Tax Reporter Guide_2009

U.S. Tax Reporting Guidefor SAP Payroll Customers

Year End 2009

U.S. Tax Reporting Guide, Year End 2009 2

Table of ContentsIntroduction.................................................................................................................................................................................. 4

Purpose .................................................................................................................................................................................. 4Structure ................................................................................................................................................................................. 4Content ................................................................................................................................................................................... 4Implementation Considerations ............................................................................................................................................. 5

Year End 2009: Enhancements and New Developments ......................................................................................................... 6W-2 Related Paper Forms ..................................................................................................................................................... 6W-2c Related Paper Forms ................................................................................................................................................... 6Puerto Rico W-2/W-2c Forms ................................................................................................................................................ 61099-R Related Paper Forms ................................................................................................................................................ 7XML Reporting in U.S. Tax Reporter ..................................................................................................................................... 7State Unemployment Insurance (SUI) Magnetic Media Reporting ...................................................................................... 7Other Enhancements ............................................................................................................................................................. 8Flexible Employee Sorting ..................................................................................................................................................... 8Generation / Filling Date for W-2 Run ................................................................................................................................... 8Post-Filling Runs .................................................................................................................................................................... 8Automatic Employee Selection for W-2c Runs ..................................................................................................................... 8Decimal Notations .................................................................................................................................................................. 8PDF Forms in SAP enhancement package 4 for SAP ERP 6.0 ........................................................................................... 8Post-Application Checks ...................................................................................................................................................... 10

Tax Reporter ............................................................................................................................................................................. 11Definition ............................................................................................................................................................................... 11Overview ............................................................................................................................................................................... 11Using Tax Reporter .............................................................................................................................................................. 12Access .................................................................................................................................................................................. 13

The Tax Reporting Process ...................................................................................................................................................... 14Process Flow ........................................................................................................................................................................ 14Process Description ............................................................................................................................................................. 15Display PCL4 Details (RPCTRDU0) .................................................................................................................................... 17Delete production PCL4 Details (RPCTRDUP) .................................................................................................................. 17Delete test PCL4 Details (RPCTRDUT) .............................................................................................................................. 18Fill Job Performance ............................................................................................................................................................ 18Generating Tax Forms ......................................................................................................................................................... 19Preparation/Generation Dates Screen ................................................................................................................................ 19Printing Copies ..................................................................................................................................................................... 19Menu Paths .......................................................................................................................................................................... 20Displaying Tax Tables .......................................................................................................................................................... 20Formatting and contents for W-2 and related forms ........................................................................................................... 21Magnetic Media Reporting and Electronic Filing (MMREF-1) – Employee’s Suffix (Release 4.6C) ................................. 23Customer Exits (Release 4.70 and above) ......................................................................................................................... 23

The Tax Reporter Log Manager ............................................................................................................................................... 24Configuration ........................................................................................................................................................................ 24Use ........................................................................................................................................................................................ 24Access .................................................................................................................................................................................. 26

User Preferences in Tax Form Generation .............................................................................................................................. 27Use ........................................................................................................................................................................................ 27Structure ............................................................................................................................................................................... 27

Viewing and Downloading Magnetic Media ............................................................................................................................. 28Use ........................................................................................................................................................................................ 28

Customer Exits in TemSe Processing...................................................................................................................................... 29Configuration ............................................................................................................................................................................. 30

Basic Configuration .............................................................................................................................................................. 31Tax Reporter ......................................................................................................................................................................... 31Tax Reporter Transaction and Spool Security .................................................................................................................... 31Claims and Reconciliation .................................................................................................................................................... 32Tax companies ..................................................................................................................................................................... 33Worksites .............................................................................................................................................................................. 35Configuring Magnetic Media ................................................................................................................................................ 36Generic solution for reporting multiple tax authorities on the same magnetic media ........................................................ 42Formatting Magnetic Media Data for Download .................................................................................................................. 47Configuration: Form 1099-R ................................................................................................................................................ 48

Tax Reporter Configuration Checker ....................................................................................................................................... 50Use ........................................................................................................................................................................................ 50


Configuration ........................................................................................................................................................................ 50Access .................................................................................................................................................................................. 51Year-End Processing ........................................................................................................................................................... 52

Form W-2 Processing ............................................................................................................................................................... 53Form W-2, Checkboxes ....................................................................................................................................................... 56W-2 Related Paper Forms ................................................................................................................................................... 56Form W-2, Employer Copy .................................................................................................................................................. 57

Generating Form W-2 and Associated Forms ......................................................................................................................... 59Reprinting W-2 Employee Copies ............................................................................................................................................ 60Address Changes on Form W-2 Reprints ................................................................................................................................ 61

W-2: Colorado Local Occupational Tax ............................................................................................................................... 61W-2: Commonwealth of Pennsylvania Local Services Tax ................................................................................................ 61

Forms W-2c and W-3c .............................................................................................................................................................. 62Correction W-2 Forms .............................................................................................................................................................. 62Generating Correction W-2 Forms ........................................................................................................................................... 63

W-2 Post-Filing ..................................................................................................................................................................... 64Generating Forms W-2c and W-3c........................................................................................................................................... 65

Form W-2c Processing......................................................................................................................................................... 66Printing Employee Number on W-2c ................................................................................................................................... 67W-2c: Automatic Employee Selection Based on Employee Master Data Changes .......................................................... 67W-2/W-2c and Related Forms – USERRA .......................................................................................................................... 68Deactivating PCL4 Check for W-2c Runs ........................................................................................................................... 68

Forms 1099-R and 1096 ........................................................................................................................................................... 691099-R/1099-R Correction Processing ............................................................................................................................... 70

FUTA Tax Return (Form 940)................................................................................................................................................... 71Employer’s Quarterly Federal Tax Return (Form 941) ............................................................................................................ 72Quarterly Processing ................................................................................................................................................................ 73Multiple Worksite Reporting ...................................................................................................................................................... 74Running the Multiple Worksite Report...................................................................................................................................... 75

Automatic Override of Worksite ........................................................................................................................................... 76Turning off Automatic Override ............................................................................................................................................ 77Reconciling Multiple Worksite Report (MWR) and State Unemployment Insurance (SUI) totals ..................................... 78Submitting Multiple Print Jobs for SUI Wage Reporting and Multiple Worksite Reports – State Level (MWR) ............... 79

Locality Wage Listing ................................................................................................................................................................ 80Payroll Considerations .............................................................................................................................................................. 84Claims Processing .................................................................................................................................................................... 85Payroll Reconciliation Report ................................................................................................................................................... 86Tax Form Reconciliation ........................................................................................................................................................... 87Manual Entry Adjustments ........................................................................................................................................................ 89The Adjustments Workbench ................................................................................................................................................... 89Tax Reporter Payroll Constants ............................................................................................................................................... 89Additional Resources ................................................................................................................................................................ 90

Introduction


IntroductionPurposeThe U.S. Tax Reporting Guide is published for customers who use SAP ERP Human CapitalManagement (SAP ERP HCM) to perform quarterly and year-end tax reporting for theiremployees. This document is intended to guide users through the major components, processesand procedures for tax reporting in SAP Payroll.

StructureThis document is the U.S. Tax Reporting Guide for Year End 2009. As such, this document hasbeen designated as Version 2009. Subsequent versions of this guide will be released asrequired. The guide is divided into eight sections:

1. Introduction2. Enhancements and New Developments for Year End 20093. Tax Reporter4. Configuration5. Annual Processing6. Quarterly Processing7. Payroll Considerations8. Additional Resources

ContentThe U.S. Tax Reporting Guide has been published for general use by all U.S. customers of SAPPayroll who operate at or above Release 4.6C. Unless stated otherwise, all information in thisguide applies equally to all releases at or above Release 4.6C. Whenever functionality does varyslightly or significantly from release to release, the relevant release levels are explicitly indicated.While this guide addresses the most significant milestones of tax reporting, it is beyond the scopeof this document to provide exhaustive instructions on every aspect of tax reporting in SAPPayroll.

Introduction


Implementation ConsiderationsSAP regularly issues HR Support Packages (HRSPs) to provide U.S. customers on allsupported releases with the functionality required to perform payroll processing and reporting.

Since the introduction, in 2008, of component-level support packages called Country LegalChanges (CLCs), customers who operate on SAP R/3 Enterprise (Release 4.70), mySAP ERP2004 and SAP ERP 6.0 can pursue one of two options to obtain Phase I year-end legal changesfor tax year 2009.

HRSP Optiono Apply the Base HRSP delivered in October 2009.

HRSP plus CLC Optiono Apply the Synchronization HRSP delivered in June 2009.o Then apply the CLC delivered for the U.S. country version in October 2009.

No delivery mechanism for CLCs is present at Release 4.6C (and below), so customers whooperate at these releases must pursue the HRSP option to obtain year-end legal changes.The software changes contained in these HR Support Packages apply to Release 4.6C throughSAP R/3 Enterprise (Release 4.70), as well as for mySAP ERP 2004 and SAP ERP 6.0.

For more information …Please refer to SAP Service Marketplace for more Tax Reporter information, including functionalchanges and implementation of HRSPs. SAP Service Marketplace is located athttp://service.sap.com and can be accessed with a valid SAP Support Portal user ID andpassword. While visiting SAP Service Marketplace, we recommend that you review the followingsites.

SAP ERP HCM & SAP Payroll, United StatesThe SAP ERP HCM & SAP Payroll, United States Web site is your central source of informationon tax reporting topics, training, development news, support, and documentation. This site islocated within SAP Service Marketplace at http://service.sap.com/hrusa.

SAP urges all customers to visit the Year End 2009 Web site located there for additionalinformation on Year End 2009 functionality for U.S. Tax Reporter. Review this site on a regularbasis for important SAP Notes and functional updates.

SAP NotesTo read SAP Notes, visit SAP Service Marketplace at http://service.sap.com/notes.While visiting this area, you may search for SAP Notes by number, release, application area (forexample, PY-US-TR), or text.

HR Support Packages and Country Legal ChangesSAP Service Marketplace provides an overview of the delivery dates for all HR Support Packages(HRSPs) that are delivered for supported releases. HR Support Packages and Country LegalChanges (CLCs) are announced on SAP Service Marketplace athttp://service.sap.com/hrsp, while SAP Support Packages and Patches are announcedat http://service.sap.com/patches. Information on SAP Country Legal Changes isavailable at http://service.sap.com/hrlegalchanges.

http://service.sap.com/

http://service.sap.com/hrusa

http://service.sap.com/notes

http://service.sap.com/hrsp

http://service.sap.com/patches

http://service.sap.com/hrlegalchanges

Enhancements and New Developments for Year End 2009


Year End 2009: Enhancements and New DevelopmentsThe following section summarizes the various enhancements, legal changes and corrections thatare delivered with U.S. Tax Reporter for Year End 2009.

W-2 Related Paper FormsThis section discusses Year End 2009 changes to original paper forms (related to Form W-2).For Year End 2009, no new W-2 form is delivered in Tax Reporter.

For Year End 2009, in SAP ERP 6.0, Form W-3 has been modified to reflect the changes in theInstructions section of the IRS form, per 2009 requirements.

No corresponding W-3 form has been modified for prior releases, since the standard system inthose releases does not print the accompanying instructions.

W-2c Related Paper FormsFor Year End 2009, in SAP ERP 6.0, the following two new forms are delivered to comply withIRS format requirements for Form W-2c.

HR_F_W2C_09_EE HR_F_W2C_09_ER

A corresponding new form, HR_F_W2C_09, has been created for mySAP ERP 2004 and all priorreleases.

Envelopes for Form W-2c have changed for Year End 2009. For additionalinformation, consult SAP Note 175641.

For Year End 2009, the following new W-3c form is delivered in all releases to reflect changes inthe instructions accompanying Form W-3c.

HR_F_W3C_09

Puerto Rico W-2/W-2c FormsTax Reporter supports the creation of Puerto Rico W-2 forms using a laser printer. Within SAPService Marketplace, a detailed user guide is available to discuss Form W-2 processing issuesfor Puerto Rico.

The following forms have been modified for Puerto Rico for Year End 2009.HR_F_W2_PR_LP_08 (Form W-2 for Puerto Rico for Tax Year 2009)On September 14, 2009, this form received approval by the Forms and Publication Division of theDepartment of the Treasury in the Commonwealth of Puerto Rico. A copy of the approval letter isavailable on SAP Service Marketplace.

To obtain control numbers, contact the Employer and Estimated Tax Payments ApplicationSection no later than December 31, 2009.

http://service.sap.com/sap/support/notes/175641

http://service.sap.com/~sapidb/011000358700002806612003E



HR_F_W2C_PR_LP08 (Form W-2c for Puerto Rico for Tax Year 2009)On September 14, 2009, this form received approval by the Forms and Publication Division of theDepartment of the Treasury in the Commonwealth of Puerto Rico. A copy of the approval letter isavailable on SAP Service Marketplace.

To obtain control numbers, contact the Employer and Estimated Tax Payments ApplicationSection no later than December 31, 2009. HR_F_W2C_PR_LP08 is also used to print DuplicateW-2 forms.

To print W-2/W-2c PR forms for previous years, you must adjust your configurationby replacing the current alternate Puerto Rico W-2/W-2c form with the previous yearalternate form, and use the same sequence number.

1099-R Related Paper FormsThis section discusses Year End 2009 changes to original paper forms (related to Form 1099-R).For Year End 2009, no new 1099-R form is delivered in Tax Reporter.

For Year End 2009, at SAP ERP 6.0 and above, the following new Form 1096 is delivered.

HR_F_1096_09

For Year End 2009, the following new Form 945 correction layout is delivered in all releases.

HR_F_945X

XML Reporting in U.S. Tax ReporterIn response to state tax authorities, who have increasingly adopted XML formats for the onlinesubmission of tax and unemployment insurance data, U.S, Tax Reporter has been enhanced toprovide customers with a solution for filing data in XML. In some cases, this enhancement isdelivered to comply with tax authorities – notably, the Florida Department of Revenue and theNew Mexico Department of Workforce Solutions – that obligate employers to reportunemployment insurance data in XML. In other cases, this enhancement is provided as analternative (and therefore optional) reporting method – for example, for the submission ofquarterly wage reports to the California Employment Development Department.

For additional information, consult either SAP Note 1368621, or a detailed user guide that hasbeen published on this topic.

State Unemployment Insurance (SUI) Magnetic Media ReportingFor the State of New York, in disk/tape layout HR_F_UNEMP_NY, records 1A (Transmitterrecord) and 1E (Employer Data) have been modified in accordance with the revised reportingrequirements of the authority.





Other EnhancementsFlexible Employee SortingIn SAP ERP 6.0, via Business Add-In (BAdI) definition BADI_SORT_METHOD, a new user exit isprovided in U.S. Tax Reporter for customers who wish to sort Employee copies of W-2 forms tomeet their requirements. To avail yourself of this functionality, configure Business Add-InBADI_SORT_METHOD accordingly. For further information, consult the corresponding userguide, at http://service.sap.com/hrusa Documentation Business Add-Ins Guide forU.S. Tax Reporting.

Generation / Filling Date for W-2 RunThe U.S. Tax Reporter Workbench has been modified to display the latest run as-of-date in theGeneration/Filling date tab when Form W-2 results have been overwritten completely. Thischange has been performed across all releases.

Post-Filling RunsThe U.S. Tax Reporter Workbench has also been modified to generate a summary copy - that is,a Form W-3 - during W-2 post-filing runs.

Automatic Employee Selection for W-2c RunsMoreover, the U.S. Tax Reporter Workbench bas been modified so that the automatic employeeselection for Form W-2c occurs on the basis of tax company for name and/or Social SecurityNumber changes. (Previously, the standard system processed employees without regard to theirtax company.)

Decimal NotationsThe U.S. Tax Reporter Workbench has been modified to support all available Decimal Notationsfound among User Profile Defaults. Previously, the standard system would issue short dumps ifdecimal notations other than 1,234,567.89 were specified. This change has been performed atSAP R/3 Enterprise (Release 4.70) and above.

PDF Forms in SAP enhancement package 4 for SAP ERP 6.0In SAP enhancement package 4 for SAP ERP 6.0, the default binding for array type fields onsome PDF forms has been changed from Normal to None. This change was performed in orderto print information correctly in these fields with bundling mode, which is active by default.

As you design custom PDF forms to fulfill the requirements of your enterprise, we stronglyrecommend that you assign, in the Default Binding field displayed at center right below, the valueof None to array type TextFields, rather than the value of Normal. We recommend the value ofNone for array type TextFields because the value of Normal has been determined to reportincorrect data when bundling mode is active. In SAP enhancement package 4 for SAP ERP 6.0,bundling mode is active by default.






For example, as illustrated below for PDF form HR_F_W2_07, different FormCalc scripts areassigned to TextField_p0006[0] and TextField_p0006[1], but the value of Normal isassigned to both for Default Binding. In SAP enhancement package 4 for SAP ERP 6.0, theassignment of the value of Normal for Default Binding in this scenario causes errors to occur inthe printing of addresses.

When the value of None for Default Binding is assigned to these TextFields, in SAP enhancementpackage 4 for SAP ERP 6.0, no printing errors occur.



