TaxFactory 11.0

[graziela]

Hello community,

Updated on 09.12.2022:
3273042 - BSI: introduction of Tax Types 117, 118, 119, 120, 121 and 122 has been released to cover the changes released by BSI on Regulatory Bulletin 96

Updated on 02.12.2022:
SAP Note 3260101 - TAX: De Minimis number of days worked criteria for nonresident state withholding

Updated on 03.05.2022:

Important change with US HCM Tax Calculation and BSI TaxFactory 11 Cyclic H. Apply at the earliest HotNews SAP Note 3088446 (BSI: Updates to TaxFactory 11.0 reverse engine processing) to your payroll systems. It is required for BSI TaxFactory 11 Cyclic H.

Blog Reverse Tax Engine - Payroll USA

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BSI TaxFactory and TaxFactory SaaS released version 11.0 is available.

After our partner BSI has extended the maintenance for their offering/Product BSI TaxFactory 10.0 up to April 30,2021. SAP has also decided to provide support for BSI TaxFactory 10.0 up to April 30, 2021.

Regardless of the extended support period for BSI TaxFactory 10, SAP strongly recommends not to postpone your upgrade to BSI TaxFactory 11 and still plan to complete the upgrade during this year.

As announced on BSI website JAVA/Tomcat 32bits is not supported anymore by BSI after TaxFactory 11.0 cyclic C and TaxFactory 10.0 cyclic X.3. For any query about this, please contact BSI Support.

Upgrade your payroll system to the corresponding BSI TaxFactory 11.0 product way before the decommissioning of BSI TaxFactory 10.0 support.
There are NO options to extend the support for TaxFactory 10.0 after the decommissioning date.

If you have any questions about BSI TaxFactory 11.0, you can post it here. I´m going to keep this updated with tips, best practices, and, SAP notes.

Important SAP notes:

2760305 - BSI: Tax Factory 11.0 - Main Note

As a prerequisite, you must apply the following SAP Notes:

2760918- BSI: TaxFactory 11.0 - DDIC Changes

2763228 - BSI: TaxFactory 11.0 - Function Modules Changes

2770832 - BSI: TaxFactory 11.0 - General Technical Changes

2780204 - BSI: TaxFactory 11.0 - Changes required for TaxFactory SaaS

2868617 - BSI: Tax Profile Factory SaaS correction

2780716 - BSI: TaxFactory 11.0 - BSI Tools

2790902 - BSI: TaxFactory 11.0 - Payroll Driver Changes

2844516 - BSI: TaxFactory 10.0 - Additional Configuration Options While in Transition to BSI TaxFactory 11.0

2852878 - BSI: Technical Correction changes

2854888 - BSI: TaxFactory 11.0 - Configuration Option

2860747 - BSI: Tax Factory 11.0 - system not able to run TaxFactory SaaS

2864644 – BSI: Tax data synchronization error during transition from TaxFactory 10.0 to TaxFactory 11.0

2855926 – BSI: internat error US_UPDATE_TXIT_FROM_TAXES in BSI Tax Calculation

2865938 - BSI: Tax Factory 11.0 - system continues using TaxFactory 10.0 after upgrade - SaaS

2876817 – V_BTXRATE & V_BTXOVFR: not saving Experience Rate and incorrect number of digits for Tax Type

2853869 - TAX: Additional withholding not considered and Regular wages classified as Supplemental

2878074 -  BSI: Update to BTXRATE reader class usage

2904103 -  BSI: TaxFactory 11.0 - Missing Changes in Structures for Release 600

2915653 - BSI: Unemployment Override not Being Considered on TaxFactory

2948446 - BSI: installation instructions for TaxLocator 11.0.

3008339 - TAX: Community Safety Payroll Taxes for Eugene

3013127 - BSI: Enablement of Tax Type 106 for Concurrent Employment

Important:

Before applying SAP note 2915653, you must apply note 2844646 - Ignore the local class definition, implementation, definition deffered, definition load , definition local friends changes this notes contains a fix to SNOTE transaction and without this you will get an error.

