entries in the BSI database with the BSI client GUI.

Further notes
For further information on BSI, please refer to Note 100944 in the Online Service System (OSS).

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Tax Overrides
In this section, you define tax overrides for a group of employees. If your organization does not need to override any taxes, you can ignore this section.
SAP recommends that wherever possible you do NOT use this function.

Define employee group
In this step, you define employee groups for tax overrides. After completing all customizing in this step, you must also maintain the same table entries in the BSI database with the BSI client GUI.

Further notes
The employee groups defined here can be used to process withholding overrides within the Additional Withholding Information US infotype (0234).

Define employee overrides
This data is no longer maintained in the SAP system and must be maintained directly in the BSI client. For further information, please refer to the BSI online documentation.

Define override formulas
This data is no longer maintained in the SAP system and must be maintained directly in the BSI client. For further information, refer to the BSI online documentation.

Further notes
Any override amount entered in Infotype 0234 Withholding Overrides has precedence over this tax method override. If both an override amount and a tax method override are defined for a particular withholding tax, the override amount will supercede the amount derived from the tax method override.

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Symbolic Account Split Based on Tax Authority
In this section, you can split single tax wage types into various wage types, based on tax level or authority. You can then assign a symbolic account to each newly mapped wage type.

Example
Wage type C1 Tax Auth. Total amt.
/401 01 FED $ 500
/401 02 CA $ 200
/401 03 OK $ 300

If symbolic account '1130' is defined for /401, $1,000 must be posted to the single symbolic account '1130'.
With the symbolic account split functionality, the system will "split" the /401 wage type into various wage types based on the Tax Authority:

Wage type C1 Tax Auth. New Mapping Wage type*
/401 01 FED > T001 $500
/401 02 CA > T002 $200
/401 03 OK > T003 $300

*You will need to create custom mapping wage types in the customer naming range. This is carried out in the next step. In this example, we will use T001, T002, T003 for FED, CA, and OK.
Because the tax amount is copied into tax authority level wage types, you can assign a separate symbolic account for each tax authority.

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