U.S Tax Reporter Year End 2022

[graziela]

This blog is not updated anymore, the new blog for Year End 2023 is already created. 

Another Year with our U.S. Tax Reporter Year End blog. If you have questions about 2022 Year-End reporting, you can post it here. This blog will be updated with tips, best practices and, SAP Notes related to this subject.

Legal Changes for US

To review the planned Legal changes for US, start the Announcement of Legal Change application. You can find detailed information about the Announcement of legal changes on this blog.

Year End Notes

3226749 - U.S. Tax Reporter Year End 2022 Announcement
3231551 - Year End 2022 Phase I for U.S. Tax Reporter (This note can just be applied via Support Package, there isn´t any workaround)
3225735 - W-2 / 1099-R Forms, Envelopes and PR Approval letter for year 2022
3245908 - Year End 2022 Phase II for U.S. Tax Reporter
3272039 - Prerequisite objects for SAP Note 3245908
3282510 - Year End 2022 Phase III for U.S. Tax Reporter
3293660 - TR: Form 940 Schedule A for 2022 not displaying the Total Credit Reduction amount

IMPORTANT: SAP Note for Phase II contains manual Pre-Implementation and SAP Note Phase III contains Post-Implementation steps.

To run Year End 2022 processes successfully and for SAP to provide support, you must have installed the minimum levels of the Sync. HRSP and CLC available in October, where applicable, as specified for your release. There is not any work around.

User Guides and Resources

2464078 - TR: 1099-R User Guides for HCM US Tax Reporter configuration

2464161 - TR: W-2 User Guides for HCM US Tax Reporter configuration

2463999 - TR: Tax Reporter User Guides for HCM US Tax Reporter configuration
1406971 - FAQ: Troubleshooting PDF Forms in US Tax Reporter
544849 - FAQ: Tax Reporter Note

 In addition, detailed Tax Reporter documentation for EHP8 is available on SAP Help Portal. To get Tax Reporter documentation of an older release click in the portal on SAP ERP HCM, then change the version on the upper right corner, and search for "Tax Reporter (PY-US-TR)".

KBAs (Knowledge Base Articles)

3081097 – KBAs (Knowledge Base Articles) for Payroll USA
2918093 - After upgrade issue with the position of text and alignment

Educational Videos

2480185 - TR: Tax Reporter - Online W-2 Enhancements videos

LIMITS 2023

3288050 - GARN: IRS Publication 1494 for tax year 2023
3265862 - BEN: Annual limits year 2023
3204104 - BEN: Limits for HSA in tax year 2023

ASUG Webcast: HCM U.S. Payroll and Tax Reporting 2022 Year End Update

ASUG Webcast for SAP HCM U.S. Payroll and Tax Reporting 2022 Year End Update was conducted on October 20, 2022.

Recording and slide deck for the ASUG webcast can be found at the event page on ASUG website

Important changes not related to Tax Reporter

Blog TaxFactory 11.0
Blog Reverse Tax Engine - Payroll USA

If you have questions about this topic, please use specific blogs to post it.

In case you have any questions/suggestion about Tax Reporter Year End you can post on the comments.

Kind regards,
Graziela

[Matt_Fraser]

Thanks Graziela! FYI, the link for 3226749 is using the SAP-internal link, not accessible to customers. I realize that none of the new Notes/KBAs are actually available yet.

Cheers,
Matt

[graziela]

Hi Matt,

Yes, they are finishing it, I just posted the blog before, because they needed the official blogs link.

I Have put an observation on the blog.

The notes will be ready today, latter than tomorrow.

Cheers,
Grazi

[CarlosAccorsi]

Hello Community,

The Phase I note has just been released: 3231551 (Year End 2022 Phase I for U.S. Tax Reporter).

Thank you,
Carlos

[ChandraV]

Hello team - we recently upgraded our QA box to level B1 (608) and BSI level cyclic h TUBs 92 and noticing a change in the PA tax calculation for a bunch of associates.  The associate lives in NY and works in PA, however there are no (withholding) taxes coming out for PA. In un-upgraded production box (SAP 608 A8; BSI cyclic g TUBs 89), taxes are withheld for PA and NY for the same associate.  In the QA box, the BSI interface is not sending the PA tax type 001 for PA at all . This is happening for others working in PA but living outside.  Anyone noticing this behavior?

Thanks

Chandra

10/20 Edit - just to put a closure to this - the issue was traced to a problem in the tax model due to a missing transport. Once the tax model was fixed, this issue resolved itself.

[graziela]

Hello Chandra,

I took over the case and I´m analyzing the scenario.

Please, keep the posts for BSI and taxes on the blog.

We still check this one on a Regular Basis.