Post-Application ChecksSince changes to magnetic media formats are delivered for Year End 2009, we recommend thatyou review magnetic media configuration for the formats in which you file. This action will serve toensure that the information you have configured (for example, contact name, contact phonenumber, blocking factor, registration number, and so on) remains correct and consistent.

To this end, in Customizing for Payroll USA (PY-US), choose:

Tax Reporter Tax Form Definition Define original tax forms

While reviewing the magnetic tape structure of the applicable forms, check to see whethermodifications are necessary – for example, additional carriage returns or format substitutions,such as disk for tape or vice versa (see SAP Note 306543 or SAP Note 305046). Also,determine whether EBCDIC to ASCII conversions must be re-applied (see SAP Note 133613).

At mySAP ERP 2004 and all prior releases, new and modified SAPscript forms are delivered forYear End 2009. Therefore, ensure that you do not have any copies of these forms on clientsother than 000; otherwise, you risk using obsolete formats. To this end, execute transaction SE71in the corresponding client, then review entries for the client in the header information. The prefixHR_F_* is assigned to all forms that are relevant for Tax Reporter.

If your enterprise operates on SAP ERP 6.0 and plans to perform year-end reportingfor tax year 2009 on this release, then you are required to employ SAP Print Formsby Adobe, rather than SAPscript forms, for tax year 2009. For tax year 2009, noSAPscript forms are delivered with SAP ERP 6.0.

Finally, we suggest that you run the updated configuration checker utility from within TaxReporter. To this end, choose the menu path Utilities Check configuration. Select the help iconto the right of the message header for information on each warning and/or error.




Tax Reporter


Tax ReporterDefinitionTax Reporter is the component of SAP Payroll that enables you to produce quarterly and annualwage and tax reports for local, state, and federal tax authorities. This section provides a generaloverview of the tax reporting process in SAP Payroll and describes the configuration that isrequired to perform tax reporting in SAP ERP HCM. This section concludes with chapters onyear-end processing and quarterly processing.

OverviewThis section provides an overview of Tax Reporter and the tax reporting process within the U.S.Payroll component of SAP ERP HCM.

The topics addressed here include:Using Tax ReporterThe Tax Reporting ProcessThe Tax Reporter Log ManagerUser Preferences in Tax Form GenerationViewing and Downloading Magnetic MediaCustomer Exits in TemSe Processing

Tax Reporter


Using Tax ReporterTax Reporter is the component of SAP Payroll that you use to produce quarterly and annualwage and tax reports for local, state, and federal tax authorities. Tax Reporter, as currentlydelivered, can be used to produce any or all of the following forms:

Form W-2 Wage and Tax Statement

Form W-2c Corrected Wage and Tax Statement

Form 940 Employer’s Annual Federal Unemployment Tax Return

Form 941 Employer’s Quarterly Federal Tax Return

Form 941c Supporting Statement to Correct Information

Form 1099-R Distributions from Pensions, Annuities, Retirement orProfit-Sharing Plans, IRAs, Insurance Contracts, etc.

Quarterly State Unemployment Insurance (SUI) wage reports

Quarterly Multiple Worksite Reports (MWR)

Localities Reporting (limited)

Tax Reporter also supports all transmittal forms associated with the above forms, including FormsW-3, W-3c, 945, 1096 and 6559. Aside from Forms W-2c and 941c, Tax Reporter supportscorrection forms for Form 1099-R and all SUI and MWR forms.

At the state level, Tax Reporter supports the following forms:

Puerto Rico: Forms W-2, W-2c, 940 and 941

New York: Fourth-quarter combined wage reporting

Arkansas: Reporting of exempt wages (on form AR-TX).At the local level, Tax Reporter supports year-end magnetic media reporting requirements for anumber of local tax authorities.

Tax Reporter


AccessTo access Tax Reporter from anywhere within the system, execute transaction PU19. Otherwise,from the main U.S. Payroll menu, choose Subsequent activities Period-independent Payrollsupplement Tax Reporter.

The initial Tax Reporter screen is shown below.

Tax Reporter: The Tax Reporting Process


The Tax Reporting ProcessPurposeThis process describes how Tax Reporter is used to issue wage and tax reports in compliancewith reporting requirements.

PrerequisitesYou must have already run payroll for your employees and to have payroll results. Some reportsmay also require specific infotypes to have been maintained.

Process FlowThe following graphic provides a technical overview of the reporting process within TaxReporter.



Process DescriptionWhenever you run Tax Reporter to produce reporting data for a tax form, two processes areexecuted in the background:

First, the forms cluster (table PCL4, RELID U1) is filled by program RPCTRCU0. This programextracts data from a number of areas, including:

Master Data

Results table RT of payroll results cluster PCL2

Manual entries from tax interface tables T5UT1 and T5UT2

Tables T51R5 and T51R1, which are populated by Third Party Remittance functionality.

Once program RPCTRCU0 has completed processing, the raw data that is to be reported onpaper and magnetic media forms is stored in forms cluster PCL4, in an unformatted state. Onceall necessary table entries have been created in the forms cluster, program RPCTRCU0 ceasesprocessing and a second program, RPCTRPU0, is run to read these entries. It subsequentlyformats these entries and generates reporting data in the various media supported by TaxReporter, both on paper, SAPscript forms, HRFORMULA reports, or simple lists) and magneticmedia (TemSe – that is, temporary sequential – files, magnetic tape, and diskette).Given the background processes described above, it is important for you to considerwhich of the selections you make from the initial Tax Reporter screen influence thepopulation of forms cluster PCL4, and which of the selections influence the output ofreporting data.

Whenever you first access Tax Reporter, you can see a series of tax forms, such as Form 1099-R, Form W-2c, State Unemployment Insurance (SUI) forms, or Form 941c. Within Tax Reporter,these tax forms are grouped into tax form classes. Tax form classes are further grouped byquarterly or annual reporting frequency into "original" forms (for example, Form W-2) and"correction" forms (for example, Form W-2c). To view a complete list of tax form classes, inCustomizing for Payroll USA (PY-US), choose:

Tax Reporter Tax Form Definition Custom Forms Create user-defined tax formclasses

For all original (that is, non-correction) forms, the population of forms cluster PCL4 is controlledby the selection of tax form class only. In other words, no jurisdictional or other selections can bemade to narrow the scope of processing for original (that is, non-correction) form data. Thismeans that even if you instruct Tax Reporter to produce SUI forms for only six states, formscluster PCL4 will always be populated for every state where corresponding payroll results exist,regardless of the six states that you specified in the detail selection screen. Of course, the detailselections that you make will restrict the output of original form data to the six states specified.Nonetheless, processing of original form data will occur for every state where payroll resultsexist. Once you have run Tax Reporter for a given tax form class, you can produce original formsin that tax form class for any state, even if you did not specify that state on the detail selectionscreen. To produce tax forms after completion of a Tax Reporter run, select the Print copiesfunction on the Tax Reporter initial screen.



Tax Reporter can process multiple tax companies during a single reporting run by means of atransmitting tax company. Since most states and the federal government allow SUI and W-2data to be filed on a single magnetic media file (tape or disk) for multiple tax companies, TaxReporter creates separate records or sub-totals for each tax company processed, but totals alldata to be submitted in a single "transmitting" tax company. The transmitting tax company isusually the one from which the tape is created; it is also the company that will serve as a liaisonto tax authorities. Tax companies are assigned to a transmitting tax company via feature UTXTM.

To configure feature UTXTM, in Customizing for Payroll USA (PY-US), choose Tax ReporterDefine transmitting tax company. Once you have configured feature UTXTM, you execute TaxReporter for the transmitting tax company only; the output of Tax Reporter will include data for allof the tax companies assigned to the transmitting tax company.

In an effort to fill forms cluster PCL4 and produce output in the shortest period possible, TaxReporter employs the scheduling program RPCTRSU0. Program RPCTRSU0 executes one ormore instances of cluster fill program RPCTRCU0 and print program RPCTRPU0 in order todivide the size of the reporting run.

One instance of RPCTRCU0 is called for each tax company, or tax company split, (whose datais being processed under the transmitting tax company), and one instance of RPCTRPU0 iscalled for each type of output being processed. Therefore, program RPCTRCU0 is run per taxcompany (or tax company split), while program RPCTRPU0 runs on the basis of the output type(for example, SAPscript form or TemSe file) and sort criteria. Any selection criteria you mayspecify will not influence the division of reporting runs.See the Fill job performance section of this document for more specific information regardingTax Company splits.If one or more Fill Jobs (RPCTRCU0) is terminated, you can either resume the previous run oroverwrite it with a new run. Tax Reporter checks the number of employees whose records havealready been processed and written to the PCL4 database and gives you the option of processingthe remaining number of employees or of running Tax Reporter again for all employees, asshown in the example below:



Display PCL4 Details (RPCTRDU0)To display Tax Reporter form cluster (PCL4) details, use program RPCTRDU0 as follows.

1. Execute transaction PU19 to access this program.

2. Specify the corresponding tax company and reporting period.

3. Select Utilities Display form fields.

4. Enter your selection criteria. You can display form cluster (PCL4) results by Formnumber (from control information), Tax Company, Personnel number, or Outputproduced by, (that is, the user who produced the data).

If you enter no selection criteria, Tax Reporter will select all employees.

5. Specify whether a test or productive run is to be performed.

6. Select Execute.

Delete production PCL4 Details (RPCTRDUP)To delete Tax Reporter form cluster (PCL4) production run details, use program RPCTRDUP asfollows.



3. Select Utilities Delete Production PCL4 Data (for production runs).

4. Enter your selection criteria. You can delete form cluster (PCL4) results for productionruns by Form number (form control information) and Tax Company.

5. Select Execute.

When you delete PCL4 entries for production runs, the corresponding control informationin tables T5UXX and T5UXY also will be deleted. A control number may be used for morethan one Form number (in Tax Reporter control tables). Therefore, if a control numberthat is assigned to the Form number to be deleted was also assigned to other formnumbers, then this control number information from T5UXY will not be deleted. Thesedetails will be displayed in the program results.

However, if all Form numbers that were assigned to this particular control number weredeleted, then the control information in table T5UXY for the control number will bedeleted automatically as the last dependent Form number is deleted.



Delete test PCL4 Details (RPCTRDUT)To delete Tax Reporter form cluster (PCL4) test run details, use program RPCTRDUP as follows:



3. Select Utilities Delete Test PCL4 Data (for test runs).

4. Enter your selection criteria. You can delete form cluster (PCL4) results for test runs byForm number (form control information), Tax Company and Output produced by.

5. Select Execute.

For security reasons, users can only display or delete Tax Reporter data, if they haveauthorization for report RPCTRDU0.

If you wish to limit authorizations for PCL4 data deletion, you can also establishauthorizations for programs RPCTRDUP (for production data) and RPCTRDUT (for testdata).

Fill Job PerformanceRun times can be very long when Tax Reporter is run for tax companies with very large numbersof employees. To shorten run times, users can distribute among several jobs the total number ofemployees to be processed in one tax company. This distribution can occur either by specifyingan arbitrary number of employees per job or by dividing processing for the tax company into aspecific number of jobs.

The system selects employees to be processed from the Employee Index table (T5UX1). Thistable is updated with every payroll run or manual entry transaction.

Once the list of employees to be processed for one tax company is available, this list is split intoseveral jobs, based on the configuration of feature UTRJS. These jobs can then run in parallel,based on the number of background work processes available in your system.

A running summary entry is kept in PCL4; each separate job can update this entry as processingproceeds. However, during summary updates, the PCL4 summary entry is locked to preventother processes from accessing it.

If your enterprise is executing Tax Reporter for the first time to perform reporting,then we urge you to note that although the Employee Index table (T5UX1) ispopulated with every payroll run, it is nonetheless advisable for new customers topopulate this table by running the utility program RPCTRUU6. This action ensuresthat employees who were terminated before the first payroll is run in the standardsystem will be included in the Tax Reporter run.

In SAP ERP 6.0, print jobs can be split into several smaller jobs to improve the performance ofU.S. Tax Reporter, based on the configuration of feature UTRPS. This split is intended only for



Employee and Employer copies of W-2 Forms in PDF format. Refer to the corresponding featuredocumentation for additional information.

Generating Tax FormsTo generate wage and tax data and to issue the desired forms, proceed as follows:

1. Specify the transmitting tax company whose data is to be processed; if you have notconfigured feature UTXTM, then each tax company will function as its own transmittingtax company.

2. Specify the wage and tax report (for example, Form W-2) that you wish to produce, thereporting period end date (for example, 12/31/2009) and the As of date, that is thedate up to which payroll results are to be considered – for example, 01/31/2010, if TaxReporter is to consider retrocalculations processed in January 2010 for tax year 2009.

You cannot perform reporting runs in production mode for individualemployees or groups thereof.

Based on your specifications, Tax Reporter extracts the appropriate data from past payrollresults. Depending upon the form chosen and your configuration, Tax Reporter issues the formdata on paper, magnetic media, or a combination of the two.

Preparation/Generation Dates ScreenThe Preparation/Generation dates screen displays one entry for each tax form.

When you set the Filing date for this entry, all entries for the same form in the control table areupdated with this filing date.

However, since the system previously allowed you to define different filing dates for each run,inconsistencies may arise with filing dates that are defined for a particular tax form that has thesame end date. Therefore, to enable users to identify these inconsistencies, the system displaysall of the entries of a form that have a different filing date.

If you attempt to change the filing date for any one of the entries (with the same end date), thenthe system, in response, will revise all of the records (with the same end date) in the control tableto reflect the most recent filing date.

Printing Copies

1. Select the Print copies button on the productive run screen.

2. An information screen inquires whether you wish to print copies of the latest result withthe date of form generation specified on the screen. If you wish to print copies of priorresults, choose the menu path Tools Print copies.

The date in Date of form generation is used as the manual entry preparation date.



Menu PathsIf you have existing production runs in your system, you cannot start a production run for thesame tax form, tax company and reporting date, using the same (or later) As of date by selectingthe Online or Background buttons on the screen.

Using these buttons increases the risk of accidentally corrupting Tax Reporter data (PCL4) due touser error, when attempting to reprint forms.

Instead, the system prompts you to use the following menu paths:

Tools Overwrite results Online production run

Tools Overwrite results Background production run

Displaying Tax TablesTo display tax table entries and input manual entries in Tax Reporter interface tables T5UT1 andT5UT2, select the Utilities menu from the initial Tax Reporter screen.



Formatting and contents for W-2 and related formsForm W-2, Employee Wage and Tax Statement, Copy B, C, and 2The form W-2: employee copy complies with all requirements established by the InternalRevenue Service (IRS) and the Social Security Administration (SSA).

SAP delivers a “4-up” substitute form; designed in accordance with IRS publication 1141, part B,Section 2 – ‘Requirements for Substitute Forms Furnished to Employees (Copies B, C, and 2 ofForms W-2)’. This form is intended to be printed on 8 ½" x 11" pre-perforated sheets of paper thatare blank on the front and that have filing instructions pre-printed on the back.

Review SAP Note 175641 for additional instructions and supplier contact information.Form W-2, Authority Copy for State and Local Authorities Requiring PaperYou must file this form with state and local authorities that do not accept magnetic media, or ifyou do not have enough employees to meet a minimum requirement for filing magnetic media.

The paper authority copy produced by Tax Reporter is not intended to be filed with theSSA. In order to file with the SSA on disk, tape or online, use SAP-supplied magnetic media.Form W-3, Transmittal of Wage and Tax StatementsThe W-3 Authority copy form is based on, but does not exactly meet, IRS/SSA requirements forForm W-3. This form is provided for reference purposes only. It would normally accompanypaper copies of W-2 Copy A, filed with the Social Security Administration. Since Tax Reporterdoes not generate a paper version of Copy A that can be filed with the Social SecurityAdministration, Form W-3 will not be filed. Commas are no longer used in amount fields on thisform.Form 6559, Transmitter Report and Summary of Magnetic MediaThis form is based on, but does not exactly meet IRS/SSA requirements for Form 6559. Theinformation from the Form 6559 equivalent that Tax Reporter generates must be transcribed ontothe official form for subsequent filing. Form 6559 is only required when filing on magnetic tape orcartridge. Commas are no longer used in amount fields on this form.

Form 6559 is not required when filing on diskette or online. If you are required to file Form 6559,then the entry in Box.11, Number of Forms W-2 – which is actually the number of employee detailrecords, not the number of paper forms – must be obtained by deriving the value from the Totalnumber of employees field. To do this, use the parse option within the magnetic media downloadfunction, which is accessed via the All mag. media files function button on the main Tax Reporterscreen).Residence/Non-residence wages/taxesYou can use Tax Reporter to report resident wages/taxes and non-resident wages/taxes. Forinformation about how to configure your own form to report resident and non-residentwages/taxes, refer to the user guide entitled “Reporting Resident and Non-ResidentWages/Taxes" on SAP Service Marketplace at http://service.sap.com/hrusaDocumentation User Guides Reporting Resident & Non-Resident Wages/Taxes.



http://service.sap.com/~form/sapnet?_SHORTKEY=01100035870000197329&



W-2 Audit ReportThe W-2 Audit Report allows you to print information for multiple employees on a single page.

You cannot use this form to file for previous tax years, although a report will be produced ifyou run it for prior years. This report does not fulfill a legal requirement; it is intended to be usedas a tool for checking W-2 information prior to printing on W-2 paper stock.