2919499 - TAX: Experience Rates Calculated Incorrectly in Tax Result Log

2920181 - TAX: TaxFactory Version Source in USVERS

2934419 - TAX: TaxLocator not proposing Tax Areas in TaxFactory 11

2944465 - TAX: Full refund of Unemployment tax when using BTXRATE override

Further irformation about the installation can be found on:

2844034 - TaxFactory 11.0 - On-Premise Installation

2843977 - BSI: TaxFactory 11.0 - SaaS Installation

2948446 - BSI: installation instructions for TaxLocator 11.0.

2977383 - BSI: Changes in Sync Tool Tax due to incorrect State

2988140 - IT0208: Performance issue when using Tax Locator

Frequently Asked Questions – FAQ

 

1) Which are the options for transition from TaxFactory 10.0 to TaxFactory 11.0?

• In transaction SU3, define the user parameter BSI_TF_VERSION with value 11.


• In transaction PE03, configure the BSI Tax Factory Version (10BSI) feature with value 11.


• In transaction SM30, open table view Customer values for configuration options (V_T5F99K2) and set the value of constant BSI TAX FACTORY: CUSTOMIZING SWITCH (BSITF) to 11.Once your company switches to TaxFactory 11.0, you may no longer use TaxFactory 10.0, nor may you switch back to it later.

2) Which is the start date to be used in table V_T5F99K2 and constant BSITF?

The start date should be 01.01.1800, once you decide to upgrade the system to TaxFactory 11.0, as the system should use the version 11.0 for all the tax calculation, even in retroactive scenarios, where TaxFactory 10.0 were used.

 

3) When there is a negative value the system is not calculating taxes after the upgrade to TaxFactory 11.0, what is the cause?

Check if the Reverse Tax Engine is turned ON in your system, table V_T5F99K2, constant ADTMD, further information can be found on the KBA 2984562 - Reverse Tax Engine TaxFactory 11.0

4) Filing status/Marital status is missing or not updated in T5UTK. What should I do?

As T5UTK has delivery class C, you can update this table manually. To find the filling status that should be update in T5UTK you can go to MYBSI Portal (https://mybsiconnect.force.com/CustomLogin) with your credentials:

· Select Product Maintenance > TaxFactory ->  11.0
· Under Maintenance select Cyclic Bulletins -> BSI TaxFactory 11.0 Cyclic Bulletin
-> Bulletin Data nformation

 

5) There is a syntax error in LPBSUD01 after implementing SAP note 2915653, what is the cause and what are the steps fix it?

This is because SAP note 2844646 is not implemented in your system, or was applied after note 2915653.

To solve this SAP note 2844646 must be applied.

Detailed steps:

1) Perform the de-implementation of SAP note 2915653
2) Apply note 2844646
3) Retrieve the version of objects LPBSUD01 -> To do it go to transaction SE38 select LPBSUD01 -> Utilitiles -> version -> version management -> select version prior the note implementation
4) Re-apply note 2915653

 

6) Is it possible to extend the validity date of TaxFactory 10.0?

There is no extension to TaxFactory 10.0. Support for BSI TaxFactory 10.0 will be decommissioned on April 30, 2021.

7) How Local Reciprocity is working in BSI Tax Factory 11.0?
Detailed information is available on the KBA 2973907 BSI TaxFactory Local Reciprocity Process (Basic Local Reciprocity and Advanced Local Reciprocity)

 

😎 I don´t see the WF parameter in BSI script, why?


The parameter WF: 0,0 is not being sent in all scenarios in the BSI script, as BSI considers it as WF: 0,0 if there isn´t this parameter in the BSI script. Parameter WF: 1,1 or 1,2 is always being sent in case the employee has an IT0210 record that follows the new W-4 Form Model for year 2020.

