W-4 Form for Year 2020

[graziela]

Hello community,

This is our W-4 discussion blog. If you have questions about topic, you can post it here. This blog will be updated with tips, best practices and, SAP Notes related to this subject.

2760918 BSI: TaxFactory 11.0 - DDIC Changes
2763228 BSI: TaxFactory 11.0 - Function Modules Changes
2770832 BSI: TaxFactory 11.0 - General Technical Changes
2780204 BSI: TaxFactory 11.0 - Changes required for TaxFactory SaaS
2790902 BSI: TaxFactory 11.0 - Payroll Driver Changes
2845130 Prerequisite objects for SAP Note 2845128
2853402 Correction of report NOTE_2845130
2845128 TAX: W-4 Form for Year 2020 - Master Data (SAP_HR)
2850174 TAX: W-4 Form for Year 2020 - Master Data (EA-HR)
2845529 TAX: W-4 Form for Year 2020 - ABAP Webdynpro ESS and Renewal (EA-HR)
2870221 Post-implementation objects for SAP Note 2845529
2863489 Prerequisite objects for SAP Note 2855896
2855896 TAX: W-4 Form for Year 2020
2870177 TAX: W-4 2020 - Not reading infotype 0210 for periods in 2019 with checkdate in 2020
2871658 TAX: Missing field labels for ESS W-4 2020.
2873856 New W-4 fields not disabled in PA30/PA40 for Exempt employees after applying SAP note 2872242
2872242 TAX: Exempt indicator does not change fields for W-4 for year 2020
2875533 Delimited Filing Status Description resulting in validation error in Decoupling Framework in specific situations
2876794 TAX: NWI parameter misplaced in BSI Interface for TaxFactory 10.0
2880390 W-4 ESS: Changing field property and usage of BAdI HRXSS_PER_BEGDA
2877736 TAX: W-4 Payroll log changes for TAX (PC22T) table
2886638 Prerequisite objects for SAP Note 2881830
2881830 TAX: Additional W-4 Payroll log changes for TAX (PC22T) table
2884856 - Prerequisite objects for SAP Note 2880846
2880846 - TAX: Lock-in letters not overriding New W-4
2888094 - TAX: Lock-in letters override for W-4 exempt
2935484 - TAX: Payroll incorrectly using Hire Date to read Infotype 0210
2944973 - TAX: New Parameters for Formula Number Decision) and all its prerequisites should be applied.
2952323 - Prerequisite objects for SAP Note 2951750
2951750 - Redesigned Withholding Compliance Lock-In Letters 2800C and 2808C

 

IMPORTANT -> these notes contains a lot of manual steps, that must be implemented.
- There is a minimum Support Package requirement to these notes to be implemented.

Improvement for ESS ABAP WebDynpro application.

2876047 Prerequisite objects for SAP Note 2868576
2868576 - W-4 ESS - Allowing the configuration of begin date in standard ESS
With this enhancement, users will be able to set the start date of the records created in their ESS. More information can be found in the notes.

2878349 - PAYSLIP: W-4 Form for 2020 - Fields enablement for PE51
2881474 - PAYSLIP: W-4 Form for 2020 - Fields enablement for PE51 - additional functionalities
2881471 - Prerequisite objects for SAP Note 2880845
2880845 - Tax Infotype Summary Report for W-4 2020
2881773 - W-4 ESS: ESS Web Dynpro enhancements

Important Basis Note correction:
2844646 - Ignore the local class definition, implementation, definition deffered, definition load , definition local friends changes

FAQ blog:
https://blogs.sap.com/2019/12/16/w-4-employees-withholding-certificate-and-federal-income-tax-withho...

States W-4 blog:
https://blogs.sap.com/2020/04/03/w-4-state-withholding-tax-calculation-2020-based-on-the-state-or-st...

