US Tax

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Maintain payroll schema for withholding information
In this step, you maintain payroll calculation schema Basic data (US), which determines whether withholding information is mandatory for employees.


Standard settings: As delivered, the schema is defined so that withholding information is required. If withholding information is mandatory for your employees, no change is necessary.


Activities: If withholding information is not required by your company:
1. In the schema, find the line that contains function P0207 and change the first parameter to 1:

Fct Par1 Par2 Par3 Par4 D P Text
P0207 1 Read tax data
2. Save and generate the schema.

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Maintain payroll schema for tax functions

In this step, you maintain function USTAX within the payroll calculation schema US Tax calculation (UTX0). This function determines the way work days are prorated, the way that Earned Income Credit (EIC) and retrocalculations are to be handled, and whether it is necessary to check for non-residence certificates or not.

Standard settings: The standard function is defined as follows. If the settings are correct for your firm, no change is necessary:

Work days are prorated by calendar days.
When an EIC credit is greater that the employee's withholding amount, the entire credit is taken.
When retrocalculation is triggered by an overpayment, the recalculated amount will be taxed in the original period.
Taxes are to be calculated as though a non-residence certificate is on file.

Activities: If these parameters are not appropriate for your company, then they should be changed as follows:
1. In schema UTX0, find the line that contains function USTAX.
2. Change each parameter of function USTAX as required for your organization.
3. Save and generate the schema.

Process BSI tax calculation (USA Process BSI)

Object
Function
Procedure

Function USTAX fills the parameter fields for the BSI tax calculation
module, executes the calculation routine and stores the returned tax
amounts on the results table RT. It also updates year-to-date
accumulators in table TCRT.

1. Build payment type table, and call BSI by payment type.

2. Employee information is set up, taxes parameters are set up, call
BSI tax calculation and collect tax results.

3. Warning message is written to the log. If there is a serious or
fatal error from calling BSI, the employee is rejected.

Access
Func Par1 Par2 Par3

Syntax

Par1 Process taxes USA
1 Prorate calendar days
2 Prorate working days
3 Prorate working hrs

Par2 EIC decision
1 No EIC payment
2 Minimal EIC payment
3 Whole EIC payment

Par4 Non-res. cert. default
1 Always '1' as default
2 From infotype(P0234)

Required Entry

o Parameters 1
o Parameters 2
o Parameters 4


US Tax calculation

Payroll functions available for US tax calculation

UPAR1 - Determine tax method for regular or retro-calculations

URSA - Cap tax withholdings for separate agregate method

USTAX - Process tax calculation

UTPRI - Process tax priority according to tax model

UTWE - Process tax when earned principle

UTXOR - Tax authority override

UNMEX - New Mexico workers compensation tax

UOTX0 - Freeze taxes across year-end

UGUPD - New Mexico workers compensation tax

CPYOT - Copy deduction tables of last for-period to current period

PTCRT - Override negative YTD TCRT check