U.S Tax Reporter Year End 2024

[graziela]

Another Year with our U.S. Tax Reporter Year End blog. This blog will be updated with tips, best practices and, SAP Notes related to this subject.

ASUG Webcast

ASUG Webcast: HCM U.S. Payroll and Tax Reporting 2024 Year End Update 

Data: October 23, 2024

Time: 10:30 a.m. Pacific Time (12:30 p.m. Eastern Time)

Duration: 1 hour and 30 minutes

Speakers: Viswanath Ramamurthy (Product Manager); Attreyee Banerjee (Product Manager); Boris Cruz (Product Owner)

Abstract: This presentation will provide an annual update for SAP customers on SAP HCM U.S. Payroll, Benefits, Tax and Tax Reporter solutions with focus on Legal Changes and Enhancements. We will also have product experts, developers and product support on the webcast actively answering to your submitted questions.

Register at: SAP HCM US Payroll, Benefits and Tax Reporting Year End Update 2024

Year End Notes

3505230 – U.S. Tax Reporter Year End 2024 Announcement
3507437 – Year End 2024 Phase I for U.S. Tax Reporter 
3528591 – TR: Year End 2024 Phase II for U.S. Tax Reporter
3551406 – TR: Year End 2024 Phase III for U.S. Tax Reporter
3505579 – W-2 / 1099-R Forms, Envelopes and PR Approval letter for year 2024 
3542791 – TR: Alabama Overtime Exemption reported on W-2
3548310 – TR: Vermont Child Care Contribution in W-2/W-2c Forms Box 14 and Electronic Files
3550830 – TR: Q4/2024 functional changes for U.S. Tax Reporter
3545414 – TR: Year End 2024 Additional Changes for Puerto Rico Tax Reporter

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
How to find Magnetic Media Line value in Tax Reporter
How to find particular Box value in Tax Reporter
How to test W-2 Online Services - ESS

KBAs (Knowledge Base Articles)

3081097 – KBAs (Knowledge Base Articles) for Payroll USA

Notes for Limits

3537136 – BEN: Annual limits for tax year 2025
3551764 - GARN: IRS publication 1494 for tax year 2025
3557622 - GARN: Adjustments to Figuring Amount Exempt from Levy (V_T5UGE) view

Educational Videos

2480185 – TR: Tax Reporter – Online W-2 Enhancements videos
3537136 – BEN: Annual limits for tax year 2025
In addition, you can find detailed Tax Reporter documentation on SAP Help Portal. under HCM Local Version for the United States. 

If you have questions about 2024 Year-End Tax Reporting, you can post it in the comment area of this blog.

Kind regards,
Graziela

[CarlosAccorsi]

Hello @TimDempsey,

I believe this has been corrected by note 3534902 (BEN: Section 109 higher catch-up limit considered for employees above the age limit).
Would you please apply it on your system and then kindly retest the scenario?

Thank you,
Carlos

[CarlosAccorsi]

Hello @PrakashGone,

I see that you have already addressed the scenario for Massachusetts Surtax by a SAP ticket.
In any case, refer to KBA 3495180 (Estimated Gross Wages (EG:) parameter not displayed in BSI interface after implementing the SAP Note 3439661 – TAX: Massachusetts – Applying the surtax to supplemental payments).

Best Regards,
Carlos

[cchennault]

Looking for Phase II release.  Last I heard was "around Thanksgiving",  Any ETA?

[TimDempsey]

@CarlosAccorsi  I noticed the latest attempt to fix this "Super catch up" on note 3534902 - we decided to wait for the D9 support packs.

[graziela]

Hello @cchennault this is planned to be released by the end of this week. When it´s ready I will post here.

The note number is 3528591 (you cannot access) but you can keep an eye on it.

Kind regards,
Graziela

[CarlosAccorsi]

Hello @3Dianjo,

Could you please confirm that you are validating constant 401HC on view V_T511P?
As you already have note 3470796 delivered by support package on your system, it should already be there.

Thank you,
Carlos

[CarlosAccorsi]

Hello Community,

SAP Note 3528591 (TR: Year End 2024 Phase II for U.S. Tax Reporter) has been released.