Thank you,
Graziela

[graziela]

Hello community,

SAP note has just been released to include PR Approval letter

3225735 - W-2 / 1099-R Forms, Envelopes and PR Approval letter for year 2022

Kind regards,
Graziela

[jahnavi_kavuru]

Hello All,

Has anyone had issues with W2C TemSe file for EFW2C form (HR_F_MMREF_2)?

We have applied the note 3218784 for 941 form updates - this is last update from tax reporter perspective. Our W2C file has below errror while submitting:

Description:  Must be 1024 bytes for EFW2C files. This condition may also be generated if the previous record is greater than 1024 bytes or if there us a Carriage Return/Line feed within a record

When I checked and compared against the previously submitted file for differences, RCT record has space between the fields 03(total no.of records) and OT001(011 Total Org. Wages, Tips & OC.)

RCT record on error file

RCT on Successful file

Any help on this is much appreciated.

Thanks,

Jahnavi

[Matt_Fraser]

Hi Jahnavi,

Just to confirm, you have not yet applied the Year End 2022 Phase I support package? That would be newer than the Q2 Note (and would in fact include it as part of the SP queue).

Cheers,
Matt

[BethM-CPF]

Hi Jahnavi,

Have you applied the Q2/2022 and Q3/2022 Tax Reporter notes yet? There is a change to Oregon's EFW2 file format. Not sure if this is impacting you or not.

Also, I read Matt Fraser's question on the Phase I Year End note. There are other Tax Reporter OSS notes that will be applied with the Phase I note. Those additional notes may correct your issue, depending on if you have already applied HRSP 608-B1 (just released 10/06/2022).

Phase I note 3231551 must be applied with HRSP 608-B1 or 604-I3 or 602-L7 (I think I listed the HRSP's correctly -- we're on 608-99 currently and will be updating to 608-B1 or 608-B2).

Just my thoughts. Hope you get it figured out.

Beth Matthews

[jahnavi_kavuru]

Hello Matt,

We haven't yet applied the support pack. We are in the process. We are on 608-99 at the moment and working towards B1.

 

Thanks

Jahnavi

[jahnavi_kavuru]

Hello Beth,

Same here we are on 608-99 and working on B1. The last successful file for W2C was in July,2022 Thanks for the suggestions. I'll update here once I have it figured out.

 

Thanks,

Jahnavi

[ConeC]

Has there been any updates regarding Paid Leave for the state of Oregon?

 

https://paidleave.oregon.gov/Pages/default.aspx

[former_member300128]

Good morning,

Testing Tax Reporter in our QA client and notice PU19, W-2 for 2022, executing in test mode, if employee has selected on-line W-2 there is no PDF created, I know previous years in test mode we did see the form.  Please advise if something change.

Thank you

Sandra Pelkey

 

[former_member300128]

Good morning

Did something Change on Tax Reporter?  in our QA client executing W-2 for 2022, if employee selected online W-2, in test mode it is not being generated.  previous years it was being generated in test.  Please advise.

[stevenan]

Hello Sandra,

I always set a few employees as opted out in order to test W-2.  I don't remember that this ever worked before in test mode.

Thanks, Anna

[Matt_Fraser]

Hi Sandra,

I agree with Anna. In our own testing, we've never seen Online W-2s created when PU19 is run in Test Mode, only Productive Mode.

Also, it looks like your previous question, 3 minutes earlier than this one, is a duplicate?

Cheers,
Matt

[graziela]

Hello Sandra,

Online W2 are not generated in test mode, this is the standard behavior.

Kind regards,
Graziela

[graziela]

Hello Cherylnita,

Please, use the BSI blog for Paid Family Leave topic, I´m copying and paste what I replied there:

I just talked to Product Owner and BSI is still analyzing the changes with the authorities.
Once they have all the changes in place SAP will evaluate if any note will be needed or just the update in the Regulatory Bulletin with this just the Sync tool and the Tax Model need to be updated, so there is not need for notes.

I recommend that you keep tracking of this through the legal change notification app, further information about the legal change app can be found on:
2917160  New legal change is under evaluation

Kind regards,
Graziela

[former_member649267]

Hi Team,

 

Please let me know when SAP will release a note to store Standard Occupation Classification (SOC) for all employees who work in state of Washington?

[Matt_Fraser]

I guess we aren't the only ones having issues with the SOC codes! We have a ticket open with SAP support about this.

[Vamsi_Y]

Hey Hemanth,

This seems to be an issue, we have updated the SOC data (T5U28_C) and the form  (HR_F_UNEMP_WA_N) in the backend shows TSOC for position 108. We still see no SOC code populating in the file at position 108, hence raised a support ticket with SAP last Friday and SAP is currently checking this for us.

Regards,

Vamsi.

