U.S. Tax Reporter Year End 2020

[graziela]

Hello community,

This blog is not updated anymore, instead the blog for 2021 was created:
U.S. Tax Reporter Year End 2021 | SAP Blogs


This is our U.S. Tax Reporter Year End 2020 blog. If you have questions about 2020 Year-End reporting, you can post it here. This blog will be updated with tips, best practices and, SAP Notes related to this subject.

To be able to access the Year-end 2020 in the Globalization finder page you need to be logged on (similar to SAP Service Marketplace) because it is a gated area and would need authorization.

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.

SAP Notes

Tax reporter notes

2956914 - W-2 / 1099-R Forms, Envelopes and PR Approval letter for year 2020
2954621 - U.S. Tax Reporter Year End 2020 Announcement
2955032 - Year End 2020 Phase I for U.S. Tax Reporter
2975038 - Year End 2020 Phase II for U.S. Tax Reporter
2994384 - (Prerequisite objects for SAP Note 2975038)
3001227 - Year End 2020 Phase III for U.S. Tax Reporter
3006708 - (Prerequisite objects for SAP Note 3001227)
3009810 - TR: Year End 2020 additional U.S. Tax Reporter changes.
3012513 - TR: Cleveland OH requires State Employer Account Number in RS record location 248
3010979 - TR: 1099-R Employee Form being generated for Distribution Codes with zero amounts
3012492 - TR: EFW2 file format changes for the Commonwealth of VA for Tax Year 2020
3017122 - TR: Idaho W-2 electronic file rejected by Tax Authority due to incorrect Date formatting in Record RS


General notes

2922369 - IMG: Runtime Error for 3PR Cluster Views V_T51RK_1 and V_T51RX
2990487 - BEN: Limits for retirement, savings plans and Health FSA contribution in tax year 2021
2991544 - RPCPRRU0: Exempt wage types incorrectly configured in TAXT group
3000740 - GARN: IRS Publication 1494 for tax year 2021

Taxes
3008339 - TAX: Community Safety Payroll Taxes for Eugene
3013127 - BSI: Enablement of Tax Type 106 for Concurrent Employment


Important:

If you had upgrade the system to SAPK-60886INSAPHRCUS you need to run report RPUPAV00 as explained in SAP note note which is included in this Support Package:
2923573 - FLSA: Extension of Infotypes 0015 and 0267 to Support Overtime Premium Over Bonuses

This is just for release 608, because infotypes 0015 and 0267 were extended and now have two additional fields so that you can inform the period of reference of the bonus payments. Due this you should run the report.


The ASUG HCM US Webcast 2020 Slide Deck has been attached to SAP Note 2954621 - U.S. Tax Reporter Year End 2020 Announcement. In case you are an ASUG member, you can view the webcast recording via video on-demand.

Kind regards,
Graziela

[greg_zifchock]

Hi Graziela,

Will there be anything released for guidelines on decommissioning/turning off the Employer Social Security Tax Deferral due to expire on 12/31/2020? Specifically Tax Type 577?

Thanks,

Greg

[former_member353481]

Hello community,

If you have applied OSS note 2991544 and still having an issue with TAXT grouping in the payroll recon report, please follow the manual instructions in that note. I just found out in my system that even though the note is applied, the entries in table V_T596I haven't been removed yet.

The same applies to note 3001862, please follow the manual instructions as application of the note may not be enough.

Thanks,

Thomas

[stevenan]

Hello,

I did a bit more research on this issue as it has happened before and I corrected it without SAP note or instructions.  I noticed that there is a new range of /Vxx WT's for tips and these are related to tax deferrals.  It seems that the instructions in all of the notes are limited to only deleting some of these entries and since we do not have tip income, I believe they can all be deleted.  We should have been better informed of this so that we could update the configuration according to our needs within the individual systems.  By having all of these entries without the corresponding /4xx entries is causing the program to fail.  I am going to attempt fixing all of this on my own as I did before.

