BSI Rates Effective Date for Unemployment Insurance

[Former Member]

Hi SAP Payroll Gurus,

This is question regarding SAP BSI for US Payroll.

My question is regarding BTXRate table : BSI Company Experience Rate in which a new record exist for each new rate specific to a Authority and there is a effective date on it example 2007/01/01 .

Now if we have put it the new rates very late i.e. let say in the middle of year 2007, then the system will run into retro in next pay and calculate the new rate effective from 2007/01/01 .

However if I dont want the system to calculate the new rate from 2007/01/01 ( because of the manual adjustments already made) , can i change the effective date of the new rate from the date of next payperiod i want and avoid the retro i.e. calculating the new rate for previous payperiods.

Please advise.

Thanks

Jay Gandhi

[Former Member]

Hi Jay,

Please use the Unemployment Insurance Overrides for the Period of Refund (as they have been already adjusted manually).

Hope this helps,

V P K.

[Former Member]

Hi V.P.K.

And how do we get to Unemployment Insurance Overrides ? Is it in SPRO?? Please provide me the path.

Thanks

Jay Gandhi

[Former Member]

Th change in rates (BTXRATE or BSI Tax Factory) by itself does not trigger retro. The retro is only triggered if you force it in RPCALCU0, or if you change the employees master data.

If they had already made the adjustments manually, do NOT change them in BSI retroactively, but change them as of the next pay period.

As far as BTXRATE concerns, you should change the rate from the beginning of the year, that does not have any impact on calculation or on retrocalculations. This will only be used by tax reporter to produce the reports with the correct liability.

Hope it helps

[Former Member]

Hi Raramuri,

Ur responses have been appreciable.

However My question seems yet not been answered . Let me try to explain it via example :

Suppose the new rates in BSI are not yet applied to the system. And suppose for particular US State where the employee resides , the unemployment insurance according to old rate being 5% , the amount being deducted every pay period is suppose 5$ . Thus 5$ is being deducted every payperiod for this employee. This happens until say the first 5 payperiods of year 2007. After 5th payperiod, the BSI new rates is applied which is having 3% (effective from 1st jan 2007) for the same state. Thus when the next pay is run, the system calculates the insurance for new rate effective from 1st jan 2007 ( which should be 3% instead of 5%, i.e.3 $ instead of 5$ every payperiod) , thus it gives back (5$-3$ = 2$) for all 5 pays it ran before , i.e. 5*2 = 10$ . Plus it calculates the unemployment insurance for 6th payperiod with new rate.

I dont want the system to give back this 10$ in the 6th payperiod, as the 10$ is already calculated and given back manually.

Hope i made it clear.

Thanks

Jay Gandhi

[Former Member]

The experience rates kept in BTXRATE are only used by US Tax Reporter. The rates used in the calculation are maintained in BSI (Tax Factory Client).

If you already adjusted the taxes, then you can keep the old rate in BSI, so that retrocalculations don't change your taxes. Adjust the BTXRATE to the new one, and when you run your reports, Tax Reporter will tell you how much you paid (based on the employee´s payroll results wagetype /410), and how much you should have paid (the base amount for unemployment wagetype /710 multiplied by the rate in BTXRATE).

Hope this helps,

~Raramuri

Hi SAP Payroll Gurus,

This is question regarding SAP BSI for US Payroll.

My question is regarding BTXRate table : BSI Company

Experience Rate in which a new record exist for each

new rate specific to a Authority and there is a

effective date on it example 2007/01/01 .

Now if we have put it the new rates very late i.e.

let say in the middle of year 2007, then the system

will run into retro in next pay and calculate the new

rate effective from 2007/01/01 .

However if I dont want the system to calculate the

new rate from 2007/01/01 ( because of the manual

adjustments already made) , can i change the

effective date of the new rate from the date of next

payperiod i want and avoid the retro i.e. calculating

the new rate for previous payperiods.

Please advise.

Thanks

Jay Gandhi

[Former Member]

Raramuri

Thanks for your response.

My Client applied the new BSI rates to the system in the middle of year 2007 . But until that , they did manual calculations and have paid to the Insurance company according to the new rates.

Thus now after applying the new rates to the system i.e. BSI and SAP which has records effective from 2007/01/01 , thus the system is doing a retro and calculating the new rates from 2007/01/01 and making the adjustments in next payperiod. But those amounts were already manually adjusted.

Thus they want that the new rates are in the system , so that the next pay period is calculated according to new rates, but it should not retro for previous periods, since its already paid by manual calculations.

Please advise.

Thanks

Jay Gandhi