U.S Tax Reporter Year End 2023

[graziela]

Another Year with our U.S. Tax Reporter Year End blog. If you have questions about 2023 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.

ASUG Webcast

ASUG Webcast: HCM U.S. Payroll and Tax Reporting 2023 Year End Update 

ASUG Webcast for SAP HCM U.S. Payroll and Tax Reporting 2023 Year End Update was conducted on October 5, 2023.

Recording and slide deck for the ASUG webcast can be found at the event page on ASUG website. Slide deck is also attached to SAP Note 3357714.

Notes to be implemented after the Year End Support Package

3415649 - REC: RPCPRRU0 report incorrectly considering the amount of wage types as negative
3411592 - Reconciliation report scheduler: replacing background options values with default values
3397030 - REC: Payroll Reconciliation Report incorrectly considering wage types as tax type
3386241 - REC: RPCPRSU0 report background jobs getting cancelled when no ALV Variant is provided
3383757 - REC: Wage type side effect correction for Payroll Reconciliation Report
3379534 - REC: RPCPRSU0 report spool request not generated when Background Processing option is selected
3407068 - TAX: PPE parameter incorrectly sent in payment types other than regular
3381685 - TR: Form W-2 not being generated for employees that have only manual entries for a Tax Company
3402664 - TR: Medicare wages in W-2C reported even with no changes to Social Security wages

Year End Notes

3357714 - U.S. Tax Reporter Year End 2023 Announcement
3358191 - Year End 2023 Phase I for U.S. Tax Reporter
3377633 - TR: Year End 2023 Phase II for U.S. Tax Reporter
3412754 - TR: Year End 2023 Phase III for U.S. Tax Reporter
3419714 - TR: Year End 2023 changes to the electronic file formats W-2 and W-2C for Puerto Rico)
3357769 - W-2 / 1099-R Forms, Envelopes and PR Approval letter for year 2023

User Guides and Resources

3368649 - SAP HCM U.S. Tax Reporter Solution Document

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

 

Annual Limits

3398804 - BEN: Annual limits year 2024
3349693 - BEN: Limits for HSA in tax year 2024
3417661 - GARN: IRS Publication 1494 for tax year 2024

 

Educational Videos

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

Kind regards,
Graziela

[miteshjain]

There are more than 70 million entries in REGUH. I see the index for PERNR is still active in our system.

[kristenburd]

How did you fix it?

[CecileO]

We are experiencing the same issue.  If I select an employee with very few entries in table REGUH, the OC Workbench shows the results. But if I select an employee that have been paid since our go live, it just spins and times out. We're opening a ticket with SAP.  We applied note 0003369116 in hopes that it would fix the issue but it did not.

[alicia_robinson]

Cecile -

Hoping you have received a reply from SAP as well.

This is the recommended change they sent to me:

This is caused by the reading data from the table REGUH. Please follow note below to handle this issue.https://me.sap.com/notes/3206964Also, if previous solution is not working well, I will recommend you make another index for table REGUH with MANDT, PERNR, SEQNR, BTZNR or enhance index PHR directly.

I'm hoping to get this change in today or at the latest on Monday for testing.

Thanks,

Alicia

[CecileO]

Hi Alicia

We got the same response, and we implemented the note this morning. So far it looks like it's fixing the problem, but we are doing some more testing.

Cecile

[alicia_robinson]

Cecile -

Did your payment number field on the workbench change as well?  It is now the date/time stamp from the PreDME process, which means all employees run in the same process will have the same payment number.  I sent an additional question to SAP to see if this will create an issue somewhere because today this number is unique to each employee (using pernr, result seq no, assign. no.).

Alicia

 

[shiva906]

Hello Carlos,

As we keep checking the Announcement of Legal Changes (refer to 2917160), is there any tentative timelines on this Alabama Overtime solution ?

[CarlosAccorsi]

Hello Shiva,

I just checked the scenario with the developer and, unfortunately, they don't have an expected delivery date yet.
However, they are working on that on priority and as soon as any news are available, the Announcement of Legal Changes should be updated.

