Display on remuneration statement(local rates&school rates for Pennsylvania/Ohio)

[former_member231736]

Hi experts,

Requirement/What we need:-

We have new employees. Few belong to Pennsylvania and Ohio.

All of these employees have PSD codes and EIT codes. and based on their worksites and county they have standard deductions for local %(0.5), school %(.5) and withhold%(1.0).

In the remuneration statement, we need all of these standard local %, school% and w/h% to be displayed and also in the payroll clusters; based on states we need them on W2 also. This is a new topic all together. Could someone please suggest how to handle this?

My analysis:-

1) We need to change remuneration statement settings to get this displayed. In order to get them how to pull those values here?

2) do we need to maintain constants in T511P table and handle deductions? or any deduction wage types with this standard rates and added to which technical wage types.

3) We have technical wage type /453 which is a school tax but we are looking for a standard school rate which is only 0.5, standard value. I believe this wage type will not be useful here.

3) how to link up these standard rates to W2; as w2 uses wage types from the payroll results; and how to get them to see in payroll cluster.

Your inputs are highly appreciated.

Aries.

[former_member193210]

First, please concentrate on generating the new taxes, and for that, you'll need input from someone who knows about US Payroll (which I'm not).

Once the new taxes generate correctly and can be found in RT and CRT (and probably TCRT), then you will be able to work on incorporating them in Reports.  In the IMG (t-code = spro), under Payroll > USA, there should be a node for the Remuneration Statement, and a seperate one for the Year-End Reports.

[former_member231736]

Hi Remi,

Thanks for your inputs. I am aware of these. I am waiting for inputs from someone who is an expert in US payroll

Aries.

[former_member235056]

Hi Aries,

Since you already have taxable earning and tax calculated from USTAX function during payroll, please plan on creating custom wage codes and have it use the tax amount and derive a tax rate for PA locals.

In order to differentiate the wage codes based on tax levels you may want to either use different splits or use a different wage code altogether in your rule.

Use these codes in your payslip when you display tax and tax rate instead of your system generated tax wage types by marking this new wage codes to Evaluation class 02 as suitable.

Thanks,

Ameet

[former_member231736]

Hi Ameet,

Could you please throw some light on this. As you said we already have taxable earning and tax calculated by USTAX function then why again we need custom wage types?

We have assigned tax types 01, 51 and 53 to our tax authorities. Now /401, /451, /453 (for fed, local and school) are ready.

-Now how to get /451 and /453 displayed in rem statement (the evaluation class is maintained 02 already)

-inorder to test employees and validate tax calculations related to /451 and /453, which tax infotypes I need to maintain. could you please explain me the procedure?

I tested employee record for /401 in the RT&TCRT table....and it is fine.

Aries.

[former_member235056]

Hi Aries,

Please maintain any of below tax authorities for your client as they have tax types 51 and 53 assigned to them in table T5UTD.

KY02, KY08, KY0D, KY0J, KY0S and KY0U.

Same needs to be assigned to these locals for tax area R and W for your tax model under tax combo.

Say, take an example of KY02. You will have tax type 51 for tax area W (KY02 used in IT0208) and 53 for tax area R (KY02 maintained in IT0207).

Set-up this both tax types 51 and 53 for KY02 in T5UTI table for your tax company and it would come on payslip for your employee.

This is an example and KY02 only needs to be set-up if client is using the same.

Further to answer why I suggested using ustom codes for wage types and not already available taxable and tax wage types is because it is not recommended to play with standard wage types and keep them as they get generated. Also, the wage type characteristics for /4xx and /7xx wage types does not allow to have number field value.

Therefore, I would recommend using new custom codes and have it mapped on payslip in place of tax wage types for display using a different evaluation specification for ECL 02.

Thanks,

Ameet