Paid Family and Medical Leave

[graziela]

Hello community,

This is blog to discuss Paid Family and Medical Leave for U.S. If you have any  questions about PFML you can post it here. This blog will be updated with tips, best practices and, SAP Notes related to this subject.

Notes for State of Washington:

2722361 - BSI: Tax Types 098 to 103 (Washington Paid Family and Medical Leave)
2723165 - BSI: Tax Types 098 to 103 (Washington Paid Family and Medical Leave) [CE]
2732298 - Prerequiste objects for SAP Note 2731200
2731200 - BSI – Change BTX screens due to 3-digits Tax Type change
2724688 - TAX: Changes in Payroll Driver log and Sync Tax Data due to 3-digit Tax Type enablement
2736529 - TAX: Incorrect cumulation of YTD amounts for tax types 100 and above
2737921 - TAX: Washington Paid Family Leave not calculated correctly when the employee is not resident in WA
2736319 - TAX: Virtual Tax Types 888 and 999 are not restricted to WA
2740042 - TAX: Adjustments to the WA Paid Family and Medical Leave calculation
2740876 - TAX: Prerequisite objects for SAP Note 2740042
2749956 - TAX: Wage type /T6Z is not sent as year-to-date wages to TaxFactory
2751080 - TAX: Non-taken tax for Tax Type 87 for Washington (WA) is being refunded
2768221 - TAX: Incorrect WA PFML in case of payroll results before SAP Note 2740042
2777590 - BSI: Sync. Payroll Tax Data displays PAL error for TUB 162
2768221 - TAX: Prerequisites for SAP Note 2788251
2788251 - TAX: Configuration for WA PFML wage types for Concurrent Employment [CE]
2788717 - TAX: Corrections to WA PFML 999 Tax Type for CE and Posting
2775430 - TAX: Changes to WA PFML calculation to allow self-adjustment
2790914 – TAX: Washington Paid Family and Medical Leave (WA PFML) solution – FAQ

Notes for Commonwealth of Massachusetts:

2788251 - TAX: Configuration for WA PFML wage types for Concurrent Employment [CE]
2751080 - TAX: Non-taken tax for Tax Type 87 for Washington (WA) is being refunded
2740042 - TAX: Adjustments to the WA Paid Family and Medical Leave calculation
2775430 - TAX: Changes to WA PFML calculation to allow self-adjustment.

TUB 166 is required for Commonwealth of Massachusetts, after the TUB you need to run the Synchronization tool and adjust the tax model.

If you have applied the Support Package that contain these note and cannot see the new wages type, the reason is these changes are delivered in client 000, you should transport the changes to the other working clients, the wiki page has instructions in how to do it.

After the transport you need to adjust the Tax Model to include the wage types that your company need to pay.

You must run the Synchronization Tool.

Regards,

Graziela

[neerajkumar002]

Hello graziela.dondoni,

We see an issue with Wage types /T4Z and /T6Z for Washington. For our employees these Wage types have inflated to very high amount and now a result of this, Payroll is going for runtime error with error message "Overflow during the arithmetical operation (type P) in program "SAPLRPCUS"". Do you see am i missing anything.

Thanks,

Neeraj.

[graziela]

Hello Neeraj,

I have replied your incident as well.

As per SAP note 2775430 wage type /T6Z has been rescinded, this means this should not be generated anymore. So please go to table T5UTD and remove/delimite tax type 999 from this date.

This should fix the error. As per the note:

The creation of these wage types has no functional impact in the standard system.


Kind regards,
Graziela
SAP Product Support

[graziela]

Hello Rosette,

Please, check KBA:

2646985 - FAQ - Paid Family Medical Leave in USA

It was updated with this information.

Kind regards,
Graziela

[neerajkumar002]

Thanks Graziela. the fix recommended by you has resolved our issue.

 

Thanks,

Neeraj.

[Katt]

Will an SAP note be supplied in order to display the CT Family Leave on box 14 of the W2? If I remember correctly SAP released a note for this same issue for the state of NY.

Thanks,

Katherine

[neerajkumar002]

Hello Graziela,

I just gone through 2646985 and understands below for CT. Will there be a SAP note to address this?

 

Thanks,

Neeraj.

