U.S Tax Reporter Year End 2022

[graziela]

This blog is not updated anymore, the new blog for Year End 2023 is already created. 

Another Year with our U.S. Tax Reporter Year End blog. If you have questions about 2022 Year-End reporting, you can post it here. This blog will be updated with tips, best practices and, SAP Notes related to this subject.

Legal Changes for US

To review the planned Legal changes for US, start the Announcement of Legal Change application. You can find detailed information about the Announcement of legal changes on this blog.

Year End Notes

3226749 - U.S. Tax Reporter Year End 2022 Announcement
3231551 - Year End 2022 Phase I for U.S. Tax Reporter (This note can just be applied via Support Package, there isn´t any workaround)
3225735 - W-2 / 1099-R Forms, Envelopes and PR Approval letter for year 2022
3245908 - Year End 2022 Phase II for U.S. Tax Reporter
3272039 - Prerequisite objects for SAP Note 3245908
3282510 - Year End 2022 Phase III for U.S. Tax Reporter
3293660 - TR: Form 940 Schedule A for 2022 not displaying the Total Credit Reduction amount

IMPORTANT: SAP Note for Phase II contains manual Pre-Implementation and SAP Note Phase III contains Post-Implementation steps.

To run Year End 2022 processes successfully and for SAP to provide support, you must have installed the minimum levels of the Sync. HRSP and CLC available in October, where applicable, as specified for your release. There is not any work around.

User Guides and Resources

2464078 - TR: 1099-R User Guides for HCM US Tax Reporter configuration

2464161 - TR: W-2 User Guides for HCM US Tax Reporter configuration

2463999 - TR: Tax Reporter User Guides for HCM US Tax Reporter configuration
1406971 - FAQ: Troubleshooting PDF Forms in US Tax Reporter
544849 - FAQ: Tax Reporter Note

 In addition, detailed Tax Reporter documentation for EHP8 is available on SAP Help Portal. To get Tax Reporter documentation of an older release click in the portal on SAP ERP HCM, then change the version on the upper right corner, and search for "Tax Reporter (PY-US-TR)".

KBAs (Knowledge Base Articles)

3081097 – KBAs (Knowledge Base Articles) for Payroll USA
2918093 - After upgrade issue with the position of text and alignment

Educational Videos

2480185 - TR: Tax Reporter - Online W-2 Enhancements videos

LIMITS 2023

3288050 - GARN: IRS Publication 1494 for tax year 2023
3265862 - BEN: Annual limits year 2023
3204104 - BEN: Limits for HSA in tax year 2023

ASUG Webcast: HCM U.S. Payroll and Tax Reporting 2022 Year End Update

ASUG Webcast for SAP HCM U.S. Payroll and Tax Reporting 2022 Year End Update was conducted on October 20, 2022.

Recording and slide deck for the ASUG webcast can be found at the event page on ASUG website

Important changes not related to Tax Reporter

Blog TaxFactory 11.0
Blog Reverse Tax Engine - Payroll USA

If you have questions about this topic, please use specific blogs to post it.

In case you have any questions/suggestion about Tax Reporter Year End you can post on the comments.

Kind regards,
Graziela

[CarlosAccorsi]

Hello Cherylnita,

I have been talking with the developer on that and their instruction is for customers to update table T5UX9 with the new rates. You can find details on that on note 903349 (TR: Instructions on using table T5UX9).

As per the developer update, the rates on the note are just informative, and they are only updated on the note as well in case there's a change on the layout itself, which is not the case so far as the new form is not yet out.

Best Regards,
Carlos

[ChandraV]

Hello SAP team - IRS Tax Levy publication 1494 for 2023 has been released. Can you provide an idea on when SAP will release the note?

[MandarMuley]

Hello

Related question- Will the changes under 1494 be applied in ECP by SAP or do we need to apply those changes based on SAP note.

Thanks

Mandar

[CarlosAccorsi]

Hello Chandra and Mandar,

The SAP Note has just been released: 3288050 (GARN: IRS Publication 1494 for tax year 2023).
You may proceed performing its manual instructions on your systems.

Best Regards,
Carlos

[maddilety_kanuku]

do we have similar thread to Canada, we are facing tax issues after applying the B4 support pack, please advise. - thank you!

[Matt_Fraser]

Hi Kanuku,

There have been "Year End" blogs and threads for Canada in the past, but it doesn't appear to be a regular thing like it is for the US. There is an "HCM Payroll Canada" tag, but there are only a handful of blog posts ever written for it. The questions part seems to be more active, so that would be a good place to ask, I think.

Cheers,
Matt

[Gouthamsamalla1]

Hello,

We are generating the 1099R's first time from SAP and I see the Temse are getting generated only for FEDERAL, is there any alternative forms available to create for States? How can we report to the states for 1099R's ?

