After upgrading to TaxFactory 10, several clients are noticing their New York Metropolitan Commuter Transportation Mobility Tax (MCTMT) is not being taken.
Here are the steps to ensure your NY Metro taxes (/419) are being taken after upgrading to v10.
Per BSI, the change that was introduced was :
Tax formulas for the New York County Payroll Expense taxes were enhanced to use a single formula number to determine the tax rate based on the estimated quarterly gross payroll amount from the previous quarter.
The NY metro tax for the NY locals is a tiered tax. For example, in NY07, the following tiered rates are used (as shown from the Quick Formula page) based on the estimated quarterly wages:
TAX RATE TABLE
To see what each local rate should be for the gross wage tiers, refer to BSI’s quick-formula link for v10. The following NY locals take tax type 19, per table T5UTD.
00360001 BRONX COUNTY COUNTY
00360002 DUTCHESS COUNTY COUNTY
00360003 KINGS COUNTY
00360004 NASSAU COUNTY COUNTY
00360005 NEW YORK COUNTY COUNTY
00360006 ORANGE COUNTY COUNTY
00360007 PUTNAM COUNTY COUNTY
00360008 QUEENS COUNTY COUNTY
00360009 RICHMOND COUNTY
00360010 ROCKLAND COUNTY COUNTY
00360011 SUFFOLK COUNTY COUNTY
00360012 WESTCHESTER COUNTY COUNTY
Table BTXTAXC ties BSI code 003600xx to the SAP code NY03 – NY0E. In earlier versions of Tax Factory, the tax (/419) was being taken, even though the quarterly gross payroll wages were not being passed from SAP to Tax Factory.
To see what SAP is passing to Tax Factory, run payroll with log on and go to the following location under the tax subschema:
Gross cumulation and tax processing
ELSE else if non authorized manual check
LPBEG Begin of iteration
USTAX 1 3 1 Call tax calculation routine
In the BSI Interface log, you’ll see:
ADC TC: NY07 NR: 1 RP: 1 RC: 1
HUD TT: 19 FN: 01 PW: 3811.62 HW: 80.00 MS: 01 NE: 00
ADD TE: 0 YW: 38116.20 RN: 0 PW: 1.00 YG: 38461.50
VDC AT: 0
SDC SM: 9 BW: 3846.15
LUD MW: 3811.62 SA: 0 QW: 3811.62 PND:10.00 MND:10.00 QND:10.00 YND:30.00
As you can see, the Estimated Gross wages are not being passed. The following is produced from BSI:
In the results, the following is produced:
To populate the new view (V_T5UX9_ADDINFO) in SAP with the gross wages, you will first want to run the payroll recon report checking on any wage type /619 for locals NY03-NY0E (this is to ensure no other locals are in use) for all tax companies for the previous quarter. In this case, we’re in quarter 02.2015 so you’d want to run the payroll recon report for Quarter 01.2015 to ensure your values are current.
Recall that the technical Wage Types with regards to Taxes are:
/3XX – Gross Earnings – Unadjusted (total gross not including pre-tax deduction)
/4XX – Taxes (returned by BSI)
/6XX – Earnings Subject to Taxes (total gross less pre-tax deduction)
/7XX – Taxable Earnings applicable limit applied (amt returned from BSI with limit)
You could use /319 for the payroll recon report to get the quarterly wages, yet if /319 and /619 are different that might affect the tax, especially if /319 is in one tier and /619 is in another. As shown below, Tax Factory looks to calculate the tax based on /619.
From transaction SM30, enter V_T5UX9_ADDINFO and type of information ’10 – Estimate Gross wages’
The following interface is in tax co xxx2 and the correct wages are now being passed in the interface to TF
Tax is now being taken
So, 3811.62*.0034=12.96, the calculation is based off /619
The following interface is in tax co xxx1 and the correct wages are now being passed in the interface to Tax Factory
Tax is now being taken
The following interface is in tax co xxx3 and the correct wages are now being passed in the interface to TF
No tax is being taken due to the quarterly wage amount
This tax type does not self-adjust. If your configuration changes (entering values into the view for the first time) start mid-quarter, you will want perform a “force retro”. In the previous example for NY07, we will need to retro back to period 01.2015 to get the year-to-date amounts correct, with each pay period calculated using the tax rate.
V_T5UX9_ADDINFO allows for date delimiting so if wages don’t change from quarter to quarter, you won’t need to update this view. However, a good practice is to run the payroll recon report along with quarterly processing (or before the end of the quarter) to ensure compliance with wages so the right rate is being used to calculate the tax within the correct tier.
ABOUT HR FOCAL POINT
- When time, accuracy and high-quality support are essential, HR Focal Point's precision approach to SAP HCM solutions is the clear choice.
- HR Focal Point has been the SAP HCM expert since 2004 with hundreds of years of combined consulting experience its team.
- HR Focal Point has the SAP HCM experts that will allow you to achieve your goals on time, on point and on budget, thus maximizing your ROI.
- HR Focal Point offers a flexible engagement model so you only pay for the services you require, when you require them.
- As an SAP Services Partner, HR Focal Point is known for delivering high-quality solutions, in support of SAP HCM, that are completed accurately and on schedule.
- HR Focal Point has partnered with SuccessFactors to develop and deliver innovative Cloud solutions, including Employee Central Payroll, for their clients.
FOR MORE INFORMATION
HR Focal Point
Telephone: +1 855.464.4737