W-2c Statement of Corrected Income and Tax AmountsThe configuration of the existing W-2c allows you to correct base amounts on a prior W-2c, whenmore than one W-2c is issued for the same tax year. This was accomplished by changing thevalue in the Way of reporting (T51T8-CORRN) field from ‘1’ – Original tax data to ‘2’ – latestcorrected data.

W-2 Related Magnetic/Electronic FilingThe MMREF-1 format for filing magnetic or electronic W-2 information with the SSA complies withall legal requirements published by the Social Security Administration for tax year 2009.



Magnetic Media Reporting and Electronic Filing (MMREF-1) –Employee’s Suffix (Release 4.6C)BackgroundFor magnetic media, the employee’s name must match the name printed on the employee’sSocial Security card. If a suffix (such as Jr.) is present, then use the provided field.

SolutionThe user exit (EXIT_RPCTRCU0_004) enables you to write your own code so that you can passa valid suffix to Tax Reporter. In this way, you can prevent invalid suffixes from being printed.

To create/modify your user exit, execute transaction SE37, and enter the Function ModuleEXIT_RPCTRCU0_004Sample code for EXIT_RPCTRCU0_004

All MMREF-1 layouts (W-2 and SUI) now report the employee’s suffix on the RW and/or RSrecords, where applicable.

For more information, see SAP Note 525173.

Customer Exits (Release 4.70 and above)For information on customer exits in these releases, consult the corresponding user guide, athttp://service.sap.com/hrusa Documentation Business Add-Ins Guide for U.S. TaxReporting.

if ( pp0002-namzu cs 'Jr.' or

pp0002-namzu cs 'Sr.' or

pp0002-namzu cs ).

suffix = pp0002-namzu.

else.

suffix = ' '.

endif.

Flag = ‘Y’.





The Tax Reporter Log Manager


The Tax Reporter Log ManagerConfigurationOther than specifying the longevity of the TemSe files, no configuration is required to use the TaxReporter Log Manager. Since the Log Manager reports configuration errors in tandem with theConfiguration Checker, the Log Manager also helps you to resolve missing or erroneousconfiguration.

UseThe Tax Reporter Log Manager is an administrative tool designed to provide an overview ofevery reporting run that Tax Reporter performs.

You should check the log after every run.

As demonstrated in the following graphic, the Log Manager records both production and test(simulation) runs for every combination of Tax Company and quarter- or year-end form that youare filing. In the graphic, the Log Manager provides an overview of all production and simulationruns for Form W-2 within tax company US01.

You can expand the node for the Production run into Production and Print copynodes, as demonstrated in the graphic above. However, the logs for existing reprintcopy runs in the system are not converted; you can still see these runs under theProduction node.



Aside from distinguishing between production, print copy and test runs, the Log Manager alsorecords the end date, As of date, run date, run time and user of every run performed. The firsttwo columns correspond to the entries that you made in the reporting period end date andconsider payroll results to fields respectively, while the remaining columns indicate the dateand time that the run was executed, and by whom. All runs are summarized in a drop-down treestructure. For example, by opening the Production tree structure (shown in the graphic above),you can access the run summary screen, as shown in the following graphic.

On this screen, you can review the exact End dates, As of dates, Run dates, Run times andresponsible parties (User) for each production run executed for Form W-2 in tax company US01.The most recent run is always displayed at the top of the summary screen. From this screen, youcan usually open the tree structure still further (as shown above), to review detailed informationfor any run. Alternatively, you can select the icon for an overview of the selection criteria andcontrol information that were used to perform the run, as well as summaries of the forms thatwere produced and any errors that occurred.

Assuming that detailed information is available for a given run, so that you can open the treestructure further, the Log Manager enables you to review additional information, if it is available,including configuration remarks, selection criteria and output and information on adjustments.



AccessFrom the application toolbar of the initial Tax Reporter screen, choose the Log Manager functionbutton.

The Tax Reporter log is stored in a TemSe file that you can delete by using TemSereorganization utilities. You can specify the longevity of these records within feature TEMSE. Toaccess this feature, execute transaction PE03, then adjust the period accordingly.

The following example shows one possible configuration of feature TEMSE, where:

The log for tax company US01 is kept for 50 days, as a minimum; after that it willbe deleted whenever you perform routine deletions of TemSe files.

The log for tax company US02 is kept for 100 days. The log for other tax companies is kept for 30 days. The magnetic media generated in a production run is kept for 300 days, The magnetic media generated in a test run is kept for 200 days.

Variable key F C Operations OBJKN

US01 . &TEMSE=50US02 &TEMSE=100CTRPUT &TEMSE=200,CTRPUP &TEMSE=300,****** &TEMSE=30.

You can set a retention period for the Tax Reporter log at tax company level for a production aswell as for test runs. You can set a different retention period for production and test runs. Youchange the configuration by changing the feature TEMSE.

The retention period for a reprint copy is equal to that of a production run.

The example below simulates feature TEMSE configuration such that, for tax companyUS01, the retention period is 90 days for production runs and 60 days for test runs, whilefor tax company US02, the retention period is 80 days, both for production and test runs.

Variable key F C Operations D OBJKN

US01 . &TEMSE=90/60US02 &TEMSE=80****** &TEMSE=30.

For additional information, consult SAP Note 726356.


Tax Reporter: User Preferences in Tax Form Generation


User Preferences in Tax Form GenerationUseThe User preferences dialog box within Tax Reporter allows you to define what will appear on thescreen whenever you first execute the application. This dialog box also allows you to specify thesort order for downloading magnetic media files.

To access the User preferences dialog box form Tax Reporter, choose Tools Preferences.

StructureThe User preferences dialog box consists of a variety of selection areas, allowing you to:

Designate the screen to be displayed whenever you run the application;

View the last screen of Tax Reporter that was accessed;

View the screen for a particular form class (for example, W-2 Processing);

Specify that the form selection tree structure is to appear in expanded format, so that allavailable forms are displayed immediately upon start-up;

Specify a default sort order in which magnetic media files are downloaded;

Specify the form output selection details that are to be shown upon start-up;

Determine whether the tab strip for production runs, test runs, generation dates, or formdefinitions is to appear as the active tab strip when Tax Reporter is initiated.

In mySAP ERP 2004 and SAP ERP 6.0, Tax Reporter results are displayed bydefault in SAP List Viewer (ALV) format. If your enterprise performs year-endreporting in either release, but does not wish to display results in ALV format, thenselect the Disable ALV checkbox that is located in these releases within the Userpreferences dialog box.

Tax Reporter: Viewing and Downloading Magnetic Media


Viewing and Downloading Magnetic MediaUseBy selecting the All mag. media files function button on the initial Tax Reporter screen, you candisplay a list of magnetic media files that have been generated (in production or simulation mode)for a particular tax form class. From the list screen, you can display the contents for a particularfile, and then download the file to a local directory.

PrerequisitesYou have run Tax Reporter for the desired tax form class (for example, W-2 Processing).

Procedure1. From the main U.S. Payroll menu, choose Subsequent activities Period-independent

Payroll supplement Tax Reporter.

2. To view magnetic media files for all tax form classes, both for production and simulationruns, choose the All mag. media files function button.

You can also restrict your selection to magnetic media files generated for aparticular tax form class and run type (production or test) by choosing the desiredtax form class from the Tax Forms tree structure, the corresponding PROD. runor TEST run tab strip on the main Tax Reporter screen, then the All mag. mediafiles function button.

3. If the Sorting order dialog box appears, specify the order in which you wish to display themagnetic media files, then choose Continue.

If you have already defined a default sort order under User preferences, thisdialog box will not appear. For further information on this process, see UserPreferences in Tax Form Generation.

ResultA list of the magnetic media files generated in Tax Reporter is displayed according to yourselection criteria. From this screen, you can drill down to view the contents of the magnetic mediafiles displayed or download these files.

See also: Configuring Magnetic Media

Tax Reporter: Customer Exits in TemSe Processing


Customer Exits in TemSe ProcessingIf you wish to modify values for the TemSe files, you can create an exit. To do this, proceed asfollows:

1. In Customizing for Payroll USA (PY-US), choose Tax Form Definition Define originaltax forms.

2. Locate and select the TemSe form where you want to add the exit.

3. Select Magnetic tape structure.

4. Locate and select the field where you want to add the exit.

5. Select Details (F2)

6. Enter the name of your exit in the field Or directly. Your exit must start and end with $.For example, $MYEXIT$, $PENSIONPLANID$, or $X$. To avoid syntax errors, use onlyupper case letters.

7. Create an ABAP routine in the include RPCTRPUZ. The value returned from your routineis what is sent to the TemSe file in the position indicated in Customizing, and must notexceed 50 characters.

As shown in the example below, your user exit must use the formatform $EXITNAME$ changing value(retval).

The exit above returns value P if the tax company is US01 and the personnelsubarea is 0001. Otherwise the value returned is ‘ ’ (blank).

form $PENSIONPLANID$ changing value(retval). loop at treslt where field = 'P0001-BTRTL'. exit. endloop. if sy-subrc eq 0 and t5utl-txcmp = 'US01' andtreslt-text = '0001'. retval = 'P'. else. retval = ' '. endif.endform.

Configuration


ConfigurationThis section addresses the configuration that is required for tax reporting in the U.S. Payrollcomponent of SAP ERP HCM.

The topics addressed here include:

Basic ConfigurationConfiguring Magnetic MediaSubstituting Magnetic Media Formats: Form W-2Substituting Magnetic Media Formats: SUI FormsFormatting Magnetic Media Data for DownloadConfiguration: Form 1099-RTax Reporter Configuration Checker

Configuration


Basic ConfigurationIn this section, we describe the fundamental configuration activities that you must havecompleted before you can perform tax reporting in SAP Payroll.

Tax ReporterIf your enterprise has not done so previously, then you must ensure that your system is correctlyconfigured to process data according to all of the configuration activities found in the TaxReporter section of Customizing for Payroll USA (PY-US).

In order to view the most up-to-date instructions and documentation for anyCustomizing activity, always choose this menu path when you first enter any sectionof Customizing:

Utilities Text display SAPscript

In addition, to view the most up-to-date documentation in its optimal format, select:Help Settings in Modal Dialog Box

Tax Reporter Transaction and Spool SecurityYou can prevent unauthorized or unintentional updates of PCL4 data by configuring:

Feature UTXSS to activate or deactivate the Tax Reporter authorization check.

Feature UTXSP to specify spool authorization codes,based on tax company and tax form class level.

Once you have activated these features, you must contact your system administrator tocreate proper authorizations and assign authorizations to corresponding users.

If you wish to define authorizations on the basis of tax company, (where user group A, forexample, is authorized to run Tax Reporter for tax company US01, user group B is authorized torun Tax Reporter for tax company US02, and so on), then you must create authorizations forevery tax company and specify all personnel areas and personnel subareas under the taxcompany in Authorizations. In other words, you must specify all possible combinations under thetax company.Activating the Tax Reporter authorization checkTo activate this authorization check, in Customizing for Payroll USA (PY-US), choose:

Tax Reporter Switch on Tax Reporter authorization checkSecuring Tax Reporter spool requestTo specify the necessary authorization code, in Customizing for Payroll USA (PY-US), choose:

Tax Reporter Specify authorization code for spool request

To determine which tax form class to use, in Customizing for Payroll USA (PY-US), choose:


You may also refer to the authorization object documentation S_SPO_ACT in object class BC_A.

Configuration


Claims and ReconciliationIn addition to the configuration contained in the Tax Reporter section, we strongly recommendthat you also configure the entire Reporting section of Customizing for Payroll USA (PY-US).This section consists of the following two chapters:

Reporting Claims Processing a prerequisite for clearing claims

Reporting Reconciliation a prerequisite for performing reconciliation

In the first chapter, you configure your system to enable claims to be cleared. In the secondchapter, you ensure that all wage types that play a role in tax reporting are properly configured forthe reconciliation process.

Configuration


Tax companiesWithin SAP Payroll, tax companies are assigned to employees indirectly, via personnel area andsubarea. To configure tax companies, in Customizing for Payroll USA (PY-US), choose:

Tax Tax Companies Define tax companies

Never change the mapping of personnel area/subarea combinations to taxcompanies. While you can map new combinations of personnel areas and subareas toexisting tax companies, changing an existing assignment of personnel areas/subareasto tax companies will lead to incorrect tax reporting.

When initiating production runs of original (that is, non-correction) tax forms in Tax Reporter, onlyone tax company name may be specified. However, as stated earlier, a single tax company mayperform reporting for any number of tax companies aside from itself. The transmitting taxcompany is a tax company under which you transmit tax reports for one or more taxcompanies.

Therefore, by specifying a transmitting tax company when you run Tax Reporter, you cansimultaneously process data for multiple tax companies, even though only one tax company – thetransmitter – has been specified. This functionality can greatly reduce the number of runs thatneed to be initiated and the amount of magnetic media to be produced. As mentioned under TheTax Reporting Process, tax companies are assigned to a transmitting tax company via featureUTXTM.

To configure feature UTXTM, in Customizing for Payroll USA (PY-US), choose:

Tax Reporter Define transmitting tax company

If you assign multiple tax companies in your organization to a single Employer IdentificationNumber (EIN), then you must designate a reporting tax company. The reporting data for all taxcompanies assigned to the corresponding EIN is combined and reported under the tax companyspecified in feature UTXRP. To this end, you must modify feature UTXRP to identify your chosentax company as the reporting tax company. To configure feature UTXRP, in Customizing forPayroll USA (PY-US), choose:

Tax Reporter Define reporting tax company

Transmitting tax companies and reporting tax companies are fundamentally different.With transmitting tax companies, you are able to identify the data from each of the taxcompanies for which reporting occurred within the output (such as TemSe or paper)of Tax Reporter. This is possible because that data remains linked to the EmployerIdentification Number of the original tax company. However, if you use a reportingcompany, you cannot determine which information belongs to which tax company,because all information will be assigned to the Employer Identification Number of thereporting tax company.

Configuration


You can set the transmitting and reporting tax company based on tax form class in featuresUTXTM and UTXRP, as follows:

Enable field TFRCL (Tax form class) in feature UTXTM:

1. Execute transaction PE03.

2. Specify feature UTXTM and select the option Structure, then choose Change.

3. Under Valid fields for decisions' select field TFRCL.

4. Save your change, then activate the feature.

5. Repeat these activities for feature UTXRP.

Modify and activate the features according to the business scenario:

For example, in your company:

For W-2 (Tax form class A100), all tax companies are reported under US01; for SUI (Tax formclass Q200), all tax companies are reported under US02; for all other tax form classes all taxcompanies are reported individually.

You need to modify feature UTXTM and UTXRP as displayed below and activate them.

Feature UTXTM

Variable key F C Operations D TFRCL

A100 D TXCMPA100 **** &UTXTM=US01,Q200 D TXCMPQ200 **** &UTXTM=US02,**** D TXCMP**** **** &UTXTM=****,

Feature UTXRP

Variable key F C Operations D TFRCL

A100 D TXCMPA100 **** &UTXRP=US01,Q200 D TXCMPQ200 **** &UTXRP=US02,**** D TXCMP**** **** &UTXRP=****,

Configuration


WorksitesIf you intend to perform Multiple Worksite Reporting from within Tax Reporter, you must firstensure that your worksites are properly configured. To this end, in Customizing for Payroll USA(PY-US), choose:

Tax Tax Data Maintenance Unemployment Insurance Define unemploymentworksites

Worksite information should also be maintained for each employee in the Unemployment Stateinfotype (0209). To ensure that all employees are properly assigned to the appropriate worksite,you can configure payroll calculation rule UUIM to issue an error message during payrollprocessing in the event that worksite information is missing. To configure payroll calculation ruleUUIM, in Customizing for Payroll USA (PY-US), choose:

Tax Maintain Tax-Related Schemas and Rules Maintain payroll calculation rule forunemployment Unemployment information options

If worksites have not been configured in the manner described above, Tax Reporter will useeither a dummy worksite (99) or the worksite recorded in table T5UTV. For additional informationon this subject, consult the section on Multiple Worksite Reporting.

Configuration


Configuring Magnetic MediaThe magnetic media files that you create with Tax Reporter are written in TemSe file format andhave a defined life span.

The files are created with attributes including an expiration date, after which they may be deletedby TemSe reorganization utilities. You can determine the default lifespan of Tax Reporter-relatedTemSe files in the feature TEMSE (transaction PE03).

A configuration example for feature TEMSE is provided below. In this example:

The magnetic media generated in the production run is kept for 300 days. The magnetic media generated in the test run is kept for 200 days.

OBJKNCTRPUT &TEMSE=200,CTRPUP &TEMSE=300,

Furthermore, we strongly recommend that you make a copy of any magnetic media that yousubmit to any tax authority.Formatting the file for downloadYou may need to specify some parameters in order for your file to be formatted correctly when itis downloaded to your local drive prior to creating a diskette, tape, or online filing. This isespecially important for formats based on the MMREF-1 standard, since the files are intrinsicallythe same whether filing by tape, diskette or online.

