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Former Member

Supplemental wage tax calculation on separate aggregation method

hello,

We have an ongoing issue within our SAP system that doesn't seem to pass the correct base wage to BSI for supplemental wage tax calculation. For separate aggregation method, we are supposed to add the bonus payment to the preceding payroll period. Then figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. Then Subtract the tax withheld from the regular wages. Withhold the remaining tax from the supplemental wages.

The issue we have now as pointed by BSI is as follows:

Employee A receives $100 regular wages in the preceding pay period. Subsequently, A receives an off-cycle bonus of $2,000. We noticed that the withholding tax amount in our SAP under separate aggregate method is extremely high on $2,000. After some back and forth, BSI pointed out the data we passed over is we calculate the bonus tax by using $2,000 (actual bonus amount as the wage for preceding pay period)+$2,000 (actual bonus amount) rather than $100 (actual wage amount for preceding pay period)+$2000 (actual bonus amount). From what we got from BSI, there is nothing they can do from their end as SAP is not passing the amount correctly.

We wondered if there is a note out there that can address this issue as it seems we do have a bug in SAP that is not addressed.

Thank you.

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1 Answer

  • Feb 22 at 06:04 PM

    Hello Kevin,

    Are you using table V_T5UTLA to customize the Supplemental Method?

    Regards,
    Graziela

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