on 10-14-2011 8:59 AM
Hi Friends,
I have an Issue with Tax. Till now I haven't got a chance to work Tax related issue.
I am creating a new WageType. User is saying this 25% taxable. I came to know by maintaing some Processing Classes it can be maintained.
But my doubt is we are not maintaining Taxes to any WageType in SPRO or either in any table for any WageType. As per my understanding that is done and take care by BSI. But I am confused is where we have to maintain the Tax percentages for various components.
If these are through Processing Classes please let me know where I can find the documentation for this. Any rules etc for these Processing classes.
Please let me know how to maintain Tax for WageTypes.
Thanks & Regards,
John
When you say 25% it means you are trying to recover taxes at supplemental rate.
In V_512w_d for your wagetype Set processing class 68 (Payment type for tax calculation) as 2 Supplemental payment
This will tell BSI to deduct taxes at supplemental rate. Read more about Supplemental Taxing procedure by using SDN search or google search. There are lot of thread about it.
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Hi Howard/Amosha,
Thanks much for your help I have seen some more iteams releated to this issue and now I am clear.
Can you please let me know the PCR's/Rules running behind Processing Class 68.
Please let me know some useful website or links to get indepth knowledge on US and Canada Tax.
Thanks & Regards,
John
Hi John,
You can go through the documentation of FUNCTIONS like UTPRI, USTAX,UPAR1, UTXOR. these functions are used for the tax
determination process under subschema 10U0 which will help you to get some understanding.
You can also understand the Taxability Model of US which involves 3 Tables T5UTE, T5UTM and T5UTY to determine the tax
types applicable for a Wage type depneding on his Tax authority.
Thanks,
Vineeth
The US tax rate of 25% says this is a payment for something other than wages and is subject to this rate. This is a compliance issue. You canu2019t maintain withholding rates, but you can force the system to withhold at the supplemental rate of 25%. Please change processing class 68 to a value of u201C2u201D in Table V_512W_D for this wage type.
Regards,
Howard
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