Phase I and II W-4 State:

2895426 - Prerequisite objects for SAP Note 2878657
2878657 - 2020 State Withholding Tax Calculation - Based on the State (or State-equivalent) Withholding Certificate (SAP_HR) - Phase I
2891794 - State Withholding Tax Calculation - Based on the State (or State-equivalent) Withholding Certificate (EA-HR) - Phase I
2916238 - 2020 State Withholding Tax Calculation - Based on the State (or State-equivalent) Withholding Certificate (SAP_HR) - Phase II.

Regards,
Graziela

[Pazahanick_Jarr]

Well said alicia.robinson and the sad part of this is that it is not ultra complex if the people doing it or testing it internally had ANY idea on US Payroll and Taxation as things like check date and customers have pay periods that start previous year and the ESS functionality are VERY commonly known and should have been caught WELL before being released to customers.  They are things that steve.bogner3 or myself would have advised (if asked) or caught in one hour of testing and trust me we are no rocket scientists (sorry Steve) 🙂

Ultra scary for SuccessFactors EC Payroll customers as many don't have basis team (so can ask SF to apply the notes) but given so many manual changes many were sold the "dream" that moving to the "cloud" would mean SAP/SF would handle these types of things which they find very quickly support is VERY similar to what is need in OnPrem SAP Payroll and are ill prepared.

Also shows with the recent layoffs (Q1) that SAP has lost some of their payroll expertise and no mention of Next Generation Payroll (probably not coming anytime soon) and would question if if takes you 20-30-40 OSS Notes to get something like W4 working could they even build a new payroll engine which means SAP Payroll customers will have to move to EC Payroll (same code line and same issues + no real ROI at this time as done consulting engagements at several customers to research) or the "new" side car in 2023 (to keep onPrem Payroll) which will be an "upgrade" and sure SAP will sell it as innovation without disruption but we all see how complex even a "simple" change like this truly is for SAP these days.

Workday is winning many former SAP HCM/Payroll Fortune 500 US Customers and it is not because they offer a better payroll engine but partially because customers are tired of dealing with items such as the above, getting no enhancement requests on the major voted items for years and poor support and paying a lot of maintenance $ along the way.   SAP/SF - No excuses just do better and on an aside would love to see your test script (that was obviously written totally wrong) and what controls review you had in place to release something as poor as you have in this case.

[former_member91930]

Hello All,

We are in “SAP_HR 600 0179 SAPKE600IO Human Resources”  and bsi  TUBS up to 178 but the  did not update T5UTX table for SSA FED 003 (SSA) and  FED 004. I tried to update manually the table, I was able to update the 137,700 but the  % rate is not getting saved.

Any inputs

Thanks

Murali

[jwiblepasshe22]

FYI, SAP has posted a new informational blog on this topic that provides some of the details and Q&A we have been looking for:

W-4 Employee’s Withholding Certificate and Federal Income Tax Withholding for 2020

https://blogs.sap.com/2019/12/16/w-4-employees-withholding-certificate-and-federal-income-tax-withho...

[graziela]

Hi Murali,

Did you try to update BTXRATE, instead of T5UTX?

Regards,
Graziela

[evelyn_barbosa]

Hi Liana,

Awesome thank you soooo much!!

Evelyn Campos

 

[SRB86]

We are also on EA-HRCUS 607 and seeing the alphanumeric string before the tax authority in ESS.

Note 2871658 has not been updated for our version.

 

 

[graziela]

Hi Stanette,

Did you implement note 2870221 Post-implementation objects for SAP Note 2845529?
Regards,
Graziela

[former_member292658]

Will this also include changes to match the form? For example, there is no longer a checkbox concerning last name differs from that shown on the SS card.

 

 

[alicia_robinson]

Will this also include changes to the IT0210 screen for FED?

I'm sure I'm not the only one who did NOT notice that this checkbox was no longer on the 2020 W-4.

[former_member87421]

Hi kelli.gordon2 ,

Do you mean the checkbox below?



This one remains the same.

 

Regards,

Virginia

[former_member87421]

Hi alicia.robinson

 

Check the answer above.