Once the note is released, I'll post it here on the blog as well.

Best Regards,
Carlos

[otistonka]

I see there was an update to display Colorado FAMLI in Box 14 for wage type /4B7. When will Oregon Box 14 be updated on the W-2?

[evelyn_barbosa]

Hi Chandra,

Thank you for your feedback.  I did send you an email.

Much appreciated.

Evelyn.

[CarlosAccorsi]

Hello Steve,

I checked the scenario with the developer and it was asked the legal requirement from the Tax Authority which states that such information should be reported for Oregon.
Would you share it with me? So that, it can be evaluated by the developer and product manager.

Best Regards,
Carlos

[otistonka]

Carlos,

It seems this was an internal requirement to display Oregon the same as Colorado and not a legal requirement. If you have any input on how to handle this, it is appreciated. Thanks for the quick response you have provided.

Steve

[CarlosAccorsi]

Hello Steve,

On this case, you can customize Box 14 as per your needs.
You can find instructions on how to do that on note 544849 (FAQ: Tax Reporter), on the item "How are box 14 items configured?".

Thank you,
Carlos

[otistonka]

Thanks, but that solution does not work when 2 authorities use the same wage type and you want different descriptions for each State. This will cause Colorado to display /4B7 twice in box 14. There is not a way to configure it based on the State.

[CarlosAccorsi]

Hello Community,

SAP Note 3398804 (BEN: Annual limits year 2024) has just been released.

Best Regards,
Carlos

[xavier_joseph]

Is there any SAP supporting notes along with Cyclic K for AL overtime solution?

[CarlosAccorsi]

Hello Xavier,

There's no SAP delivery on the Alabama Overtime by now, but the developers are currently working on it and it should be released soon.
Please keep an eye on this blog as I'll update it with the note once it's released.

Best,
Carlos

[richaknotts79]

Hi Graziela,

Is this note out yet for NC as the MMREF is not an accepted format for Q4.

Please advise.

Best,

Richa

[CarlosAccorsi]

Hello Community,

The Alabama Overtime solution has just been released.
Please refer to note 3392866 (TAX: Alabama Overtime Pay Exemption beginning January 1, 2024) for details.

Best Regards,
Carlos

[PrakashGone]

Hi Team,

We have implemented HRSP's till J7 and while validating getting below syntax error when we we go into IT0210 to create/display the info, Is there any SAP note released to fix this error,

 

Runtime Errors SYNTAX_ERROR
Date and Time 11/15/2023 12:09:24

"CL_HRPAYUS_FILING_STATUS_RDR==CP " in include "RPC_PAYUS_FILING_STS_D
" in
line 17:
"Enhancement "HRPAYUS_FLNG_STS_DESCRIPTION" is not defined"
" "
" "
" "

The include has been created and last changed by:
Created by: "SAP "
Last changed by: "SAP "
Error in the ABAP Application Program

The current ABAP program "MP021000" had to be terminated because it has
come across a statement that unfortunately cannot be executed.

 

Error analysis
The following syntax error was found in the program
CL_HRPAYUS_FILING_STATUS_RDR==CP :
"Enhancement "HRPAYUS_FLNG_STS_DESCRIPTION" is not defined"
" "
" "
" "

[CarlosAccorsi]

Hello Prakash,

Enhancement HRPAYUS_FLNG_STS_DESCRIPTION has been delivered by note 3226644 (BSI: Filing status synchronization with TaxFactory 11.0 - Filing status reader).
If this note has already been delivered by support package for you, please check if enhancement HRPAYUS_FLNG_STS_DESCRIPTION exists on transaction SE18 on your system and if there's any syntax error on that.

Best Regards,
Carlos

[CarlosAccorsi]

Hi Richa,

SAP is aware of this change and currently both the Developer and the Product Manager are reviewing it.
If there's any change, it will be delivered on the Q4 Note.

