Employer Unemployment Tax Not Being calculated in US Payroll

[Somdeb]

Hi Experts,

Employer Unemployment Tax (Tax Type 10) for Tax Authority Alabama is not being calculated in US Payroll in my SAP system.

The taxable amt is showing up, but the tax is not being calculated in the payroll log.

No error/warning mssg is provided by BSI in the payroll log.

I have already checked for the following:

1)We are using the standard tax model 002 provided by SAP for Alabama

The tax model settings are fine.

2) Table T5UTX is being maintained.

3) Tax Type 10 is setup against tax auth Alabama in BSI Tax Factory.

For tax auth Federal too, though the taxable for tax type 10 shows up, tax is not being calculated.

Can you please help.

Regards,

Somdeb.

[ted_dinh · Accepted solution]

Did you check IT0210 to see if the ee's exempted from tax withholding for 'AL' ?

[Somdeb · Accepted solution]

Hi Ted,

Checked IT0210 too, emp is not exempted from the tax withholding.

Regards,

Somdeb.

[Former Member]

Hello Somdeb,

Please be aware that this is no standard SAP tax model only an example which must be customized as every customer is different.

First check the payroll log to see if the information is being sent to BSI TaxFactory. If not then the issue is mostly the tax model. Different tax models can be used based on the employee.

If the values are being sent to BSI and not being calculated, then there is an issue wil BSI. Send BSI the script and they will tell you what the issue is.

Regards,

Manny

[Former Member]

Check IT0235 for AL to see if employee is exempted?

Arti

[former_member182083]

Hello,

Provide the BSI Script and Tax calc value from the USTAX log.

With Regards,

S.Karthik

[Former Member]

Besides checking the YTD /410 amount, also double check the config in IMG node "Define BSI tax company experience rates" (this will overwrite T5UTX) and also BSI client side to see if the limit is correctly maintained.

[Somdeb]

Hi Yu,

Thanks for the response. However 'Define BSI tax company experience rates' is not maintained for Alabama in my system. Only table T5UTX is maintained.

Regards,

Somdeb.

[Former Member]

AL taxable wage limit is $8000, verify employee payroll results Year to Date for 2010 for /710 AL and make sure the employee did not reach the wage limit for the unemployment tax. Once the limit is reached, no tax will be calculated /410 for AL.

Also, verify that infotype 0209 is setup and active, fi the limit is not the issue.

[Somdeb]

Hi Qaiser,

I am executing payroll for the first pay-period of 2010. So the capping limit is not yet reached.

Regards,

Somdeb.