explain US tax Models

Answers were Sorted based on User's Feedback



explain US tax Models..

Answer / prasanna patil

Tax Models falls under "Tax Data Maintenance "

The Tax Model is where we define the taxability of wages in
SAP Payroll. The ‘model’ is a set of three SAP configuration
tables. Tax-ability Model itself refers to three tables:

T5UTE
T5UTM
T5UTY


1. The first step ‘Define tax authority model’ (table T5UTE)
is where we associate each tax authority with a two digit
model number. The model number is just an arbitrary two
digit number that was chosen at the time the system was
first setup. If a tax authority changes the way it taxes
earnings or deductions, then you would create a new tax
model for it, using the effective dates in T5UTE.

2. The second step is ‘Define taxability model’, or table
T5UTM. In this table we link each taxable wagetype to a tax
model. There are four aspects to this link – the resident,
work and unemployment taxation of the wagetype, and the
taxation for different groups of employees (the tax
modifier). The link to the wagetype is via processing class
71 – called the taxability class. For each taxability class
we specify if the wagetype is taxable for the tax authority
an employee lives in, works in, and for unemployment taxes.
These three settings can be customized per tax modifier. For
example, we may tax wages for every tax authority for
regular employees, but only tax wages for Federal for
expatriates. In that case, we put expatriates and regular
employees in different tax modifiers, and control the
assignment of wagetypes to tax authorities via table t5utm.

3. The third step is where we tell SAP which types of tax to
use for each row in t5utm. Table T5UTY (define tax type
combinations) is where we define codes to represent a set of
tax types. In t5utm, if a tax class is taxable for a
particular combination of resident, work, unemployment and
tax modifier, the system then gets the tax type combo value
and looks it up in T5UTY to see which types of tax to use.
This is how SAP knows which /3xx wagetypes it needs to
build. For example, tax type combo 06 would tell the system
to build wagetypes /303, /304, /305 and /306.

Is This Answer Correct ?    3 Yes 0 No

explain US tax Models..

Answer / ppatil007

Tax Models falls under "Tax Data Maintenance "

The Tax Model is where we define the taxability of wages in
SAP Payroll. The ‘model’ is a set of three SAP configuration
tables. Tax-ability Model itself refers to three tables:

T5UTE
T5UTM
T5UTY


1. The first step ‘Define tax authority model’ (table T5UTE)
is where we associate each tax authority with a two digit
model number. The model number is just an arbitrary two
digit number that was chosen at the time the system was
first setup. If a tax authority changes the way it taxes
earnings or deductions, then you would create a new tax
model for it, using the effective dates in T5UTE.

2. The second step is ‘Define taxability model’, or table
T5UTM. In this table we link each taxable wagetype to a tax
model. There are four aspects to this link – the resident,
work and unemployment taxation of the wagetype, and the
taxation for different groups of employees (the tax
modifier). The link to the wagetype is via processing class
71 – called the taxability class. For each taxability class
we specify if the wagetype is taxable for the tax authority
an employee lives in, works in, and for unemployment taxes.
These three settings can be customized per tax modifier. For
example, we may tax wages for every tax authority for
regular employees, but only tax wages for Federal for
expatriates. In that case, we put expatriates and regular
employees in different tax modifiers, and control the
assignment of wagetypes to tax authorities via table t5utm.

3. The third step is where we tell SAP which types of tax to
use for each row in t5utm. Table T5UTY (define tax type
combinations) is where we define codes to represent a set of
tax types. In t5utm, if a tax class is taxable for a
particular combination of resident, work, unemployment and
tax modifier, the system then gets the tax type combo value
and looks it up in T5UTY to see which types of tax to use.
This is how SAP knows which /3xx wagetypes it needs to
build. For example, tax type combo 06 would tell the system
to build wagetypes /303, /304, /305 and /306.

Is This Answer Correct ?    2 Yes 0 No

Post New Answer

More SAP HR (Human Resource Management) Interview Questions

How to find the ugr of an country?

0 Answers  


Types of Wage Types? What are the characteristics of wages?

4 Answers   ADP,


What is a date modifier? : hr- payroll

0 Answers  


What actions are performed when you run applicant action prepare for hiring for an applicant?

0 Answers  


what is time constraint 1,2 and 3 with ex. that ex is related to info types?

3 Answers  






How many co.codes can you assign to a personnel area? How many pers. Areas can be assigned to a company code? Explain.

0 Answers  


What is the use of pay scale group and pay scale level?

0 Answers  


What is meant by wage type characteristics? Explain it by taking the example of Basic Pay.

3 Answers   Cap Gemini,


Which transaction code is used to maintain the features?

0 Answers  


1.what r salary processing infotypes? 2.What r the 2 important fields required to fill 2 run payroll? 3.How 2 create infogroup? 4. Infotypes for 401k deductions? 5. What is allowance grouping (not only definition...what is the use etc...in detail)

1 Answers   ABC, IBM,


Explain controlling area. What are its uses? How do you assign it?

0 Answers  


Situation - an employee goes over the limit of leave quota. How would you make sure that leave accrual in future is reflected correctly?

