Current EEs moving to New Company, but want to have joint Tax Reporting

[Former Member]

Hello Experts!

We run several different companies in SAP. We now have a need to separate some employees from the main company into their own new company, however in this case we want their Tax Reporting to remain together with the main company. So no new EINs and no separate SUT rates. I'm unclear as to what changes need to be made for this to work when creating the new company and also at Tax Reporting time. It won't allow me to have duplicate EINs in two different companies, but I also don't see where I can tie the two companies together. If anyone has knowledge regarding this and can point me in the right direction it would be greatly appreciated!

Thanks,

Gary

[Former Member]

Gary,

In the US, personnel area controls tax reporting. If the employees can remain in the same Personnel Areas, that would be ideal. See Table V_T5U0P. That's where Personnel Areas are assigned to Tax Company Codes.

Regards,

Howard

[Former Member]

Howard, I'm a little confused, so if I'm wrong, please set me straight. But when I do the Tax Reporting with PU19, it is all done by Tax Company. Am I correct to assume that A Personnel Area can't be assigned to two different Tax Companies? I looked at V_T5U0P and it looked like that is where Personnel Area is tied with Personnel Sub-Areas and not Tax Companies. Thanks!

Gary

[Former Member]

Gary,

Yes, when you do the Tax Reporting with PU19, it is all done by Tax Company. Yes, it is correct to assume that a Personnel Area can't be assigned to two different Tax Companies. If you look at V_T5U0P and press the printer button, youu2019ll see a list ready to print. Youu2019ll also see the Tax Company Code there. We are on ECC6 and the column is pretty far to the right and is called TxCo. You canu2019t see it unless you press the printer button.

Regards,

Howard

[Former Member]

Check the transfer in/out feature of tax reporter.

http://help.sap.com/saphelp_470/helpdata/ru/21/0b13280caf11d3809100c04fadcc92/content.htm

Arti

[Former Member]

Arti, thanks for the response! These are SAP-paid EEs that will remain SAP-paid, only in a different company but with combined tax reporting. I'm just not clear on how to do the company setup and Tax Reporter changes setup correctly.

Thanks,

Gary

[Former Member]

What exactly you mean when you say new company? New tax company? New PA?

Arti

[Former Member]

Sorry Arti, this will be a new Tax Company. For example, we currently have US20, US21, US22, and US23. Some EEs from US20 will be moving to the new US31. We still need to be able to run a payroll for them in this new Tax Company. Also, come 3rd quarter payroll Tax Reporting, we will want to create documents and files for US20 (with US31 results included), a different set for US21, US22, and US23.

[Former Member]

So it means that US20 is your reporting tax company and under that you have US21, US22 and US23 and now you want to add US31.

Then use feature UTXRP.

If multiple tax companies in your organization are assigned to one Employer Identification Number (EIN), you must designate a reporting tax company. The tax data for all tax companies assigned the relevant EIN is combined and reported under the tax company you specify in UTXRP. To this end, you must modify feature UTXRP to identify your chosen tax company as the reporting tax company.

Activities

Modify feature UTXRP so that the tax data from all tax companies is reported under the chosen tax company. See the feature documentation for further details.

Also look at feature UTXTM.

Multiple tax companies can submit their tax forms to a tax authority under one tax company. In most cases, it is necessary to specify an address (transmitter and contact address) when reporting to the tax authority. You can use this feature to define a transmitting tax company when reporting taxes for multiple tax companies.

Arti

Edited by: Arti Lohar on Aug 3, 2010 2:49 PM

[Former Member]

Actually I just want to add US31 to US20. US21, US22, and US23 have their own separate reports. I think the rest of your answer will pertain to that. I looked at the documentation for UTXRP but wasn't quite clear on it. So should is basically look like this?

US20

|___\ US31

/

[Former Member]

You're saying that you want to move some EE's from US20 to US31. But want to keep using the same EIN's right? What is the need of new tax company then?

Anyways, you can do this.

1. Define new tax company in T5UTL

2. Assign it to PA in V_T5U0P

3. Setup a BSI tax company in BTXCOMP

4. Assign EIN's that you already have. Setup in V_T5UTI for new tax company.

Try this in Test and perform a test on both US20 and US31.

Check feature UTXTM too.

Arti

Edited by: Arti Lohar on Aug 3, 2010 3:22 PM

Edited by: Arti Lohar on Aug 3, 2010 3:24 PM