For further information, please check the KBA:
2985123 - The Parameter WF on the BSI Interface


9) Parameter WF is not in the correct line in BSI interface in TaxFactory 11.0?

There is a change in TaxFactory 11.0 cyclic B the parameter WF should be placed in other line in BSI script. This change has been delivered in the W-4 notes for States, after you apply the notes this parameter will be send in the line BSI expects to do the calculation for FED taxes.

The change in the parameter has been delivered in SAP notes:
2895426 – Prerequisite objects for SAP Note 2878657
2878657 – 2020 State Withholding Tax Calculation – Based on the State (or State-equivalent) Withholding Certificate (SAP_HR) – Phase I

For further information, please check the KBA:
2985123 - The Parameter WF on the BSI Interface

10) After the Support Package the system is calculating higher taxes when employee has IT0161, why?

After SAP notes 2888094 TAX: Lock-in letters override for W-4 exempt and 2880846 TAX: Lock-in letters not overriding New W-4 is now considering the values of IT0161 and now the system is calculating more tax, which is expected.

Refer to KBA for further details 2984188- Tax calculation for an employee with both IT0161 and IT0210.

Regards,

Graziela

[Matt_Fraser]

T5UTKZ is delivered empty until you run a sync from TaxFactory to ERP after implementing all of the various Notes associated with the new filing status sync feature.

[Euna]

Hi Matt,

 

That what was what I thought, but I think I ran the sync at least twice since SP was installed. I will pay close attention next time.

 

Thank you,

Euna

[Matt_Fraser]

I have also noticed that the new view, V_T5UTKZ, appears to return no records unless you provide a value for BOTH of the selection parameters (tax type and authority). If you leave either field wide open/blank, you'll get "no records returned."

[Euna]

It turns out we're not the right version for T5UTKZ.

Thank you, Matt.

 

Euna

[Brandyn_Richmon]

Hello All -

Looking for anyone to share their experience setting-up the PFML wage types for Colorado.

We followed the manual instructions to setup the tax types / wage types.

Couple questions:

(1) We see two ER/EE sets for Colorado State and Local. Is this what everyone is expecting or should we setup one or the other?



 

(2) My Payroll Team said there is an option for employers to pay both the EE and ER PFML tax. Has anyone else heard of this .... and how the heck would you setup the tax model config to accommodate?

 

Thanks,

Brandyn

 

[ChandraV]

Our applicable tax types are 117 and 118 (/4B7 and /4B8) which is what we mapped in the tax model; rest other tax types are not applicable to us. If tax types 121/122 (local /4C1 and /4C2) are not applicable, you shouldn't  map them in the tax model.

Regarding the optional ER paying both EE and ER, not aware of that. I remember MA PFML had an option like that and SAP delivered tax types for them. The issue is the tax rates are delivered in T5UTX for tax types, so if you are going the route of ER paying both, you will need the combined rates for the TT in T5UTX.  Since I dont see a tax type/rate delivered for the combined,  you can think of something like having just one ER tax type (118) and override the tax rate in BTXRATE with the combined rate. In this case you would only map tax type 118 in the tax model. You may want to try this and see if it works.

Thanks

Chandra

[Sanjayt]

Hi @graziela.dondoni,

Sorry if it is too early to ask. Please let me know if there is any update on the delivery of solution for 401(k) Plan changes related to Secure Act 2.0.

Thank you,

Sanjay

[mjaix]

Yes, there is an option for combined EE and ER PFML. This option can be used by passing formula number 2 to BSI TaxFactory for tax type 118 and/or 122 (only for Colorado) and taxes will be calculated using the applicable percentage. More details on formula number can be found in Regulatory Bulletin #96 released by BSI.

[greg_zifchock]

Graziela,

When do we expect BSI to re-implement the taxation for the Washington Cares Act?

Thanks, Greg

[reden04]

Hi Chandra,

I already set up the PFML wage type for Colorado but it is not working on my CO employee. There are no deduction for /4B7 and /4B8. I already checked that this correctly entered in T5UTI and T5UTX. Is there any other table that i need to check?

