Tax overrides do not work in Off-cycle payroll

[Former Member]

Hi,

Additional withholding amount specified in IT0210 and override amount specified in IT0234 are excluded by the US payroll driver in off-cycle payroll runs. Does anyone know the reason why SAP excluded the overrides from off-cycle?

This causes lot of issues during off-cycle pension payments and bonus payments for employees who choose to either withhold additional amount or override tax amounts.

Thanks,

Sudhir

[graziela · Accepted solution]

Hello Sudhir,

Additional withholding tax amount is taken only in regular paryoll.

Additional amount on IT0210 is not used with off-cycle. The reason why

the additional amount doesn't come out with the off-cycle payroll run

is because we don't know how many off-cycle payroll runs are going

to be made in each payroll period. If the off-cycle payroll is run

frequently within one payroll period, a large amount will be added

to the regular tax. Thus, the additional amount will only take

effect in the regular payroll run.

If you want to override a tax for adjustment runs, you can do it via

'BSI tax formula override' functionality.

IMG Steps: Personnel Administration and Payroll Accounting>

Payroll USA> Tax> Tax Data Maintenance> Tax Overrides>

Then go to Tax Factory => Modeling

=> Groups (create the group code the same as

IT234 For FED)

=> Group Overrides

=> Click New

=> Tax code => FED

Show / Edit Values for => Supplemental

Calculate Method => Tax rate only etc...

Hopefully this clarifies the issue.

Kind regards,

Graziela Dondoni

[Former Member]

Hello Graziela,

Thank you very much for your reply. This explains it.

Regards,

Sudhir