U.S. Tax Reporter Year End 2021

[graziela]

Hello community,

As the Q1 due date in April 30th, this blog is not updated anymore. The blog for 2022 has been created, if you have any question, please post there.

Another Year with our U.S. Tax Reporter Year End blog. If you have questions about 2021 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 2021 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.

Year End notes

3082167 - U.S. Tax Reporter Year End 2021 Announcement 
3085142 - Year End 2021 Phase I for U.S. Tax Reporter -> You can just apply this note via Support Package
3082151 - W-2 / 1099-R Forms, Envelopes and PR Approval letter for year 2021
3100510 - Year End 2021 Phase II for U.S. Tax Reporter -> You must apply the prerequisite note and run the report NOTE_3100510, which is delivered in the prerequisite note:
3120702 - (Prerequisite objects for SAP Note 3100510)
3132965 - Year End 2021 phase III for U.S. Tax Reporter -> You must apply the prerequisite note and run the report NOTE_3134256, which is delivered in the prerequisite note:
3134256 - (Prerequisite objects for SAP Note 3132965).
3123716 - TR: Short dump when generating a Form W-2 that reports a 3-Digit Tax Type
3135634 - TR: Eugene Tax Type 106 not processed into Third party for W2 (FED) TemSe file
3136264 - TR: multiple blank output W-2 form pages for New Jersey employees
3138406 - TR: Year End 2021 additional U.S. Tax Reporter changes.
3138997 - TR: Q4/2021 changes for OH ICESA file format
3138872 - Tax Year is missing on W2 form for USERRA
3143778 - TR: Year end 2021 additional U.S. tax reporter changes for the city of Detroit
3140277 - TR: W-2 PR 21 not printing the employer phone field
3144794 - TR: Year end 2021 additional U.S. tax reporter changes for the city of Grand Rapids.


 

Additional notes

2464161 - TR: W-2 User Guides for HCM US Tax Reporter
2464078 - TR: 1099-R User Guides for HCM US Tax Reporter

Correction notes

3118379 - TAX: RPCALCU0 ignoring tip income after SAP Note 3054328
3118875 - RPCALCU0: technical changes regarding performance for TaxFactory SaaS
3099278 - SAP GUI F4 Amodal control : Search help Internal error table format.

KBAs (Knowledge Base Articles)

2480185 - TR: Tax Reporter - Online W-2 Enhancement Video
3081097 - KBAs (Knowledge Base Articles) for Payroll USA
3124528 - W-4 Legacy Data – Changes in IT0210

ASUG Webcast: HCM U.S. Payroll and Tax Reporting 2021 Year End Update

• ASUG webcast was concluded on October 7, 2021.


• Recording and slide deck for the ASUG webcast can be found here.


• Slide deck is also attached to the SAP Note 3082167 – U.S. Tax Reporter Year End 2021 Announcement.

Limits for 2022

3079731 - BEN: Limits for HSA in Tax Year 2022
3117309 - BEN: Annual limits year 2022
3136963 - GARN: IRS Publication 1494 for tax year 2022.

Kind regards,
Graziela

[graziela]

Hi community,

SAP 3143778 - TR: Year end 2021 additional U.S. tax reporter changes for the city of Detroit

Kind regards,
Graziela

[former_member765755]

All,

Closing the thread on the above issue. We figured out the root cause. It was due to incorrect configuration of features UTXRP and UTXTM.

Thanks,

Mushtaq.

[former_member649267]

Hi Team,

System not calculating employer unemployment taxes for State of South Dakota.

An employee reside in south Dakota state pays unemployment to south Dakota state. i have configured BTXRATE table and BSI

BTXRATE:

 

BSI:

 

Now when i run payroll for this employee. System is not calculating unemployment for this employee for current year.

Screenshot of USTAX is given below. SAP system is not sending SD, because of which BSI is not calculating Unemployment for the state of south Dakota. System send only federal and calculate all taxes for Federal except south Dakota unemployment.

SD 010 $4912.73 (this line is missing).

 

 

I checked TCR and i dont see any record for SD unemployment for 2022. Screenshot of TCRT is given below. Please take a look and kindly let me know why system is not calculating SD unemployment for 2022.

 

 

 

 

[psrinivas12]

Hi Hemanth,

Check your tax model for SD.  If tax type 10 is present in a tax combo only for "U" (R/W/U) in table T5UTM, then you need to set EE's IT 209 to SD in order for tax type 10 to calculate.

Regards

Paddy

[psrinivas12]

Thank you Kevin for your response.  Hope you are doing great.