Thanks, Anna

[graziela]

Hello Lisa,

You can go to SAP ONE Support Launchpad:
Filter by PY-US-TR.
You can see the items for this change there (more than one).

Kind regards,
Graziela

[JackieN]

Hi Travis,

Yes, we applied and it did resolve our issue.  Thanks!

[evelyn_barbosa]

Hi Graziela,

I see that there is Note 2947920 that introduces these new technical /VXX wage types that pertain to BSI 11, we are still on BSI10X3.  I have also done the manual steps for the last note indicated Note 3001862 and we are still getting the same error.

Any assistance with this is greatly appreciated.

Thanks again.

Evelyn Campos

 

 

 

 

[SAPSFHXM]

Hi Anna,

Are you able to fix this upon deleting the said entries?

 

Regards,

Aditya

[stevenan]

Hello Aditya,

I was able to fix this by deleting entries.  I deleted all that did not have a corresponding /4xx WT entry within the sub-application.

Best regards, Anna

[SAPSFHXM]

Thank you for your reply anna.stevenson2

At this moment not sure how come implementing the notes and following the manual corrections fixed the issue for us (when no one shared that the notes and manual corrections alone resolved the issue).

Regards,

Aditya

[evelyn_barbosa]

Hi jackie.alvarez ,

Did you apply the note and do the manual changes, I went in and did the manual changes for both Note 2991544 and 3001862 without applying the notes and I am still getting the same error for Wage Type Application CCW2 and C941.

I see some comments above about deleting all new /VXX entries that don't have a matching /4xx entry but I am a little confused about that.

Any feedback is greatly appreciated.

Thanks,

Evelyn Campos

 

 

[alicia_robinson]

Chandra -

Have you been able to locate any updates on the Eugene OR change?  I sent a second message to BSI and this was the response:

The issue regarding Eugene, OR:  BSI Research is aware of pending update related to Eugene Oregon Payroll Tax Proposal. Once this item has been assigned to a regulatory bulletin, you will be provided with a response.

We run our first payroll of 2021 on 1/1/2021 so guess we won't have anything ready for this one.

Thanks,

Alicia

[former_member66268]

alicia.robinson , I got the same response to my ticket as well but that was two weeks ago. I sent an email to the BSI team last week but no response thus far. Didn't see anything in the legal change launchpad tile, so I guess this is only a TUBs update; I have an uneasy feeling about this. Our first payroll run is on the 4th because of the additional payroll this year.  Hopefully it works right out of the box!!

I have sent another email..

Thanks

Chandra

[former_member66268]

Got a reply from BSI today regarding the Eugene, OR ticket but with same canned response!!

Thanks

Chandra

[Matt_Fraser]

Hello all,

Perhaps I missed it somewhere, but I don't think the latest Federal Withholding rates for 2021 have been released by BSI, have they? IRS published the new rates in Pub 15-T on December 8th, and now it is 10 days later, but there's no new TUB with these rates.

Does anyone have any heads-up on when a new TUB with the new rates is likely to be released? Or did I miss something?

Cheers,
Matt

[stevenan]

Hello Matt,

You have not missed anything.  The latest TUB was released on December 2 (at least for TF11).  I saw the same thing on irs.gov regarding Pub 15-T.  I am surprised that we have not gotten more TUBs released since the last one.  We normally get the state unemployment wage limit changes during December.  I am having to override for now.

Best regards, Anna

[Euna]

I think there was a year that they released the TUB in the new year.

I know i would get a notification once the new TUB is released, but I just keep going back to the site and check it myself. 🙂

 

Happy holiday!

Euna

[Matt_Fraser]

stevenan and euna.lee , thanks, glad to know I'm not going crazy, I suppose! Yes, I'm on the notification list, but I've also been logging in to BSI to check. My Payroll Office is getting nervous, but I've assured them that once it's released we can get it into place for their testing very quickly. The problem is the testing takes somewhat longer than the implementation...

