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Former Member
Sep 08, 2011 at 06:11 PM

Vendor 1042 witholding question


Hi Gurus,

We are planning to activate extended witholding tax functionality in SAP where we will withhold 30% tax amount from the eligible vendor payments. Per my understanding, the tax amolunt will go to the tax GL account set-up in the account determination in IMG and the remaining amount will be paid to the vendor.

The issue is that our users want to post the tax amount to a tax vendor rather than going to a tax GL account because they have to pay that tax amount to the tax vendor within 3 days of vendor payment. Can someone please let me know if this is possible?

My other question is that even if we post tax amounts to tax GL account, how do we make payments to IRS? I am not clear on this aspect. Can someone please guide m,e through the end to end process?

I appreciate your help.


Best Regards,