Happy Thanksgiving!
Carlos

[Matt_Fraser]

Good morning all,

Do we have any update on when BSI might release the updated Washington PFML rates for 2025? We've seen these coming out in the past few weeks for other states, and the official rates have been available from the State for a few weeks, and we're getting close to the wire (one thing to note: Washington does not allow updated rates to be charged to employees retroactively, so it's imperative to have them in place before the first payroll of the new year, which we start running in mid-December, else the employer has to absorb the difference).

Cheers,
Matt

[hemnth_kumar]

Hi @ChandraV @Matt_Fraser @graziela @CarlosAccorsi 

We are in SAP HR 604 and recently upgraded support stacks from J8 to L0. During this upgrade we kept the TUB level at 147 Cyclic K2.

Before we apply support stacks, we ran a full payroll for all payroll area and saved the file (pay period 24 for bi-weekly and pay period 47 for weekly). Then we apply support stacks to L0, ran full payroll again for the same pay period  (pay period 24 for bi-weekly and pay period 47for weekly). Now we compare both the run and find out some discrepancies for Mississippi employees state with holding with a difference of $1.00. This   Scenario is explained below in detail.

EE: XXXXXX in HQ1 (Quality system). This employee is a weekly employee who belongs to payroll area “XX”. When we run payroll ir regular payroll for Pay period 47 2024.

This employee has regular time wage types and one supplemental wage type 3013. The supplemental wage type 3013 has an amount of 30.59. During pre the calculated tax for 30.59 is $2.00 and after implementing support stack, calculated taxes for the supplemental amount for $30.59 is $1.00.

Does anyone has this issues? or if you find any note resolving this... please do let me know.

[graziela]

Good Afternoon,@Matt_Fraser 

I have shared your comment with Product Owner.
When I have any news I will post here.

Kind regards,
Graziela 

[graziela]

@hemnth_kumar I have seen you already opened a SAP case. My colleague is checking the scenario in your system and will get back to you.

Kind regards,
Graziela 

[Anjali]

Hi SAP experts, 

We are wanting to remove mapping of a wage type from Box 12 in W2 form and re-map to box 14 with code RSU. Was able to successfully delimit the mapping from box 12 but, we unable to populate the code and amount of wage type in Box 14 for W2 & we are not seeing the amount in third party vendor file. Can you tell us what config we are missing? Let us know if a SAP ticket needs to be created. Here is the screenshot of tax form group & field.

Thankyou 

Anjali

[CarlosAccorsi]

Hello @Randall_A,

I've been checking internally among the Product Manager your question for the envelope sizing.
The Product Manager confirmed that both our and the Taylor envelope sizing would be ok, but emphasized that this is only a recommendation, meaning that the customer should also verify with the IRS if the Taylor envelope sizing is compatible, if necessary.

Thank you,
Carlos

[TimDempsey]

Regarding the Secure Act 2.0 "Super" Catch up:

We have loaded service pack 139 (D9) which was released on Thursday 5 Dec 2024.

First of all, the extra Catch up was given to anyone born between 01 Jan 1962 and 31 Dec 1965. I believe this complies with the IRS language"applies for individuals who attain age 60, 61, 62, or 63 in 2025 ". This was not working previously but looks good now.

The maximum amount for anyone in this age group for 2025 is $34,750 (31,000 for anyone 50+ AND 3,750 Super catch up).  The maximum amount for 2024 was $30,500 for anyone 50+.

The issue we have is with the wage types that are getting populated.  In 2024, the total amount of 30,500 all went to the same wage type (configured in V_5UBA_WT).  In 2025, 23,500 went to this wage type, and 11,250 went to the new "Super Catch up" wage type (configured in V_T7USBEN03). However, only 3,750 should be considered the Super Catch Up portion, and the remaining 7,500 is the regular catch up that is available to anyone 50+.

We plan to create a PCR to split the Super Catch up Wage type into 2 components: The first 7500 will be moved to a different WT, and any amount that is greater than 7500 will remain in the Super catch up WT.

[Matt_Fraser]

@TimDempsey , I wonder if the reasoning for splitting all catch-up amounts (whether "super" or not) has to do with the new IRS rule, originally intended to into effect with 2025 but now deferred to 2026, where all catch-up amounts (whether super or not) will need to go to Roth accounts. This could be intended to get that tracking mechanism into place now for this near-future requirement.

