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US tax calculation

Former Member
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Hi All ,

Can anubody tell,me how we cal the US TAX.

Vicky

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi,

As pointed out by Mr. Suresh, try to understand the taxability model for calculating US Tax.

Let me know if you need any help in that.

Thank You,

Answers (3)

Answers (3)

Former Member
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hi,

here are the types of WT's which gets involved in the tax calculation.

when you run the payroll driver program along with a schema, the U000 schema has subschema UTX0 in which you call the BSI which calculates the taxes for you.

here you have to send /3xx and /6xx WT's. once BSI calculates the taxes it will send the taxes amount back to SAP by storing the actual tax amount in /4xx.

below is the description of the WT which are invloved in the tax calculation.

/ 3xx = gross pay

/6xx = gross pay u2013 deductions

/7xx = taxable amount

/4xx = withholding amount

Where xx defines the tax types

01 = federal tax

= state tax

03 = EE social security tax

04 = ER social security tax

05 = EE medicare tax

06 = ER medicare tax

here there are some tax tables which you have to look at it when you do payroll configuration.

T5UTT: contains tax types.

T5UTD: assigning tax types per tax authority.

T5UTB: work tax areas.

T5UTA: resident tax areas.

T5UTH: Tax number u2013 BSI INTERFACE

T5UTL: tax company

T5UTM: tax model

T5UTS: states without withholding tax.

T5UTY: Tax type combinations

therefore you dont have to worry about the tax calculation, because BSI takes care about it.

hope this explanation gave you some understanding.

reward points if helpful.

regards,

salman

Former Member
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Hello

Can u tell me what is the difference between /6xx and /7xx.

Can they be of different values?

Thanks

Former Member
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suresh_datti
Active Contributor
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Did you check this <a href="http://help.sap.com/saphelp_erp2005vp/helpdata/en/89/6d4d12728f11d280dd00c04fadbff1/content.htm">SAP Help</a> ?

~Suresh