 

Thank you

Goutham

[ChandraV]

Hello team, have a question on Ohio W4. Per the Ohio W4 Withholding exemption certificate IT-4 form  employees can claim tax "exempt" status. However, Infotype 210 Ohio subtype doesnt allow tax exemption. Is this something each customer has to set up as maintainable or is this something we can expect SAP to deliver as standard behavior?

Thanks

Chandra

[jennifer_stnons]

Just got TUB 101 from BSI with changes to the state of Maryland.   In reviewing information directly from the state, I see that local tax rates for the following counties (Allegany, Anne Arundel, Cecil, Frederick, St. Mary’s and Washington) have also changed.   These don't appear to be part of TUB 101.  Any news from BSI on when these updates will take place?

[graziela]

Hello community,

SAP note has been released:

3293660 - TR: Form 940 Schedule A for 2022 not displaying the Total Credit Reduction amount


Kind regards,
Graziela

[shiva906]

graziela.dondoni : When is SAP releasing note on this attached Arizona revised withholding form  ?

[stevenan]

Hello Shiva,

The AZ form updates were delivered in TF 11.0 BSI TUB 095.  Please check table BTXFORM - BSIAUTH #00040000 with effective date of 1/1/2023.

Best regards, Anna

[miteshjain]

Hey Chandra,

Did you get a response on this question?

Thanks,

Mitesh

[ChandraV]

I didn't see a response but that's probably because this can be controlled via T5UTZ for the tax authority.

Thanks
Chandra

[kim-conti]

Washington published the file format for the Paid Family and Medical Leave & WA Cares Fund.  One of the fields is the WA Cares Exemption.  Are you planning on setting up a field that will read this?  I was guessing it would be on IT0235.  If you go to this link Paid Family & Medical Leave (wa.gov).

Choose .CSV instructions to see all of the fields.  I couldn't find a way to map this last one.

 

Thanks,

Kim

 

[Sanjayt]

Hi graziela.dondoni carlosaccorsi

Could you please confirm if SAP will deliver this OR Paid Leave and CO FAMLI quarterly reports?

 

Thank you,

Sanjay

 

[graziela]

Hello Sanjay,

You can check what will be delivered on link:
Announcement of Legal Changes - SAP ONE Support Launchpad

The changes for Q1 are still under evaluation.

Kind regards,
Graziela

[Sanjayt]

Hi Graziela,

 

Thank you for the link. Just one follow-up question: I do not see any update regarding CO FAMLI Quarterly file. Is there any plan to deliver that as well?

Best regards,

Sanjay

[graziela]

Hello Sanjay,

Do you have the legal document from CO FMLA for the Quarterly file saying this should be included?

Thank you,
Graziela

[Sanjayt]

Hi graziela.dondoni ,

I found the below PDF document from on Colorado government website(https://famli.colorado.gov/employers/my-famli-employer).

https://drive.google.com/file/d/1-4ZwTfyqtYw0vTvAgFWZ3ARHxhZv0pRo/view

 

Thank you,

sanjay

[former_member649267]

Hi Team,

Support stack note 3278414 has changed the layout of OFF-CYCLE work bench by adding sequential number and payment number (which is run date and Pnumber from the BT table).

Question: is there a way that we can change the layout of the off cycle work bench (Example: removing sequential number or removing reason filed) is it possible? Need your input,

 

OFF CYCLE LAYOUT

 

 

[graziela]

Hello Sanjay,

This requirement is not for SUI report.

Kind regards,
Graziela

[former_member649267]

Hi Team,

Has anyone implemented note :3285503 - OCWB: Change in order of columns in the payroll history table.

This allows us to change the order of column in payroll history (moved the amount and currency columns more to the left in the Payment History table).

They have also added a toolbar to the history grid so that users can edit the columns displayed and save variants of their layout configurations. Example like removing the sequence number or payment number from payroll history tab.

Screenshot is attached below for references.

 

[former_member649267]

Hi graziela.dondoni

 

Can you please answer this question.

[graziela]

Hello Hemanth,

I don´t work with Off-cycle workbench, as this transaction is not US Country specific.

Kind regards,
Graziela

[former_member649267]

Hi graziela.dondoni

TUB 105 has Reinstated Washington WA CARES FUND LTC TAX - EE: TAX TYPE 113 and WA CARES FUND LTC TAX - ER: TAX TYPE 114. we have applied TUB 105 to BSI and ran payroll but unfortunate system is not calculating taxes for tax type 113/114.

 

Please let me know when SAP will release a corresponding note to resolve this issue.

