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Tax overrides do not work in Off-cycle payroll

Former Member
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715

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

Accepted Solutions (1)

Accepted Solutions (1)

graziela
Product and Topic Expert
Product and Topic Expert
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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

Answers (1)

Answers (1)

Former Member
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Hello Graziela,

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

Regards,

Sudhir