Looking through the payroll results for employees who have wages that are "Taxable, but not Taxed", I am seeing that /703 will self adjust only for Taxable wages.  "Taxable, but not taxed" wages are separately cumulated in /Q03.

I am also seeing that /703 and /Q03 are cumulatively counted together towards the 2021 annual ceiling of 142,800.

Is this your understanding as well?

Regards

Paddy.

 

[CarlosAccorsi]

Hello Hemanth,

I see that on the BSI Override the field "Override Max Wage" is set to 0.00.
Please make sure that it is filled with the same amount of the field "Maximum Salary" on BTXRATE.

You may also refer to 2998362 - BTXRATE entry is not being considered on the payroll calculation.

Sincerely thanks,
Carlos

[former_member92041]

Hello Paddy,

To be honest, it's been awhile since I've seen or run across /Q03 and /Q05. If /703 and /Q03 counts towards the 2021 limit of $142,800, then Box 3 should show both wage types; otherwise, Box 3 (based on what you're saying) would only show /703 and be under-reporting.

I hope that helps.

Kevin

 

 

[psrinivas12]

Hi Graziela,

For additional visibility, I am pasting below my response to Zach's comments in OSS Incident 71690 / 2022.

Hi Zach,
I agree that the tax - /403 is self adjusting.  But taxable wages (which is the sum of /703 and /Q03) is NOT self adjusting.
So, when reporting to IRS, should we not be including the total taxable wages.  (Taxable - /703 PLUS Taxable, but not taxed - /Q03).
By the way, /Q03 is not included in /703.  It is separately cumulated.
Also, the combined YTD total of /703 and /Q03 count towards the annual ceiling of 142,800 for year 2021.

Can you please check again based on this information above?  I will appreciate it.
This should need a legal document.

Regards
Paddy

[psrinivas12]

Hi Kevin,

Thanks for your response and for confirming what I was thinking too.

Regards

Paddy.

[alicia_robinson]

Appears that we will all be refunding the WA LTC tax now and waiting for another TUB from BSI to deactivate the tax again.

https://www.seattletimes.com/seattle-news/politics/gov-inslee-signs-bills-to-delay-expand-exehttps:/...

 

Excerpt from article released on 1/27: That tax is now delayed until July 2023. Any premiums collected so far by private and public employers are to be refunded within 120 days.

[graziela]

niceeeee

[Matt_Fraser]

We're in the midst of applying TUB 73 now, which reinstates the taxes, but per direction from our Legal Counsel, we are continuing to leave the taxes out of our Tax Model, so they still won't be collected from employees.

What a lot of churn! Between last-minute changes from IRS and the same (with reversals) from Washington State, they've been keeping us all hopping!

[graziela]

Good approach, Matt.
Thanks for sharing.

[Matt_Fraser]

Corrected link to the article:

https://www.seattletimes.com/seattle-news/politics/gov-inslee-signs-bills-to-delay-expand-exemptions...

 

[alicia_robinson]

We were unfortunately told by our leadership to collect the taxes which we've done for two pay periods now as well as the last minute load of 100's of exemptions to not withhold.  Our plan is to just remove the tax types from the tax model as well.

This has been a year end for the books for sure!!

[wing73]

Hi.  Is anyone having trouble with the 1099NEC file not producing when the Classic WH Tax Code is used?  We are using that field to report on Tax Code 14 (Attorney).  When we execute the report with the 14, Error 7Q702 happens.  When we do not fill in the Classic WH Tax Code, the report runs.  Any help would be appreicated.

 

[Theresa_W]

We are located in KY and just applied BSI 73 in test.  When running test payrolls; there is no KY wage or tax being reported or calculated.  Has anyone had the same issue?  thank you.

[CarlosAccorsi]

Hi Susan,

The mentioned form is a FI Form rather than a HCM Tax Reporter Form.
As I don't work in FI, I cannot help much here.

In any case, I was able to locate KBA 2371425. Hope it helps.
In case it doesn't, my suggestion would be for you to report this scenario for the FI team directly.

Also, for future issues with a FI delivery, I would recommend you to post the question on the community using a FI tag.