[karthikeyanbalu]

Hi Graziela,

We are in the process of implementing the PFML solution for MA. The standard tax models is working fine. But need to have the 401K ER match amount to be included in the PFML base wage calculation.  This is as per the MA rule wherein the base wage should include ER match as well.

Would like to know is there a plan to release a change for the above scenario. Appreciate if any one else faced similar scenario.

Looking forward to your response.

Thanks

Karthik

[robinetteh]

Hello,

I am trying to establish the processing for the Connecticut PFML processing.

The State has provided the following guidance to employers:

"Employees will have contributions of 1/2 of 1% deducted from their total wages up to the defined Social Security wage base (using the same calculation for determining total wages as are used to calculate FICA) and done so through payroll deduction, to coincide with each pay cycle."

https://ctpaidleave.my.salesforce.com/sfc/p/#t00000004XRe/a/t00000002aHp/0TTylJsWrYjJlNM8ADO2GGyk.aK...

I have reviewed the note you referenced earlier in this blog (Note 2646985 ).  Based on this note, tax type 087 is to be used.  Configuration has been reviewed and is in the system.

Tax type 087 functions and the value calculated by BSI is 1/2/ of 1% of the value sent.

However, the value sent to BSI is consistent with tax type 001 (income tax withholding base) and not 003 (FICA base).

If I try to change the taxability model the step "Generate Tax Models" resets the tables to the client 000 configuration, which undoes the configuration applied at implementation.

Will there be a correction to the calculation base of the PFML?

Thanks!

[former_member87421]

Hi robinetteh ,

 

Have you tried not running the taxability model, step 'Generate Tax Models'? About your question if there will be a correction to the calcultation, there are no plans to release SAP Note related to this scenario. In case your issue persists, you can open an incident under component PY-US- TX.

 

Best regards,

Virginia

[Private_Member_78463]

Hello,

 

Will a solution be provided to comply with Colorado paid family leave? Please reference the link below and respective regulations. https://famli.colorado.gov/employers

 

If this is available within current solution, will someone kindly advise high-level on the respective payroll and tax solution via SAP Payroll and BSI?

 

Thank you in advance.

 

[former_member738909]

Hello,

We noticed that only one employee in WA state had issue with wage type /T4Z and /T6Z . SAP Note 2775430 was loaded in 2019. Configuration was done and they do not exist in T5UTD. These  Wage types have inflated to very high amounts and now Payroll is going for runtime error with error message "Overflow during the arithmetical operation (type P) in program "SAPLRPCUS"". How we can clear them.

payroll result

[mtimm]

The Colorado FAMLI tax starts January 2023. Will a solution be provided by BSI and SAP?

[mbjohnson]

Would love to hear the answer to your question Mike!

[graziela]

Hello Mike and Matt,

Yes, BSI and SAP are working on it.
There are changes for OR and CO. Once BSI release the Regulatory Bulletin, if needed SAP will release the new tax types.

Kind regards,
Graziela

[nnichols]

Hello, Graziela.

We received a BSI notification re: the CO PFML taxes starting in Jan 2023 this past Friday, 12/9.  Do you know if SAP will be adding any applicable new tax types?

Thank you,

Nancy

[Kim_Grantham]

Hi Nancy,

Look at note 3273042, released today.

Thanks,

Kim

[nnichols]

Wonderful, thank you!

[alicia_robinson]

Just curious if anyone has implemented these changes for CO and OR and it's working as expected?  Also does anyone know if there are restrictions from withholding this as a retro if we don't get the changes applied by the time we run our first payroll?

I know we had restrictions with WA, but haven't seen any of those same restrictions mentioned for CO or OR.

Thanks!

[neerajkumar002]

Hello Graziela,

We would like to know if there are any restrictions from withholding this as a retro if we don't get the changes applied by the time we run our first payroll?

 

Thanks,

Neeraj.

[former_member548187]

I tried implementing Colorado, but there appears to be a problem with the wage types 117 and 118.  Has anybody else experienced any issues with these?

Steve French

[rosette_vaughn2]

Hi SAP Support,

I'm in the processing of copying wage types for CO & OR PFML for tax types 121 and 122.  I'm getting error message when copying original wage types /C10, /D10 etc., to Customizing wage type - it's saying /CC2, /DC2 etc., is not allowed.  Error Message:  Copying to the reserved SAP name range /CC2 is not allowed.  Please let me know what's needed to do to move forward.

