/711 not reporting Supplemental payment for PA

Question

Hi Gurus,
We are experiencing the following issue
We are on TUB 60 BSI 9.0, when we pay an employee a Supplemental payment of 100,000 (via IT 15) over the regular period salary of $ 3500, we expect the following:
/411 = $42 (which we see in the RT)
/711 = $ 7000 (instead we see an amount of 3500 odd)
This means that Supplemental Wages are taxable but not reportable, but we dont have the procesing class 69 as such; it is 1 (Taxable earning)
/411 is considering a sum of supplemental wages of $100,000 and its basic salary $ 3500 for reaching $42 ($7000.00 *0.6% = $42.00); but the same is not reflected on /711
TUB 57 updated as -
TAXAU / TAXTY CEILG     TXRTE
PA        /  11         7000       0.006
Your help is much appreciated!

Answer 1

Hello,
What you are experiencing in your system is standard behaviour of it. Kindly find the explanation below
About Tax Type 11:
As you may know, in BSI Tax Factory script we have a parameter Year Wages (YW:), that is nothing else than the total of taxable wages for this tax type/tax authority, or in other words wage type /7** from TCRT table for the corresponding tax company/tax authority/tax type.
For tax type 11, SAP payroll sends to BSI Tax Factory Script the year wages of tax type 10 - Federal.
What happens here: if you configure tax type 11 in tax model after employee reaches ceiling for tax type 10 Federal, payroll will send to BSI Year Wages of $ 7,000. As tax type 11 is a self-adjusted tax type, BSI will calculate the tax amount for $ 7,000, which is the ceiling for tax type 11 as well. If you force a retro from Period 01, you will send the Year Wages according to each payroll period, and, therefore, wage type /711 will be calculated accordingly.
This is the way that the SAP and BSI systems were designed to work.
With Regards,
S.Karthik