Best Regards,
Carlos

[CarlosAccorsi]

Hi Richa,

Just got an update from the Product Manager.

She said that we have the file from NCSUIT, and she's comparing it with our current form, since the Q4 SUI research is still on.
If any change is found on this process, it will be delivered on the Q4 SUI Note.

Thank you,
Carlos

[KumarG]

Hello,

Did anyone implement this and tested the solution. We are not getting correct results for AL taxes.

Thanks

Kumar

[PrakashGone]

Hi Carlos,

Thanks for the quick response!

I've checked with an ABAP Team and confirmed that enhancement HRPAYUS_FLNG_STS_DESCRIPTION is exists in the system and there is no syntax error as well, note 3226644 already been implemented through support pack update.

 

Regards,

Prakash G

[CarlosAccorsi]

Hi Prakash,

Thank you for checking on that.

I see that you've opened a support case addressing this topic.
My colleague is already working on it.

Best Regards,
Carlos

[graziela]

Hello community,

SAP note has been released:
3377633 – TR: Year End 2023 Phase II for U.S. Tax Reporter

Kind regards,
Graziela

[Randall_A]

Hi graziela.dondoni

We have minor issue with Payroll recon display when using a wage type include pattern. We are on support package SAPKE604J7. Please see image.

Payroll Recon Display Issue

[Randall_A]

Hi graziela.dondoni

We noticed "Vendor" changed to "Supplier" for example on report PC00_M99_URMR - Reconcile postings. Was this expected change? Thanks.

[SRB86]

Hello,

We have applied our annual support packs taking SAPHR from I4-J7 and EA-HR from D5-E8.  The WH-4 for Indiana has a number of notes but nothing clarifies how form items 9 and 10 should be entered in PA30 to allow the additional withholding to apply specifically to State or County amounts reported on the W2.

The PA30 screen post only has a single field for Additional Withholding amount and there are no WH-4 forms for county level to assign specifically to the county.

Typically, I don't recall separate lines for additional withholding in the past and can find no details on Indiana's instructions for WH-4 explaining.

Is there any clarification or specific note which addresses this?

Thanks,

Stanette Balser

 

[Vamsi_Y]

Hi Graziela,

This is related to 797 notice from IRS about the "Earned Income Credit" for Washington state. I am working with Our legal and Payroll office to get this notice sent out to the eligible employees. While I learned there are multiple options to send this notice to employees like mail or handing over a physical copy or displaying somewhere in the employee portal or handling through customizations etc but I am wondering if SAP be providing an OSS Note for this requirement on the back of the employee's W2 online copy.

Also this EIC notice is not new to other states, how are other employers from different states handling this piece of information if they want it on the back of the W2 (online) forms?. Only through customization?

Could you shed some light on this please.

Regards,

Vamsi Yarlagadda.

[graziela]

Hello Randall,

I did a search and it seems this has been changed in some other applications as well, such MM, FI as well.

Account Number of Supplier

Specifies an alphanumeric key that uniquely identifies the vendor in the SAP system.

The technical name remains the same LIFNR.

Kind regards,
Graziela

 

 

[hemnth_kumar]

Please go to T5UTW under which you see 3 entry which is KY,KY05 and KY2S. Please remove KY05 from that entry. this will resolve your issue.

[CarlosAccorsi]

Hello Randall,

I see that you've already opened a Support Case addressing this scenario.
A colleague is already checking it.

Kind Regards,
Carlos

[graziela]

Hello Vamsi,

I could see you already open a case related to it.

Kind regards,
Graziela

[graziela]

Hello community,

I would like to ask the collaboration here.
If you post a question on the blog, please give at least 2 business days, before opening a case to us.
We have limited resources, the same person who reply the cases, also reply the blog.

If you post here and open a case, we will have double work replying.

Thank you all for your comprehension.

Kind regards,
Graziela

[Vamsi_Y]

Thanks for your response, Graziela. Yes, I opened a case and I will wait for the updates.

