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

[Euna]

Hi,

 

We're trying to apply note2881474 and my BASIS asked about new values in step 1-4 in the manual instruction.

 

There's only one field, WHFYR, is marked. Can anyone advise what is the other field?

 

Thank you,

Euna

[former_member80504]

We found the same issue after the application of TUB 182 and Cyclic W.

How did you resolve it?

[gregg_mcgrath]

Hi Deepak,

I opened a note with SAP/BSI on 2/7/20 and it seems to have stalled in their "Tier 1" support.  I have since inquired about the status repeatedly.  Each response being they are still working on resolving the issue.  I hoped that, with this blog entry, I could solicit additional inquires to SAP/BSI regarding the issue; possibly prompting them to consider a more timely correction.

Gregg

[gregg_mcgrath]

BSI has just reported to me that a correction is scheduled for bulletin 187 (4/1/2020).

[SAPSFHXM]

Hi erkhan ,

Appreciate you for sharing the final outcome of the issue.

Does the new server file has to come with upgrade (from Tax Factory 11)?

Where can we get the new server file or check if we have the new file in our own server?

And can we update the file one own or only BSI can do it?

We have same issue now, as we are in process of TF11 upgrade.

Regards,

Aditya

[SAPSFHXM]

Hi Team,

I am having same issue as erkhan .

We are in the process of upgrading to Tax factory 11.
With Tax Factory 10, we don't have any issues in payroll tax calculations.

Right now in upgrade environment, we are on TaxFactory 11.0.b | Cyclic B | Regulatory 020 | TaxLocator 09 and during testing, system ignores filling status 04 Married filling jointly and just calculate tax as per filing status (Single/01).

The BSI messages log is as below:

1008
YOUR REQUEST TO USE 4 MARITAL STATUS FOR THE FEDERAL WITHHOLDING TAX IS NOT ALL
OWED. THIS TAX HAS BEEN CALCULATED USING THE 1 MARITAL STATUS.

Raised issue with BSI too and haven't received their analysis yet.

Checking if someone faced/facing similar issue while upgrading and have a solution.

erkhan Does the new server file has to come with upgrade (from Tax Factory 11)? Where can we get the new server file or check if we have the new file in our own server? And can we update the file one own or only BSI can do it?

[graziela]

Hi Aditya,

The employee that you are testing has IT161?

As IRS didn´t release the new IT161, you need to use in this case the old status.

Regards,
Graziela

[SAPSFHXM]

Hi Graziela,

The test case doesn’t have an active IT0161 maintained or in any previous periods.

Regards,

Aditya

[SAPSFHXM]

graziela.dondoni

I received the below update from BSI support:

“There was update change on TF11b.  The command lines where the parameters are placed are different in TF11b from TF10.

You will need to communicated to your payroll provider that the parameter: [WF:] will no longer displays on the EPC line of the BSI Interface log, but will now be entered on the ADC line of the BSI Interface log.

For Example:

BSI Interface

ATC ET: 0

IPC CC: XXX  GC: EG99

EPC PP: 12 CD: 00/00/2020 PT: REG

YP: 4 PH: 0.00

GU: 0

BD: 00/00/1971 RS: NY PS: NY

RC: 1 DT: 01/31/2009

GW: 0.00 WF: 0,0 <= Old display

ADC TC: BSI00000000 NR: 0 RP: 0 RC: 0 SE: 0 NX: 0 WF: 1,1 <= new display"

Please check and let me know if this is already released through SAP note.

Regards,

Adiitya

[former_member87421]

Hi mssaphcm ,

 

This change is delivered via SAP Note 2878657 – 2020 State Withholding Tax Calculation – Based on the State (or State-equivalent) Withholding Certificate (SAP_HR) – Phase I.

 

For more information, you can refer to this blog https://blogs.sap.com/2020/04/03/w-4-state-withholding-tax-calculation-2020-based-on-the-state-or-st..., in the BSI Interface section.

Kind regards,

Virginia

[SAPSFHXM]

Hi Virginia,

Applied the note and my issue to calculate the FED taxes based on the status Married - 4, rather the status Single -1 is now resolved.

 

However, I started seeing the below message in the BSI message and status:

1055
THE WITHHOLDING FORM'S YEAR AND/OR MULTIPLE JOBS BOX 2 VALUES ARE INVALID AND HAVE BEEN IGNORED. THE CALCULATED TAXES SHOULD BE CHECKED FOR ACCURACY.

