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Assigning a tax rate to a Grossed Up Wage Type

Hi,

We have a unique scenario in which our payroll team would like to assign a tax rate to grossed up supplemental wage types. For example, say a State does not have a supplemental tax rate but there is a business need to tax all grossed up supplemental payments at 12.3%. Is there anyway to do this for a handful of States. In all we are looking to do this for about 10 States. I tried going the IT0234 route but that doesn't work for grossed up wage types.

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  • Best Answer
    Oct 27, 2015 at 10:14 AM

    Hi Joel,

    Please have this 12.3% set-up as constant in table V_T511K, your gross up wage types that you need marked to a new Processing class say 91 specification 1 that you may create.

    Write a custom rule such that when there is wage type marked for respective state (query using operation UTAXAUTHY), if there is gross up wage type that needs to be taxed at 12.3%(query this using Processing class 91 using operation VWTCL 91) and when condition returns under true i.e. VWTCL 91 return value is 1 then multiply amount from gross up wage type by 12.3% i.e. constant from T511K table and it should work.

    Place this rule as suitable in schema post USTAX so this function does not override your rule calculation.

    Thanks,

    Ameet

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    • Hi Joel,

      Since you will place this rule post USTAX calculation it won't have impact of SAP and BSI interface.

      Multiple states may be challenge but that can be worked on once the solution starts working for single state input.

      Can you please put across an example and issue that you see with the solution.

      Thanks,

      Ameet