Also, worst-case scenario (and actually already the case for us, as it's now too late to be in PRD for our first paycheck on January 4), withholding continues at 2020 rates and then the following month we have a retro for everyone. So, in the grand scheme of things, not really that big of a deal, except our Payroll Manager has to craft a communication to our various union leaders about why their employees' paychecks will differ slightly between January, February, and March...

[graziela]

Hello matt.fraser anna.stevenson2 and euna.lee

I have discussed this with SAP developer, he reached out BSI and the information we got is: BSI is working to deploy this for SaaS customers during the next weekend and for the others customers on-premise this will be available before Christmas.

Hope this helps.

Kind regards,
Graziela

[Matt_Fraser]

Wow. That feels really late. Thank you for the update, Graziela. So, if I understood that correctly, as an on-prem customer, we won't see the update from BSI until early on the week of December 28?

[graziela]

Hi matt.fraser

This should be available before Christmas.

I will rephrase my last comment. 🙂

Graziela

[Matt_Fraser]

Ah, thank you! That makes me feel much better! 🙂

[former_member66268]

Got an email notification BSI that the Eugene, OR fix is getting released in TUBs 205 (TF10) on Dec 30th.  Do not know the equivalent in TF11 but looking at the current releases, it should be 38 for TF11. This is cutting too close..

Thanks

Chandra

[former_member66268]

I just got an email from BSI relating to the Eugene, OR tax thing and it indicated the solution for Eugene is getting released on Dec 30th in bulletin 205 (for TF10), the equivalent TF11 would be 38. So it looks like we are getting one next week (before Christmas) and one the following week.

Thanks

Chandra

[graziela]

Hi Chandra,

That´s correct, this is the same information that I have.

Regards,
Graziela

[alicia_robinson]

It does appear that the BSI changes have been a “little” behind this year – not sure what the problem is, but there are usually lots of unemployment wage base changes in December amongst other tax changes.  As Matt, mentioned putting the TUBs in isn’t the hard part – it’s all the testing we have to do and unfortunately for us we run our first payroll on January 1st this year.  We have been waiting and asking about Eugene OR for like 2 or 3 months now and per Chandra looks like it’s coming out on December 30th, but that gives us no time for testing before the first payroll run.  Looks like lots of retros in January…….bah humbug! 🙂

[Katt]

TF Bulletin 35-37 for TF11 was loaded over the weekend, however, I am not seeing that Bulletin 37 was released from BSI? Has anyone else seen Bulletin 37?

Thanks,

Katherine

[Matt_Fraser]

Hi Katherine,

I checked just now, and Bulletin 37 for TF11 is now available on BSI's website. It must have been released either over the weekend or early this morning. I have not yet seen the announcement email from BSI about it, however, so that's another indication that it has just been posted. I'm sure the email announcement will come shortly.

This is the one with the Federal wage bracket tables for withholding that we've all been waiting for, so this is good news that it's available.

Cheers,
Matt

[Katt]

Matt,

Thank you for the response. I do now see it available.

Katherine

[graziela]

Hello community,

The Year End Phase III note is now released to customers.

SAP Note 3001227 – Year End 2020 Phase III for U.S. Tax Reporter

This note contains a prerequisite note and manual activities:

Note 3006708 (Prerequisite objects for SAP Note 3001227)

Kind regards,
Graziela

[dduron]

Hi Matt,

I do not have direct access to BSI account.  I too have been waiting for 2021 Federal Tax Table release.  Would that be tub 204 for TF10?

 

Thanks,

Debbie

[NWL]

Tub 204 was released on 12/19. We did not get any email from BSI but it is available on their website.

Release 10.0.x3
Regulatory Bulletin #204
December 19, 2020

Changes the wage bracket tables.

 

aman

[dduron]

Thank You Aman!

[former_member720534]

Thank you, for the information. Does it have all the tax changes for 2021? It just mentions changes the wage bracket tables. Just curious before applying the changes.

[former_member265305]

Hello Rajani,

BSI is planning one more TUB still for 2020.