0 Answers  


Categories
  • SAP Basis Interview Questions SAP Basis (1262)
  • SAP ABAP Interview Questions SAP ABAP (3939)
  • SAPScript Interview Questions SAPScript (236)
  • SAP SD (Sales & Distribution) Interview Questions SAP SD (Sales & Distribution) (2716)
  • SAP MM (Material Management) Interview Questions SAP MM (Material Management) (911)
  • SAP QM (Quality Management) Interview Questions SAP QM (Quality Management) (99)
  • SAP PP (Production Planning) Interview Questions SAP PP (Production Planning) (523)
  • SAP PM (Plant Maintenance) Interview Questions SAP PM (Plant Maintenance) (252)
  • SAP PS (Project Systems) Interview Questions SAP PS (Project Systems) (138)
  • SAP FI-CO (Financial Accounting & Controlling) Interview Questions SAP FI-CO (Financial Accounting & Controlling) (2766)
  • SAP HR (Human Resource Management) Interview Questions SAP HR (Human Resource Management) (1180)
  • SAP CRM (Customer Relationship Management) Interview Questions SAP CRM (Customer Relationship Management) (432)
  • SAP SRM (Supplier Relationship Management) Interview Questions SAP SRM (Supplier Relationship Management) (132)
  • SAP APO (Advanced Planner Optimizer) Interview Questions SAP APO (Advanced Planner Optimizer) (92)
  • SAP BW (Business Warehouse) Interview Questions SAP BW (Business Warehouse) (896)
  • SAP Business Workflow Interview Questions SAP Business Workflow (72)
  • SAP Security Interview Questions SAP Security (597)
  • SAP Interfaces Interview Questions SAP Interfaces (74)
  • SAP Netweaver Interview Questions SAP Netweaver (282)
  • SAP ALE IDocs Interview Questions SAP ALE IDocs (163)
  • SAP Business One Interview Questions SAP Business One (110)
  • SAP BO BOBJ (Business Objects) Interview Questions SAP BO BOBJ (Business Objects) (388)
  • SAP CPS (Central Process Scheduling) Interview Questions SAP CPS (Central Process Scheduling) (14)
  • SAP GTS (Global Trade Services) Interview Questions SAP GTS (Global Trade Services) (21)
  • SAP Hybris Interview Questions SAP Hybris (132)
  • SAP HANA Interview Questions SAP HANA (700)
  • SAP PI (Process Integration) Interview Questions SAP PI (Process Integration) (113)
  • SAP PO (Process Orchestration) Interview Questions SAP PO (Process Orchestration) (25)
  • SAP BI (Business Intelligence) Interview Questions SAP BI (Business Intelligence) (174)
  • SAP BPC (Business Planning and Consolidation) Interview Questions SAP BPC (Business Planning and Consolidation) (38)
  • SAP BODS (Business Objects Data Services) Interview Questions SAP BODS (Business Objects Data Services) (49)
  • SAP BODI (Business Objects Data Integrator) Interview Questions SAP BODI (Business Objects Data Integrator) (26)
  • SAP Ariba Interview Questions SAP Ariba (9)
  • SAP Fiori Interview Questions SAP Fiori (45)
  • SAP EWM (Extended Warehouse Management) Interview Questions SAP EWM (Extended Warehouse Management) (58)
  • Sap R/3 Interview Questions Sap R/3 (150)
  • SAP FSCM Financial Supply Chain Management Interview Questions SAP FSCM Financial Supply Chain Management (101)
  • SAP WM (Warehouse Management) Interview Questions SAP WM (Warehouse Management) (31)
  • SAP GRC (Governance Risk and Compliance) Interview Questions SAP GRC (Governance Risk and Compliance) (64)
  • SAP MDM (Master Data Management) Interview Questions SAP MDM (Master Data Management) (0)
  • SAP MRS (Multi Resource Scheduling) Interview Questions SAP MRS (Multi Resource Scheduling) (0)
  • SAP ESS MSS (Employee Manager Self Service) Interview Questions SAP ESS MSS (Employee Manager Self Service) (13)
  • SAP CS (Customer Service) Interview Questions SAP CS (Customer Service) (0)
  • SAP TRM (Treasury and Risk Management) Interview Questions SAP TRM (Treasury and Risk Management) (0)
  • SAP Web Dynpro ABAP Interview Questions SAP Web Dynpro ABAP (198)
  • SAP IBP (Integrated Business Planning) Interview Questions SAP IBP (Integrated Business Planning) (0)
  • SAP OO-ABAP (Object Oriented ABAP) Interview Questions SAP OO-ABAP (Object Oriented ABAP) (70)
  • SAP S/4 HANA Finance (Simple Finance) Interview Questions SAP S/4 HANA Finance (Simple Finance) (143)
  • SAP FS-CD (Collections and Disbursements) Interview Questions SAP FS-CD (Collections and Disbursements) (0)
  • SAP PLM (Product Lifecycle Management) Interview Questions SAP PLM (Product Lifecycle Management) (0)
  • SAP SuccessFactors Interview Questions SAP SuccessFactors (33)
  • SAP Vistex Interview Questions SAP Vistex (0)
  • SAP ISR (IS Retail) Interview Questions SAP ISR (IS Retail) (28)
  • SAP IdM (Identity Management) Interview Questions SAP IdM (Identity Management) (0)
  • SAP IM (Investment Management) Interview Questions SAP IM (Investment Management) (0)
  • SAP UI5 Interview Questions SAP UI5 (59)
  • SAP SCM (Supply Chain Management) Interview Questions SAP SCM (Supply Chain Management) (51)
  • SAP XI (Exchange Infrastructure) Interview Questions SAP XI (Exchange Infrastructure) (49)
  • SAP Cloud Platform Interview Questions SAP Cloud Platform (34)
  • SAP Testing Interview Questions SAP Testing (89)
  • SAP SolMan (Solution Manager) Interview Questions SAP SolMan (Solution Manager) (63)
  • SAP MaxDB Interview Questions SAP MaxDB (116)
  • SAP GUI Interview Questions SAP GUI (15)
  • SAP AllOther Interview Questions SAP AllOther (329)