The main difference is whether carriage return/line feed characters (also known as a recordterminator or paragraph marker) separate each record and the character set (ASCII or EBCDIC).SAP usually pre-delivers the format set according to preferences stated by the authority (forexample, our MMREF-1 for the SSA (HR_F_MMREF_1) is set to format without carriagereturn/line feed characters, and to be written in ASCII mode). If different parameters are needed,consult SAP Note 133613 and SAP Note 492380.Submitter record parametersMagnetic media files often have what is referred to as a submitter record, which contains dataabout the person and organization responsible for the file. The submitter record may also requiresome information about the file itself, such as whether it is a resubmission. At this time you needto update this information on the magnetic media format configuration from within Tax Reporter.To do so, in Customizing for Payroll USA (PY-US), choose Tax Reporter Tax Form Definition

Define original tax forms.

1. Select the format to be modified – for example, HR_F_MMREF_1.

2. Select the Magnetic tape structure view.

3. Review the fields of the submitter record and fill in the required parameters, by using theOr directly field. This action is not necessary for any tape location/field where a value isspecified in the Take from field.



Configuration


Upon executing this Customizing activity, the system presents a list of the standard paper andmagnetic media formats that are delivered by SAP. You can then copy these standard formats toyour customer name range and reconfigure them, or even reconfigure them directly, without firstcopying them.

Although it is possible to reconfigure the standard formats delivered by SAP to address anyunique requirements, we recommend that you copy the standard formats delivered with TaxReporter to the customer name range, and then modify them to meet your requirements. Anychanges that you elect to make to standard formats may be overwritten, and therefore lost, whenyou apply subsequent HR Support Packages.

In many cases, SAP delivers two or more standard formats, supplying multiple magnetic mediafor a single form to be submitted to a single authority. Nonetheless, additional configuration maybe required to ensure that the standard formats delivered by SAP meet both the specificrequirements of your payroll department and the general reporting requirements of taxauthorities.

In the following sections, we describe situations where such additional configuration may berequired. These sections address the substitution of magnetic media formats for W-2 reporting,the substitution of these formats for SUI reporting, and the formatting of Magnetic Media data fordownload.

Configuration


Additional Information for Tax ReportingAdditional information for tax reporting is recorded in view V_T5UX9. At present, four types ofinformation, described below, are found there. To maintain this view, in Customizing for PayrollUSA (PY-US), choose:

Tax Reporter Tax Form Definition Maintain additional information for tax reporting

o Magnetic Media Information

This first type of information can be used to store customer-specific information, such asthe name of a contact person, or that person’s e-mail address. Previously, thisinformation was maintained in the Or directly field within magnetic media configuration atthe transmitting tax company level (in record RA), or was not maintained at all withinmagnetic media configuration at the tax company level (in record RE). The followingexample demonstrates one possible use of this type of information.

Configuration


In the example above, the e-mail address of the contact person is stored in the first field;fourteen additional fields are delivered in this view. Moreover, among the key fieldsdelivered in this view, it is not required to make an entry in each field. To illustrate, if asingle set of Magnetic Media contact information is applicable for all W-2 files in yourenterprise, then you only need to create one record for tax form class A100, then leavetax authority as initial value. If, at a later date, certain tax authorities require differentcontact information, this requirement can be fulfilled by adding entries with tax form classA100, along with the corresponding tax authorities.

Upon adding a new entry (as shown in the previous screenshot), one simply modifiesCustomizing for magnetic media in the following manner.

Configuration


o Philadelphia Resident/Non-Resident Rate

This second type of information is used to store Philadelphia resident/non-resident rates.SAP delivered these rates for tax years 2003 through 2005; these rates will not bedelivered for tax year 2006 or subsequent tax years. Tax Reporter will read these rates –even from client 000 – so that it is not necessary to cascade SAP-delivered entries toproductive or testing clients.

For tax year 2006 and subsequent tax years, it is incumbent upon customers first to enterthese rates themselves, then to specify tax authority PBKX and tax type 01, and finally toenter the start and end dates that correspond to the validity period of the rate(s).

o FUTA Maximum Credit Rate

Similar to Philadelphia resident/non-resident rates, this third type of information stores theFUTA maximum credit rate. Tax Reporter will read this rate from client 000 if TaxReporter cannot locate this rate in a productive or testing client.

This rate was delivered in tax year 2005 and remains unchanged in tax year 2009.However, in future tax years, it will be incumbent upon customers first to enter this ratethemselves, then to specify tax authority FED and tax type 10, and finally to enter thestart and end dates that correspond to the validity period of the rate(s).

Configuration


o Additional Rate

This fourth type of information enables customers to comply with reporting requirementsfor rates that play no part in tax calculation during payroll – for example, rates to excludefrom the calculation of tentative credit on Form 940 – and for which no corresponding taxtype exists in the system. Previously, Tax Reporter utilized constants in the PayrollConstants table (T511K) to report this information. From tax year 2005 forward, however,these rates might be tax company-specific, and for this reason, payroll constants can nolonger be used.

In tax year 2005 and subsequent tax years, you can maintain up to three additional ratesat the tax company/tax authority/tax type level. Rates can be entered either as positive ornegative (deduction) values. Tax Reporter, in response, will combine these rates andpopulate the corresponding forms. The following example shows how to configureadditional rates.

Configuration


Generic solution for reporting multiple tax authorities on thesame magnetic mediaYou can create magnetic media formats for localities and assign the various codes to theselocalities. As a result, you can:

Update which authorities are to be reported to each tax agency

Change the name of localities

Create a new format with configuration changes only.

This solution includes two tables:

Assign tax form to category (T5UX4)

Assign attributes to tax authority (T5UX5)

Assign tax form to category (T5UX4)In this table, you assign each form with multiple tax authorities to be reported to a category.Each existing or new form should have a unique category. This table is delivered with fiveentries:

Category Tax Form001 HR_F_MMREF_1_OH002 HR_F_MMREF_1_OHV003 HR_F_MMREF_1_OHD004 HR_F_MMREF_1_IN005 HR_F_MMREF_1_OHR

Tax subject H (Attributes for localities): The corresponding tax attributes assigned to thistax subject in the Tax Attributes table T51TC are:

1 (Locality code)

2 (Tax entity code) and

3 (School District code)

You can use more than one tax attribute per tax form and add more tax attributes (other thanthe three tax attributes mentioned above).

Assign attributes to tax authority (T5UX5)In this table, you assign the tax form and its attributes to a tax authority.

You can update table T5UX5 to match any future changes a tax agency may make,such as description changes, or changes to the list of tax authorities to be reported.

Configuration


Creating a new MMREF-1 form for a locality1. Copy the generic layout of the MMREF-1 form or check the locality form that is similar to

the delivered form and copy it.

2. Check the magnetic structure and modify it according to layout specification

3. Add the required table entries to tables T5UX4 and T5UX5 as instructed below.

a. In Customizing for Payroll USA (PY-US), choose Tax Reporter Tax FormDefinition Custom Forms Create tax forms for Multiple Tax Authorities.

b. Select the activity Assign tax form to category.

c. Select New Entries, add a new category, and assign the tax form you justcreated to this category.

4. Select the activity Assign attributes to tax authority.

a. Select New Entries.

b. Enter the category you just added, and the tax authorities you wish to reportunder this category, tax attribute, and description.

You can only enter tax authorities that exist in table T5UTZ.

5. SAP supplies three tax attributes to meet the requirements for the forms. You can re-usethese attributes. In addition, you can add new tax attributes, if required, to table T51TC.

To add new attributes, proceed as follows:

a. Execute transaction SM30.

b. Enter table view V_T51TC.

c. Select Position and enter Tax subject H.

Configuration


6. You must now invoke the special processing in Tax Reporter as follows:

a. In Customizing for Payroll USA (PY-US), choose:


b. Using the Position button, enter the required tax form (for example,Z_HR_F_MMREF_1_OHZ), then select Issuing of tax forms.

c. In the subsequent screen, select (highlight) the alternate from and select (double-click) Magnetic tape structure.

d. Highlight the specific field, then select Details.

e. If the standard attributes can be applied to fulfill your requirements, enter theroutine names in the “Or Directly field” of the MMREF-1 format as follows.

Attribute Form name1 $GET_LOCALITY_CODE$2 $GET_TAXENTITY_CODE$3 $GET_SCHOOL_CODE$

For example, if you need to configure a form to report school district codes along with schooldistrict taxable and tax amount, enter $GET_SCHOOL_CODE$ in the Or directly field.

If you add new tax attributes to table T51TC, you need to create form routines in the includeRPCTRPUZ and copy the existing form routines (that is, GET_SCHOOLCODE$GET_LOCALITYCODE, and so on), to your new form routines, and modify it to read the related taxattribute and provide special processing.

During configuration, it is worthwhile to remember the following recommendations.

Assign the FORM ROUTINE in the Or Directly field of the MMREF-1 format.

The new form must be associated with the main form HR_F_W2.

Always refer to the existing formats, such as HR_F_MMREF_1_OHV,HR_F_MMREF_1_OHD, when creating new forms.

Configuration


Standard formats vs. Custom copiesAs delivered, Tax Reporter processes all output related to Form W-2 within a standard format:HR_F_W2. Before you make changes to your system that may affect the output of Form W-2,you should first determine whether your system has been configured to process a customer-specific equivalent of this standard format.To this end, in Customizing for Payroll USA (PY-US), choose Tax Reporter Tax FormDefinition Custom Forms Copy tax forms and assign them to tax form classes. Thenchoose Assign tax forms to tax form classes. Specify USA or country grouping 10, then taxform class A100.If no entry appears on the subsequent screen, then your system is processing Form W-2 datausing the standard format, HR_F_W2. However, if an entry does appear on this screen, thenyour system is using a custom copy of the standard format to process Form W-2 data. The taxform (for example, ZHR_F_W2) indicated in the entry is the custom copy currently used by yoursystem for W-2 processing.If your system features a custom copy, as described above, any output modifications that youwish to perform should be made to this custom copy, not the standard format. If your systemdoes not feature a custom copy, you must decide whether you wish to change the standardformat (HR_F_W2) or create a custom copy of the format (such as ZHR_F_W2), then change it.

If you elect to create a custom copy of standard format HR_F_W2, you must create anentry for it in the Customizing activity referenced above. This will ensure that your customcopy, rather than the standard format, is used to process W-2 data.

Copying and revising generic formatsYou can also configure the desired format yourself. To this end, SAP delivers the two standardsample templates that can be copied and revised to create the custom W-2/SUI copy that yourequire. These templates are as follows:

HR_F_MMREF_1_GEN W-2 Generic State MMREF-1 formatHR_F_MMREF_1_SUI SUI Generic State MMREF-1 format

Specifying additional standard output mediaIt is also possible to specify additional media – for example, to determine the output’s locality.Proceed as follows if you wish to specify additional media.

1. In Customizing for Payroll USA (PY-US), choose:Tax Reporter Tax Form Definition Define original tax forms

2. Select Position, enter tax form HR_F_W2, then select Continue.3. Highlight the table entry for this form, then select Issuing of tax forms.4. On the subsequent screen, select New entries.

a. Enter form HR_F_MMREF_1_ZZZ, where ZZZ equals the local tax authority.b. Enter authority ZZZ.c. Enter sequence number 99.d. Enter event 1.

5. Repeat the previous activity for each standard output medium per tax authority to beadded. For each additional standard output medium that you add, enter sequencenumber 98, then 97, and so on. The higher the sequence number that you add, thelower the probability that your entry will be overwritten by a subsequent HRSP,assuming that you modify the standard format HR_F_W2, rather than a custom copy.

6. Save your entries, then exit Customizing.

Configuration


Copying and revising standard formatsIf the standard formats delivered by SAP do not meet your requirements, you can copy astandard format and revise it accordingly. In many cases, the standard formats delivered bySAP for one authority are quite similar to the format that you would like to submit to anotherauthority. In such cases, you can copy the standard format and tailor it to create a custom copythat meets your requirements.For example, suppose you wish to produce the disk format for tax authority ZZZ W-2 data,which is not supported by SAP. By reviewing the specifications of tax authority ZZZ, we see thatthey essentially follow SSA MMREF_1 specifications and require record types RA, RE, RS, andRT. By reviewing standard disk formats delivered by SAP, we find that the Connecticut format(HR_F_W2_MMREF_1_CT) comes quite close in meeting this requirement, except that it alsoincludes record type RF. This additional record type can be easily deleted, so that a copy of theConnecticut format can easily be tailored to meet the reporting requirements of tax authorityZZZ.To copy HR_F_MMREF_1_CT to a new form, such as HR_F_MMREF_1_ZZZ, proceed asfollows.

1. In Customizing for Payroll USA (PY-US), choose:Tax Reporter Tax Form Definition Define original tax forms

2. Select Position, enter tax form HR_F_MMREF_1_CT, then select Continue.3. Highlight the table entry for this form.4. Select the Copy as… icon from the application toolbar.

a. On the following screen, specify tax form HR_F_MMREF_1_ZZZ.b. Update the form name accordingly.c. Select Transfer from the application toolbar.

5. In the subsequent dialog box, select Copy all.Once you have created this custom copy, you can return to the previous screen, then delete theunwanted RT record from the new format by highlighting its table entry and selecting Issuing oftax forms. When you are satisfied with the new format, you can configure it to be generated, asdemonstrated above.

Requesting new standard formatsIn some cases, you may find that SAP Payroll does not support the format(s) that you desire orrequire, although we always provide at least one standard medium to file the required data, andwe often provide several. If you prefer to file data using a medium or format that is not currentlysupported, then we encourage you to log a development request or low-priority customermessage to that effect.

Unless SAP has failed to fulfill the legal requirements of a given tax authority for thesubmission of form data, the absence of a particular format is not considered to be acompliance issue.

Configuration


Formatting Magnetic Media Data for DownloadScenarioCertain tax authorities require that form data be submitted in the EBCDIC character set format.To satisfy this requirement, SAP Payroll delivers the applicable forms in a pre-configured state.However, under certain circumstances, employers may wish to download form data in the ASCIIcharacter set format, either because it is easier to use or because tape creation utilities mayrequire source data in that format.Consequently, additional configuration may be required to ensure that TemSe file data has beendownloaded into the proper format, be it ASCII (rather than EBCDIC) or EBCDIC (rather thanASCII). Additional configuration may also be required if the downloaded file is not readable or if itappears to be one large, uninterrupted record (that in fact consists of multiple records). Theadditional configuration to be performed in either case is described below.

You must perform the configuration described below before you may re-execute TaxReporter using the Print copies function from the application toolbar.

SolutionIf you experience difficulties downloading Tax Reporter TemSe file data into the proper format, orif you encounter problems separating multiple logic records, then review the correspondingconfiguration. To this end, in Customizing for Payroll USA (PY-US), choose Tax Reporter TaxForm Definition Define original tax forms. Upon executing this activity, you may resolveconfiguration errors as follows.

Downloading data in the proper format1. Highlight the affected form, then select Issuing of tax forms.2. On the next screen, highlight the table entry labeled "Special: download parameters,"

then select Magnetic tape structure.3. On the subsequent screen, highlight the table entry labeled "Character set (ASC or

EBC)," then select Details (F2).a. To download file data into ASCII format, enter ASC in the Or directly field.b. To download file data into EBCDIC format, enter EBC in the Or directly field.

4. Save your entries, then re-execute Tax Reporter to download file data.

Separating multiple logic records1. Highlight the affected form, then select Issuing of tax forms.2. On the next screen, highlight the table entry labeled "Special: download parameters,"

then select Magnetic tape structure.3. On the subsequent screen, highlight the table entry labeled "insert CRLF btw records?",

then select Details (F2). (The table entry indicates that a carriage return or line feed isto be inserted between each record.)

a. If you wish to download file data so that a carriage return or line feed is insertedafter every record, enter CRLF in the "Or directly" field.

b. If you do not wish to download file data so that a carriage return or line feed isinserted after every record, leave the "Or directly" field blank.

4. Save your entries, then re-execute Tax Reporter to download file data.

Ensure that you make all entries in the Or directly field in upper case.

Configuration


Configuration: Form 1099-RThe following information is based on previous logic used in Tax Reporter, when it was onlypossible to assign one distribution code to an employee. For the latest enhancements, see thefollowing documentation on the SAP ERP HCM & Payroll U.S.A. site athttp://service.sap.com/hrusa Documentation User Guides:1099-R: Multiple Distribution Codes in Tax ReporterDistribution Payments User GuideCertain configuration activities must be performed before Tax Reporter can process Form 1099-R amounts. These activities are described in detail below.1. Create a pension tax company

To ensure that withheld taxes are reported properly, you must create a separate taxcompany from which Form 1099-R amounts can be paid. Creation of a separate taxcompany is required to segregate regular and pension tax amounts and, if a trust has beenestablished for the pension amounts, to store tax ID numbers correctly. Do not payamounts that are to be reported on Form W-2 and amounts that are to be reported onForm 1099-R from the same tax company. Employees who retire during the tax year andreceive a company pension thereafter should be transferred from the tax company wherethey received regular pay into the pension tax company.If you have mistakenly paid Form W-2 recipients and Form 1099-R recipients from a singletax company, you may pursue three options to rectify the error.

a. Use retroactive payroll processing to transfer the amounts accordingly. However,you can only do this if you have processed payroll in the system for the entire taxyear.

b. Access the Adjustments Workbench to move Form 1099-R amounts from theregular pay tax company into the pension tax company.

c. Enter manual adjustments in tax interface table T5UT1.This option, however, will not correct the payroll results.