[former_member649267]

Hi Vamsi,

 

So the only way to store this is in Table T5U28_C which is same as "T5USO". Here we can define state and the corresponding SOC code.

 

SOC code will be linked to a position and not to a person number right, so in this case what kind of code change is needed for HR_F_UNEMP_WA_N to query the person then take his position, go to T5USO and pick the corresponding SOC code?

[Vamsi_Y]

T5U28_C is not like T5USO but it is similar to T5U25 that deals with job IDs and WC code mapping. T5USO is only for storing the list of SOC codes with start and end dates and will be used while updating records in T5U28_C (SOC codes drop down list from T5USO) or while updating the SOC code mapping infotype. If your business team provides you with position and SOC code mapping list then you can mass upload data in T5U28_C or directly in the SOC code mapping infotype using a mass upload program. But if they provide you with job IDs and SOC codes then you have to put extra effort reading position IDs (referring job ID) and then SOC code and mass upload T5U28_C. Also, you have to make sure the file format HR_F_UNEMP_WA_N position 108 SOC code in the configurations should show TSOC and this field should reflect if you run the tax reporter. I see the SOC codes for couple employees showing up in our tax reporter but for few the SOC code is not populating, not sure why. (We are into concurrent employment if that matters) hence raised a support ticket with SAP.

[ChandraV]

FYI - this is what we have done - T5U28 (position) / T5USO for WA.  We are already using this combination for Alaska occupational codes; we simply extended this to WA.

 

[kim-conti]

Hi Matt,

Have you received any feedback on this yet?

Thanks,

Kim

[Matt_Fraser]

Hi Kim,

See the comment thread below this one between Vamsi, Hemanth, and Chandra. (Vamsi is on my team). We currently have a support ticket open with SAP for this issue.

Cheers,
Matt

[CarlosAccorsi]

Hello Community,

I see some comments here about issues on printing the SOC Code on the WA file during the SUI execution.
Here's three items for you to check which should resolve the issue:

1) Make sure that note 3246223 is fully implemented on your system (including the pre-requisite notes and manual activities).
2) Maintain the SOC on view V_T5U28_C for the position of the employee (PA0001-PLANS) whose SOC should be printed on the form.
3) Ensure that the employee has a valid IT0209 for the given SUI execution.

Best Regards,
Carlos

[Euna]

Hello,

 

Does anyone notice Off-Cycle Workbench is working weird after SP installation? We've installed them all together upto I4, so I can't pinpoint where it happens, but it takes forever to open and to pull up the EE data if it opens.

We've applied Notes 3136920/3265766 afterwards. If anyone knows how to fix it, please share.

 

Regards,

Euna

[CarlosAccorsi]

Hello Euna,

I was able to locate note 3206964 which may address your scenario.

However, please note that this blog is reserved for US Tax Reporter for Year End 2022 topics, hence the Off-cycle Workbench is out of the scope.
Therefore, for further assistance on that, I recommend you in opening an incident on PY-XX-OC component, or posting a question on the SAP Community with the corresponding tag.

Best Regards,
Carlos

[Euna]

Thank you, Carlos. And sorry about posting the question here. As it was a part of our year-end process, I forgot where to address the question.

 

Regards,

Euna

[Private_Member_747403]

Per SAP Note 3124528-W4 Legacy Data-Changes in IT210, the withholding format of the original record is no longer determined by the begin date of IT210 and user can elect the withholding format record by the Original/Redesigned check boxes added on IT210. This function was working fine until after we applied support packs for this year.

After applying support pack notes for 6.08(B1) we are receiving an error on the original withholding format when selecting any filing status from the dropdown menu showing both legacy and current statuses.

We think sap note 3150056 - TAX: W-4 federal 0161 and 0210 infotypes with partially or no filing status validation for original form format, may have reverted the functions rolled out with note 3124528.

Just wondering if anyone having this issue before we open a ticket with SAP ONE Support.

Thank you!

[ChandraV]

Are you referring to the issue with filing status 15 - Married, but withhold at higher Single rate?  after note 3124528, only filing status 01 (single) and 02 (legacy married) are allowed in the original format 210. It is not allowing filing status 15.

Thanks

[graziela]

Hello community,

SAP note has been released:

3245908 - Year End 2022 Phase II for U.S. Tax Reporter

Kind regards,
Graziela

[KumarG]

This is how the solution is designed to avoid employees viewing / downloading the Test W-2 documents.

[former_member829846]

No, I'm not referring to that issue.

Last year, SAP Note 3124528 allows the ability to select the original format along with the old filing status only filing status 01 (single) and 02 (legacy married) regardless of the beginning date on IT210.  This functionally is no longer working after applying support pack. We are receiving an error instead.