Regards,

Virginia

[former_member75908]

We did implement the following note to our system, still facing the issue

 

Pre req#4 2845130, which delivers prerequisite objects to this delivery. Implemented
2020W-4#1 2845128 - TAX: W-4 Form for Year 2020 - Master Data (SAP_HR);MA2 Implemented
Note: Manual steps
2020W-4#2 2850174 - TAX: W-4 Form for Year 2020 - Master Data (EA-HR); MA1
Note: Manual steps
2020W-4#3 2845529 - TAX: W-4 Form for Year 2020 - ABAP Webdynpro ESS and Renewal (EA-HR); MA1
Note: Manual steps
2870221 Post-implementation objects for SAP Note 2845529 Implemented **late after 2855896**
NOTE_2870221
2863489 Prerequisite objects for SAP Note 2855896
Pre req#5 2870071 TAX: Filing Status customizing for W-4 for year 2020
Note: Manual steps
2020W-4#4 2855896 - TAX: W-4 Form for Year 2020; MA4
Note: Manual steps
2020W-4#5 2870177 TAX: W-4 2020 – Not reading infotype 0210 for periods in 2019 with checkdate in 2020
2020W-4#6 2871658 - TAX: Missing ield labels for ESS W-4 2020. Non Applicable
2872242 TAX: Exempt indicator does not change fields for W-4 for year 2020     Impl12/16/2019

[former_member82007]

Chandra, we have installed the TUBS up to and including 178. When processing a 2020 payroll for a person claiming Married – 3. I am not seeing any messages to indicate Single status is being used. Note the filing status 02 – Married in T5UTK has been end dated effective 12/31/2019.

[alicia_robinson]

NEW NOTE -

2873856 New W-4 fields not disabled in PA30/PA40 for Exempt employees after applying SAP note 2872242

[debbieb_bcps]

Hi, Graziela,

I am confused by the screenshot of the "new" W4 form for 2020.

None of these fields look new - as an example, it says Number of Allowances, but the Number of Allowances has been replaced with Credits for Dependents. It is also missing the fields for Other Income, Deductions and the check box for "two jobs" (2(c) on the paper W-4).

Debbie B

 

[alicia_robinson]

Virginia -

We don't use the SAP ESS process.  For myself and probably for other customers, I'm looking to see if the box will be removed from the IT0210 screen as other fields have been (EIC, allowances) for any dates 1/1/2020 and forward.  SAP has removed these because they are no longer valid for the 2020 W-4 and one would only assume this checkbox would follow those same guidelines.

Thanks

[debbieb_bcps]

Hi, Graziela,

We have applied the notes released to date so our IT0210 has the revised W4 fields. 

We have ESS Webdynpro for Java, not ABAP. Apparently the note released for ESS is only for ABAP, so we can’t see the form in ESS.

We can have new employees complete a paper form, but they won’t be able to maintain the form in ESS.

Plus, if only the old W4 form is visible in ESS, what will happen when the employees try to revise it after Jan 1st and the fields don’t exist on IT0210? Will we have to remove access to the form?

When is SAP going to release a note for organizations like ours that use Java?

Thanks,

Debbie B

[former_member292658]

Hi Virginia,

Yes, there is no longer a checkbox on the 2020 W-4 form. It is only text  -

Does your name match the name on your social security card? If not, to ensure you get credit for your earnings, contact SSA at 800-772-1213 or go to www.ssa.gov.

Also, the *If married, but legally separated, or spouse is a nonresident alien, select the "Single" option is also not on the 2020 form.

 

Thanks,

Kelli

[former_member66268]

sapuser33 - the message I was referring to comes up in the US tax processing log inside the payroll log - enable display log > navigate to USTAX leg of the payroll log > processing > BSI Messages and Status - here you will see any BSI messages that may pop-up for the particular employee.  In our case, I was testing with TUBs 172, cyclic v and as of that level the widower status isnt valid for federal.  I believe this is being corrected in cyclic w and level 178.

[jwiblepasshe22]

Yes, we are experiencing the same issue...not sure if there is a fix for this one yet.