If wage types were used to process pension payments, you can modify the tax formgroups that you are using to process Form W-2 and Form 1099-R to reflect where theseamounts should be reported.

2. Create user wage types for Form 1099-RSAP Payroll delivers the following model wage types to support Form 1099-R processing:

M9RN (Form 1099-R non-taxable wages)M9RT (Form 1099-R taxable wages)

In order to use these wage types as models, copy them to user wage types in yourcustomer name range. You must create a unique wage type for each supporteddistribution code for which you wish to process payments. All supported distributioncodes, with the exception of code G (Direct rollover to IRA) are generally taxable.Therefore, you will need to copy corresponding user wage types from model wage typeM9RT.

If you wish to withhold taxes, ensure that the specification for processing class71 is included in the taxability model tables.




Configuration


3. Map user wage types to tax form groupsOnce you complete the process of copying model wage types to their equivalents in yourcustomer name range, you must map these wage types to the following pre-configured taxform groups:

99R1 Early distributions99R3 Disability benefits99R4 Death benefits99R7 Normal distributions99RG Direct rollovers to IRA (non-taxable)

Use of these wage types will cause the appropriate distribution code to be reported inBox.7 of Form 1099-R. Tax amounts and wage bases (represented by wage types /401and /601, respectively) will be reported in the appropriate boxes (2A, 4, 11, 12, 13 and15). State and locality codes and names as well as ID numbers will also be reportedwhere required.

4. Create tax overridesIf you need to withhold tax amounts at flat rates, use standard SAP Payroll and BSIfunctionality to assign taxation rate overrides for employees. This process is performed bymeans of the Additional Withholding Information infotype (0234).

Configuration


Tax Reporter Configuration CheckerUseThe Tax Reporter Configuration Checker enables you to ensure that you have correctlyconfigured your system to run Tax Reporter. The Configuration Checker reviews a number ofareas where common errors arise, including:

TemSe file authorization Feature changes Definition of number ranges Client-dependent HR forms Consistency among tax form fields Assignment of correction forms to original forms (and vice versa) Tax form group evaluation rules Assignment of tax authorities to tax form fields Function UCQRC (for cross-quarter retrocalculations) Conflicting record locations in Magnetic Media forms Use of lower case in Magnetic Media forms Use of PostScript printer drivers, based on user feature and user default Wage type sign reversals Correction form field names Assignment of tax forms to tax form classes

If you are using Tax Reporter for the first time, before running the ConfigurationChecker, you are required to have populated the Employee Index table (T5UX1). Todo this, you must run the report RPCTRUU6.

ConfigurationNo configuration is needed to run the Tax Reporter Configuration Checker; rather, the utility willhelp you resolve common errors that arise as a result of incorrect or incomplete configuration.

If you are running the Tax Reporter in Test Run mode, the system does notautomatically trigger the Tax Reporter Configuration Checker.

This information is contained in the Tax Reporter log. Please check the log after runningeach and every form!

Configuration


ExampleWhile reviewing the configuration of printers in your system, the Configuration Checker producesan error message (shown below) if no default printer has been selected or if printers in yoursystem do not operate on the basis of a PostScript driver.

As demonstrated above, in the case of default printer assignments and PostScript drivers, thesystem generates an error, along with an explanation, for each affected form name, printer, anddriver. For additional information on any error reported by the Configuration Checker, along withdetailed instructions on how to resolve it, simply select the help icon, located in the upper rightcorner of any section where an error is reported.

AccessIn order to access the Tax Reporter Configuration Checker, from the initial U.S. Tax Reporterscreen, choose the menu path Utilities Check configuration. Another means of activating theConfiguration Checker is simply to run U.S. Tax Reporter in production mode for any tax form.Within the Tax Reporter Log Manager, configuration errors of the kinds previously described arenoted in the Configuration remarks section.

Annual Processing


Year-End ProcessingThis section describes the processes used to perform year-end reporting within Tax Reporter.The topics addressed here include:

Form W-2 ProcessingGenerating Form W-2 and Associated FormsReprinting W-2 Employee CopiesAddress Changes on Form W-2 ReprintsForms W-2c and W-3cCorrection W-2 FormsGenerating Correction W-2 FormsGenerating Forms W-2c and W-3cForms 1099-R and 1096FUTA Tax Return (Form 940)Employer’s Quarterly Federal Tax Return (Form 941)

Annual Processing


Form W-2 ProcessingDefinitionAt the end of each year, employers are required to submit employee wage and tax information toa variety of entities, including employees, the Social Security Administration, and state and localtax authorities. To fulfill this requirement, employers submit Form W-2 (Wage and TaxStatement) to these entities. Within Tax Reporter, this process is generally defined as Form W-2Processing. However, aside from Form W-2, this process also includes the production of anumber of other paper and magnetic media forms, including:

Form W-2 – Employee copyForm W-2 – State and local copies (Employer copy)W-2 Audit ReportForm W-3W-2 Federal magnetic mediaForm 6559W-2 State magnetic mediaW-2 State and Local SummaryThird-Party format for Form W-2

This section features a detailed description of each of these forms.

Form W-2 – Employee copyThe Employee copy of Form W-2 is sent to employees so that it can be filed with their annualincome tax returns. The standard ("4-up") format supported by Tax Reporter allows four copies(Employee, City, State, Federal copies respectively) to be printed on a single sheet of paper. Aone-up version of the W-2 form is also available for the states that require paper submissions.

This format only allows printing for one state and one locality per page.

If an employee earned wages (and owes taxes) in multiple states, multiple localities, or both, thenmultiple pages will be generated. The locality boxes on Form W-2 (Boxes.19 through 21) are alsoused to report special tax types, such as state disability insurance, workforce developmenttax, and so on.

For tax year 2003 and subsequent tax years, Tax Reporter reports State Disability Insurance(SDI) amounts for California, Hawaii, Rhode Island and New York, as well as Voluntary DisabilityInsurance (VDI) for California in Box.14 of Form W-2. However, all W-2 reprints for tax year 2002and previous tax years will still report SDI/VDI amounts in Box.19. This also applies to W-2cforms for tax year 2002 and previous tax years.

Within Tax Reporter, the format of the employee copy meets the standard requirementsestablished by the Internal Revenue Service.

Section 6051(a)Internal Revenue Code section 6051(a) states that when more than one W-2 form is generatedfor an employee (due to multiple states and/or overflow on Box.12/14 entries), Federalwages/taxes are not expected to be reported on each W-2 form. In accordance with section6051(a), corresponding source code changes have been delivered to prevent the system fromprinting Federal wages/taxes on the additional W-2 forms. This reporting change is effective fortax year 2005. All printed copies of W-2 forms for tax year 2004 (and previous tax years) are notaffected by this change.

Annual Processing


New York City Wage ReportingAs per the New York State Department of Taxation and Finance, Office of Tax Policy Analysis, forboth full-year and part-year New York City residents, the amount reported in Box.18 should equalthe amount of federal wages earned during the period the employee was a New York Cityresident. This affects all W-2 forms that report New York City wages.

Deferrals from Nonqualified plans on Box.11The standard system is currently configured to report the deferrals from non-qualified plans, suchas 457(b) plans, in Box.11. But for some customers, deferrals from nonqualified plans should notbe reported in Box.11. This can be realized by performing the following configuration.

1. In Customizing for Payroll USA (PY-US), choose:


2. Select HR_F_W2, then choose Tax form fields.3. Access tax form field T011 and either remove tax form group W23G, or remove

summation field T01G.4. Save your changes.

Form W-2 – Authority copyThe Authority copy of Form W-2 is printed on paper and is not intended to be filed to the SocialSecurity Administration; instead, it serves as a substitute for magnetic media for those taxauthorities where magnetic media is not accepted. The Authority copy can also be filed with taxauthorities whose jurisdictions have too few employees to submit magnetic media. For thisreason, this authority copy is sorted by tax authority and employee number or social securitynumber. Multiple forms will be generated for employees with taxes in multiple tax authorities.

Annual Processing


Using your own Version of W-2 related output formsTax Reporter supports three versions of the W-2 Authority copy.The name of the W-3 form is changed, as of tax year 2008, as outlined below:

Tax Years2000 and before

Tax Years2001 to 2006

Tax Year2007

Tax Years2008 and after

HR_F_W2 HR_F_W2_01 HR_F_W2_07 HR_F_W2_07HR_F_W3 HR_F_W3_01 HR_F_W3_07 HR_F_W3_08

HR_F_W2_MULT HR_F_W2_MULT_01 HR_F_W2_MULT_07 HR_F_W2_MULT_07

W-2 Self-Sealer (Form 1287)Use layout HR_F_W2_MULT_SS to match the format of Form 1287 and print data on it, ratherthan on the employee 4-up copy, layout HR_F_W2_MULT_07. Layout HR_F_W2_MULT_SSoffers a number of advantages over layout HR_F_W2_MULT_07, including faster processing inTax Reporter, reduced printing times and (for the Employee copy) spool sizes, and elimination ofenvelopes.

Please note that some printers may introduce a shifting of template elements, resulting in overlapof data in boxes for the PDF version of the standard W-2 Self-Sealer form. This shifting isintroduced by the printer, and could vary according to its make or model. Hence, we recommendthat you create a custom copy of the PDF form HR_F_W2_MULT_SS and manually adjust thefields that are not aligned in such cases.

We strongly recommend that you test the new layout by printing a few Form 1287 sheets beforeyou purchase forms for all employees. Your testing will help you determine the compatibility ofyour printers for these forms. As a rule of thumb, any printer that supports Pressure seal productsand PostScript (as described in SAP Note 102011) should function properly.Form 1287 Configuration ChangesBy default, Tax Reporter is configured to generate a 4-up copy (layout HR_F_W2_MULT_07).After your initial testing, if you decide to use Form 1287, you must perform the followingconfiguration changes to activate layout HR_F_W2_MULT_SS for Form 1287.



2. Select HR_F_W2 and choose Issue of Tax forms.3. Change the form name from HR_F_W2_MULT_07 to HR_F_W2_MULT_SS.4. Save your changes.Maintaining SAPscript parameters for the Form 1287 Layout


Tax Reporter Tax Form Definition Maintain SAPscript parameters for custom W-2 forms

2. Insert the following line in feature UTRW2.Variable key OperationsHR_F_W2_MULT_SS &UTRW2=04/03/01/EE/EMPE,

3. Activate the modified feature.


Annual Processing


Form W-2, CheckboxesThe reporting process for marking the checkboxes on Form W-2 is configured in Customizing forPayroll USA (PY-US); choose Tax Reporter Tax Form Groups Define tax form groupscontaining non-tax wage types. In this activity, you perform configuration for tax form groupsW25A through W25G and the corresponding wage type assignment and evaluation rules. ABAPuser exits may also be used to implement specific business rules for each of the checkboxes.

See the previous section of this document Customer exit for W-2 form in RPCTRCU0 for moreinformation and example logic for user-exits.

W-2 Related Paper FormsMarking the “Retirement plan” checkboxThe Retirement plan checkbox is marked, based on standard coding if amounts based on wagetypes assigned to tax form groups (TFG) W25C – "Pension plan" or W25G – "Deferredcompensation" are positive. (If stored in payroll as negative, flip the sign when assigning thewage type in the TFG definition). A user-exit is available if different marking is required.See transaction CMOD, SAP enhancement "HRCTRCU0", "EXIT_RPCTRCU0_002".

Previous user-exit logic for marking the statutory checkbox, coded in RPCTRCZ0 is no longerused. The new method (above) will prevent loss of your logic in future upgrades and SupportPackage applications.

Marking the “Statutory” checkboxThe "Statutory" checkbox will be marked based on standard coding if amounts based on wagetypes assigned to tax form groups (TFG) W25A – "Statutory employee" are positive. (If stored inpayroll as negative, flip the sign when assigning wage type in the TFG definition). A user-exit isavailable if different marking is required. See transaction CMOD, SAP enhancement"HRCTRCU0", "EXIT_RPCTRCU0_002".

Previous user-exit logic for marking the statutory checkbox, coded in RPCTRCZ0 is no longerused. The new method above will prevent loss of your logic in future upgrades and SupportPackage applications.

Marking the “Third party” checkboxThe "Third party" checkbox will be marked based on standard coding if amounts based on wagetypes assigned to tax form groups (TFG) W25H – "Third-party sick pay" are positive. (If stored inpayroll as negative, flip the sign when assigning wage type in the TFG definition). A user-exit isavailable if different marking is required. See transaction CMOD, SAP enhancement"HRCTRCU0", "EXIT_RPCTRCU0_002".

At Release 4.70 and above, for additional information, consult the corresponding userguide, at http://service.sap.com/hrusa Documentation Business Add-Ins Guide for U.S. Tax Reporting.




Annual Processing


Form W-2, Employer CopyNo “Employer” copy is delivered in the standard system. We recommend that you print your owncopies for your employer records. For reprints, use the Print copies function.

W-2 Audit ReportThe W-2 Audit Report is a simple summary of amounts reported on Form W-2. The report canbe used for reconciliation purposes. This form summarizes each of the taxes and wages reportedon Form W-2 in simple list form.

The W-2 Audit Report is a reconciliation feature of Tax Reporter. It is not produced to fulfillreporting requirements.

Form W-3Form W-3 (Transmittal of Income and Tax Statements) contains summary information for allamounts reported by your enterprise on Form W-2 forms on paper. Tax Reporter produces aseparate Form W-3 for each tax company processed, regardless of transmitting tax companyassignments. For example, if you execute reporting for tax company US01, which transmits databoth for itself and for tax companies US02 and US03, Tax Reporter will produce three W-3 forms– one for each tax company.

This form is provided for reference purposes only.

W-2 Federal magnetic mediaW-2 Federal magnetic media includes the federal wages and taxes reported on employeecopies of Form W-2 in the form of a file, which is submitted to the Social Security Administration.The SSA uses this file to crosscheck employer information with information reported byemployees on their annual income tax returns. Tax Reporter and the Social SecurityAdministration support multiple formats. For additional information, consult Configuring MagneticMedia.

Form 6559Form 6559 (Transmitter Report and Summary of Magnetic Media) contains summary informationfor all W-2 forms that your enterprise files on magnetic media. Unlike Form W-3, Tax Reporterproduces a combined Form 6559 for all tax companies processed, regardless of transmitting taxcompany assignments. In the above example, when you execute reporting for tax company US01(which transmits data both for itself and for tax companies US02 and US03), Tax Reporter willproduce only one Form 6559 – for tax company US01.

W-2 State magnetic mediaW-2 State magnetic media includes state wages and taxes reported on employee copies ofForm W-2 and submitted to various states. Tax Reporter produces magnetic media in a variety offormats to fulfill state reporting requirements. If you need to use magnetic media in a format otherthan the one delivered with Tax Reporter, refer to Substituting Magnetic Media Formats: Form W-2.

State and Local W-2 Summary ReportYou can generate a State and Local W-2 Summary Report for the tax authorities in each stateand locality where your enterprise operates. This report summarizes amounts included on the W-2 magnetic tape and paper forms sent to these tax authorities. You can use this report to performForm W-2 reconciliation for state and local filing.

Annual Processing


Third-party format for Form W-2As of Year End 2008, SAP supports the TemSe layout for W-2 paper fields, using formHR_F_W2_TP_TEMPS. This layout contains all of the fields in the ASCII format that are availableon the W-2 paper form. The previous form, HR_F_W2_SSCR_STS, also remains available in thesystem.

The standard configuration does not include HR_F_W2_TP_TEMPS or HR_F_W2_SSCR_STSlayouts as the alternate forms to the HR_F_W2 main form. To obtain them, proceed as follows:



2. Select Position, enter HR_F_W2 in the Tax form field, and choose Continue.

3. Highlight HR_F_W2, then select Issuing of tax forms from the navigation section.

4. Select Edit mode, then select New Entries.

5. Enter Sequential number of output as per the available number within Customizing.

6. Specify the tax authority FED.

7. Enter HR_F_W2_SSCR_STS and/or HR_F_W2_TP_TEMPS, based on yourrequirement, and choose Display.

8. Select TemSe file as the type of output, and select Aggregation level as headerinformation for form.

The spool size to store TemSe files is limited to 2 GB. To ensure that the generated TemSe filedoes not exceed this limit, maintain constant W2SPL in the Payroll Constants view (V_T511K)with the number of records for which TemSe file HR_F_W2_TP_TEMPS should be split. Forexample, if constant W2SPL is maintained with the value 50000, HR_F_W2_TP_TEMPS will besplit after 50,000 records.

Mappings to W-2 Paper Form boxesDownload the document Temse_File_fields.pdf, available in the Attachments section of SAPNote 1160752, which details the mapping between W-2 form boxes and TemSe fileHR_F_W2_TP_TEMPS.

Downloading the fileThe generated file of layout HR_F_W2_TP_TEMPS, with or without splits, can be viewed ordownloaded via the Tax Reporter Log Manager.



Annual Processing


Generating Form W-2 and Associated FormsProcedureW-2 processing, like any other tax form class, can be executed either in production mode or insimulation (test) mode. Both run types create Form W-2. However, the difference betweenthese two modes is that production runs create entries in Tax Reporter Generation bookkeepingtables T5UXX and T5UXY, while simulation runs do not. Moreover, before issuing these forms,consider whether you would like to execute them online or in the background. Onlineprocessing should be reserved for very small tax companies (of no more than 200employees), or for testing a small range of employees.