 

Thanks and Regards,

Hemanthkumar

 

 

 

[former_member649267]

Hi Team,

in T5UTX i see the start date as 01/01/2024 instead of 07/01/2023 for washington tax type 113. is this the reason why its not working for me when i run payroll for washington employees? need your input

 

[caseysapsc]

Hello Hemanth,

With regards to the ZH30 Off-Cycle Workbench changes you mentioned you're experiencing after the year-end 2022 support packs, we are also seeing this issue and are in the process of implementing SAP note 3285503 as well since it appears to be resolving the issue in our test environment.

To date we have been unsure of which note or update changed the ZH30 display, so your mention of note 3278414 may help, although that note at first glance appears to be an update to the documentation only, and I haven't had an opportunity to delve into the specific changes that note brought in.

We likely missed it and any other related notes because they appear to be on the FI, not HR side.

Thank you,

-Casey Als
Business Systems Analyst
County of Sacramento, CA
SAP Support Team

[caseysapsc]

Hi Graziela and/or others perhaps in the know on this topic for likely Year-end 2023,

The Secure Act 2.0 changed the rules for 50+ catch-up contributions effective 01/01/2024. The income amount will be indexed each year.

We understand that with this new regulation, that deferred compensation 50+ catch-up contributions for those who made more than $145,000 in 2023 must be post-tax (Roth). Those that made less than $145,000 in 2023 can still choose their 50+ catch-up contributions to be pre or post tax.

Please don't quote me on our early understanding of this new regulation as we are still doing our own research, but if this in fact is expected to be the case, we are in hopes that SAP will have a planned, SAP-standard release update perhaps by late this year that US Country customers will be able to implement.

Does anyone have any additional information you may be able to share with us here on this terrific and super-helpful year-end focused blog of Graziela's? Our team here at Sac County CA check in on it every year-end. If not, we'll consider reaching out to both the SCN Community in general, and will perhaps open an incident with SAP to inquire further.

Thank you,

-Casey Als
Business Systems Analyst
County of Sacramento, CA
SAP Support Team

[Matt_Fraser]

Hi Casey,

Do you have a link to that particular regulation from the Secure Act? That would be a major change, requiring not just employers but also employees to take significant action in order to be able to handle a mix of traditional and Roth contributions. This is the first I've heard of this, though admittedly we are always in firefighting mode just to keep up with changes that are effective right now, so changes that don't take effect until next year will be next year's emergency. However, if this is indeed going to be the case, then I need to bring that to the attention of the relevant people in my organization so we aren't caught flat-footed on it.

Cheers,
Matt

[Matt_Fraser]

Ok, I found two links that look helpful on this one:

https://www.finance.senate.gov/imo/media/doc/Secure%202.0_Section%20by%20Section%20Summary%2012-19-2... (scroll to page 18, section 603).

https://www.bakertilly.com/insights/secure-2-0-changes-to-catch-up-contributions

[graziela]

Hello Hemanth,

I´m checking with BSI.

Kind regards,
Graziela

[caseysapsc]

Hi Matt,

Thanks for your reply and the links you provided with regard to the Secure 2.0 Act. We're in firefighting mode quite often as well, so since this appears to be happening effective 01/01/2024, we hope SAP has a standard solution that we can all implement to have in place by the end of this year.

The senate document we found shows the sections of the law, with the 50+ catch-up change being Section 603 (is pretty much the same info you provided).

https://www.help.senate.gov/imo/media/doc/secure_20sectionbysection.pdf

“Section 603, Elective deferrals generally limited to regular contribution limit. Under current law, catch-up contributions to a qualified retirement plan can be made on a pre-tax or Roth basis (if permitted by the plan sponsor). Section 603 provides all catch-up contributions to qualified retirement plans are subject to Roth tax treatment, effective for taxable years beginning after December 31, 2023. An exception is provided for employees with compensation of $145,000 or less (indexed).”

Also, there are other sections of this act that we are using to make additional changes this year, such as those needed for our Fidelity file and the deferred compensation savings plan start dates that are covered under Section 306.

We'll look for a newly created SAP note for the 50+ catch-up changes, and if we don't see one started/already in progress, we'll open an incident to get their eyes on this.

Thank you,

-Casey Als
IT Business Systems Analyst
County of Sacramento, CA
SAP Support Team

[graziela]

Hello Casey,

Product Manager is evaluating this scenario.

You can contact her via email. If you don´t have the email.
Please open a SAP case, refer to my name and I will share with you.

Kind regards,
Graziela

[graziela]

Hello Hemanth,

Do you see tax type 113 and 114 on BSI script?

If you do a batch test, did you get the tax calculated?

Thank you for the additional information.