[former_member87421]

Hi debbie.bouhenguel

 

Thanks for your comments. We'll replace the screenshot by this new one.

 



 

I think this one clarifies your doubts.

 

Regards,

Virginia

[SRB86]

Hi Graziela,

Note 2870221 Post-implementation was completed without error or warnings.

I did notice the manual steps indicate 607 level 98 but we are only on the minimum year end levels SAP HR E4 and EA HR 95.

Did the minimum required year end HRSP level change?

Best,

Stanette

[former_member633204]

Hi

We have many employees with married status 02 in our system. As per BSI, the married status has been divided into 2 different status - Married filing separately(03) and Married filing Jointly(04). Does all these employees need to submit the new W4 2020?
Can you please advise if SAP is going to provide any config option/override option to convert existing martial status 02 value to  Married filing Jointly(04), since most of the married employees file jointly.

Thanks for your help in advance.

 

[jwiblepasshe22]

SAP (and Kesagani), this is a very good question as we have also delimited both the Single (01) and Married (02) statuses per the guidance issued in previous OSS notes.

As we have not yet received the Federal tax tub from BSI (tick tock!) we haven't done full testing on the various scenarios but we really do not want to extend the date of the old Married (02) option past 12/31/2019 as it will then appear as a choice for users on IT210 and ESS and cause even more confusion.

 

Please advise, thanks, Jeff

[LarrySuttles]

Jeff and Kesagani,

It is my understanding that employees with Married status don't have to submit a new W-4, in fact no one should have to submit a new W-4 if they don't want to. SAP will still pass the MS:2 to BSI and BSI will calculate correctly. Same goes for number of exemptions (NE:). I have tested this with TF 10.0.W TUB 177 and this holds true so far, just have to wait and see if this holds true for TUB 179.

Larry

[former_member633204]

Hi Larry,

We have tested with TF 10.0.W TUB 177 & BSI is overriding MS:2 with MS:1. Got the below message.

"YOUR REQUEST TO USE  2 MARITAL STATUS FOR THE FEDERAL WITHHOLDING TAX IS NOT ALLOWED.   THIS TAX HAS BEEN CALCULATED USING THE  1 MARITAL STATUS."

Either BSI or SAP has to provide a way or option to handle MS 2 correctly for W4 2020.

 

[former_member641421]

Hi Kesagani,

With TF 10.0.W TUB 177

What is the beginning record of IT 210 for your test cases?

If the beginning record is before 01/01/2020, running payroll in 2020, the payroll still using Status 2 Married per Larry's Test

If the beginning record is from 01/01/2020, running payroll in 2020, the payroll will show as what you did.

Best Regards,

Ta

 

 

[gustavo_leuck]

Hi Larry,

You are correct. For employees that do not submit a new W-4 for 2020, the record for 2019 is still valid, and the marital status 02 is passed to BSI.

For employees that do submit W-4 for 2020, value 02 is not allowed anymore. Then, records starting from 01.01.2020 must use either 03 or 04 for married status.

Regards,
Gustavo

[evelyn_barbosa]

Hi all,

We have updated our Sandbox environment to 10.0W Tub 178 and when running an employee for the first pay period in Jan 2020 with an IT0210 having 02 Married with 5 allowances, it calculates the same taxes as the last check in December and BSI gives no messages at all.  This would be what I was expecting.

Am I missing something?

Thanks,

Evelyn Campos

 

 

 

[alicia_robinson]

Hello all -

I had a long conversation (one of many recently) with our BSI contact and this is what I have been told and understand.

For BSI, the MS:8 Widow(er) status is because other tax authorities have this option – it is NOT specific to FEDERAL. I told her that is where everyone is confused because the comment from SAP was to change T5UTK for Federal with these statuses.

For tax calculations, the MS:4 and MS:8 will use the same exact table. Therefore, it is our decision on how to word the text in T5UTK for this option (ex: MS:4 Married filing jointly or Widow(er) and this is likely how mine will be configured so it matches the 2020 W-4 wording.