1. From the main U.S. Payroll menu, choose Subsequent activities Period-independentPayroll supplement Tax Reporter.

2. Enter the desired Tax company, Generation date and Consider payroll results to: date.

3. Choose Annual from the tree structure on the left side of the screen, then choose W-2Processing.

4. On the subsequent W-2 PROD. run screen, enter the necessary data by opening theemployee copy, magnetic media and employer copy drop-down sections.

5. Choose Background or Online. If you choose Background, enter your background jobscheduling data on the subsequent dialog box, then choose Save.

a. If you execute Tax Reporter online, the Tax Reporter output screen appears,displaying the categories of output, organized in a tree structure.

b. If you execute Tax Reporter in the background, you may execute transactionSP01 to determine which paper forms where produced. Using the Tax ReporterLog Manager, you can also find out which spools where produced, as well as theTemSe files that were generated. You can look at the spool or TemSe contentsby clicking on the spool or TemSe numbers in the Log Manager, but only whilethe spools or TemSe files exist in the system, since they are eventually deleted.

6. To print employee copies of Form W-2, expand the Forms folder of the tree structure andchoose the icon next to W-2 Forms from the subsequent list. On the Tax ReporterForms Print/Preview screen, choose Print. Specify an output device, then choose Print.

7. To download a magnetic media file to a local directory, expand the Magnetic Media filefolder, then choose the desired file from the following list. The View/Download MagneticTape Files screen, displaying the contents of the file, appears. Choose Download. Onthe following dialog box, specify a local directory, then choose Save.

If you would like to view the structure of the file, choose File Structure from theView/Download Magnetic Tape Files screen.

Review the Tax Reporter Log section of the report output to determine whether messages wereissued during the run, whether manual entries were read, whether employees were rejected, andso on. For more information on this topic, refer to the Tax Reporter Log Manager section of thisguide.

Annual Processing


Reprinting W-2 Employee CopiesUseIf you have generated and distributed Form W-2 to employees and now need to reprint anindividual employee copy of Form W-2 (for example, because the employee has requested areplacement copy), then you can use this function to re-issue Form W-2 to that employee.

Procedure1. Execute transaction PU19 or choose, from the main U.S. Payroll menu, Subsequent

activities Period-independent Payroll supplement Tax Reporter. The initial TaxReporter screen appears.

2. Enter the desired tax company and dates in the corresponding fields.

3. Choose Annual from the tree structure located on the left side of the screen, then chooseW-2 Processing.

4. Select the W-2 Processing (PROD. run) tab strip on the main screen (at right).

5. Open the Employee copy drop-down section to enter the desired range of employees.

When performing this process, be certain that only the Generate employeecopy checkbox is active. Do not select the Generate magnetic tape orGenerate employer copy checkboxes.

6. Open the Magnetic media drop-down section, then de-select all of the checkboxes.

7. Open the Authority copy drop-down section, then de-select all of the checkboxes.

8. Select Print copies.

9. On the subsequent dialog box, select the appropriate Tax Reporter run, then select Printonline or Print in background.

The system defaults the latest run for all employees. If you wish to apply previous runs orinformation for printing, then select the complete list from the corresponding menu path.

Annual Processing


Address Changes on Form W-2 ReprintsFeaturesWhen reprinting employee copies of Form W-2, even after magnetic media has already been filedwith the Social Security Administration, Tax Reporter reviews the most current mailing address ofthe employee and records it on Form W-2, provided that the personnel number of the employeewas specified before reprinting began.

UseTo minimize the potentially adverse impact on performance that would be caused if the systemwere to review master data for each and every employee, Tax Reporter will continue to readaddress information from forms cluster PCL4 when printing employee copies of Form W-2 for theentire employee population within the selected tax company.

However, using the Print copies function, you may now specify one or more employee numbersto produce Form W-2 reprints that reflect changed employee addresses. For each employeenumber specified here, Tax Reporter will review feature ADDRS to determine which subtype ofthe Addresses infotype (0006) should be used during reprinting. (To configure feature ADDRS,execute transaction PE03.)

The system will then review the Addresses infotype (0006) to obtain the most current record forthe employee(s) specified, ensuring that the most recent (that is, correct) address is displayed onthe reprinted form. If a new address is used during reprinting of Form W-2, Tax Reporter willissue a corresponding message {New address used for reprint, alongside the affectedemployee number(s)} under the "Errors and warnings" section of the Tax Reporter log.

If no employee number is specified in conjunction with the Print copies function, then TaxReporter will not review employee master data for address changes, and previously recordedaddresses will continue to appear on reprinted employee copies of Form W-2.

Although the Print copies function enables Form W-2 reprints to reflect changedemployee addresses, this enhancement will not update address data in form clusterPCL4. The Print copies function button is located on the Productive run screen.

W-2: Colorado Local Occupational TaxYou have the option of printing the Colorado occupational taxes on the W-2 form.The system default setting does not print this information.

If you decide to print them, you need to use the constant TRCLT in table T511K as a flag. Anynon-zero value in this constant triggers the printing of Colorado local occupation wages and taxon W–2-related forms.

W-2: Commonwealth of Pennsylvania Local Services TaxYou have the option of printing Local Services Tax amounts on the W-2 form. The system defaultsetting, however, does not cause this information to be printed.

If you wish to print such amounts, then you must use payroll constant TRUGT in PayrollConstants view V_T511K. Any non-zero value in this constant triggers the printing ofCommonwealth of Pennsylvania Local Services Tax amounts on W–2-related forms.

Annual Processing


Forms W-2c and W-3cDefinitionForm W-2c (Corrected Wage and Tax Statement) is filed to correct wage and tax data that waspreviously reported on Form W-2. Whenever you file Form W-2c, you are also required to submitForm W-3c (Transmittal of Corrected Income and Tax Statements), a transmittal form thatsummarizes the information contained in all W-2c forms that you are filing.

UseYou may execute Tax Reporter to issue Forms W-2c and W-3c, if you have already filed Form W-2 and now find it necessary to perform payroll retrocalculation for a period in the reporting taxyear.

Correction W-2 FormsDefinitionA Correction W–2 Form is an adjusted version of the employee copy of Form W–2. CorrectionW-2 forms can be produced before tax forms are filed with tax authorities.

For information on W-2 post-filing, see the W-2 Post-Filing section.

UsePrior to filing Form W–2 for all employees with the relevant tax authorities, but after distributingthem to employees, Tax Reporter allows you to generate Correction W–2 forms for employeeswhose wage and tax information was adjusted after the distribution of all employee copies ofForm W-2. "Correction" is printed on the face of Correction W-2 forms to differentiate theseforms from the incorrect originals.

Annual Processing


Generating Correction W-2 FormsUseUnder certain circumstances, you may need to perform a correction to an employee’s payrollresults that will affect his or her wage and tax totals on Form W-2. If you perform this correctionafter generating and distributing Form W–2 to employees, but before filing W–2 forms with taxauthorities, then you can produce Correction W-2 forms from within Tax Reporter.

In system terms, the absence of a filing date for form HR_F_W2 in table V_5UXY_Aindicates that Form W-2 has not been filed with tax authorities.

Whenever a payroll run retroactively changes tax amounts for a period that has already beenprocessed by Tax Reporter, the Payroll component flags the payroll run and the affectedemployee(s) in a special Cross-Period Recalculation table (T5UQR). Payroll function UCQRCperforms this check and flags the payroll run(s) and affected employee(s) accordingly. Thefollowing procedure demonstrates how you can take advantage of this function.

PrerequisitesYou have adjusted the payroll results of the employee(s) for whom you are generating CorrectionW-2 Forms.


Payroll supplement Tax Reporter. Alternatively, execute transaction PU19.

2. Enter the desired tax company.

3. Under Date of form generation, enter the same date of the original execution. UnderConsider payroll results to:, enter a date that is at least one day later than the date of theoriginal Form W-2 execution. For example: You executed the original Form W-2 run with aReporting period end date of 12/31/2009 and a Consider payroll results to: (or "As of") dateof 12/31/2009. Therefore, for the correction W-2 run, you must specify a Reporting periodend date of 12/31/2009; for the Consider payroll results to: date, you may specify01/01/2010 or any date thereafter. If, for example, you specify a date of 01/15/2010, TaxReporter can pre-select all employees who had retrocalculations for tax year 2009 duringpayroll periods whose check dates fell between 01/01/2010 and 01/15/2010.

4. Open the Annual node in the tree structure located on the left side of the screen, thenchoose W-2 Processing.

5. Select the W-2 Processing (PROD. run) tab strip, located at right.

Annual Processing


6. Select the Employee copy drop-down section, then select the radio button marked CorrectEmployees with retroactive changes. This will correct only those employees who hadretroactive changes for the prior year during payroll periods whose check dates fell betweenthe "As of" date of the last W-2 run and the new "As of" date. If, in addition, you want toforce a correction form for certain employees, you can specify those employees underPersonnel numbers, then select the radio button marked Force Correction-including thepersonnel numbers above.

Remember to select Generate magnetic media (unless you are doing this later viathe Print copies function) to make sure that employee data is also corrected onmagnetic media, and not just on the paper forms.

You may select the function button to view the employees that Tax Reporterpre-selected (that is, those with retrocalculations).

7. Select Background or Online.

ResultCorrection W–2 forms are generated for the specified employee(s) and the magnetic media filesare updated to reflect the adjustments.

Even if you generate Correction W-2 forms for only a few employees, the systemmay require considerable time to process the form data, since all magnetic mediafiles affected by the adjustments must be updated.

W-2 Post-FilingYou can generate W-2s after the original W-2 forms have been filed with the relevant authorities.However, you can only include employees for whom no W-2s have been generated in the run.For more information, refer to the user guide entitled “W-2 Post-Filing Run” on SAP ServiceMarketplace at http://service.sap.com/hrusa Documentation User Guides W-2Post-Filing Run.


http://service.sap.com/~form/sapnet?_SHORTKEY=011000358700006701962004E&


Annual Processing


Generating Forms W-2c and W-3cPrerequisitesYou have generated Form W-2 in production mode for a tax company, then set the filing date bychoosing the icon within the Preparation/Generation dates tabstrip. These actions willallow Tax Reporter to initiate Form W-2c processing by indicating that the forms for this taxcompany have been filed.

We encourage you to set your filing dates in Tax Reporter as soon as you havefiled with the appropriate tax authorities. This will ensure the integrity of your Form W-2 data by preventing inadvertent processing for the corresponding tax company after itsdata has been filed.

Procedure1. From the main U.S. Payroll menu, choose Subsequent activities Period-

independent Payroll supplement Tax Reporter.

2. Enter the desired tax company and generation date in the appropriate fields.

3. Choose Annual Correction from the tree structure located on the left side of thescreen, then choose W-2c – Statement of Corrected Inc. & Tax.

4. On the W-2c PROD. run screen, enter the desired range of employees, and thenchoose Background or Online.

We strongly recommend that you perform production runs in the background. Ifyou do choose Background, enter your background job scheduling informationon the subsequent dialog box, then choose Save.

The Generation run output screen appears, displaying the categories of output,organized in a tree structure.

5. To print employee copies of Form W-2c, expand the Forms folder of the treestructure, then choose the W-2c Forms icon from the subsequent list. On thefollowing screen, choose Print. Specify an output device, and then choose the printicon.

6. To download a magnetic media file to a local directory, expand the Magnetic Mediafile folder, then choose the appropriate file from the subsequent list. The systemdisplays the View/Download Magnetic Tape Files screen, which displays thecontents of the chosen file. Choose Download. On the following dialog box, specify alocal directory, and choose Save.

If you would like to view the structure of the file, choose File Structure from theView/Download Magnetic Tape Files screen.

Annual Processing


Form W-2c ProcessingW-2c ReprintThe Print copies option (see below) in the selection screen always prints the latest W-2c for theselected employee(s). However, by choosing the menu path Tools Print copies, you mayreprint the W-2c(s) with a specific As of date. This is useful, for example, if you need todetermine which W-2c is to be reprinted, if an employee has multiple W-2cs for a specific year.

The same procedure applies for Form W-3c reprints.

To identify a specific As of date, proceed as follows:

1. In view V_5UXY_A, locate the form number for W-2c with a reporting period end dateand form (HR_F_W2C).

2. Via the menu path Utilities Display form fields, execute report RPCTRDU0 for thegiven form number and employee number to obtain the control numbers specific to theemployee.

3. In view V_5UXY_A, locate the As of date for the control numbers that have PCL4 resultsand determine, by As of date, which Form W-2c must be printed.

4. You can re-print the specific Form W-2c by selecting the employee and As of date. Tothis end, choose the menu path Tools Print copies.

Print copies You can reprint W-2cs for selected employees and deselect the generation of magnetic

media.You can enter personnel numbers through 'Manual EE selection' on the W-2c prod. runtab.

If you do not want automatically selected employees to be printed, deselect AutomaticEE selection.

You can select a new checkbox Generate magnetic tape on the W-2c screen. Bydefault, this checkbox is not selected.

Sorting criteria for output You can access the sorting criteria option from the W-2c main screen.

If you have a modified version of standard delivered SAPscript and want to make use of thesorting criteria functionality, you need to set the fourth parameter in feature UTRW2 to MT.

If you are using the standard SAPscript, (for example, HR_F_W2C_01), there is no need tocreate and specify the entry in feature UTRW2.

For information on customizing SAPscript for Form W-2c, review the documentation for featureUTRW2. If you do not specify a sorting criterion, the default value is 'A/F' (tax company/personnelnumber). For additional information, consult SAP Note 515199.


Annual Processing


Printing Employee Number on W-2cYou can print the employee number on Form W-2c.

The legal format for form W-2c (specified by the IRS) does not require the employee number tobe printed. However, many customers feel that it would be helpful to print the employee number(PERNR) on the W-2c, which would allow you to identify an individual employee’s W-2c.

For more information, see SAP Note 521730.

W-2c: Automatic Employee Selection Based on EmployeeMaster Data ChangesIf an employee’s personal data changes, and if the resultant changes in the Personal Datainfotype (0002) do not trigger retrocalculation, Tax Reporter automatically flags and selects thisemployee if Form W-2c is required.

The system keeps a record of Personal Data infotype (0002) changes and selects the affectedemployees for Form W-2c runs.

The form IT0002_CHANGED is included in the program SAPMPU19. This form is called in adynamic event when changes are made to the Personal Data infotype (0002), and it writes therequired entry in the Cross quarter retro-calculations table (T5UQR).

You must specify the dynamic events for field changes in the Personal Data infotype (0002) thattrigger a Form W-2c run, such as PERID for Social Security Number, NACHN for last name,VORNA for first name, and MIDNM for middle name.Example:To activate the dynamic event1 for a change of Social Security Number, add the following entriesin the Dynamic Actions table (T588Z).

Infotype Field Name FC No. S Variable function part

0002 PERID 02 1 P PSPAR-TCLAS='A'

0002 PERID 02 2 P T001P-MOLGA='10'

0002 PERID 02 3 F IT0002_CHANGED(SAPMPU19)

The example above uses function character (FC) 02, which represents the process type Change.

1 Dynamic events are only triggered online; if you use a batch input method to introducechanges to the Personal Data infotype (0002), those employees will not be recorded in tableT5UQR. You therefore must manually add such employees for Form W-2c runs.


Annual Processing


Depending on your requirements, you can use other values from the following list:

FC Processing type00 Independent of the current function02 Change04 Create06 Change and create08 Delete10 Change and delete12 Create and delete

For additional information on these function characters, review the corresponding field helpdocumentation in Table T588Z, which is a client-dependent 'C' table. If the sequence numbers 1,2, and 3 have already been used, specify other available numbers.

For more information, review SAP Note 522936.

W-2/W-2c and Related Forms – USERRAThe standard system supports the reporting of make-up contributions under the UniformedServices Employment and Re-employment Rights Act of 1994 (USERRA) for 401(k), 403(b), and457(b) plans. This affects the employee W-2 and W-2c; authority W-2; audit report and W-3cforms.

BackgroundIf an employee returned to your employment after military service and certain makeup amountswere contributed to a pension plan for a prior year (or prior years) under USERRA, then you mustseparately report in Box.12 the previous four years of contributions for these pension plans:

401(k) 403(b) 457(b)

As an alternative, you may choose to provide a separate statement to your employee showingUSERRA makeup contributions. The statement must identify the type of plan, the year(s) to whichthe contributions relate, and the amount contributed for each year. For details, refer to pages 6and 9 within Instructions for Forms W-2 and W-3, published by the Internal Revenue Service.

Tax Reporter has set up tax form groups and tax form fields for prior year(s) and Year End 2009.The tax form groups are named W010-W045. You must assign your user wage types to these taxform groups, where appropriate. To this end, in Customizing for Payroll USA (PY-US), choose:

Tax Reporter Tax Form Groups Define tax form groups containing non-tax wagetypes

Deactivating PCL4 Check for W-2c RunsIf you encounter lengthy runtimes when you attempt to perform an employee selection in TaxReporter for W-2c or correction W-2 Production runs, you may deactivate the default PCL4check, if desired, by assigning the value 1 to payroll constant TRESF in view V_T511K. Foradditional information, consult SAP Note 1019363.