As I cross checked, all the calculations are happening correct. I ran the payroll for following pay periods as well and the message keeps on coming in all the pay periods logs.

 

Thank you

virginia.soares graziela.dondoni

[former_member87421]

Hi mssaphcm

These messages from BSI do not always mean an error. If your taxes are correct, you can ignore such message.

However, if you think that something is incorrect, you can open an incident under component PY-US-TX for further analysis.

Kind regards,

Virginia

[former_member671159]

Hi Graziela / Virginia,

 

Since the new W-4 screen in IT0210 doesn't have any allowances field at FED level, does this mean that the IT0161 can be ignored at FED level as there is nothing to compare the lesser value to exempt ?

 

I've tested the existing prior to 2020 W-4 record and created a record in IT0161 and system is behaving as expected.

I assume that the IT0161 and IT0210 comparison will remain as-is.  However, i'm curious to test for some of the states states which recently announced the changes based on new W-4 form. eg: DE

As indicated by Aditya, i've come across the same issue for Federal allowances which is ignoring the new Filing status which is based on W-4 form and calculating at single status and also BSI is returning the message. Will apply the note and see if this is taken care.

Thanks

Madhav

[former_member87421]

Hi madhav.bacchala

 

In this other blog page https://blogs.sap.com/2019/12/16/w-4-employees-withholding-certificate-and-federal-income-tax-withho..., you can refer to the What You Need to Know About the New Federal Form W-4 in SAP system, section where it says:

• Infotype 161 – IRS Limits reflects the IRS Lock-in letters. At the time of writing this post, the Lock-in letter still didn’t have a new version. However, we have updated Infotype 0161 to handle the Lock-In letters for FED in 2020 through SAP Note 2880846 – TAX: Lock-in letters not overriding New W-4. 

Let me know in case you have further questions.

Kind regards,

Virginia

[SAPSFHXM]

Hello virginia.soares

I did the batch test with the log in the BSI portal and don't see these message out of BSI.

Seems, this is being generated only because of SAP.

As stated earlier, no tax calculation issues at this point. But we like to know the root cause, so that we can be sure for any future scenarios in production system.

Do you want me to open an Incident with SAP for this?

 

Regards,

Aditya

[former_member87421]

Hi mssaphcm ,

Considering that there are no errors and no tax calculation issues, you can open an incident with medium priority, if you think is needed. If you open an incident, just mention about the interaction we had in this blog and the solution provided and that you’d like further investigation on the message, even though tax calculation was correct.

Kind regards,

Virginia

[SAPSFHXM]

Opened Incident#239103/2020

[ejaz1]

I am having somewhat a similar issue, we have an existing IT0161 for an employee and have  updated IT210 effective 1/1/2020, After the update I am seeing that , IT 0161 is completely ignored and the system is calculating taxes based on IT 210 rather than on IT 0161 , where the marital status is "2" and no of exemptions are "1"

I have already applied the Note 2880846 and 2888094   , and I am yet to apply  SAP Note 2878657

We are on BSI 11/ Bulletin 20 / Cyclic A

Will applying SAP Note 2878657  Fix the issue , anyone facing a similar issue

 

The BSI Log is calculating on the new Parameter WF: 1,1 , Rather than the old as stated in Note 2888094 

 

 

ATC ET: 0
IPC CC: US01 GC: EG99
EPC PP: 26 CD: 01/10/2020 PT: REG
YP: 0 PH: 85.75
GU: 0
BD: 01/01/1970 RS: MI PS: MI
RC: 1 DT: 06/08/2019
GW: 1396.07 WF: 1,1
ADC TC: FED NR: 0 RP: 0 RC: 0 SE: 0 NX: 0
HUD TT: 001 FN: 1 PW: 1396.07 HW: 80.00 MS: 3 NE: 0
ADD TE: 0 RN: 0 PW: 1.00 RF: 0
VDC AT: 0
SDC SM: 9 BW: 1396.07
EDC DE: 0 NA: 0 TC: 3000.00
LUD ES: 0 SA: 0 PND: 0 MND: 0 QND: 0 YND: 0

[former_member265305]

Hello Ejaz,

The system will calculate the withholding tax amount using both IT 210 and IT 161 and then choose the highest. Check question 3 on IRS Lock-in letter FAQ: https://www.irs.gov/businesses/small-businesses-self-employed/withholding-compliance-questions-and-a...