 

Thank you in advance

Red

[ChandraV]

Check the tax model set up - T5UTE, T5UTM and T5UTY. T5UTY should have the PFML tax types (117 and 118) for the CO model.

Thanks

Chandra

[Matt_Fraser]

Greg,

According to https://wacaresfund.wa.gov/employers/, the 18-month delay for WA CARES Act is still in effect, and employers are supposed to start collecting premiums from employees on 1 July 2023. So, I would expect (and hope) that BSI would release a regulatory update to re-enable WA CARES sometime ahead of that date, unless the Washington governor or legislature make another change in the meantime.

Cheers,
Matt

[greg_zifchock]

Matt,

Understood, we were configuring for a 7/1/2023 start but BSI pulled the entries for T5UTD and calculations when they recinded it. Trying to get ahead of the curve but unable to test until BSI reapplies their changes. Can never count on politics 🙂

Thanks, Greg

[Matt_Fraser]

Greg,

Agreed! My own organization is also trying to get ahead of it, and over the next couple months I expect to need to fight back against insistence upon a custom solution, when we have every expectation a standard solution will be forthcoming. But, if we get too close to that deadline without a BSI update, then I may lose that fight (and I'm sure in that case we won't be the only customer seeking a custom override of some kind).

The problem is that it would not surprise me at all if the legislature makes further changes to the law between now and then, which will necessitate BSI and perhaps SAP needing to make further changes to the solution. I haven't heard of such things in the pipeline; it's just my pessimistic nature to expect it. 😉

Cheers,
Matt

[Brandyn_Richmon]

@Chandra and @Mitesh: Thanks for the responses.

Im getting closer ... Ive setup CO Tax Type 118 with formula 2 in table V_BTXRATE and setup the optional rate override directly in BSI, but continue to see FN: 1 in the BSI interface.

 

ADC TC: CO NR: 0 RP: 0 RC: 0 SE: 0 NX: 0 WF: 1,1
HUD TT: 118 FN: 1 PW: 2403.85 HW: 240.40 MS: 3 NE: 0
ADD TE: 0 RN: 0 PW: 1.00 RF: 0
VDC AT: 0
SDC SM: 9 BW: 4807.70
EDC DE: 0 NA: 0
LUD ES: 0 SA: 0 PND: 0 MND: 0 QND: 0 YND: 0

 

What am I missing?

Thanks for any help.

Brandyn

 

[graziela]

Hello Brandyn,


Please, refer to the KBA:
3196605 How to customize the value of the Formula Number send on the BSI Interface

BTXRATE will not override the formula number.

Kind regards,
Graziela

[Brandyn_Richmon]

Thanks Graziela!

Worked beautifully.

Brandyn

 

 

[CarlosAccorsi]

Hi Sanjay,

SAP is aware about that and it's currently being evaluated by the Developers and Product Management.
For any update on that, I would suggest you to keep an eye on the Announcement of Legal Changes: 2917160 (New legal change is under evaluation).

Best Regards,
Carlos

[Sanjayt]

Hi Carlos,

Thank you for the update.

Best regards,

Sanjay

[stacey_degarmo]

Good Morning, we are on EhP8 608B1 and are getting a short dump with RPCALCU0_CE for an employee that references: "OBJECTS_OBJREF_NOT_ASSIGNED" and the trigger location references: RPC_PAYUS_CALL_BSI_FORM.  The Error Analysis states: "you are trying to access a component with a 'ZERO' object reference".

Searching in OneSupport we have found references to a few old notes; including 2330339 that describes the exact message but this note is from 2016.  We also see Note 3088446 - Updates to TF11.0 Reverse Engine Processing.  We implemented this Note in AUG 2022 and have BSIRS turned ON effective 01/01/1900.

While troubleshoot on the employee we have also found that running retro back to 03/01/2022 on the employee performs without issue.  However, there was an Off-Cycle created with a PayDate of 02/28/2022 (this is not the start of a payroll period) and when we retro back to 02/28/2022, then the short dump occurs.