Annual Processing


Forms 1099-R and 1096UseUse Form 1099-R to report recipient income from non-salary sources, such as pensions,annuities, retirement or profit-sharing plans, individual retirement accounts, insurance contracts,and so on. Use Form 1096 to transmit groups of 1099-R forms to the Internal Revenue Serviceand to summarize both the total amount of federal income tax withholding reported on theseforms and the total amount of all monies reported in Box.1 of these forms.

Along with Form 1099-R employer and employee copies and Form 1096, Tax Reporter producesForm 945 and magnetic media, as explained below.

Form 1099-R Employee CopyThis laser-printed, 4-up, recipient-level form can be mailed directly to employees. In orderto produce this form, you must have a supply of perforated forms with pre-printedrecipient instructions on the reverse side.

Form 1099-R Employer CopyThis laser-printed, recipient-level form corresponds to the IRS over-the-counter formatand can be filed to most tax jurisdictions, but not to the IRS. One form is created perrecipient.

Form 945 Annual Tax ReturnThis report is automatically produced during Form 1099-R processing; it containssummarized liability per month and year of 1099-R distributions. This report cannot befiled to the IRS, as the amounts on the report must be transferred to the pre-printed formthat the IRS sends to employers.

Backup withholding and Total deposits amounts are not supported for this form.Form 1096 Annual SummaryThis report is also automatically produced during Form 1099-R processing; it contains thenumber of 1099-R forms to be transmitted, the total amount of federal income taxwithholding reported on these forms, and the total amount of all monies reported in Box.1of these forms. This report cannot be filed to the IRS, as the amounts on the report mustbe transferred to the pre-printed form that is sent to employers by the IRS.

This report cannot be filed directly with the IRS; the reported amounts must betransferred to the pre-printed copy of Form 1096 that the IRS sends to employers,which is then filed with that authority.

Form 1099-R Magnetic MediaThis file, containing all required form data, can be downloaded and filed with the IRS.

AccessForm 1099-R is accessed from the Annual form section of Tax Reporter.

Annual Processing


1099-R: Multiple Distribution CodesFor more detailed information, refer to the user guides entitled Distribution PaymentsFunctionality and 1099-R: Multiple Distribution Codes in Tax Reporter on SAP ServiceMarketplace at http://service.sap.com/hrusa Documentation User Guides.

1099-R/1099-R Correction ProcessingYou can reprint 1099-Rs for selected employees. In addition, you can generate different output,such as Employee copies, Authority copy, and Magnetic media.

Correction 1099-R forms are essentially identical to original 1099-R forms, with the exception ofthe CORRECTED indicator, which is checked on correction forms, but not on original ones.Correction 1099-R forms do not display values that have changed since the original form wasgenerated. Instead, these forms simply reflect the most current values for the payee.

Screen elements The Generate employee copy checkbox determines whether the system will generate

standard SAPscript HR_F_1099R_MULT or the customer-modified version thereof. In thelatter case, you must create an entry in feature UTRW2 and set the fourth parameter toEE.

The Generate magnetic tape checkbox determines whether the system will generatestandard magnetic tape HR_F_1099R_TAPE or the customer-modified version thereof.In the latter case, you must create an entry in feature UTRW2 and set the fourthparameter to MT.

The Generate authority copy checkbox determines whether the system will generatestandard form HR_F_1099R or the customer-modified version thereof. In the latter case,you must create an entry in feature UTRW2 and set the fourth parameter to ER.

Employee selection for re-print copies You can enter personnel numbers in the Employee Copy sub-screen, which can be

accessed by selecting the Employee copy button in the 1099-R PROD. run tab.

Sorting criteria You can set sorting criteria for the employee copy by selecting the option Sort Order in

the Employee copy sub-screen.

You can set sorting criteria of magnetic tape by selecting the option Sort Order in theMagnetic tape sub-screen.

The same sort options available for W-2s are available for Form 1099-R.





Annual Processing


FUTA Tax Return (Form 940)SAP has developed the following features for processing Form 940:

Part 1, line 2A detailed listing of contributions is provided in a separate report. If you are reportingExempt payments, a new page is printed with the details of the Exempt payments.

You can use the Tax Form Groups (TFG): L201; L202; L203; L204; L205; L206; L207; L208 andL209 for each type of exempt payment and to map associated payroll wage types.

A new page is printed with text assigned for the form group, and the amount from wage typesassigned to the specified form group.

If the amount of exempt payments shown in line 2 does not equal the sum of exemptpayments specified in the detail report, a message is displayed in the log with theemployee number and difference. While comparing the amounts, differences up to $0.05are ignored for rounding errors.

To activate these features, you must complete the following configuration activities.

1. Specify the type of Exempt payment in the text area of the form group. Up to twenty (20)characters of text will be printed in the new page.

2. Assign wage types to the form group, which contribute to the particular type of exemptpayment.

3. If more than nine types of exempt payments exist, create additional tax form groups bycopying them from L2xx, and additional form fields by copying them from L2xx and T2xx.Also, modify the SAPscript layout set accordingly.

Part 2, line 3The form reflects mid-year changes in unemployment insurance (UI) experience rates.The system checks for UI experience rate changes in the year for all state authorities.Depending upon the change encountered from the experience rate, the form groups andform fields are generated dynamically.

Part 2, lines 3Part 2, lines 3b-10 are part of the standard report.

Experience rate data is only stored on employee records in Tax Reporter table (PCL4) forstates where employee had UI contributions.

Annual Processing


Employer’s Quarterly Federal Tax Return (Form 941)On From 941, you enter the total deposits for the quarter, including overpayment applied from aprior quarter in line 14. If you want to print the deposit amounts based on user-defined wagetypes, follow the system configuration activities described in SAP Note 415325.

Scenario:Your company posts payroll tax amounts to separate General Ledger accounts based on taxauthority. Based on this requirement:

Tax wage types (/4xx) are remapped to user-defined wage types

Third-party remittance configuration points to the user-defined wage types instead of thetechnical wage types.

In addition to the SAPscript paper form showing 941 lines 1 through 17d and schedule B, a newTemSe file appears in the magnetic media section which details line "9-other" adjustments.

You can download this file and import it into your preferred word processing or spreadsheetapplication for further formatting. You may be required to submit the information with Form 941.The file includes:

Social Security Number

Last name

First initial

Line 9 – other total

Components of line 9 – other, including employee OASDI tax not taken and employeeMedicare tax not taken

Personnel number

An offset used for internal calculations


Quarterly Processing


Quarterly ProcessingThis section describes the processes used to perform quarterly reporting within Tax Reporter.The topics addressed here include:

Multiple Worksite ReportingRunning the Multiple Worksite Report



Multiple Worksite ReportingUseMWR forms issued by Tax Reporter summarize the total number of employees at variousworksites, rather than providing detailed information for each employee. These forms also list,per worksite, the total wages for the reporting period, the headcount by month, and the addressof the reporting unit.

ConfigurationAs mentioned under Basic Configuration, if you intend to issue the MWR from within TaxReporter, you must first ensure that your worksites are properly configured in Customizing forPayroll USA (PY-US). To this end, choose Tax Tax Data Maintenance UnemploymentInsurance Define unemployment worksites.

Worksite information must also be maintained for each employee in the Unemployment Stateinfotype (0209). To ensure that all employees are properly assigned to the appropriate worksite,you can configure payroll calculation rule UUIM to issue an error message during payrollprocessing in the event that worksite information is missing. To configure payroll calculation ruleUUIM, in Customizing for Payroll USA (PY-US), choose Tax Maintain Tax-Related Schemasand Rules Maintain payroll calculation rule for unemployment Unemployment informationoptions.

Implementation ConsiderationsWhen you execute Tax Reporter to produce the MWR, you may notice one or more messages inthe Tax Reporter Log, depending on the configuration of your worksites and the assignment ofyour employees to those worksites. The messages are as follows.Employees with worksite assigned from the Unemployment State infotype (0209)Employees listed under this message either lacked a worksite assignment in the UnemploymentState infotype (0209) when the payroll was originally run, or else the worksite assignment forthese employees has been updated. For the employees listed in this section, Tax Reporter usesthe most recent worksite assignment in the Unemployment State infotype (0209) that was valid(as of the quarter-end date) for the tax company and tax authority being evaluated.Employees with no worksite assignment; worksite in T5UTV used insteadEmployees listed under this message lacked a worksite assignment in the Unemployment Stateinfotype (0209). For these employees, Tax Reporter uses an entry from worksite table T5UTV,based on the employee’s tax company and the tax authority. To avoid this message during futurequarterly reporting, maintain worksite information in the Unemployment State infotype (0209) forthe affected employees.Employees with no worksite assignment; worksite 99 used insteadEmployees listed under this message lacked a valid worksite assignment in the UnemploymentState infotype (0209), and Tax Reporter could not find a default worksite in table T5UTV for theemployee’s tax company and the tax authority. For these employees, Tax Reporter uses dummyworksite 99. To avoid this message in future quarterly reports, maintain worksite information forthe affected employees in the Unemployment State infotype (0209).



Running the Multiple Worksite ReportPrerequisitesYou have entered the relevant worksite data for each of your employees in the UnemploymentState infotype (0209).


Payroll supplement Tax Reporter.2. Execute Tax Reporter for the desired tax company. Choose Multiple Worksite Report

– Combined for central filing to the BLS or Multiple Worksite Reports – State Level ifyou have chosen to file separately with each state.

Download the TemSe file created by Tax Reporter to magnetic tape, then submit the tape to theappropriate authority or authorities.



Automatic Override of WorksiteWhen overriding worksite information based on the Unemployment State infotype (0209),worksites are checked against the worksite table (that is, T5UTV) for the Tax Company andauthority being evaluated.Example of message in log00000008 US01 NY Assigning WKSIT from P0209

00000008 = personnel number;US01 = tax company;NY = tax authority;P0209 indicates that it was overridden from the Unemployment State infotype (0209).

If no worksite assignment is found on the Unemployment State infotype (0209), the system firsttries to assign a default based on the worksite table (T5UTV). If no entry is found in the worksitetable, worksite 99 is applied.Example of message in log when overriding based on table T5UTV00000008 US01 NY Assigning WKSIT from T5UTV

00000008 = personnel number;US01 = tax company;NY = tax authority;T5UTV indicates that it was overridden from table T5UTV.Example of message in log when overriding using worksite 9900000008 US01 No WKSIT, assigning 99

00000008 = personnel number;US01 = tax company;NY = tax authority;99 indicates that the worksite could not be overridden from the Unemployment State infotype(0209) or from table T5UTV.

During configuration, it is worthwhile to remember the following recommendations.

Messages are only issued if the override worksite differs from the one the recorded intable TAXR of the payroll result cluster.

Messages are not issued when processing the Federal tax authority, as the worksite isnot required at that level.

Messages are only issued once per combination of employee, tax company and taxauthority.



Turning off Automatic OverrideIf you do not want to use this logic, you can turn it off by making the following entry in the payrollconstant table T511K.

0: Override is shut off.1: Override is left on.

CG Constant From To Value Text10 TRWSO 01/01/1990 12/31/9999 0/1 TR: wrkst override

If worksite information is not recorded in the interface table (T5UT1) because the information wasnot in the Unemployment State infotype (0209) at the time the payroll result was written or putinto T5UT1, worksite $$ will be assigned and reported under a worksite with the description "EEwithout worksite".

The employee will continue to be reported in the log, as before, indicating that said information ismissing.



Reconciling Multiple Worksite Report (MWR) and StateUnemployment Insurance (SUI) totalsIf you transfer employees between worksites during the reporting period, or if you do not maintainthe correct worksite assignment on the Unemployment State infotype (0209), the following issuesmay arise:

MWR and SUI totals may not match if an employee is recorded in multiple worksitesduring the reporting period and if one of the worksites has a negative total, causing thoseamounts to be dropped from the report.

The sum of MWR worksite totals may not equal the report total if the employee did nothave a worksite assignment and was therefore not reported in the details.

Reconciliation issues can be minimized with proper infotype maintenance, worksite assignment,and payroll calculation customizing.

If you are producing the MWR from within Tax Reporter, you must maintain the worksiteinformation on the Unemployment State infotype (0209).

Worksite information is recorded in each payroll cluster. To insure that worksite information ismaintained and recorded properly in each payroll result, you can customize rule UUIM, (located insubschema UTX0 of the main payroll calculation schema U000), to reject an employee if worksiteinformation is missing.

To minimize the issues caused by multiple worksite assignments during a reporting period,please consider the worksite assignment guidelines as described by the Bureau of LaborStatistics (BLS). These guidelines state that if an employee moves often between worksites, theemployer may assign the employee to a physical location where either the employee spendsmost of his/her or time or where the employee is supervised or receives control. The employeeshould be counted one time at one location.

In order to minimize the impact of not following the above procedures, the MWR produced by TaxReporter behaves as follows:

If the payroll results, — in the cluster PCL4 — show that the employee was recorded in more thanone worksite during the reporting period; this information will be overridden using the last worksitevalid for the reporting period per Unemployment State infotype (0209) record.

One negative consequence of applying this logic arises if the Unemployment State infotype(0209) is maintained retroactively after MWR is filed, in which case you may not be able, withoutthe original spool file, to reproduce the report exactly as filed. If you do not wish to use this logic,you may deactivate it by performing the following entry in the Payroll Constants table (T511K).

A value of 0 deactivates this logic, while a value of 1 leaves the logic active.

CG Const From To Value Text (from T512L)10 TRWSO 01/01/1990 12/31/9999 0 or 1 TR: wrkst override



If worksite information is not recorded in payroll cluster PCL4, because the information was not inthe Unemployment State infotype (0209) at the time the payroll result was written or placed intable T5UT1, worksite $$ will be assigned and reported under a worksite with the description EEwithout worksite. The employee will still be reported in the log, as before, indicating that thisinformation is missing.

Submitting Multiple Print Jobs for SUI Wage Reporting andMultiple Worksite Reports – State Level (MWR)To submit multiple print jobs in the background, the payroll constant TRSMP must have a non-zero value in the table T511K.

For example:

Constant Payroll constant Start date End date ValueTRSMP TR Mult. print jobs 01/01/2009 12/31/9999 1.00

Multiple print jobs will be created for all SUI and MWR runs where the reporting period end datelies between the start date and end date of the constant TRSMP.

Regardless of which non-zero value you enter, the system creates one print job for each mainform in the tax class – that is, one print job for each state authority for SUI and/or MWR (includingcorrection) forms. If the value for constant TRSMP is zero, the system will not create multiple printjobs.

Since Tax Reporter always submits separate jobs for magnetic media and paper forms, two jobswill be submitted for each state in SUI/MWR processing during a production run (in thebackground).

SAP delivers MWR reports only for certain states, and all of these states have the same MWRreporting requirements, so if customers wish to configure MWR reports for other states, they cancopy and configure the definitions of existing states for the new states they require. For additionalinformation, consult SAP Note 108565.




Locality Wage ListingIntroductionYou can use a quarterly locality wage listing to report income tax and taxable wages, employeename, address, and Social Security Number information to local authorities.

This means that you can accurately comply with different reporting requirements for differentstates, for example:

In Kentucky, you can comply with the requirement to report transportation tax (tax type50), occupation tax (tax type 51), and school tax (tax type 53).

In Pennsylvania and Ohio, you can accurately report local income taxes.

RestrictionsThe standard layout for the locality report is identical for all tax types and localities. If you wish tochange the layout for a specific locality/localities (for example, in Pennsylvania), then you mustcustomize each and every form.

CustomizingIf your reporting requirements cannot be met by the standard solution – for example, if you wantto generate a report for a specific tax type that is not included in standard system, or you want togenerate a local report for some states other than Pennsylvania, Kentucky, and Ohio – you cancustomize the report as follows:Add New Tax Type to Existing StateTo generate reports for tax types that are not in the system – for example, transportation tax (taxtype 50) report for Pennsylvania city level authorities – you must create tax form fields associatedwith transportation taxable amounts and tax under form HR_F_LOCWL_D_PA. In response, thesystem will automatically generate a report for employees with transportation taxable amounts.

To this end, in Customizing for Payroll USA (PY-US), choose Tax Reporter Tax FormDefinition Define original tax forms.1. Select the entry HR_F_LOCWL_D_PA, then select the Tax form fields node from the tree

structure at left.

2. Select the entries TLO1 (Income Taxable) and TLO2 (Income Tax), then choose Copy asfrom the application toolbar.

3. Specify your target entries as follows:

a. Replace TLO1 with ZLXX.

b. Modify the name from Income Taxable to Transportation Taxable.

c. Modify the Tax form group field from 0001 to the value defined for tax type 50.

4. Repeat step 3. for entry TLO2.

5. Save your entries, then execute Tax Reporter.



Add New State with Existing Tax TypeAs delivered in the standard system, the locality wage listing generates reports for Pennsylvania,Ohio, and Kentucky. If you wish, for example, to generate a report at the county level (tax level C)in the State of Indiana, in Customizing for Payroll USA (PY-US), choose Tax Reporter TaxForm Definition Custom Forms Copy tax forms and assign them to tax form classesCopy tax forms.1. Copy tax form HR_F_LOCWL_C_PA to ZR_F_LOCWL_C_IN, and select Copy all when the

system inquires whether you wish to copy the entry with all dependent entries.

