US Tax

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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

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Tax

In this chapter you will set up US Tax calculation for your company. Sample entries for tax processes have been delivered in client 000.
Source https://www.wikinewforum.com/showthread.php?t=19493

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SAP/BSI Interface

The U.S. Payroll Driver interfaces with BSI, a third-party software application, to perform tax calculation. You must contact BSI directly to obtain the tax calculation software and periodic tax data updates. All SAP customers must be using the latest version of the BSI TaxFactory software. As of June 2005, this is version 7.0.

For information on how to access BSI Tax Update Bulletins (TUBs), you can visit the SAP U.S. Payroll web site at http://service.sap.com/hrusa.

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Specify location of Tax Factory executable

Use: In this activity, you specify the location of the TaxFactory executable; either on the Application Server or on a separate workstation.

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