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Payroll : Maryland local tax issue

Hi,

With the BSI Upgrade to 9.0, the system is not deducting maryland local tax for Maryland residents working in the

District of Columbia, infact it it is refunding the tax withheld so far this year. Our businees suggested us to

apply SAP note 1500595 where we need to maintain record in the view V_T5UTRC for work tax area and resident tax area so that

this issue will get solved. But after applying this note, we are still facing the problem of taxes getting refunded.

Has any one faced the same problem?

Please advice.

Thanks,

Vineeth

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2 Answers

  • Posted on Apr 29, 2011 at 02:37 PM

    This more than likely is due to reciprocal functionality in BSI 90. Logon to BSI TaxFactory client - go to Access Tool - Manage Data Set Options and switch 'TF80 like reciprocity functionality' to Yes , then try to run payoll again

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    • Hi all,

      The flag 'calculate reciprocity as TF 80' is only for parallel testing, it is not a permanent solution.

      We have the same issue with employees who live in several MD counties and work in DE, PA, MN.

      We submitted the issue to BSI on 8/8/2011, waiting for a reply, going live on 9.0 this week-end....

      Regards,

      Jean-Louis

  • author's profile photo Former Member
    Former Member
    Posted on Aug 24, 2011 at 11:46 PM

    I agree with Jean-Louis based on the several information BSI Support has provided us:

    - If we have 48 states with u201CNexusu201D relationship, all of it has to be defined in the u201CCustom Nexus Datau201D section for the relevant tax company? Is this aside from the SAP configuration we are required to maintain in table T5UTRC? If yes, is this customization be moved from one Data Set to the other using the back-up/restore tool?

    If you are setting up the configuration in SAP, you do not need to setup the Custom Nexus data in TaxFactory. They both perform the same steps. So it would be redundant to enter it in TaxFactory. As a side note, yes the custom Nexus data is included in the custom backup from TaxFactory.

    - What is the recommended start date? Does it have to be the same start date with the ones we stored in SAP?

    I would use the same start date , however, you do not need to set up the custom nexus data as you have it setup in SAP already.

    - Do we need to keep 'TF80 like reciprocal functionality' to u201CYESu201D after setting up u201CCustom Nexus Datau201D? I noticed that there are calculation differences for MD resident earning income in DC when this is set to YES.

    This should be set to no for production payroll or it will override any reciprocal changes in TF90. You were to set to yes for parallel testing when first installed TaxFactory. Then change it to No.

    I hope this helps.

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