2. Change the Tax Authority in tax form ZR_F_LOCWL_C_IN from PA to IN.

3. In the subsequent activity (Assign tax forms to tax form classes), assignZR_F_LOCWL_C_IN to tax form class Q600.

Add New State with New Tax TypeIf you wish to add a new state with a new tax type that is not delivered in the standard system –for example, to add Employer Occupation Tax (tax type 54) reporting for the City and County ofDenver (tax level D) in the State of Colorado – then perform the instructions provided below.

1. In Customizing for Payroll USA (PY-US), choose Tax Reporter Tax Form DefinitionCustom Forms Copy tax forms and assign them to tax form classes.

2. Select the first activity: Copy tax forms.

3. Copy tax form HR_F_LOCWL_C_PA to ZR_F_LOCWL_C_CO, and select Copy all whenthe system inquires whether you wish to copy the entry with all dependent entries.

4. Change the Tax Authority in tax form ZR_F_LOCWL_C_CO from PA to CO.

5. In the subsequent activity (Assign tax forms to tax form classes), assignZR_F_LOCWL_C_CO to tax form class Q610.

6. In Customizing for Payroll USA (PY-US), choose Tax Reporter Tax Form DefinitionDefine original tax forms.

a. Select the entry ZR_F_LOCWL_F_CO, then select the Tax form fields node fromthe tree structure at left.

b. Select the entries TLO1 (Income Taxable) and TLO2 (Income Tax), then chooseCopy as from the application toolbar.

c. Specify your target entries as follows

Replace TLO1 with ZLXX.

Modify the name from Income Taxable to Employer Occupation Taxable.

Modify the Tax form group field from 0001 to the value defined for tax type 54.:

d. Repeat step 6c. for entry TLO2.




Add New Tax LevelIf you wish to add a new tax level that is not delivered in the standard system – for example, ifyou wish to add Transit District Excise Tax (tax type 35) reporting for the Portland TriMetAuthority (tax level F) in the State of Oregon – then perform the instructions provided below.



2. Copy tax form class Q600 to ZXXX.

3. Modify the name from Locality Wage Listing – County Level to Locality Wage Listing –Portland TriMet.

4. Assign user-defined tax form class attributes by selecting tax form class Q600 andcopying the appropriate attributes to tax form class ZXXX.

Do not modify the field Variant; the system uses it to identify the locality wage listing.


Tax Reporter Tax Form Definition Custom Forms Copy tax forms and assignthem to tax form classes

a. Copy tax form HR_F_LOCWL_C_PA to ZR_F_LOCWL_F_OR, and select Copyall when the system inquires whether you wish to copy the entry with alldependent entries.

b. Change the Tax Authority in tax form ZR_F_LOCWL_F_OR from PA to OR.

c. Assign tax form ZR_F_LOCWL_F_OR to tax form class ZXXX.6. In Customizing for Payroll USA (PY-US), choose:

Tax Reporter Tax Form Definition Define original tax formsa. Select the entry ZR_F_LOCWL_F_OR, then select the Tax form fields node from

the tree structure at left.

b. Among the tax from fields listed in tax form ZR_F_LOCWL_F_OR, identify all taxform fields that bear tax level C and modify this tax level from C to F.

c. Select the entries TLO1 (Income Taxable) and TLO2 (Income Tax), then chooseCopy as from the application toolbar.

d. Specify your target entries as follows:

Replace TLO1 with ZLXX.

Modify the name from Income Taxable to Transit District Excise Taxable.

Modify the Tax form group field from 0001 to the value defined for tax type 35.

e. Repeat step 5d. for entry TLO2.




Issue Magnetic MediaYou can report locality wage information electronically. However, SAP does not provide electronicwage reporting formats for these localities as part of the standard system.

You can generate magnetic media output for locality wage listing as follows:

1. Copy an existing magnetic media entry (for example, HR_F_MMREF_1_PA) in the system toyour own magnetic media (for example, ZR_F_LOC_PAXX, where PAXX = your localauthority).

2. Modify the magnetic media structure according to the specifications provided by your localauthority.

3. Add your entry ZR_F_LOC_PAXX under the main form HR_F_LOCWL_D_PA. If PAXX is acity level authority, specify tax authority PAXX.

For details on how to create and customize magnetic media, see the Configuration section andSAP Note 306543 and SAP Note 305046.



Payroll Considerations


Payroll ConsiderationsThis section addresses important payroll issues that directly affect the process of tax reporting.The topics addressed here include:

Claims ProcessingPayroll Reconciliation ReportTax Form ReconciliationManual Entry AdjustmentsThe Adjustments WorkbenchTax Reporter Payroll Constants



Claims ProcessingUseNormally, if an employee is overpaid, retroactively adjusting the overpayment will carry forwardinto the current period, reducing the amount of current pay and clearing the original overpaidamount. However, if the employee does not have enough money in the current period to coverthe entire amount of the overpayment, the system creates a claim. If left alone, the claim will becarried forward into subsequent periods, reducing future pay until it is cleared. If the claim islarge and the employee remains active, you may wish to set up a payment plan. However, forinactive employees, claims must be cleared, either as forgiven amounts or as repayments, andeither partially or in full.

At the end of the year, you need to determine how you want to resolve any outstanding claims. Itis advisable to clear all outstanding claims from your system before running the first payroll of thenew year, since claims repaid in the current year for the prior year should be processed as aClaim of Right.

You can execute the Payroll Reconciliation Report to identify employees with claims. Once youhave isolated these claims, execute the Claims Processing Report to determine thecomponents of each claim (such as earnings, taxes, and deductions) and to decide which of theamounts should be fully repaid, which fully forgiven, and which partially forgiven. Using theClaims Processing Report, you can also act to clear claims and to establish employee paymentplans so that the claim is repaid over a longer period.

All prior-year adjustments, whether negative or positive, are still carried into thecurrent pay period and processed as normal retroactive payments. Should you wishto process an overpayment from a prior year as a Claim of Right, you must clear theclaim with special Claim of Right Wage Types.

AccessTo access the Claims Processing Report from the main U.S. Payroll menu, choose Subsequentactivities Period-independent Payroll supplement Claims processing. For detaileddocumentation on claims processing, choose Help Application help from the initial screen ofthe report.

Additional documentation on claims processing is provided in the user guide entitled “ClaimsProcessing" on SAP Service Marketplace at http://service.sap.com/hrusaDocumentation User Guides Claims Processing.





Payroll Reconciliation ReportUseThe Payroll Reconciliation Report is a tool that is used to reconcile payroll results from aspecified time interval both with Tax Reporter results and, to a lesser extent, with the amountsposted to the SAP ERP Financials (FI) application component. The Payroll Reconciliation Reportcan be executed before, during, or after Tax Reporter processing runs to crosscheck theaccuracy of the results produced by Tax Reporter vs. those produced in SAP Payroll.

The output of the Payroll Reconciliation Report is intended to reflect actual payroll results asclosely as possible. It is not the intent of the report to duplicate the logic of FI posting programs,nor of third-party remittance functionality, nor of Tax Reporter. Therefore, amounts reported bythe Payroll Reconciliation Report will not necessarily match the results of other reportingprograms. Indeed, the fundamental purpose of the Payroll Reconciliation Report is to enableusers to discover and understand such discrepancies, so that they may ultimately resolve them.Although the Payroll Reconciliation Report can be used to balance payroll results throughout theyear, many users will find it to be most useful when executed in conjunction with Tax Reporterduring the Year End timeframe.

AccessTo access the Payroll Reconciliation Report from the main U.S. Payroll menu, chooseSubsequent activities Period-independent Payroll supplement Payroll reconciliationreport. For detailed documentation on the Payroll Reconciliation Report, choose HelpApplication help from the initial screen of the report.

System documentation for the Payroll Reconciliation Report is also available on SAP ServiceMarketplace. To access this documentation, visit http://service.sap.com/hrusa, thenchoose Documentation User Guides Payroll Reconciliation Report.





Tax Form ReconciliationDefinitionAll reconciliation of amounts reported and amounts paid is accomplished with the PayrollReconciliation Report. Using this application, you can balance amounts reported on tax formswith Payroll and FI by viewing the total amounts in payroll results for selected wage typegroupings (such as taxable earnings) per tax company, tax form and tax authority. In addition, thePayroll Reconciliation Report is specially designed to display any retrocalculations that affectedpayroll results for the reporting period but that were not included on tax forms because they wereprocessed after the tax form run.

ExampleForm W-2 is run for Reporting Period End Date 12/31/2009; Tax Reporter is instructed toConsider Payroll Results to 01/15/2010. On January 16, you perform a retrocalculationthat changes the taxable wages of an employee in 2009. This prior-year adjustment willbe listed separately on the output of the Payroll Reconciliation Report, because the taxform itself will not reflect the adjustment amount.

Process DescriptionTo reconcile a tax form produced by Tax Reporter with Payroll or FI, follow these generalguidelines:

1. Instruct the Payroll Reconciliation Report to review data for the same tax company andreporting period for which you produced the tax form to be reconciled.

Running the Payroll Reconciliation Report for a specific tax company may causethe report to run more slowly than it would for another selection, such ascompany code or personnel area. If your tax company contains 10,000employees or more and if it maps data exactly to one personnel area/subarea orcompany code, we recommend that you specify those criteria to run theapplication, rather than choosing the tax company on the report selection screen.This is recommended because company codes, personnel areas and personnelsubareas correspond to HR Logical Database fields, while tax companies do not.HR reports can select employees more quickly when processing LogicalDatabase fields, rather than other fields. In addition, choosing "employee details"for a large employee range can significantly detract from the performance of theapplication.

2. Review the wage type groupings on the application to ensure that they correspond to theboxes on the tax form to be reconciled.

When performing reconciliation for a tax form, be certain to specify tax company andtax authority as "reportable fields" on the selection screen. Otherwise, tax wage typeamounts will be totaled for all tax companies and authorities, yielding unusableresults.



3. Where variances exist between the Payroll Reconciliation Report and the selected taxform, review the following two factors:

a. Number of employees selected. The Payroll Reconciliation Report will select allemployees in the specified tax company and period that have current RT results.Tax Reporter, however, features processing logic to reject certain employeesfrom a tax form run, such as employees who have negative wages. Beforerunning the Payroll Reconciliation Report, always review the Tax Reporter Logfor the form to be reconciled to determine whether employees were rejected fromthe tax form run, and if so, how many. If employees were rejected, be certain toexclude these employees manually from the Payroll Reconciliation Report run.

b. Manual entries in the Tax Interface Table (T5UT1). You may sometimes needto perform manual entries for an employee in one or more tax form groups, toensure that amounts that were excluded from payroll results for some reason areincluded on the tax form. Since the Payroll Reconciliation Report does not readthis table, you need to know which employees had manual entries, and which taxform groups or wage type groupings these employees affected.

ResultUsing the basic technique described above, you can quickly identify the source of variancesbetween payroll results or FI postings and tax form data.



Manual Entry AdjustmentsManual adjustment of entries in Tax Reporter is designed so that you can correct discrepancies inemployee records without impacting payroll results. You can also use manual entry adjustmentsto generate tax forms for employees who are being paid on a non-SAP payroll system, such asexecutive payroll outsourcing.

For more information, refer to the user guide entitled “New User Interface and Processing forManual Entries” on SAP Service Marketplace at http://service.sap.com/hrusaDocumentation User Guides New User Interface and Processing for Manual Entries.

The Adjustments WorkbenchTo access the Adjustments Workbench user guide, visit http://service.sap.com/hrusa,and then choose Documentation (left frame) User guides (left frame) AdjustmentsWorkbench (right frame). On the subsequent screen, choose Adjustment Guide for Release4.6C and above.

Tax Reporter Payroll ConstantsFor reference, the following table provides a summary of payroll constants within the standardsystem that impact tax reporting. For each constant, additional sources of information are named.

Constant Purpose For additional information:

TR99R Define 1099-R min. gross distribution < $10Review the user guide formultiple distribution codes.

TRCLT Colorado Local OPT on Form W-2 Consult SAP Note 540100.

TRCOM Fill job number of pers. nos. for PCL4 commit Consult SAP Note 414496.

TRESF Deactivate PCL4 check Consult SAP Note 1019363.

TRPRN Puerto Rico control no., using laser printer Consult SAP Note 576263.

TRSMP Multiple print jobs for SUI and MWR reports Consult SAP Note 563242.

TRUGT Pennsylvania OPT / LST on Form W-2 Consult SAP Note 905235.

TRWSO MWR override: EE counts, SUI Reconciliation Consult SAP Note 197437.

W2SPL Third Party Layout (Form W-2): Splitting TemSe file Consult SAP Note 1160752.













Additional Resources


Additional ResourcesSAP Online DocumentationThorough online documentation is available via SAP Help Portal, at http://help.sap.com.No user name or password is required to access this information.

U.S. Tax Reporting with PDF-Based FormsFor SAP ERP 6.0 customers who use the U.S. Payroll component of SAP ERP Human CapitalManagement to perform quarterly and year-end tax reporting with PDF-Based Forms, acorresponding user guide is available online, at http://service.sap.com/hrusa.

SUI XML Reporting in Tax ReporterFor all customers who use the U.S. Payroll component of SAP ERP HCM to conduct XMLreporting – for example, to report State Unemployment Insurance reporting on a quarterly basis –a user guide is published on this topic online, at http://service.sap.com/hrusa.

Business Add-Ins Guide for U.S. Tax ReportingFor an overview of BAdIs that influence tax reporting, visit http://service.sap.com/hrusa

Documentation Business Add-Ins Guide for U.S. Tax Reporting.

U.S. Tax Reporter: Frequently Asked QuestionsIn the Documentation section located at http://service.sap.com/hrusa, you may reviewFrequently Asked Questions for U.S. Tax Reporter.

Course Registration via SAP EducationTo register online for HR710 – U.S. Tax Reporter, visit SAP Education.

State GovernmentsTo view the Web site of any state government, visit www.state.xx.us, where xx corresponds tothe two-character code established for that state by the United States Postal Service. Forexample, to view the official Web site of the State of California, visit http://www.state.ca.us.

Tax AuthoritiesTo view the Web site of the Internal Revenue Service, visit http://www.irs.gov.To view the Web site of a state or territorial tax authority, select the corresponding link below.

Alabama Idaho Montana Puerto Rico

Alaska Illinois Nebraska Rhode Island

American Samoa Indiana Nevada South Carolina

Arizona Iowa New Hampshire South Dakota

Arkansas Kansas New Jersey Tennessee

California Kentucky New Mexico Texas

Colorado Louisiana New York U.S. Virgin Islands

Connecticut Maine North Carolina Utah

Delaware Maryland North Dakota Vermont

District of Columbia Massachusetts Northern Mariana Islands Virginia

Florida Michigan Ohio Washington

Georgia Minnesota Oklahoma West Virginia

Guam Mississippi Oregon Wisconsin

Hawaii Missouri Pennsylvania Wyoming

http://help.sap.com/







http://service.sap.com/hrusaY


http://www.sap.com/usa/services/education/globaltabbedcourse.epx?context=%5b%5b%7cHR710%7c%7c%7c092%7cUS%7c%5d%5d%7c

http://www.sap.com/usa/services/education/index.epx

http://www.state.ca.us/

http://www.irs.gov/

http://www.ador.state.al.us/

http://www.tax.idaho.gov/

http://www.mt.gov/revenue

http://www.hacienda.gobierno.pr/

http://www.revenue.state.ak.us/

http://www.revenue.state.il.us/

http://www.revenue.state.ne.us/

http://www.tax.state.ri.us/

http://americansamoa.gov/departments/treasury.htm

http://www.in.gov/dor

http://tax.state.nv.us/

http://www.sctax.org/

http://www.revenue.state.az.us/

http://www.state.ia.us/tax

http://webster.state.nh.us/revenue

http://www.state.sd.us/drr2/revenue.html

http://www.accessarkansas.org/dfa

http://www.ksrevenue.org/

http://www.state.nj.us/treasury

http://www.state.tn.us/revenue

http://www.ftb.ca.gov/

http://revenue.ky.gov/

http://www.state.nm.us/tax

http://www.window.state.tx.us/taxes

http://www.revenue.state.co.us/main/home.asp

http://www.rev.state.la.us/

http://www.tax.state.ny.us/

http://www.viirb.com/

http://www.ct.gov/drs

http://www.state.me.us/revenue

http://www.dor.state.nc.us/

http://www.tax.utah.gov/

http://www.state.de.us/revenue

http://www.comp.state.md.us/

http://www.nd.gov/tax

http://www.state.vt.us/tax

http://otr.cfo.dc.gov/

http://www.dor.state.ma.us/

http://www.dof.gov.mp/rev/

http://www.tax.virginia.gov/

http://sun6.dms.state.fl.us/dor

http://www.michigan.gov/treasury

http://www.tax.ohio.gov/

http://dor.wa.gov/

http://dor.georgia.gov/

http://www.taxes.state.mn.us/

http://www.oktax.state.ok.us/

http://www.state.wv.us/taxrev

http://www.guamtax.com/

http://www.mstc.state.ms.us/

http://www.oregon.gov/DOR/index.shtml

http://www.dor.state.wi.us/

http://www.state.hi.us/tax/tax.html

http://www.dor.mo.gov/

http://www.revenue.state.pa.us/revenue/site/default.asp

http://revenue.state.wy.us/

Documents

Tax Reporter Guide_2009