If you believe the Lock-in letter (IT 161) should withhold more taxes than the new W-4, then create an incident so we can have a look in your system.

Best regards,

Marcelo

[ejaz1]

Hi Marcelo,

After applying Note 2878657 , it did take care of a lot of tax issues around IT 0210 and also IT0161 . If I still detect variances then I will open a message with SAP

Thanks
Ejaz

[rkhan]

Hi Aditya,

I am getting the same message as well, though the results look fine but this message is bothering me. I am glad that you have created an incident already, therefore, I will watch this thread for an update.

Please do update us, once you hear back from SAP.

Regards,

Rizwan

[SAPSFHXM]

Hi Rizwan/Team,

The messages are due to passing the W42020 Withholding form (WF) values through all the Tax Authorities in the payroll run.

Ideally, the WF 1,1 or etc entries are valid only for FED (Tax Authority) 001 (Tax Type).

WF entries are passed into BSI log throgh SAP for non FED 001 entries as well. Hence the log shows the message 1055.

Since at this point payroll calculation/tax calculation is not impacted, we are been asked to move forward.

However, I have requested to check if SAP can stop generating WF for non FED 001 types. Which may remove the 1055 message from the log.

SAP is working on it.

Regards,

Aditya Surapaneni

[rkhan]

That came from BSI

[ambily_nair2]

Hi Rizwan,

We are having same federal tax being higher and we are upto date on all the notes in this blog. Can you please provide some details on this server file that you had to apply so we can work with BSI with the right request?

 

Thanks

Ambily

[former_member271521]

Hi Graziela,

IRS released the new 2020 form for lock-in letters. ? We received our first lock in letter with the new form and the 161 is not compatible.

Any idea when SAP going to do a release for this? I could see it is scheduled for 08/14 planned release. hope it will be released this Friday.

Thanks

Gayathri

[v_b]

Hi Aditya,

We are getting the high FED taxes and the 1008 message about filing status 04 not being allowed.

Did applying note 2878657 immediately resolve the issue or was there config you needed to do? Did you reload the server file too?

We have note 2878657 in place and set up filing status 04 in T5UTK, but the issue persists. I have created an incident, but was wondering if you can perhaps remember an extra step that might be helpful to us 🙂 This is such a great forum for knowledge sharing!

Thank you!

Vicky

[former_member271521]

Is there a note released? I dont see anything in marketplace.

Thanks

Gayathri

 

[former_member85620]

Hi Larry,

 

I have been trying to configure the statement to include the new fields but have not been successful. I think I have something wrong in the line layout and rules. Any assistance on what the rule and line layout should look like would be greatly appreciated.

Regards,

Lena

[LarrySuttles]

Lena,

I will try to put something together later today. I had a hell of a time getting things to work, so I understand what your going through.

Larry

[former_member85620]

oh that would be great Larry thank you...I have been playing around with this thing for weeks 🙂

 

regards,

Lena

[LarrySuttles]

Lena,

Do you have TEAMS? If so, please provide me with your email and I will setup a meeting at 2pm EST to discuss and share my screen. Might be easier than putting together screen shots.

Or send me a webex meeting request.

Larry

larry.suttles@uc.edu

[Matt_Fraser]

Hi Larry,

I suspect many customers have this same struggle. Ultimately, clumsy as it may be, a set of screenshots and some written instructions or tips would probably help the greatest number of people. Or, perhaps you could record your Teams or WebEx session and create a video for others to view? Though I for one am not part of the Youtube generation that learns best through videos -- I need written directions and not having to hit pause all the time, lol!

In short... would you consider putting together your method as a blog post? I suspect it would be quite popular.

On a side note, for future reference, we do ask (as moderators) that you do not include personal information such as email addresses in your posts or comments on the Community. It invites becoming a target for spam, so it's not a good idea. Instead, you are free to include this information in your profile/bio, or if you and another member follow each other, send it via DM.

Cheers,
Matt

[former_member85620]

Hey Larry that sounds great!  I sent you an email.

 

Regards,

Lena

[SubbaInaganti]

Hi Aditya,

We are having similar issue, with BSI message 1008. Have you find any solution for this issue. How did you resolve. Can you please share how to proceed!

Thanks in advance.

Subba

 

[alicia_robinson]

Hello -

Has anyone had issues with IT0210 for Federal in which the "use higher withholding rates schedule" checkbox backend options have been changed?

When we started these changes for Federal and even the states still following federal the backend options for this field were - 0 or X.  It appears that the "0" has now been replaced with "blank".

