US Tax

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Path: Payroll -> Payroll: USA -> Tax -> Tax Data Maintenance -> Tax Areas -> Maintain Zip Code ranges per residence tax area

Table: T5UTF

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Tax Models (First-Time Configuration Only)

The taxability model contains information used to calculate the appropriate taxes for the federal government, and state and local tax authorities. The model consists of a number of tables which reside in the background and can be accessed through a maintainance view in this chapter of the IMG.

Two tables are used to keep SAP and customer taxability model data separate. This ensures that customer changes are never automatically overwritten and that the SAP model is always available for reference.
In this section, you customize the taxability models to meet your company's needs.

Further notes
The report 'Expand Tax Models' enables you to expand tax authorities and display their respective tax types. You can access this report from the US Payroll menu: Info system -> Tax -> Tax Utilities.

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Define tax modifiers
In the first activity in this step, you define tax modifiers in rule UMOT (Modifiers for US tax calculation) for your employee groups. You can use these modifiers in the taxability model to differentiate between employee groups that are taxed differently by a tax authority. In the second activity in this step, you replace the call of rule UMOT with your copy of the rule in schema UTX0 (US Tax calculation).

Standard settings
As delivered, rule UMOT defines the default employee subgroup (and tax modifier) for all employees as 'U1'. If taxes are determined differently for groups of employees within your organization, you must maintain these groups in rule UMOT.

Activities
Modify rule UMOT:
1. Copy rule UMOT to the customer name range.
2. Modify your copy of the rule if necessary.
3. Save your changes.
Update schema UTX0
1. Wherever UMOT appears in schema UTX0, replace it with your copy of the rule.
2. Save and generate the schema.

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