Kind Regards,
Carlos

[graziela]

Hi community,

Blog has been updated with SAP note:
3140277 - TR: W-2 PR 21 not printing the employer phone field

Kind regards,
Graziela

[alicia_robinson]

Graziela -

Do you know if SAP will be removing the tax types they added for the WA LTC?  I know we are expecting BSI to release TUB 74 to rescind these taxes, but we are wondering how this is going to work with all the exemptions we have already set up on IT0235.  We know we can take the tax types out of the tax model to stop withholding the taxes, but we aren't sure we won't to undo the hundreds of exemptions we've already set up since WA has stated in the BSI release "Continue to maintain copies of exemption approval letters for workers who’ve provided them".

Thanks for any input!

[CarlosAccorsi]

Hello Alicia,

Please check SAP Note 3136513 - BSI: WA cares fund tax updated for tax types 113 and 114.
It has been updated with the latest news of WA Cares Fund.

Sincerely thanks,
Carlos

[CarlosAccorsi]

Hello Community,

Please check SAP Note 3136513 - BSI: WA cares fund tax updated for tax types 113 and 114.
It has been updated with the latest news of WA Cares Fund.

Best Regards,
Carlos

[alicia_robinson]

Carlos -

Thank you for this information, but this does not answer my question.

I know BSI is rescinding the two tax types -113, 114 - but does this also mean that SAP will remove these tax types from their tables?  We have a large employee presence in the state of Washington and unfortunately we are one of the companies that went ahead to withhold the tax from these employees.  We also have hundreds of employees who got the exemption letter from the state and we had to exempt them on IT0235 so they would not have the tax withheld.  Per the BSI release we should continue to hold these exemption letters so we would like to also hold these exemption set ups on IT0235 as well, but if SAP removes the tax types from the tables how will that work?

 

[Matt_Fraser]

Oh, that's a good question. I hadn't thought of this angle. We also tracked the exemptions on IT0235.

[Matt_Fraser]

TUB 74 was released a few minutes ago (or at least I got the email notification a few minutes ago). I just looked through the cover sheet, and despite BSI's notice to customers and SAP's update of Note 3136513, there is no mention of anything for Washington at all in this TUB.

Is this an oversight on the cover sheet? Are the tax types rescinded or not? It occurs to me that perhaps BSI has elected to spend more time on this due to Alicia's question about what to do with tracking exemptions on IT0235?

[alicia_robinson]

Hi Matt -

I just checked the TUB 74 itself and there is NOTHING in it for Washington.

It's looking more and more like it's going to be a very interesting year for taxes.....again!

 

[Matt_Fraser]

Look at it this way: if it wasn't so convoluted, they wouldn't need us to figure it out! 😉

[Matt_Fraser]

Carlos,

Just a heads-up, in case you didn't see it in the other part of this convoluted thread, but BSI just released TUB 74, and despite their notification that it would rescind 113/114, in fact they are not in the TUB (at least not on the cover sheet, and I have reason to believe the cover sheet is accurate). There's nothing for Washington in this TUB at all.

--Matt

[graziela]

Hello all,

Blog has been updated with SAP note:

3144794 – TR: Year end 2021 additional U.S. tax reporter changes for the city of Grand Rapids.

Kind regards,
Graziela

[CarlosAccorsi]

Hello Alicia/Matt,

I'm reviewing this topic internally with the developers. I believe that a new version of note 3136513 will be released.
I will keep you posted.

Thank you,
Carlos

[CarlosAccorsi]

Hello Alicia/Matt,

A new version of SAP Note 3136513 has been released.
As per keeping the employees exemptions, the developer update is that you can keep the already created IT0235 records with no issue.

Best Regards,
Carlos

[Matt_Fraser]

Thanks Carlos. I had just noticed the update shortly before getting the notification about your post here.

As an aside, are you aware that, for some reason, most of your posts trigger a double notification? At least they do to me, but this only happens with your comments, not anyone else's. It's very curious.

[psrinivas12]

Hi Matt,

Yep, for Carlos' posts, I get 2 notifications as well.

[alicia_robinson]

Thanks for the quick turnaround on this question Carlos!  It's much appreciated.

I also get 2 notifications each time and only for you.

[graziela]

Hi Carlos,

This is the same for me. 🙂
I have received 2 emails today.

Cheers,
Grazi

[CarlosAccorsi]

Hi all,

Thank you for the update.
I'm not aware of anything I'm doing differently from my colleagues, but I will be checking on that 🙂

Best Regards,
Carlos

[jahnavi_kavuru]

HI,

941 form for Q1 2022, is not checked for the quarter. Schedule B is good though. Does any one else have the same issue?

941 Employer Returns Q1 2022

Thanks,

Jahnavi

[Randall_A]

Yes, the quarter 1 box is greyed out.

The form also states "Rev. June 2022".

