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Handling Pre-Tax Deductions When 5PY is negative

Former Member
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We have a 401k pretax deduction that we want to have dropped completely from the employee's deductions, for the current pay period, if the /5PY amount is 0 or negative for the current pay period. We don't want the amount to be carried forward or held in a technical wage type. We are trying to make a decision based on the current pay period /5PY however it is determined during US Tax processing which way after IT0169 is processed. How can we determine the current /5PY amount for the current pay period in order to make a decision to clear out the 401 pre-tax deduction (IT0169)? Also, is there standard SAP configuration that can handle this scenario?

The wage type is currently set with a Z priority and 2 (Deduct what is possible) for Arrears.

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Answers (4)

Answers (4)

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The only way out to reprocess the USTAX function.

WE wrote 1 custom function to import system tables before the first USTAX call. After that we created another custom function to read this imported data and check the /5PY value. If the value was negative, we made the 401 pre-tax deduction amt = 0 and reprocessed USTAX function

Thanks,

Soumya.

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sounak.ghosh , i tried changing the ARREARS to 4, no change in processing. I am not sure we can do this as the deduction is based on negative /5PY not the net amount? Please clarify more. Thank you

ameet.jassani Where shoudl thsi SCOND statement be placed? We do a LOT of processing in between P0169 and USTAX function. Should i put this entire processing under the SCOND condition? Please clarify. I am relatively new to schema so trying to grasp this. Thank you.

former_member200388
Active Participant
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Hi Kerri,

Can you please try by changing the ARREAS priority as 4, this will take the deductions in DDNTK and not in ARREARS table.

Regards

Sounak

former_member235056
Active Contributor
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Hi Kerri,

You need to write a rule with condition SCOND=T AL and place this rule between LPBEG and LPEND and this will rerun the loop one more time.

Please check ULPC rule under UDNT schema that runs loop using the same logic.

Hope this helps.

Thanks

Ameet