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Incorrect tax calculation for Puerto Rico tax autorithy

Former Member
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193

Hello Experts,

I configured tax model for Puerto Rico employee (User P1 in UMOT). But getting incorrect tax calculation results for PR taxes (FEDtaxes calculation is fine).

Can you please advise how to adjust payroll taxes in SAP?

Thanks

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
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Hi,

Please configure the taxability model (T5UTM) and tax type combination (T5UTY).

Also check the tax related processing classes too.

Hope this helps,

Reward points if helpful,

Thank You,

Former Member
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Hi Arun,

Thank you for quick response.

Tax combos and Taxability model are configured. Processing classes are included in the taxability model.

I am getting correct federal tax results, but PR state tax results are incorrect. Should I do anything in BSI to adjust taxes?

Can you suggest any other alternatives?

Many Thanks,

David

Former Member
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hai..

check the two t codes..OBCP, OB69

Configuring the communication

Testing the external system tax data retrieval

Activating the Tax Interface System

Configuring the External Tax Document

Defining the tax jurisdiction code structure

Setting up tax codes

Function module: RFC_DETERMINE_JURISDICTION

check LOCATION_DATA of ur location..

Former Member
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hai..

Import parameters

Structure: LOCATION_DATA

Parameter

Definition

Example

COUNTRY

Country

US

STATE

US State or Canadian Province. In R/3, it is called ‘Region’.

FL

COUNTY

In R/3, it is called ‘District’

Blank

CITY

City

Miami

ZIPCODE

In R/3, it is called ‘Postal code’

33186

TXJCD_L1

1st length of Jurisd. Code

Blank or 02 – Sabrix,

Blank or 02 –Taxware,

Blank or 02 – Vertex

TXJCD_L2

2nd length of Jurisd. Code

Blank or 02 – Sabrix,

Blank or 05 – Taxware,

Blank or 03 – Vertex

TXJCD_L3

3rd length of Jurisd. Code

Blank or 05 – Sabrix,

Blank or 02 – Taxware,

Blank or 04 – Vertex

TXJCD_L4

4th length of Jurisd. Code

Blank or 05 – Sabrix,

Blank or 00 – Taxware,

Blank or 01 – Vertex

Hint: It is recommended to enter at least STATE and ZIPCODE for a successful jurisdiction determination.

Former Member
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hai..

i couldnt paste the table here properly.. pls send me test mail. manohar.ibs@gmail.com

Former Member
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Thank you for your response.

My question is about US Payroll taxes.

Thanks

David

Former Member
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Hi,

Are you getting any error during PR state tax calculation?

Please maintain an entry for PR state in table T5UTZ and make sure you check the NoUS field.

Hope this helps,

Reward points if helpful,

Thank You,

Former Member
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For 0207 Infotype we normally maintain the state , it will automatically assign the FED also.But instead of maintaing the state we have to maintain only the FED. This will make the BSI Interface to calculate the tax or else the input will not go to BSI Interface itself.

Former Member
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Hi Arun,

In Table T5UTZ PR tax authority is checked as US territory (not state).

I am getting one assumtion in BSI "NUM TAXES FOR 0001118 employee CANNOT BE LESS THAN 2" .

Payroll runs without any errors.

Thank you for your time!

Former Member
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Any other suggestions?

Former Member
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Hi,

In IT0210, how much is the value of the "Allowances" field you have set for tax authority of PR? Is it greater than 2?

Hope this helps,

Reward points if helpful,

Thank You,

Former Member
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No, It is 1 (Personal Allowance).

Even without any allowances I am getting incorrect results

Thank you

Former Member
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Hi David,

You might like to check the Experience rate for state Taxes in both SAP and BSI.

Hence,go to IMG>PR USA>Tax>Tax data maintenance>Unemployment Insurance--.Define BSI Tax company Exp rates AND make sure the state rates are defined correctly there. you also need to connect with BSI Tax factory to make sure that the same is maintained there too.

Hope it solves the issue.

Thanks,

Anita

Former Member
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Hi,

Please maintain the table V_BTXRATE and maintain the same on BSI side too.

Hope this helps,

Reward points if helpful,

Thank You,