Tks,

Rosette Vaughn

 

[Averil]

Hi Rosette,

Page 4 of the manual instructions under step 4 has a disclaimer that this message will be displayed and you may ignore it.

Averil

[former_member548187]

Graziella,

I have implemented the note to add colorado and oregon for PFML.  Oregon works correctly, but Colorado tax authority 119 is not calculating in BSI.  It is making all wages not taxable.  Did I miss a step in the process?

Steve French

[former_member52740]

Hello:

I think TTYPE 119 & 120 are for 2024 not for 2023.

[former_member52740]

Also I noticed that by default it takes PFML 0.45% for Colorado state and then for CO Local Govt too which makes total of EE PFML tax deduction to 0.9%. 

[mjaix]

Raj,

You may have mapped the tax types to both CO state and local in the tax model. If you just configure for the state, it will even work for locals.

Thanks,

Mitesh

[reden04]

Hi SAP Support / Graziela,

Good day!

 

I already configured SAP NOTE 3273042 based on the manual instruction. But I'm having an issue with Tax Type 117 and 118 for EE and ER contribution not showing on the taxes of the employee.

I assume that those custom wage type as shown below should appear on the employees taxes but it's not.

 

 

Can someone guide if i miss a step or if there is a table that i need to check.

TUBS 96-100 are already applied in our system.

Thank you.

[reden04]

What is your issue with 117 and 118? Mine is that the taxes are not going to the employee for both EE and ER

[neerajkumar002]

Hi SAP Support / Graziela,

We implemented SAP Note 3273042 - BSI: introduction of Tax Types 117, 118, 119, 120, 121 and 122 manually and while testing there is a hard error with the below message. requesting your help to know whether the config will be recommended by SAP or will it be a custom configuration in the priority table.

Priority for tax wage type: Missing entry for
Tax level B or tax authority OR
wage type /4B7 at the date 01/13/2023
Please check View V_T5US0!

 

[graziela]

Hello Neeraj,

You need to update this table in case you use priorities.

Kind regards,
Graziela

[former_member841286]

Hi @graziela.dondoni,

Should these new TT from 117-122 be added for FUTA and W2 forms?

Thanks,

Sam

[graziela]

Hi Sam,

If in W-2 I believe that just in the next Year End.
I don´t see any requirement yet for FUTA as well.

Kind regards,
Graziela

[former_member736826]

Hi Graziela Dondoni ,

 

We started testing the OR and CO PFML, we forgot to update the Tax model. When we started to look at it, we have some queries.

1. Do we need to map for all tax classification such as 1,2,3, A, B, C, U, V, W, X, Y


2. Do we need to repeat the same mapping for all the locals of CO

Thanks,

GG

 

[Private_Member_78463]

Hello,

Will solution scope included reporting and file transmittal, similar to tax reporter SUI structure? Or will custom solution (e.g. custom CSV file) be required for customers?

[maebrown]

Raj - My company is late in configuring this, but experiencing same issue. Did you resolve, and if so will you please share details? Thanks

[Averil]

Good Morning,

The business was asking about the IL Paid leave for All Workers Act effective 1/1/2024.  I did not see anything in the Announcements of Legal Changes.  Is this being worked on?

Averil

[AMyers]

Good afternoon - I was wondering if SAP will provide a solution for the changes Colorado made to their FAMLI tax. Per a notice we received in December 2023, Colorado is adjusting thier definition of "wages" to mean "Gross wages" and will include typical employer compensation. Premiums and benefits will be calculated using this new definition starting January 1, 2024.   FAMLI wages will include pre-tax amounts.  

For example, if an employee is paid a $1,000 weekly salary and chooses to have their $100 health insurance contribution deducted on a pre-tax basis, their pre-tax gross wage is $1,000.  

Right now, that is not how the WageTypes were set up to work, and since the solution for FAMLI taxes was provided for Colorado (3273042 - BSI: introduction of Tax Types 117, 118, 119, 120, 121 and 122)  and these are technical wage types... I wasn't sure if an update would be coming.  

If you could kindly let us know, I would appriciate it.

Thank you,

AAM