US Tax

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Formula number
Alternative formula assigned to calculate withholding tax. Only some authorities allow employees to define an alternative method for calculating their withholding tax.

If you assign an alternative formula, it will override the default formula.

Rounding indicator
Define to how many digits the value should be rounded.

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Tax Areas
In the following steps, you check and maintain residence and work tax areas valid for your organization.

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Tax Locator

IMG Path & Table: Activate BSI Tax Locator BADI

Path: Payroll -> Payroll: USA -> Tax -> Tax Data Maintenance -> Tax Areas -> BSI Tax Locator -> Activate BSI TaxLocator BADI
This Business Add In (BAdI) is used to generate a list of tax authorities valid for a given address, when utilizing the BSI TaxLocator.


When active, the BAdI is used:


·To modify the Residence tax area (0207) and Work tax area (0208) infotypes
·To compare existing infotype values with those proposed by BSI's TaxLocator in the Audit Report (RPUTXLU0).


BSI TaxLocator BADI has been activated in the template

If your organization requires any areas not loaded by default, or if you created any custom tax authorities in the step Maintain custom tax authorities then you must maintain all of the tax area steps in this section.

Further notes
There is a report entitled 'Auths not in Area' which enables you to display tax authorities which have not been assigned to a tax area You can access this report in the Payroll USA menu: Info system -> Tax -> Tax Utilities.

BSI TaxLocator - General Information

Use: You can implement the BSI TaxLocator to assist you in proposing tax areas for the Residence Tax Area (0207) and Work Tax Area (0208) infotypes.

If it is not activated, these infotypes (207 and 208) will continue to use zip code-based checking to propose tax areas.
The activities in this section allow you to configure your system to use BSI TaxLocator.

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IMG Path & Table: Add states where BSI TaxLocator is active

Path: Payroll -> Payroll: USA -> Tax -> Tax Data Maintenance -> Tax Areas -> BSI Tax Locator ->Add states where BSI TaxLocator is active

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Activate BSI TaxLocator BAdI
Use: Use this Business Add In (BAdI) to generate a list of tax authorities valid for a given address, when utilizing the BSI TaxLocator.

When active, the BAdI is used: To modify the Residence tax area (0207) and Work tax area (0208) infotypes.

To compare existing infotype values with those proposed by BSI's TaxLocator in the Audit Report (RPUTXLU0).

Requirements: You must have SAP payroll with an active BSI TaxFactory implementation.

Activities
1. Execute the IMG Activity.
2. Activate the delivered implementation HRPAYUS_TF_0001_IMP.

In this step, you add states for which BSI TaxLocator is active.
Although BSI TaxLocator has been activated for all the states in the template, TaxLocator proposes tax areas based on the street address for the states AL, AR, CA, CO, DE, IN, KY, MD, MI, MO, NJ, NY, OH, OR, PA, TX, WA AND WV only. For the remaining states Tax areas are proposed based on the state code

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