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

[former_member6661]

Hello! Carlos! thanks by support! But... is it possible to embed this W-4 Web Dynpro ABAP used for ESS in FIORI?

[CarlosAccorsi]

Hello Jorge,

As stated before, Fiori for W-4 is not planned to be delivered on our standard application.
If you embed W-4 for ESS in Fiori, this would be a custom solution.

Kind Regards,
Carlos

[former_member684144]

Hi,

As per SAP note - 3042301 - TAX: Enablement of Federal W-4 legacy data. IT0210 designed is changed to support old format also.

We need to do any customization to make this option available on ESS portal?

Use Higher Withholding Rates Schedule: and filing status is not working in ESS I get error message as "Filing status 03 not valid for selected Withholding Format. Check entries"

 

Thanks and Regards

Jaikishan

[CarlosAccorsi]

Hello Jaikishan,

The changes for W-4 Legacy Data on HR Renewal have been delivered by note 3057092 - TAX: Enablement of W-4 legacy data (HR Renewal).
For the error on the filing status, my suggestion would be to check table T5UTK and ensure that the filing status are correctly maintained.
You case use KBA 2968880 (Filing status 00 is not valid on date MM/DD/YYYY - HRPAYUS_MESSAGES205) as a guide on this check.

Best Regards,
Carlos

[dduron]

Hi,

The Enablement of Federal W-4 Legacy data has been enabled with our recent patching.  Is there a way to disable it or hide the radio button for Allowances Withholding (original) as the scenarios to use the old format would not apply to our company.

 

[CarlosAccorsi]

Hello Deborah,

The radio buttons for the Original/Redesigned options have been added to the screen of IT0210 and one of these options must always be selected.
Since there should be no standard way to hide this option, you can input the begin date of the IT0210 on PA30 initial screen before selecting to create the record. This would avoid any issue, as it's intended to automatically set the Redesigned form when opening IT0210.

For further details on the W-4 Legacy Data delivery, please refer to KBA 3124528 -  W-4 Legacy Data – Changes in IT0210.

Best Regards,
Carlos

[KG11]

Can someone explain to me how ESS W4's should work if they are pre-2020 form for FED?  We are testing the Webdynpro for ESS W4's and if someone has a pre-2020 FED form and we try to update its values which should go to the new form for FED after 2020 nothing is being saved.  For instance, I filled out values for Total Credits for Dependents, Other Income, and Additional Deductions and when I hit save the values are cleared out and a new record is saved in IT210 with the "Original" withholding format selected.

 

Kyle

[KG11]

Also, it seem like note 3119877 addresses my issue but when I try to view it in SAP One Launchpad it says it is not available.  Is this currently being worked on?

Kyle

[CarlosAccorsi]

Hello Kyle,

When editing a pre-2020 record on ESS, the system should save a new record and change the format to Redesigned.

There is a bug on this as the system wasn't changing the format to Redesigned and the new fields were being cleared, which should be the scenario you've illustrated.

As you correctly appointed, note 3119877 is the solution for this issue. You cannot access it as it is in pilot release. In case you would like me to add you as a pilot customer, please report this scenario on an incident for PY-US-TX component.

Sincerely thanks,
Carlos

[graziela]

Hello Kyle,

I noticed you already opened a case.
I took it over.

Kind regards,
Graziela

[former_member82007]

When creating a 2021 record either directly in infotype 210 or ESS, we are seeing the federal fields on the NC state form. Is there a fix for this?

[CarlosAccorsi]

Hello Kristy,

Please check your customization on views V_T588M and V_T588MFPROPC to see if the federal fields are enabled for NC.

Best Regards,
Carlos

[Matt_Fraser]

Kyle, Carlos, and Graziela,

I have just discovered that we have the same problem that Kyle describes. I didn't think we would, since we haven't done anything to change our ESS W-4 (WDA) delivery, but now I realize the bug was introduced with HRSP 98 for EhP8.

I also note that the KBA 3124528 includes a link to the pilot Note 3119877, but 3119877 remains unavailable.

As I've now determined that this is a production issue for us (and thus high priority), introduced a month ago when we put HRSP 98 into production, I'm going to also open an Incident to request access to the pilot Note.

Cheers,
Matt

[graziela]

Hi Matt,

Thank you for the update.
After you create a case I will take over.

Kind regards,
Graziela

[Matt_Fraser]

Thank you Graziela,

I've just submitted it. It's Incident 888457.

Cheers,
Matt

[CarlosAccorsi]

Hi Matt,

I took over the case and provided you the access for the pilot note.
In case you have any feedback, feel free to share with us.

Sincerely thanks,
Carlos

[Matt_Fraser]

Thanks, Carlos. The Note solved the problem! Also, I see that today it became generally available to all customers.

[CarlosAccorsi]

Hi Matt,

Great to hear that the issue has been resolved, I appreciate the feedback!

Best Regards,
Carlos

[staceyburton]

Hello,

We are noticing that we are still being allowed to use the filing status of 15 or Married single rate when using the redesigned form.  From note 3124528, we would not expect that to happen as it does not seem to be a valid filing status for the redesigned form.  We do see that filing status 02 or Married is correctly invalid for the redesigned from, but we are not sure why filing status 15 is still being allowed.  Any thoughts?

Stacey

[CarlosAccorsi]

Hello Stacey,

According to KBA 3124528 (W-4 Legacy Data – Changes in IT0210) the Filing Statuses that are valid for the Redesigned form are:

• Single (01)


• Married Filing Separately (03)


• Married Filing Jointly (04)


• Head of Household or family (06)


• Widow(er) (08)

Therefore, these are the only Filing Statuses that should be valid on T5UTK as from 01.01.2020.
If you are being able to save an IT0210 record with Filing Status 15, I might say that this entry has not been delimited on T5UTK on your system.

