Assigning multiple withholding tax codes of the same witholding tax type

[Former Member]

As described in note 363650, I have configured a withholding tax type FE to include a range of withholding tax codes of 0% for US 1099 reporting only. I also carried out the conversion to extended withholding and resolved all errors. My requirement is that I need two different withholding tax codes of this type to be open and editable in MIRO and FB60. I am receiving error Message no. 7Q005 when I attempt to add another code of the same type.

What is the best practice for configuring/recording withholding tax in this case?

Example:

Vendor XYZ

Header amount of invoice: $1000.00

Amount relevant for withholding tax type FE code 01: $600.00 (rents)

Amount relevant for withholding tax type FE code 07: $400.00 (nonemployee compensation)

Thanks in advance

[Former Member]

Alternative approach was proposed, but need more info

[s_v15]

Hi Jay, we have encountered the same situation for FE withholding tax type that we have setup in our system for Federal withholding and non empl complensation and we are thinking of going seperate withholding tax types . Just curious if this is what you have decided when you configured it.

Appreciate your response.

Thank you

Siva

[former_member275875]

Hi,

As per note 363650,the tax codes are important and should be as mentioned in the note.

The tax types can be different than FE as well.

It is not mandatory to mention only FE.

The system will not allow and you should not create multiple tax types with same Ids.

Thanks & regards

Leena Khatri