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IT0207 (US Payroll)

In US Payroll; when it comes to tax calculation on IT0207; what drives / determine the tax calculation for the employee? Is it based on where they reside/ live(pulling from IT0006 specifically zip code) the employee's resident state or is it based on the employee's work state(state in which the employee will be working?

Please see attached what I see when I look in the schema. I always thought it IT0207 was based on where an employee resides.

Please advise,,,

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 15, 2016 at 09:33 AM

    Yes. System reads the zip code from the address infotype and dynamically 207 will be triggered.

    infotype 207: Employee Residence Tax area information will be maintained.

    Infotype 208: We capture the Work tax area details in infotype 208.

    If the Employee is working for two different states , we can maintain that data in infotype 208 provided the percentage should not exceed 100%.

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  • Posted on Jul 20, 2016 at 12:43 PM

    Hi Carla,

    For IT0207, residence address of employee as provided by him/her in IT0006 street address, city, state and zip code fields are to be used to determine correct residence tax area.

    For IT0208, employees' work address - street address, city, state and zip code fields are used to determine correct work tax area.

    Usually you can find address details and correct zip codes using USPS website in case there are issues with address.

    Thanks,

    Ameet

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