[TimDempsey]

@Matt_Fraser- I was thinking the same thing. They have already provided the /TB6 wage type (Sec.Act -Prev. year comp) to determine which employees are required to do so.

[evelyn_barbosa]

Hello Community,

Does anyone know if Federal changes for 2025 are forthcoming anytime soon from BSI?

Thanks,

[Sunilnaidu20201]

@graziela  Could you please provide an update on when the IRS Publication 1494 for tax year 2025 Snote will be released to customers?

[graziela]

@Sunilnaidu20201 Hello Sunil, I have shared the legal change with the Developer, once they release it I will post here in the main post.

If you cannot wait for the note´s publication you can update the tables T5UGE and T5UGF following the IRS requirement, as this note just contains manual implementation. 

Kind regards,
Graziela 

[hemnth_kumar]

Hi @ChandraV @Matt_Fraser @graziela @CarlosAccorsi 

We are in SAP HR 604 and recently upgraded support stacks from J8 to L0. During this upgrade we kept the TUB level at 147 Cyclic K2.

Now when we go to PUOC_10 transaction code in production, payment number are missing for some pay period that has retro. Please do let me know why this is happening and is there a corresponding note that resolves this issue.

i found a note "3295248" please do let me know if this is going to resolve this issue.

[dharitree_ravat2]

Hello,

Regarding Payment number missing from OCWB, I noticed that in BT table of payroll results Date and time are not updated when it retroed, tables REGUH and REGUP are updated correctly.

Implemented note 3543393 but didn't help.

Thank you,

Dharitree Ravat

[graziela]

Hello @hemnth_kumar and @@dharitree_ravat These questions are related to off-cycle workbench so I recommend to you to check in a PY-XX forum or to open a case under this component. As the main topic of this forum is for Tax reporter.

[dharitree_ravat2]

Thank you @graziela.

This has started happening after support stacks were applied so we thought of reaching out.

[JS221]

In the new code for Secure Act 2.0 Sec 109, the following function does not appear to trap successfully the bplan information from PA0169

HR_BEN_US_ADJUST_CATCHUP_LIMIT

If that hurdle can be gotten past, we also noticed that the delivered payroll function LIMIT doesn't observe the same catchup limit adjustment details, so we get the 11,250 in the new function with an appropriate bplan, but then it gets undone back to the 7,500 with the LIMIT payroll function.

Has anyone else dealt with this issue or fixed this same issue?

Thanks

[joe_jones2]

Hi, when will the 2025 federal tax brackets be released by BSI/SAP?

[LenaSumrell1]

Hoping someone can assist me with the new Ben section 109 configuration for higher catch up. I have added all notes that I have seen in this blog, completed config for min and max age for higher catch up and still cannot get it working. I am not seeing the amount increase. I am still only seeing regular contribution amount. I have seen one user on here that seemed to have gotten it working only after applying support pack level 139 D9. Is that the case for everyone else?

I have applied 3470796, 3533930 and 351161. I do see that there is another note that is probably going to be applicable 3534902 but was thinking I didn't need to apply this to get it to work.  Anyone else get it working?

@graziela can you assist?

[TimDempsey]

@LenaSumrell1 - We did get it to work,  we were always able to see the higher catchup amount after release 137 D7, but the extra Super catchup was given to employees who were not entitled. This problem was ultimately fixed by D9 139 but the amount was always accurate. 

We configured V_T7USBEN03, with the same savings plans configured in V_5UBA_WT.

[rosette_vaughn2]

Hi Support,

In manual instructions for SAP Note 3536013 (DE Paid Family & Medical Leave), table V_T5UTT is not allowing configuration for new entries.  Is there a solution for this?  Please advise.

Tks,

Rosette

[Mandarr_Shinde]

Hi,

Issue with De minimis Vermont legislation calculation issue

We setup the system for the De minimis legislation for the state Vermont withholding but we are not getting the expected results. Also, Updated the feature 10EET to incorporate the Residence and Work tax area checks.

Has anyone faced the same issue. Please let us know if you have implemented any solution to overcome this issue.

Thank you !

Regards,

Mandarr 

[joe_jones2]

Hi Graziela or Carlos

Hi, when will the 2025 federal tax brackets be released by BSI/SAP?