We use Symmetry to process our W-4 feed to IT0210 and after we upgraded our SAP system two weeks ago we started getting rejects about an "invalid value on IT0210" for any Federal W-4 change. When we looked at the code, it's now expecting a "blank" or "X".  I would think this would cause others issues as well so just trying to see if anyone has hit this.

Thanks,

Alicia

[former_member648173]

Hi,

Did we ever receive a response from SAP experts on this question?

We also faced this issue as we noticed that when HR process Change of Position Action with the TaxCo transfer, SAP code copies old W4 record with the new W4 FED record with incorrect Filing Status, and causes error in PA30 screen.

We discussed this issue with our Payroll/legal team and they confirmed that we cannot forced the system to create a new W4 record upon Position Change, even though employee moves from one Company to another within the same parent company.

Please advise?

 

[former_member648173]

Hi Graziela,

I have reviewed above and someone posted the issue related to new W4 form, created via PA30 with incorrect Filing Status. We are also facing the same issue and not sure if SAP has already some solution to address this issue.

We noticed that when HR process Change of Position Action with the TaxCo transfer, SAP code copies old W4 record with the new W4 FED record with incorrect Filing Status, and causes error in PA30 screen.

We discussed this issue with our Payroll/legal team and they confirmed that we cannot forced the system to create a new W4 record upon Position Change, even though employee moves from one Company to another within the same parent company.

Please advise?

Thanks

[graziela]

Hello Diwakar,

I have noticed that you already opened an incident about this, my colleague is checking this and will to you accordingly.

Kind regards,
Graziela

[former_member648173]

Hi Graziela,

Thank you very much for swift response.

I did also post this question her as I wanted to understand if any other SAP customer reported this issue so far?

[Brandyn_Richmon]

Hello All -

We just upgraded to S4HANA and noticed the Michigan W4 (IT0210) no longer accepts filing status 'blank'. Its requiring Single (01), Married (02), or Head of Household (06) .. even though those are not options on the physical form.

Has anyone experienced this? Is 'blank' the same as Single (01)?

Thanks,

Brandyn

 

[former_member684144]

Hello All,

 

This W4 form changes is for active employees only? Or new changes is applicable to W4-P form for retirees also.

 

Thanks and Regards

Jaikishan

[graziela]

Hi Jaikishan,

Just for active employees.

Kind regards,
Graziela

[former_member684144]

Thank you Graziela!!

But when I try to update IT0210 Fed record for retiree it is showing new fields of  W4 form. we need to do any configuration changes?

Thanks and Regards

Jaikishan

[graziela]

Hello Jaikishan,

Yes, you will see the new fields. but as far as I know there some differences for W4-P which this format for the active employees will not fulfill.

Refer to blog:
W-4 Employee’s Withholding Certificate and Federal Income Tax Withholding for 2020 | SAP Blogs

1- Is W-4P for Pensioners supported? Is there an updated version for W-4p?

The Infotype 0210 is designed to support the regular W-4 form only.

Kind regards,
Graziela

[former_member684144]

Hi Graziela,

 

Where do we maintain no of allowances for pensioners in IT0210? as I don't see that field from 2020.

do you want me to create incident to SAP?

 

Thanks and Regards

Jaikishan

[former_member684144]

I mean to say where do we update no of exemption value for retirees in IT 0210? as that field is no longer available.

W4-P form is not supported by SAP?

Thanks and Regards

Jaikishan

[graziela]

Hello Jaikishan,

As mentioned before:

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

1- Is W-4P for Pensioners supported? Is there an updated version for W-4p?

The Infotype 0210 is designed to support the regular W-4 form only.

Kind regards,
Graziela

[moh007755]

Hi Vicky,

I am having the same exact issue wherein the notes 2878657 have already applied in the system, but still, the taxes are higher.

Did SAP respond back to you on the incident and what was the fix?

Regards,

Mohammed.

[former_member6661]

Hello! graziela.dondoni is it possible to embed this W-4 Web Dynpro ABAP used for ESS in FIORI?

[CarlosAccorsi]

Hello Jorge,

Please refer to the FAQ number 4 of blog W-4 Employee’s Withholding Certificate and Federal Income Tax Withholding for 2020 | SAP Blogs

4- Will the changes to the ESS W-4 also be applied to the UI5/Fiori versions?

No, Fiori for W-4 is not planned to be delivered.

Best Regards,
Carlos