 

Form 941 2022

[Venkat61]

Hello everyone,

We are having peculiar issue. W-2 manual adjustments are showing on the W-2s in the test runs, but not in the production run.

Tax reporter is ignoring all employees with manual entries. Any one has the same issue. Can you please let me know how to resolve this issue?

Thanks,

Venkat

[psrinivas12]

Hi,

We are seeing some differences in tax amount for tax type "Payroll Expense Tax" for NY METRO COMMUTER TRANSIT DISTRICT Tax authority NY1P, depending on whether we populate NY1P in  the Work Tax Area field or 'Source Tax authority" field of IT 208.

Also, retro payroll back to 2021 is creating a short dump if we use NY1P in the source tax authority field, because we have assigned the tax model to NY1P in T5UTE only with a start date of 01/01/2022.

Please let me know how you are handling this change to tax type 19 starting 01/01/2022.

Thank you in advance.

Paddy.

[nitinjain]

Hello Graziela,

We have a question regarding general instructions for online W2  forms. According to IRS section 2.4- Electronic delivery of form W-2 and W-3 recipient statement, it clearly states that electronic format complies with the guidelines in the document and contains all required information described in the 2021 general instructions for forms W-2 and W-3. For online w2 forms produced by SAP we do not have general instructions printed on back of form.

So, do we have any plans to provide the general instructions for online W2 forms.

Thanks

Regards

Nitin

[jahnavi_kavuru]

Hello Graziela,

Is there any update on 941 Q1 2022 form? The box is greyed out.

Thanks & Regards

Jahnavi

 

[CarlosAccorsi]

Hello Jahnavi,

The development team is working on an update on 941 for Q1/2022.
This is expected to be released by the end of this month. Once released, this blog will be updated.

Kind Regards,
Carlos

[kimg_sage]

Hi Graziela,

We are attempting to execute our first quarter Indiana SUI report and receiving an ABAP abend.  We did the manual steps for note 3132959 after receiving a termination with the message 'Form HR_F_WLIST_IN'.  When we try to execute it now, we get the following error:

Here's what we did in the update:

This field was manually added via a note while applying the changes for MA and OH W2 in mid- January:

Here's the structure and it is missing the field HIRE causing the error:

We were hoping you could steer us in the right direction.

Kind Regards,

Kim

[CarlosAccorsi]

Hi Kim,

The root cause here should be indeed the missing field on the structure.
In order to updated it, please proceed as detailed below. Then, please retest the scenario and check the results.

1. In transaction SM34, maintain the V_T51T8 view cluster selecting Country Grouping 10.
2. Select the Tax form HR_F_UNEMP_IN and double click on the Tax forms fields option on the left pane.
3. Select the entry HIRE, and unflag the field "Form Processing Indicator" and Save.
4. Select the entry HIRE, and flag the field "Form Processing Indicator" and Save.

Sincerely thanks,
Carlos

[kimg_sage]

Hi Carlos,

That did the job!  Greatly appreciate your quick response and assistance.

Thanks,

Kim

[CarlosAccorsi]

Hi Kim,

I'm glad to hear that it worked 🙂

Kind Regards,
Carlos

[former_member649267]

Hi Team,

OHIO LOCALS tax authority are missing in SAP table T5UTZ.

1) Ohio Local "Northwest LSD" with school district code of 3113 which belongs to Hamilton county.
2) Ohio Local "Edgewood CSD" with a school district code of 0901 which belongs to BUTLER County.
3) Ohio Local Lakota LSD with a school district code of (0904) belongs to butler county.

 

All the above is missing in SAP in table T5UTZ.

Please let me know when the above tax authority will be released in SAP, so i can start my configuration changes.

[carolinamacks]

Hi Hemanth,

I took over your case and I am going to proceed with the investigation.
As we have confirmed, the taxes for these authorities are 0.00 now.

Kind Regards,
Carolina

[former_member649267]

Hi Team,

Issue with /711 wage type.

From TUB 74 and 75, BSI has activated tax type 11 for "CO, IL, MA, MN, NJ, NY & PA states". We have implemented this TUB and upon running payroll i see only /411 (for $21.00) and /711 is missing in the employee RT. When an employee has supplemental wage types of a positive amount.

When the same employee has a positive amount of 2600.00 and negative amount of -100.00 in supplemental wage types. System process both and it brings a /711 of -100.00 and error out when we process payroll. Rule where it stops is given below.

PTCRT UNEG GEN Y

This is happening in PROD. Please take a look and kindly do the needful.