Define specifications for processing class 71

[#1]

Can someone explain the effect on wage type processing for
each of the specifications for processing class 71 when they are added to a tax
model as tax classes?

How can I decide if I should include a tax class in a tax model if I don’t know the effect of
that tax class on how taxes are going to be calculated?

[beechu]

Hello Robin,

Each specification (tax class) of processing class 71 should be mapped to any one of the BSI Earning/Deduction/Benefit plan code. The tax classes should be designed in such a way that it matches with BSI codes.

BSI TUBs wage accessor changes states what are the changes to the particular BSI code, and same changes need to implemented in R/3 by changing the characteristics of that particular tax class in the taxability mdoel.

Taxability model should be designed in such a way that, it meets the legislation.

Thanks,

Beechu

[former_member182083]

Hello Robin,

Kindly review the WIKI document on Taxability Model which will explain you the importance of PRCL 71 and how tax will be calculated

https://wiki.sdn.sap.com/wiki/display/ERPHCM/Taxability+Model

For PRCL 71 value mapped to Tax combo in T5UTM, this tax combo is mapped to valid tax type for it in T5UTY, So based on PRCL 71 value, the relevant tax type values get deducted during payroll tax calculation for the authority.

With Regards,

S.Karthik

[maddilety_kanuku]

Hi, attached is the image explains the tax combination and relevant other tables along with processing class relevance.

Below is what SAP does when you maintain the processing class against any wage type:

1) First it reads the Wage type from V_512W_D table, and gets the processing class 71 specification.

2) It also reads, as what is the taxability model, it has been assigned, and the tax Combo.

3) based on the tax combo, it goes and reads tax type combinations, and assigned tax type combinations in the intput file.

These table please look in sync with Karhik's response, and you should be good forever. - thank you!

Warm Regards

-Kanuku

[Former Member]

Kanuku,

As I explained in my email, this is the "stock" answer that has appeared for similar questions on SCN.  It is the typical assumption that responders tend to make.   You all assume that those of us with questions can't find anything in the IMG.  So, you send copies of what's there and include SAP's typical less than complete instructions.

Everyone is eager to join the discussion and get points, but often the original question that is asked is not answered. 

Let me try and re-state my question.

Let’s assume I wanted to build a brand new tax model.  How
would I decide which Tax Classes to include?  The name of the
specifications from processing class 71 DO NOT make it clear as to the
FUNCTION of the specifications.

For example, tax model 18 has multiple lines with both tax combo
1 and 14.  These two tax combos only have tax type 1 listed.  What is
the basis for the decision to use those tax combos listed with the tax classes
shown?

Thanks!

Robin

[Former Member]

Hi Maddilety,

I need some help with processing class 71. I am need change it for NY employees working in CT.

As employee works in CT  (i.e. CT tax is $35) and resides in NY (i.e NY tax is $50). Then they want $15 for NY. But my system is deducting both 100%.

Please can you help.

Thanks,

Shyla