Old marital statuses MS:1 Single, MS: 2 Married and MS:15 Married hold at single rate are all still valid.  This is because current employees are NOT required to complete a new W-4 for 2020 and current employees will still calculate using these statuses against the pre 2020 tax tables.

I hope this helps clear up the confusion for you and others as well.

And yes....tick tock on the IRS releasing the final tables!!  We are trying to anticipate how much if any change our employees will see and it's hard to do that when you don't have all the data to test!!!

[LarrySuttles]

 graziela.dondoni or virginia.soares

I am being ask by the business to add the new field amounts to the employee remuneration statements.

In the HR Form Editor, table “TAX” does not have the new fields from IT0210 available for displaying.

Is SAP planning on updating this table?

Thanks,

Larry Suttles

[graziela]

Hello Lisa/Stanette,

There is a new version of note 2871658, which is valid for 607.
Could you please apply it?

Regards,
Graziela

[alicia_robinson]

Ok so PANIC BUTTON time.….

What is everyone else doing for the states that use the federal W-4 as their state W-4???

Per another comment on the W-4 blog, SAP only plans to release the Federal level change.

How does this work for states like Colorado?  If we put CO on the IT210, it shows the old fields but our W-4 is going to have the new fields.

Has anyone else even thought of this?!?!?

[former_member633204]

Thanks Gustavo, Evelyn, Perry for clarifying.

If the IT0210 start date is prior 1st Jan 2020, then we didn't get the BSI override marital status message.
If the IT0210 start date is on or after 1st Jan 2020, then we got the BSI override marital status message.

Once TUB 179 is released, we need to verify the withholding tax calculation

[alicia_robinson]

All –

This is how I understand our marital status options need to be after discussions with our BSI contact.

I do not know how this works for the SAP ESS process since we do not use that.

[alicia_robinson]

Per BSI today:

The 2020 Federal tax table is scheduled for Regulatory Bulletin #179, which is scheduled for release on Wednesday, December 18, 2019, and the 2020 Federal QuickFormula will be updated at that time.

[LarrySuttles]

Just an FYI, I have submitted an OSS message (793830/2019) requesting the new fields be added.

[former_member66268]

I did a few tests yesterday (TUBs level 178, cyclic w) and this is what I found:

Marital status 2 (married) - from 1/1/2020 this status is invalid.  I created a new W4 from 1/1/2020 with MS=2 and BSI gave me a message: "Your request to use 2 Marital status for the Fed w/h is not allowed. This tax has been calculated using 1 marital status". Old W4 with status 2 works fine w/o any such message.

Marital status 15 (Married hold at single rate) - same message as above for 15 as well.

Marital status 3 (married filing separately) - no messages but calculated at "single" rate.

Marital status 4 (Married filing jointly) and 6 (HOH) worked fine as expected.

Marital status 8 (widower) - BSI accepts this status and calculates using table for Married filing jointly (4).  I dont buy BSI's argument of having this status for other authorities, not specific for Federal. BSI published this in cyclic w bulletin implying that "Widower" is a valid status for 2020 which is incorrect:

"The following Marital Status values will be used for 2020 Federal Withholding:

• Single or Married Filing Separately (MS:1 and MS:3)


• Married Filing Jointly (MS:4)


• Head of Household  (MS:6)


• Widow(er) (MS:8)"

Note that all my verification's with respect to the tax amount calculated under /401 is a comparative reference, I didnt hand calculate with IRS tax tables and compare the results.

Thanks

Chandra

 

[former_member87421]

Hi alicia.robinson

While this field is not part of the current W-4 form, it did not require us to prevent employers from capturing this additional data point. Therefore, this field does not affect payroll computations or subsequent processes.

 

Regards,

Virginia

[debbieb_bcps]

Hi, Graziela,

I opened an Incident on this issue:

797087 / 2019 W-4 for Employee Self-Service Webdynpro (JAVA)

If we can't offer an accurate W-4 form to our employees, we are at risk of being fined for not collecting/submitting accurately calculated payroll taxes in a timely manner.

