explain US tax Models
Answers were Sorted based on User's Feedback
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 |
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 |
What are the fields in it 0007 ?
integration between personnel administration & pd(personnel planning and development)?
In which circumstances payroll is run for employees who belong to the same payroll area?
What is inheritance of requirements?
wat r all the feature r u using in u r projet,
while working as a Junior consultant(working under a senior consultant)Tell me a difficult situation you have faced and how you solved it? What documents you have referred and documents you have Updated?What was team member's and team leader's reactions to the situation and the way you solved it?
What is dynamic action?
What are the control indicators determined by the employee subgroup grouping for time management?
How the wage types are created?
How to integrate Time management and Payroll and where we integrate?
In which infotypes we stored employees passport details ?
What is evaluation path, where do we do it and why?
SAP Basis (1262)
SAP ABAP (3939)
SAPScript (236)
SAP SD (Sales & Distribution) (2717)
SAP MM (Material Management) (912)
SAP QM (Quality Management) (99)
SAP PP (Production Planning) (523)
SAP PM (Plant Maintenance) (252)
SAP PS (Project Systems) (138)
SAP FI-CO (Financial Accounting & Controlling) (2766)
SAP HR (Human Resource Management) (1180)
SAP CRM (Customer Relationship Management) (432)
SAP SRM (Supplier Relationship Management) (132)
SAP APO (Advanced Planner Optimizer) (92)
SAP BW (Business Warehouse) (896)
SAP Business Workflow (72)
SAP Security (597)
SAP Interfaces (74)
SAP Netweaver (282)
SAP ALE IDocs (163)
SAP Business One (110)
SAP BO BOBJ (Business Objects) (388)
SAP CPS (Central Process Scheduling) (14)
SAP GTS (Global Trade Services) (21)
SAP Hybris (132)
SAP HANA (700)
SAP PI (Process Integration) (113)
SAP PO (Process Orchestration) (25)
SAP BI (Business Intelligence) (174)
SAP BPC (Business Planning and Consolidation) (38)
SAP BODS (Business Objects Data Services) (49)
SAP BODI (Business Objects Data Integrator) (26)
SAP Ariba (9)
SAP Fiori (45)
SAP EWM (Extended Warehouse Management) (58)
Sap R/3 (150)
SAP FSCM Financial Supply Chain Management (101)
SAP WM (Warehouse Management) (31)
SAP GRC (Governance Risk and Compliance) (64)
SAP MDM (Master Data Management) (0)
SAP MRS (Multi Resource Scheduling) (0)
SAP ESS MSS (Employee Manager Self Service) (13)
SAP CS (Customer Service) (0)
SAP TRM (Treasury and Risk Management) (0)
SAP Web Dynpro ABAP (198)
SAP IBP (Integrated Business Planning) (0)
SAP OO-ABAP (Object Oriented ABAP) (70)
SAP S/4 HANA Finance (Simple Finance) (143)
SAP FS-CD (Collections and Disbursements) (0)
SAP PLM (Product Lifecycle Management) (0)
SAP SuccessFactors (33)
SAP Vistex (0)
SAP ISR (IS Retail) (28)
SAP IdM (Identity Management) (0)
SAP IM (Investment Management) (0)
SAP UI5 (59)
SAP SCM (Supply Chain Management) (51)
SAP XI (Exchange Infrastructure) (49)
SAP Cloud Platform (34)
SAP Testing (89)
SAP SolMan (Solution Manager) (63)
SAP MaxDB (116)
SAP GUI (15)
SAP AllOther (329)