Has anyone else seen this short dump by chance?

Thank you,

Stacey

[otistonka]

Why is table v_btxrate so cumbersome to update? Many companies have 100's of SUI rates to update and this table does not behave like all other tables in SAP. You cannot just copy and enter a new rate and have the previous entry delimited. Also, why is there not a fast entry option for this table? This is very frustrating.

[stacey_degarmo]

Hello, Michigan recently announced a reduction in the State Withholding Tax Rate from 4.25% to 4.05% for 2023.  BSI released Bulletin 107 last week to address this reduction in the Tax Rate.  However, Michigan's Treasury Department also included direction that businesses may Choose to:

a) Continue withholding the 4.25% OR

b) Use the reduced 2023 income tax rate

They have taken a neutral position on the matter and further state that if withholding amounts are not adjusted, employees will receive the adjustment when filing their Michigan income tax return.

We have elected to NOT change the rate but the Bulletin delivers the reduction in the tax rate.  Can anyone elaborate on the best means of addressing this between SAP and BSI?  Should we expect that a mechanism be provided from the SAP side to make this rate change optional?  Is there a means of overriding the change from the BSI side?

Any guidance is appreciated.

Thank you,

Stacey

[kim_grantham1]

Hi Carlos,

I keep watching but haven't see any announcements about Secure Act 2.0 being evaluate or a planned delivery before the end of 2023.  I will keep watching, but due to customizations in many 401k plans, we are hoping to see something soon.

Best Regards,

Kim

[mmrigank]

Hi graziela.dondoni

I am trying to set up MCTDT Metro Commuter Trans District, New York – Payroll Expense Tax (/419). Do I need to set up new Tax authority to enable this or can it be set at NY state level? If anyone has set up, can you please share relevant note or steps I need to follow to enable this.

This was released as part of TUBS 60.

Regards

[jwiblepasshe22]

SAP, please advise as to the plans for implementation as most US employers will need to do the required configuration to support the Secure Act 2.0.

[kim_grantham1]

This has not hit the Announcement of Legal Changes page yet.  Is there any way we could request an update?  Would it be better if I were to submit an incident for one of my clients?  Many are concerned about timing and having the ability to test thoroughly before moving to production.

Best Regards,

Kim

[graziela]

Hello Kim,

I just sent a message to Developers to see if they have any update. Once I heard from them I will post here.

If you open a case, you will receive a reply to get in touch with Product Manager.

Kind regards,
Graziela

[ejaz1]

Hello,

Not sure if this is the right platform , the SAP Expert Search is giving errors and this is happening quite often , is anyone else facing the same issue

Thanks

Ejaz

[Katt]

This week the state of AL passed a bill that will exempt overtime hours from state taxes. I do not have a lot of details about this but any thoughts on how this will be handled within SAP?

Thanks,

Katherine

[alicia_robinson]

I'm so glad to see someone ask this question!  I was going to check today and post myself if I didn't find anything as our payroll dept just informed us of this change yesterday.  It appears as though this is just a temporary exclusion on the overtime.

Per our payroll dept there are similar bills in NC and SC as well - just not passed yet.

AL overtime passed

[kim_grantham1]

Hi Katherine,

Our plans are to create a new processing class 71 value so it could be mapped to a tax model that excludes only the overtime earnings from Alabama wages.  It could be used for other states in the future if needed.  This value would be assigned to the overtime wage type.

Kim

[PrakashGone]

Hi,

We got an update from BSI to re-install the Cyclic 11.0j as they missed some Indiana localities data file, so we have downloaded and re-installed it, after re-installing do we need to run the Sync tool again in SAP?

BSI Cyclic Update

Regards,

Prakash G.

[kim_grantham1]

Hi Graziela,

Checking back in to see if you have heard anything from your Developers.