We have had over 20,000 W-4 changes made via ESS since we rolled out that functionality and no longer have the staff to support paper forms.

Debbie B

[former_member66268]

Hello alicia.robinson - for 2020, in your screenshot, for "Single or Married filing separately" the status code should be 01 (the screenshot has 03), right?

[alicia_robinson]

Chandra –

My understanding is as follows:

MS:3 is the new status for 2020 for Single or Married filing separately.  This applies to anyone that completes a new W-4 effective 1/1/2020 or later.  This would use the 2020 Federal tax table

MS:1 applies to Single (pre 2020) and will still process for anyone that has a current W-4 prior to 1/1/2020 and does NOT complete a new W-4. This would use the 2019 Federal tax table.

[former_member78191]

Deborah,

Please provide details if you have resolved this issue,Thanks

[former_member78191]

Hi ,

We have applied OSS Note: 2845128 for W-4 Form for 2020 ,

2845128 TAX: W-4 Form for Year 2020 – Master Data (SAP_HR)

We can see the Infotype 0210 updated with additional fields but are unable to see screen fields in PA30.

Please suggest if we are missing any steps.

Thanks!

[former_member87421]

Hi hr.hclaxon

You can refer to the other W-4 blog, I answered to your post there.

 

Regards,

Virginia

[jwiblepasshe22]

Just logged into BSI, still no TUB 179....we start processing payroll for the 1st pay in 2020 tonight! Picked the wrong year to be a Payroll Admin!

[SRB86]

Hello Graziela,

We have applied the updated version but it did not resolve the issue.  I even deleted and recreated the 2020 W4.

The NOTE_2871658 program is updated with no errors as well.

Do I need to open an OSS Message for this one?

Regards,

Stanette

 

[former_member97775]

Hello, has their been any update on this scenario for CE clients?  Much appreciated

[LarrySuttles]

nevets6,

The SAP Product Manager stated:“The current design was based on the FAQ published by the IRS, “All new employees first paid after 2019 must use the redesigned form”. As the new assignment in 2020 would be first paid after 2019 , they must be required to submit a new W-4 and if not, be treated as a single filer with no other adjustments.”

I then replied to him directly with:

I am responding to you directly, as recommended by Graziela in our OSS message to SAP via Incident 722869/2019 concerning the new 2020 W-4 and Concurrent Employment.

When a current employee with a valid 2019 or prior W-4 has an additional assignment added in 2020,  for the same employer (EIN), a “New” employment relationship has not occurred. The IRS has not stated that a change in jobs with the current employer would be considered “new” and would require a 2020 W-4.

We feel your response above was not adequate and does not address the scenario presented. In addition, we can’t be the only customers using Concurrent Employment that this will affect erroneously.

His reply was:

Thanks for reaching out.  The IRS unfortunately does not provide guidance on whether a new W-4 is required or not in such a case. Not just concurrent employment, this situation occurs even for rehires ( irrespective of whether it us within or outside the 12 month window ). Even though an employer needs to hold on to an employee’s W-4 for a period of 4 years, there is no specific guidance on whether a new W-4 is required. Both of these are known situations with no specific guideline. It is always a good idea to  have any new employment contract to fill out a new W-4 to ensure that the information is current and also update the W-4s as there would be changes to compensation arising with the new assignment.

It is certainly not incorrect to request employees to furnish new forms especially if they are having a new assignment. We based the validation on the information that is available which was in the form of FAQ. If there is any documentation from the IRS that I may have missed and that you may be aware of that provides more clarity on this situation, please do share it with us and I am more than happy to review it and address any changes that may be required.

At this point I have met with my lead developer and we discuss what we might be able to do in-house. A lot of options came up, but nothing solid that we think we can implement, so we are at a lost at this point.

I think other customers will need to also contact SAP via an OSS message and request they do something.

Sorry I couldn't be more helpful,

Larry Suttles

[LarrySuttles]

Jeff,

I just checked and TUB 179 is now available.

Larry