Kind regards,
Graziela

[ChandraV]

Hello SAP team - Arizona's Protection from Predatory Debt Collection Act (proposition 209) was approved in the last election and became effective from 12/5/2022; with subsequent court challenges, this was delayed for a few months but the recent superior court rulings of Arizona, this is effective immediately. One aspect of the law is the changes to the Arizona Creditor garnishment non-exempt amount.  Previously the non-exempt amount was the lesser of 25% of the disposable net or 30 times federal minimum wage; this was changed to lesser of 10% of the disposable net or 60 times federal minimum wage. A peculiar aspect of this is the way this is being implemented - all orders received before 12/5/2022 continue to be with the old non-exempt amount (lesser of 25% of DN or 30 times Fed MW) and orders received after 12/5/2022 have to follow the new non-exempt amount (lesser of 10% of DN or 60 times Fed MW). Is SAP planning to release any fix for this?

Thanks
Chandra

[former_member649267]

Hi graziela.dondoni,

I have updated my tax modal for Washington to calculate taxes for tax type 113. I ran simulation payroll for Bi-weekly employee, on pay period 14 2023 (06/19/2023 - 07/02/2023) system started bringing tax type 113 and taxes are getting calculated at 0.0058.

Screenshot is given below for references.

 

 

[graziela]

Glad to heard that!

[former_member601373]

Hi Hemanth,

Did you make any other changes to make this work since I am not getting WA Care /4B3 and not calculating for Tax Type 113 and 114. I have update the tax model and as you mentioned T5UTX still have the start date of 01/01/2024. Please let me know if I am missing anything on this config. Our TUB level is TF11_106.

Hi Graziela, If you have additional update on WA CARES FUND LTC TAX , please let me know.

[former_member649267]

Hi Aslam,

 

How are you sir, This tax type comes out only after July 1st of 2023. Can you please let me know for what pay period you are running payroll for.

[former_member649267]

Hi graziela.dondoni

 

I have an issue with Garnishment Canada for a bi-weekly employee.

 

We have Ontario Family support deduction notice (in Garnishment infotype 0066) for an employee with a debt rule configured with an on going payment of 50% (percent of net) per pay period in garnishment infotype 0067.

 

Since the Employee is Bi-weekly, WE have 3 pay period in the month of March/September, all other month has 2 pay periods only.

The deduction during these month should happen only on the first 2 pay period and NO GARNISHMENT DEDUCTION SHOULD BE CALULTED IN 3rd period for the month of march and September.

Unfortunately i don't see any configuration available. in infotype 0067 i do see pay schedule option, but this employee is hourly employee. His pay changes (with different overtime in each pay period), so i am unable to keep 50% of net as garnishment deduction for pay period 1 and pay period 2.

 

I attached deduction modal for the wage type, unfortunately they work only for function P0014/P0015 inside schema.

Can someone please let me know if you have any solution for this issue.

 

[former_member601373]

Hi Hemanth,

Thanks for the quick reply, I am running for Period 14 (07/02/2023- 07/15/2023).

[former_member649267]

Hi Sir,

Please update your tax combo to add tax type 113 and 114. Then add the tax combo to tax authority (82 which is Washington for us under "U" which is un-employment). now start running payroll you will get it.

Screenshot is attached below.

STEP #1:

TAX COMBO:

 

STEP #2:

TAXABILITY MODAL:

 

[Katt]

How do we maintain the ER UBI account number for the state of Washington unemployment?

 

Thanks,

Katherine

[Katt]

How do we maintain the state of Washington unemployment UBI number so it shows on the quarterly unemployment form?

 

Thanks,

Katherine

[former_member601373]

Hi Hemanth,

I checked my configuration for the tax model, and it is all correct then I found out that last year we setup IT235 to exclude these employees for WA Care taxes, once I remove the indicator now, I am able to see all the taxes for WA Care as expected. Thanks for your help.

[graziela]

Hello Hemanth,

I just work with Payroll USA and we don´t have this infotype as this is country specific for CA.
Please, post this question on the Q&A with the tag HCM Payroll CA.

Kind regards,
Graziela

[graziela]

Hi Chandra,

As far as I know just Federal regulation is Supported by garnishment functionality. But you can use garnishment rules to customize State requirements.

Kind regards,
Graziela

[CarlosAccorsi]

Hello Katherine,

The last information that we have from the Tax Authority is that any combination of 2 of the 3 numbers (UBI, FEIN, ES Reference #) is permitted.
You should already be reporting on the form the FEIN and ES Reference #, so as long as these 2 numbers are correct there will be no errors.

My recommendation is for you to validate that with the Tax Authority as well and, if there's any rejection from their side, open a support case for us to take a further look on it.

Best Regards,
Carlos

[Katt]

Carlos,

Thanks for the reply. We are able to submit without errors but do get a warning message due to the missing UBI. We will continue with the errors message.

Thanks,

Katherine