[graziela]

Hello Stanette,

The legal change SAP delivered for IN was related to line 7 and 8, Adopted child and first-time claimed exemption.

I believe for the additional withholding as you have one infotype per authority, you can accomplished creating one infotype per authority.

Kind regards,
Graziela

[former_member649267]

Hi Sir,

 

According to the note we need to write a custom rule which calls overtime wage types and cumulate the amount into  technical wage type /PPE.

The above rule PRT ZCRL GEN NOAB should be written above USTAX functionality in UTX0 schema.

 

PRT ZCRL GEN NOAB

USTAX 2 3  1

Second:

You have to be on BSI cyclic K in order for this to work.

 

Please let me know if you did both and still the Alabama overtime is not calculating as required.

 

[KumarG]

Hi Hemanth,

Thank you. Aware of all the changes and implemented all the steps.

We have added the custom rule, line in the schema to call the rule, updated BSI to cyclic K. Wagetype /PPE is generated, also the parameter PPE in the BSI interface is having the correct values.

Thanks

Kumar

 

 

 

[macarranza]

Are there any updates on notes for 1099 this year?
Thanks!

[graziela]

Hello Miguel,

I just see a change in Form 1096:

3358191 - Year End 2023 Phase I for U.S. Tax Reporter



Paper Form for Form 1096

The layout of Form 1096 was updated for the year of 2023. This SAP Note delivers the new layout of the Form 1096 (HR_F_1096_23) as specified by the Tax Authority. Only minor text and layout changes have been added to the form.

Anyway, Product Manager is still doing researches for Phase III, I recommend to keep an eye in the announcement of Legal Changes.

To review the planned Legal changes for US, start the Announcement of Legal Change application.

Kind regards,
Graziela

 

[richaknotts79]

Hi Graziela,

I am following up on this requirement again, should I raise a support ticket?

Please let me know ASAP as NCSUITS went Live on Nov 13th and will no longer accept the new format.

Best,

Richa

[graziela]

Hello Richa,

You don´t need to open a case, as the answer will be the same.

The deadline for Q4 is January 31st, even with the validity for Nov 13th.

The changes will be released in Q4 note and usually this is delivered around Christmas. If any change is found in the process. I recommend to you to keep an eye in the announcement of Legal Change for Q4.

You don´t need the change now, just for the deadline in January.

Kind regards,
Graziela

[macarranza]

Thanks for the quick reply Graziela

A couple of follow ups...

We run the 1099 process from our S4/Hana 1909 system is 3358191 the same note we should review for 1099 changes or should we be keeping an eye for another note?

i See these notes mention phase 1 and phase 2. Is there a document specifying what this phases are and what to expect in each?

Thanks again!

[Matt_Fraser]

Miguel,

The only 1099 that would be handled in the Tax Reporter Notes (YELC Phase I, etc, like 3358191) would be the 1099-R. If you're talking about vendor 1099s, like 1099-MISC, NEC, etc, those are not part of this component. You would need to go search and/or ask in the FI area. However, so far I don't think there are any 1099 changes for 2023.

Cheers,
Matt

[macarranza]

Thanks Matt! That is exactly what we are looking for 1099-MISC, NEC, INT etc.
Does anyone know where to look for those notes?
Thanks again for clarifying!
MC

[macarranza]

Hi Matt

That is exactly what we are looking for: 1099-MISC, INT, NEC, etc., for S4

Does anyone know where we can find ther relevant notes?

Thanks for your clarification!

MC

[maebrown]

Hi Kumar,

Did you receive any further support for this or were you able to resolve? We are seeing similar behavior with wage type /PPE being generated in RT correctly and passed to BSI interface. But the amount in USTAX for AL is not being reduced by the /PPE amount. Employee's tax base is still considering the full amount of taxable earnings.

Thanks

Mae

[KumarG]

Hello Mae,

We have tested the solution in another client (Employee Central Payroll), looks like payroll is calculating the taxes correctly for AL. We will test few more scenarios and confirm it by tomorrow.

 

Thanks

Kumar