401k and USERRA

[Former Member]

Hi All,

We have an employee returning from a military leave and they have the option to contribute to 401k for the years that they missed (up to 4 years, I think). These previous years of 401k contribution need to be reported (per year) in a separate box on the W2. Does anyone have experience with this? Do I need to create a new plan(s) and/or new wagetypes to account for these amounts? Does SAP provide any solution for USERRA?

Any help is appreciated, thanks.

Brandyn~

[Former Member · Accepted solution]

You need to have a separate plan and diff wagetype.

As OSS Note#540100 the new tax form groups are named W010 - W027 and need to have your user wage types assigned to them where appropriate.

Check all these notes:

1083626 W-2: Year for USERRA fields in box-12

958229 U.S. Tax Reporter - Year-End 2006 Phase I

860792 U.S. Tax Reporter - Year-End 2005 Phase I

734616 U.S. Tax Reporter - Year-End 2004 Phase I

666866 Tax Reporter YE2003: Phase I - Legal changes & enhancements

606857 USERRA not included in box 12 of W-3 and W-3C

540100 Tax Reporter YE2002: Phase I - Legal changes & enhancements

Edited by: Amosha on Sep 15, 2011 1:06 PM

[Former Member · Accepted solution]

Hi, Thanks for your response.

We actaully dont use any SAP Tax Forms. We outsource our taxes, but need to identify these previous years 401k earnings. I was hoping that I didnt need to create new 401k plans and new wagetypes per year.

Example

401k plan 2010 ---> new wage type for 2010

401k plan 2009 ---> new wage type for 2009

401k plan 2008 ---> new wage type for 2008

It doesnt seem like best practices to create a new 401k plan and new wage type for each year.

B-

[Former Member · Accepted solution]

Explain me more about how you want to take the contribution for the service period? When are you planning to start the dedn and complete?

[Former Member · Accepted solution]

Hi,

I am not sure if I need to create a new 401k plan and new wage type per previous year's contribution.

Example of employee contributions

401k current -

---

> 2% per pay

401k plan for 2010 ---> $200 per pay

401k plan for 2009 ---> $150 per pay

401k plan for 2008 ---> $100 per pay

Total 401k contrib taken is $450 (plus 2%) every pay up to three years.

USERRA is a federal law .. I was hoping SAP had a solution or best practice to accomodate.

Any help is appreciated.

Thanks,

Brandyn~

[Former Member · Accepted solution]

When are you planning to start the deduction and end it...in next one year?

450 x no of pays in one year ?

Then you create one plan called U401 then set it based on flat amount key in one flat amount and let it deduct from employee. Dont need to create 3 plans or 3 wagetypes for each plan.

Even though it is a federal, it is just a 401K plan and you need deducted from employee and employer has to contribute to it. It does not have any different implication on taxes ...it behave same way as reg 401K. Also check if this plan will fall under 401K total limit...

Even though it is a Fed law, this not required to be part of the standard product. It is a out of the feature, so for such requirements you and I there to configure SAP. As per the report, SAP has provided that OSS note, you have make configurations to get amount deducted and reported.