[eliza4c]

Hello, not sure if this is the right forum for this question, but does SAP have any programs or features that allow for 1099 form generating and printing? We currently use a 3rd party standalone software (Accountability). Wondering if SAP has anything that is built-in for this purpose. Thank you!

[Matt_Fraser]

Kumar, that's the best explanation for why Online W-2s aren't generated in Test Mode I've seen yet. Thanks!

[Matt_Fraser]

Hi Elizabeth,

If you mean Forms 1099-R, then yes, those are part of Tax Reporter and the Year End Legal Change Note. If you mean Forms 1099-MISC, NEC, etc, that are usually supplied to vendors, contractors, and so on, that question would be handled in a different topic area, as that's not part of HR/Payroll. However, the quick answer is yes, SAP absolutely handles printing 1099s, and you can find the latest legal changes to these forms in Note 3253925.

Cheers,
Matt

[former_member649267]

Hi Team,

 

We recently upgraded support pack from H1 TO 14 (we are in TUB level 93/CYCLIC I)

FROM SUPPORT PACK LEVEL:

COMPONENT	RELEASE	SUPPORT PACK LEVEL	SUPPORT PACK
SAP_HR	604	171	SAPKE604H1

 

TO SUPPORT PACK LEVEL:

COMPONENT	RELEASE	SUPPORT PACK LEVEL	SUPPORT PACK
SAP_HR	604	184	SAPKE604I4

 

After our upgrade we compare our payroll results (PRE-Support pack payroll results vs post support pack payroll results) we find a dollar differences in scenario given below.

 

An employee works in the state of Mississippi.  This employee has wages from regular and supplemental in one pay period. MS taxes calculated on pre support pack was $39.00, after support pack upgrade from H1 to I4 calculate taxes was $40.00 with a $1.00 difference. Mississippi always gets rounded to the nearest dollar.

Since there are no upgrades to BSI during our support packs, what causes this rounding to go off and create $1.00 differences. Need your input.

 

The same happened to employees in West Virginia.

Please take a look and kindly share your thoughts on this.

[former_member649267]

Hi Team,

Please let me know if you have any suggestion for the above issue.

 

 

[maddilety_kanuku]

Hi graziela.dondoni, we are not using the tax reporter functionality out of SAP, do you advise still we  install these support packs or we can ignore, just trying to see if we get into un known issues without installing them. - Thank you and please let me know. - Appreciate your time.

 

(We are performing gross to net in SAP and outsourced to third party for the year end reporting).

[former_member649267]

Hi Team,

We upgraded our system from SAPKE604H1 (Level 171) to SAPKE604I4 (Level 185). 

when we run off cycle work bench through Transaction code PUOC_10. system generate payment number.

Payment number is usually the combination of personnel number + the sequence number of the payroll result (5-character) and the sequential number of the payment within the result (3-character).

Screenshot is given below for references.

 

PRE SUPPORT PACK

 

AFTER SUPPORT STACKS UPGRADE:

 

But after support pack upgrade, Payment number is combination of PRE DME run date - time stamp.  

Screenshot of same employee off cycle workbench is given below (AFTER SUPPORT STACKS UPGRADE), where you see a different payment number and whole off cycle workbench layout is changed (Please refer to pre and post support stack screenshot). Please take a look and kindly let me know which note has changed this.

 

 

 

 

 

[graziela]

Hello Kanuku,

I always suggest keeping the Support Package level updated. As this includes changes, not just for Tax Reporter, but for taxes as well. Additionally, after some time, if you don´t apply the Support Package, you will not be able to apply notes due the cut in the Support Package levels.

You don´t have the rush to apply your Support Package now but is strongly recommended keeping it updated.

Kind regards,
Graziela

[graziela]

Hello Hermanth,

Carlos is already working on the case you have opened.

Kind regards,
Graziela

[ejaz1]

Is there any update on the Colorado Family and Medical Leave Act, is there a time frame on when the Notes should be expected ? Employers are supposed to start deducting from the first check in 2023

Thanks

Ejaz

[graziela]

Hello Ejaz,

The changes were delivered by BSI in Regulatory Bulletin 96.
SAP is finishing the notes that creates the new tax types.

Once they are released, I will post here.

Kind regards,
Graziela

[maddilety_kanuku]

thank you!, i realized after reviewing the impact of it. appreciate your time.

[ChandraV]

Thanks Graziela.  Does the regulatory bulletin/SAP note include both Colorado PFML and Oregon PFML?

Thanks
Chandra

[graziela]

Hi Chandra,

Yes, both CO and OR. 🙂

kind regards,
Graziela

[ejaz1]

Hi Graziela,

 

Do you know which  Bulletin release number  is this under ?

 

Thanks

Ejaz