Kind regards,

Kim

[graziela]

Hi Kim,

They said they are still evaluating what will be changed.

You can reach out the Product Manager via email.

Kind regards,
Graziela

[jwiblepasshe22]

Graziela, please advise who the current USA Benefits Product manager is or how we can find that out. Thanks, Jeff

[Attreyee_B]

Hi Kim, Hi Jeff,

As I just mentioned to Jeff (separately), we are analyzing the requirements of the Secure 2.0 Act at our end and hope to have the requirements published in the SAP Legal Change Notification as a Service portal over the next few weeks. Hence, I would request you to please keep a lookout there.

Kind Regards,
Attreyee

Product Manager, SAP OnPremise Benefits Management

[ChandraV]

General practice is to re-sync each time you apply a TUB or a cyclic.

[former_member116447]

Hi,

 

Is your issue resolved? what are steps you have taken.

 

Thanks,

IJ

[nnichols]

Hello,

I posted this issue within the community but have yet to receive any responses.  Thought I'd post it on this thread, too.

We have an employee that opted out of the WA Cares Fund that became effective 07/01/2023. The employee has TT113 on IT0235 marked as Exempt. The paycheck calculated correctly and no taxes were taken.

However, the paystub still shows the WA Cares Fund taxable wages. I have been unsuccessful in attempts to get this removed from appearing on the paystub.

Any suggestions? Is anyone else running into this issue?

Thank you,

Nancy

[alicia_robinson]

Nancy -

Are you using the evaluation class 2 to assign the wages to the pay statement?

 

[alicia_robinson]

graziela.dondoni -

 

Do we know if SAP is going to implement any changes for this?  There is a reporting requirement and just assume that SAP would put something in to cover this.  We are trying to avoid doing anything custom if SAP is going to supply the changes needed.

Thanks!

[CarlosAccorsi]

Hello Alicia,

The developers are aware of this change.

My suggestion is to keep an eye on the Legal Change Notification App (refer to KBA 2917160) as the details of a delivery, if any, should be published there.
As per timelines, since this change is effective just on January, I would expect to see this as part of the Year End patches, if any change is required.

Thank you,
Carlos

[Sanjayt]

Hi carlosaccorsi

Is there going to be any note delivered from SAP on this. Please let me know.

Effective July 1, 2023, New York Senate Bill 4008 increases the MCTMT top rate for employers doing business in certain counties and divides the MCTD into 2 geographical zones.

 

Thank you,

sanjay

[CarlosAccorsi]

Hello Sanjay,

Usually changes on tax rates require an update/change on BSI side only.
However, my suggestion is to track the Legal Change Notification App (refer to KBA 2917160) as any news should be published there.

Best Regards,
Carlos

[alicia_robinson]

BSI has released this update in bulletin 112.

[Sanjayt]

Thank you, Alicia and Carlos for our response. Yes, I saw that. Just wanted to check if there is anything on SAP side.

Best regards,

Sanjay

[PrakashGone]

Thanks Chandra.

[nnichols]

Hi,

Yes, Evaluation 2 is set at Print wage type on form without specific assignment.  This is correct for those that have opted in to the program.

[nnichols]

Issue resolved.  We need to change the remuneration statement from WT /3B3 to /7B3.

[ejaz1]

Hi,

BSI release RB 114 , where there are changes to IL formula for EE's that are hired on or after 6/7/2023 . SAP is not passing Formula 2 to BSI unless I force it on IT0210 to use Alternate formula.

Should this not be standard where SAP passes formula No 2 to IL employees hired after a particular date ?

Most of the IL dont have State W4 as it is not mandatory , for the the formula defaults to 1 even if they are hired after 6/7/2023

Any info on this ?

 

"Adds a new formula, Formula Number Two (FN:2) - "STANDARD WITHHOLDING FORMULA".

This new Standard Withholding Formula is to be used for employees hired on or after 06/07/2023. It will use an exemption allowance amount of $2,425."

 

Thank you

Ejaz