Best regards,
Marcelo

[former_member720534]

Thank you Marcelo. Does TUB37 have 2021 Wage bracket changes as there is no complete information in the TUB?

Thanks & Regards,

Rajani

 

[Matt_Fraser]

Rajani, yes, that is what the cover sheet says, 2021 wage bracket changes for Federal Withholding.

[former_member720534]

Thank you, Matt!

[former_member706545]

Hi Graziela,

Per Year-end Phase I note 2955032, we configured Tax form group QSL1 and QFL1 to reflect the Emergency Paid Sick Leave Act (EPSLA) and Emergency Family and Medical Leave Expansion Act (EFMLEA) wages. When we configured our custom wage types in these tax form groups, they were preceded by text EPSLA and EFMLEA in W2 Box 14. However, after the application of phase III changes, this is not working anymore. Do you know why?

Thanks,

Mushtaq.

[former_member438443]

Hello, i am trying to access the note via hyperlink of the note and it fails. I try to access the note using my sap log on and I am not able to access it.

Can you please check hyperlinks, or re-post to access.

 

Norma

[jwiblepasshe22]

I am experiencing the same issue with the links to the Phase III notes above.

[Matt_Fraser]

Graziela accidentally used the internal-only links. Please use these links instead:

https://launchpad.support.sap.com/#/notes/3001227

https://launchpad.support.sap.com/#/notes/3006708

Cheers,
Matt

[graziela]

Hi Matt,

Thank you,

I have updated my comment.

Kind regards,
Graziela

[former_member712493]

Hello Graziela,

Like Mushtaq states, we are facing the same issue. Per the Year End Phase 1 note we configured Tax Form Groups QL1 and QFL1 for the W2 solution.  Once we applied Phase III note and this has been removed, we are no longer seeing the EPSLA and EFMLEA in box 14.  The newly created /4K* FFCRA ER Credit wage types do not work for us as a government agency since we are not eligible for this credit. Please advise us of a solution soon.

Regards,

Monica

[graziela]

Hello mdahlberg , mamohammed ,

I´m checking this with Developer.
As fas as I know there is a change in Phase III note in the way box 14 is being reported.
The wage type /4K0 is mapped directly after the legal change review.

Are you using this wage type?

Kind regards,
Graziela

[former_member706545]

Hi Graziela,

Confirming that we are not using /4K0.

Thanks,

Mushtaq.

[graziela]

Hello mamohammed , mdahlberg ,

Developer will update note 3001227 – Year End 2020 Phase III for U.S. Tax Reporter with instructions in how to use custom wage types.

Kind regards,
Graziela

[former_member706545]

o.k. thanks Graziela. FFCRA reporting requirements are fluid and unfortunately the directions are not clear from the IRS. I feel, even they are figuring it out as we are asking them questions. We will see what we can do, however, this will be the top challenge for W2 reporting this year.

[KDixon]

Hi Graziela,

 

I see the SAP Note 3001227 has been updated with the following on how to use custom wage types

 

• If you do not use the standard FFCRA solution and want to add your own custom wage types, or even use the previous Tax Form Groups QSL1 and QFL1, you will need to customize and remap the Tax Form Groups from the Tax Form Fields QSL1, QSL3 and QFL1.

Can more direction or steps be provided on how to customize and remap?

Thank you,

Kelli Dixon

[CarlosAccorsi]

Hello Kelli,

This documentation should help you checking the Tax Form Groups.
Afterwards, you can check the Tax Reporter Configuration Checker by this link, to ensure that you have correctly configured your system to run Tax Reporter.

Best Regards,
Carlos

[KDixon]

Hi Carlos,

We previously use mapped our custom wage types to the pervious Tax Form Groups QSL1 and QFL1.

Based on SAP Note 3001227, we now need to customize and remap the Tax Form Groups QSL1 and QFL1 from the Tax Form Fields QSL1, QSL3 and QFL1 - this is the area we are asking assistance with.

Thank you,

Kelli Dixon