[dduron]

Thanks Joe,

I am also interested in knowing when the 2025 federal tax tables will be released by BSI.

Debbie

[jwiblepasshe22]

FYI, I found this on the BSI portal, under “Authority Radar” it appears the new Federal tax tables will be part of the next TUB, 156, which I am assuming will be released this week since 155 was released on 12/12 and the tables were published by the IRS on 12/10/24.  :

Regards, Jeff Wible

[ChandraV]

Hello team, noticing an issue with maintaining  zero experience rate in BTXRATE table maintenance.  Not able to select either of the check boxes (Experience rate zero and Maximum Wages Zero) in BTXRATE. Looks like a recurrence of the issue fixed in note 2876817 (V_BTXRATE & V_BTXOVFR: not saving Experience Rate and incorrect number of digits for Tax Type). We are on SP level 608 D7 and this note is already in the system. 

Anyone is noticing this?

Thanks
Chandra

[rosette_vaughn2]

Hi, this is urgent as I can't continue configuration of DE PFML tax types.  Can someone please reply to my previous post regarding manual instruction configuration for note 3536013.  Table T5UTT is not allowing new entry for DE PFML.  Please advise solution. 

Tks,

Rosette 

[ChandraV]

@rosette_vaughn2 not sure what you mean by "not allowing new entry".  Post a screenshot of the error you are seeing. You need to use T5UTT for maintenance, not the view table (V_T5UTT).

Thanks

Chandra

[LenaSumrell1]

@TimDempsey or anyone else that has gotten the higher catch-up rate to actually work. I can only see that the regular catch up is working. I added new record with original age 50 and then 60-63 in the section 109 but still not seeing an increase on the amount.  I only have one plan for 401K/catchup for this table. Not seeing what else I can do different. Any help would be greatly appreciated.

Regards,

[LenaSumrell1]

@rosette_vaughn2 are you getting an error? I was able to enter my entries in T5UTT.

Regards,

[rosette_vaughn2]

Chandra and Lena, I was using view.  Issue resolved.  Thank you!!

Rosette 

[rosette_vaughn2]

Hi Support, 

Do you have any idea when the 2025 updates for the following will be released.  WA FLI wage base & rate update, FED withholding update, Maine PFML update.

Tks,

Rosette

[graziela]

Hello community,

SAP notes released:
3548310 – TR: Vermont Child Care Contribution in W-2/W-2c Forms Box 14 and Electronic Files
3550830 – TR: Q4/2024 functional changes for U.S. Tax Reporter

Should be available by the end of the day:
3551406 – TR: Year End 2024 Phase III for U.S. Tax Reporter

Happy Holidays!
Kind regards,
Graziela 

[graziela]

@rosette_vaughn2 As far as I know they will be releasing the changes in Regulatory Bulletin 156. 

[Kim_Grantham]

The IRS has published Publication 1494 for 2025.  Will you be releasing a note soon? 

Publication 1494 (Rev. 1-2025)

Thanks!

Kim

[Kim_Grantham]

Duplicate, please disregard.

[graziela]

Hello @Kim_Grantham,

Yes, developers are already working in a note.
Note number is:
3551764 - GARN: IRS publication 1494 for tax year 2025
It´s planned to be released next week.

Kind regards,
Graziela

[juli_thompson]

Good Afternoon,

Our W2 vendor mentioned Employers are required to report amounts related to the NY Healthcare Worker Bonus program in box 14 of Form W-2.  I have not seen where a note has been released to provide the setup for this reporting on the form.  Our vendor mentioned they 'thought' the sample code could be 'NY HWB'.  Will/or has SAP released a note with this information and I have missed it? 

Has anyone set this up for 2024 reporting yet?

Juli

[TimDempsey]

BSI Regulatory Bulletin 156 was updated in our system over the weekend, for all those who were asking about it.. 

[jbetanpr]

Hello,

When BSI will release the updated Washington PFML rates for 2025? It was not included in the 156 bulletin.

Regards

[graziela]

SAP note 3551764 - GARN: IRS publication 1494 for tax year 2025 has been released.

[graziela]

@juli_thompson This is not planned to be delivered. Do you have the link with this legal requirement? 
Thank you,
Graziela 

[graziela]

@jbetanpr I have reached out the Developer again with this question.