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

[CarlosAccorsi]

Hello Community,

Note 3416413 [TAX: Montana Reduced Withholding (Form MW-4) - Main note] will correct that.

Kind Regards,
Carlos

[ChandraV]

Thanks. We have a pilot note to fix the BSI Sync (3418379) - should we wait till TUBs 132 is released to migrate this fix to prod? or is it independent?

Thanks
Chandra

[CarlosAccorsi]

Hello Chandra,

The pilot note was released to fix this issue until BSI confirmed the Regulatory Bulletin which would bring the definitive fix (for customers that needed that beforehand).
The developers have no plan in officially releasing this pilot note, since the correct way to resolve this issue is by applying Regulatory Bulletin 132.

Regards,
Carlos

[ChandraV]

ah! got it. Thanks for the explanation.

 

Thanks

Chandra

[graziela]

Hello Alicia,

Did you noticed it even after SAP note 3381685?

Kind regards,
Graziela


 

[alicia_robinson]

@graziela - yes we see the audit report not showing both companies after applying note 3381685.

[alicia_robinson]

@amrice -

I'm curious if the note 3402664 resolved your issue with the W-2C's.  We have run into this same issue and just found the message stating to apply this note.

Thanks!

[amrice]

@alicia_robinson 

Yes, oss note 3402664 resolved our issue with medicare wages reporting on the W2c even though there were no changes.  

The only issue we have now (which is nongating) with W2c's is Box12 code DD is generating for employees when that was the only change.  No other amounts were changed.  We have implemented BADI_REJECT_EE_W2DD but they are still generating.  Our developer has debugged it to no avail.

[alicia_robinson]

@amrice 

Thank you for the quick response!  I will have the note applied to our system on Monday and see if this works for us.  I will also be on the lookout for the box 12 DD to see if that also does the same for us.

Thanks!

[hemnth_kumar]

Hi Team,

We have applied TUB 132 in Production. where Tax type 41 (Employee disability taxes) the maximum wage base has been reinstated with an amount of $0.00. Screenshot is attached below for references.

Now when we run payroll for pay period 05 2024 system started refunding /441 taxes back to employee. Does anyone is having this issue after TUB 132 is moved to Production? Need your input

[jahnavi_kavuru]

Hello, 

We are having issue generating W2C when there is a name change. One of the employees name was supposed to change and it did not happen in time for W2s. When the name is changed on IT0002 back to 2023, W2C does not populate Box g "employees previously used name" even with using results upto 2024 check dates. Also W3C is not getting generated when to reconcile. This issue started after applying the note: 3377633. Is anyone else having these issues? 

[alicia_robinson]

@jahnavi_kavuru 

We just came across this same issue with the W3C.  We implemented note 3402664 due to another issue we found and now the W3C will not process at all.  I found a temporary fix until I could do more research which is putting the infinite end date on both the old form and the new form (it's the only way it will let the new form process).

[alicia_robinson]

Hello -

Has anyone been able to get the Alabama overtime wages to report on box 14 of the W-2? Am I missing another OSS note, because this isn't hard to configure the tax form group.

Thanks!

Alicia

[Euna]

@alicia_robinson  

I wanted to comment to your post regarding AL OT wages on box14, but I'm not sure how this works. 

Are we supposed to have it on box14? I had no idea. 😞 

Thank you, 

Euna 

[alicia_robinson]

@Euna 

Still trying to figure this out as well - not as friendly as the previous site and time to figure it out right now is lacking due to work load. 

Per the AL DOR, that is what I am understanding: 

Form W-2 Reporting in Box 14
ALDOR proposes that exempt overtime wages be reported in Box 14 of employees Form W-2using “EX OT WAGES” as the indicator: for example, EX OT WAGES- $15,250
If space becomes an issue in Box 14, this may be abbreviated (e.g., EX OT $15,250), or the textmay be wrapped.
Note – Box 14 reporting of Alabama exempt overtime begin with the 2024 tax year, do notenter the historical 2023 overtime should not be reported on the 2023 W2.

I've created the tax form group and we have the /PPE linked, but it does not populate the box 14.

[Euna]

@alicia_robinson 

Ah, ok. I'm relieved. Almost gave me a fright thinking I had missed it for 2023.  🙂  I will try to see what I can do. Have you submitted the ticket yet?  

Euna 

[alicia_robinson]

@Euna  - I haven't created a ticket yet because I will be out of office all next week.  Plus, I have a few issues I'm working on and trying to decide which one I create a ticket for first.  There is still time to fix this one so will create a ticket next week when I'm back in office unless a resolution is found before then.

Alicia

[aqhe99]

Hi @graziela / Team,

We have employees in WV in Hardy county and this county is not added in the table T5UTZ. As per the new regulations, we need to display County in the quarterly files. Not sure if BSI is planning to add the county or not. Any suggestions to handle this situation would be appreciated.