US Tax

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Maintain priority of tax wage types
In this step, you set up deduction priorities and rules for tax wage types.
For more information about tax priority functionality, please refer to the documentation of Function UTPRI (Tax priority (USA)).

IMG Path & Table: Maintain Priority of Tax Wage Types

Path: Payroll à Payroll: USA à Tax à Maintain priority of tax wage types
Table: V_T5US0

Requirements: You have already configured your tax authorities.

Recommendation: Only perform this step if you have particular priorities for a tax authority.

Activities
1. Enter the combination of tax authority and tax wage type into the table.
2. Specify the priority and deduction rule.
3. Save your entries.

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Example

Case 1: Only tax level is used to sort tax authorities.
CM L Auth Wage type From To 1 2 3 O R

+--+-+----+----+---------------+----------+----------++--+----+-++-+-*
10 A /401 Withholding tax 01/01/1995 12/31/9999 01 3 2 2
10 A /403 Employee OASDI 01/01/1995 12/31/9999 01 1 2 2
10 A /405 Employee medica 01/01/1995 12/31/9999 01 2 2 2
10 B /401 Withholding tax 01/01/1995 12/31/9999 02 2 2 2
10 B /441 Disability Tax 01/01/1995 12/31/9999 02 1 2 2
10 C /401 Withholding tax 01/01/1995 12/31/9999 03 2 2 2
10 C /451 Occupation tax 01/01/1995 12/31/9999 03 1 2 2
10 D /401 Withholding tax 01/01/1995 12/31/9999 04 2 2 2
10 D /451 Occupation tax 01/01/1995 12/31/9999 04 1 2 2

The priorities will be:

A FED Federal /403 Employee OASDI 01 1
FED Federal /405 Employee medica 01 2
FED Federal /401 Withholding tax 01 3
B AL Alabama /441 Disability Tax 02 1
AL Alabama /401 Withholding tax 02 2
AR Arkansas /441 Disability Tax 02 1
AR Arkansas /401 Withholding tax 02 2
...
WI Wisconsin /401 Withholding tax 02 2
WV West Virginia /401 Withholding tax 02 2
C IN01 Adams /401 Withholding tax 03 2
IN02 Allen /401 Withholding tax 03 2
...
D AL01 Attalla /451 Occupation tax 04 1
AL02 Bessemer /451 Occupation tax 04 1
...
Case 2: Puerto Rico taxes are prioritized lower than other state tax authorities.
CM L Auth Wage type From To 1 2 3 O R
+--+-+----+----+---------------+----------+----------++--+----+-++-+-*
10 A /401 Withholding tax 01/01/1995 12/31/9999 01 3 2 2
10 A /403 Employee OASDI 01/01/1995 12/31/9999 01 1 2 2
10 A /405 Employee medica 01/01/1995 12/31/9999 01 2 2 2
10 B /401 Withholding tax 01/01/1995 12/31/9999 02 2 2 2
10 B /441 Disability Tax 01/01/1995 12/31/9999 02 1 2 2
10 PR /401 Withholding tax 01/01/1995 12/31/9999 02 0001 2 2 2
10 PR /441 Disability Tax 01/01/1995 12/31/9999 02 0001 1 2 2
10 C /401 Withholding tax 01/01/1995 12/31/9999 03 2 2 2
10 C /451 Occupation tax 01/01/1995 12/31/9999 03 1 2 2
10 D /401 Withholding tax 01/01/1995 12/31/9999 04 2 2 2
10 D /451 Occupation tax 01/01/1995 12/31/9999 04 1 2 2