Happy Holidays,
Carlos

[staceyburton]

Hello Carlos,

We do have both 02 Married and 15 Married single tax rate delimited as of 12/31/2019.  Married 02 does not allow during redesign and yet Married single rate is allowed during redesign.

Stacey

[CarlosAccorsi]

Hello Stacey,

Would you please open an incident addressing this issue? Please use component PY-US-TX.
I will take over this case as I would like to further check the scenario.

Sincerely thanks,
Carlos

[former_member82007]

We have an issue with filing status as well. If a person has Form W-4 with an effective date prior to 2020 and attempts to create a current record, in ESS, with either Filing status '3' or '4' hard error and message ie. "Filing Status 03 not valid for selected Withholding Format."

If  I attempt to copy record in SAP, infotype 210 I receive same error message and I am not able to save the change. However I can create the record.

Will Note 3119877 address this issue?  In T5UTK -

[CarlosAccorsi]

Hello Kristy,

Yes, note 3119877 (TAX: IT0210 withholding format doesn't change to redesigned format in ESS) is supposed to address this issue.
Would you please apply it and then retest the scenario?

Best Regards,
Carlos

[former_member82007]

Carlos, this worked. Thank you for your help.

[CarlosAccorsi]

Hello Kristy,

Great to hear that, thank you for the feedback!

Kind Regards,
Carlos

[former_member684144]

Hello,

We have applied this  3119877 note and most of our issues are fixed.

We got a new issue and it is impacting some employees.

In the ERC portal, we are not allowing employees to select the withholding format, it should update to Redesigned 2020 TCJA format but for a few employees, it has incorrectly been updated to Allowance withholding (Original).

We think SAP is pulling from the prior IT0210 record information with allowances value. Can you take look at this?

Thanks and Regards

Jaikishan

[graziela]

Hi Jaikishan,

Which is the SAP_HR and EA_HR in your system?

Thank you,
Graziela

 

[former_member684144]

Hi Graziela,

 

SAP_HR 608 0099 SAPKE60899 Human Resources

EA-HR 608 0099 SAPK-60899INEAHR SAP Enterprise Extension HR

 

Thanks and Regards

Jaikishan

[CarlosAccorsi]

Hi Jaikishan,

I see that you have opened an incident addressing this issue.
I took it over.

Thank you,
Carlos

[kim-conti]

Hello Everyone,

We are at SAPK-608A2INSAPHRCUS.  All of the earlier mentioned notes are applied.  However, when an employee with a pre-2020 W-4 comes to pull up their W-4 on the screen, if they have a filing status of '02', an error 'Filing status 02 not valid for selected Withholding Format.  Check entries'.

Is there something we can do to get around this issue?

ESS W-4 Error

 

Thanks in advance!

Kim

 

[Matt_Fraser]

Hi Kim,

What we did was not end-date the validity on the "pre-2020" filing statuses, since you still need those to "work" (in PA20 as well as ESS) for staff with pre-2020 W-4s. So, in T5UTK for Authority FED, using status 02 as an example, I delimited the old record with an end date of 12/31/2019, and created a new record from 1/1/2020 onward with a new Long Text of "Married (Pre-2020 W4 Only)." I did the same for status 15, which used to be "Married but w/hold at higher single rate," and starting in 2020 reads "Married/Single Rate (Pre-2020 W4 Only)."

Not an official solution, but it's working for us. If someone creates a new W-4 and chooses one of those old invalid statuses, despite the text saying not to, the system's logic will convert that to status 01 during the tax withholding calculation anyway, so it still works. And you can always periodically run reports to see who is using those.

Cheers,
Matt

[kim-conti]

Hi Matt,

Thanks for the quick response, but we already tried that and it is still not working.

T5UTK

Is it possible to have an option to disable the presentation of the pre-2020 elections?

Thanks!

Kim

[kim-conti]

After application of SP's 98-B1, HR_INFOTYPE_OPERATION is not working for P0210-TXSTA at the state level.  Has anyone else experienced this?

Thanks! - Kim

[eliza4c]

Hello,

Our HR dept entered a new W4 record yesterday for an EE and somehow the previous W4 record from 2019 disappeared. I don’t know how they were able to delete the record because we were not able to delete the record in the test system. We tried multiple times to recreate the scenario by copying the record, changing the record, and deleting the record and each time I received an error message. HR claimed that they overrode the old record with the new record via the change button but I was unable to do the same in test. In any case, the 2019 record was added back but SAP is not allowing HR to choose the withholding format button for Allowance Withholding and the record automatically has the Redesigned button marked. The tax authority is FED, the filing status is 15 (which is maintained in T5UTK with an end date of 12/31/2020. In the test system, the old W4 record is there with the same selections but with "Allowance Withholding format" which is what they tried to re-create in prod but again, after adding the 2019 record back, the only format active for selection is "Redesigned". How can this be? Please kindly let me know if you can help. Thank you!!

[eliza4c]

Forgot to mention we are at SAPK-604I5INSAPHRCUS

[CarlosAccorsi]

Hello Elizabeth,

Would you please try following these steps on your system?
There are intended to make the scenario to work as expected.

1. On PA30 transaction, select to create a FED IT0210.
2. Select the Withholding Format.
3. Enter the Filing Status.
4. Change the Begin and End date.
5. Press enter.
6. Save the record.

Thank you,
Carlos

[eliza4c]

Thank you Carlos! This was tested and seems to work as a solution for us. We are having HR follow this procedure in production. Much appreciated!