California Non-Resident Withholding

I need to setup withholding so the system will withhold state tax only when the total of the vendors invoices for the year reaches $1,500. The state doesn't require you to withhold if the totatl payments under $1,500.
I've played with the Witholding Rules and the Withholding Entity setup but haven't been able to get the system to do this correctly. Has anyone else been able to do this? Or is this not supported by Peoplesoft?
Thanks in advance for your help!

Hi Dayton Power,
Did you completed this implementation?
We are also planning to implement Non Resident Alien taxation in SAP US Payroll. Can you share your experience?
Appreciate your time.
Thanks and regards
Dhina

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Multi-State Non-Resident Tax

Hello,
In the case where you have employees who live in one state but who may work in multiple states during a pay period (i.e. traveling sales employees, or consultants) how are you handling the collection of time spent in each state for payroll tax purposes? We have considered using the percentage on the IT208 to prorate the time, and have also discussed using the CAT2 time sheet. I'm looking for how others are handling this. Is anyone willing to share how their company handles captures time for multi-state non-resident taxation?
We can talk off-line if you prefer.
Thank you,
Cheryl

Hi Cheryl,
There is an SAP functionality of Work Tax Area Override which can used from combination of IT2010 (maintaining tax area under Tax area record type field) and processing class 67.
This will charge time entered on IT2010 only to tax on work tax area entered in IT2010 against it and that wage type should be marked for PCL 67 too.
There are changes required to sub-schema UT00 for this to work properly.
Hope this helps.
Thanks,
Ameet

Non-Resident Alien Wagetypes

Hello All,
We are in the process of configuring for Non-Resident Alien processing in US Payroll. I'm understanding that certain processing classes need to be using in order to process the correct taxes.
My question is: For every "income" type of wagetype, do I need to have a non-resident alien version of that wagetype (this would be 10-15 different clones of the regular versions, like reg pay, vacation, bonus, etc.) or is there some way of dynamically saying this person is a NRA so tax as such?
Thanks,
DP

Hi Dayton Power,
Did you completed this implementation?
We are also planning to implement Non Resident Alien taxation in SAP US Payroll. Can you share your experience?
Appreciate your time.
Thanks and regards
Dhina

Non Resident County Tax Missing on Magnetic Media

We have people that live in Ohio and work in Wayne County, Indiana. The Ohio residents pay Wayne County, IN tax at the non-resident rate. On our magnetic media for Indiana, only Indiana residents showed the Wayne County tax on the file. Should another tax authority magnetic media be selected to report those Ohio residents that have the Wayne County, IN tax withheld?
Thanks for any guidance you can provide.....

Hi,
Check in Tax reporter the form for W2 magnetic media for Michigan in IMG whether special download parameter 'Insert CRLF btw records' is set as 'CRLF' in directly option. If not, add this & then check the form.
You can also check SAP note for W2 for Michigan for any changes in year 2007. Generally SAP releases the note for the states for any changes.
Hope this will help you.
Thanks,
Sarika.

Question as a non resident about tax form w-9

I am a non resident student currently in U.S. without SSN or EIN or ITIN. so how should I fill the tax form w-9? what should i fill in on section 4 and 6?
thank you.

If you have a SSN, and carry a USA tax liablity, use it.
If not, what you do depends on what country you're from and where your tax obligation is. You have chosen not to mention that detail, so it's not possible to offer any as well, sorry.
As always, it's best to talk to a tax expert/lawyer who specializes in your case/example rather than seek tax advice from strangers in a forum. I am not the former.

Separate withholding tax account in non-extended withholding tax country?

We have one withholding tax GL account defined for our operating CoA, except for India (which has extended withholding tax configured). I now have a request from Italy to assign their withholding taxes to a different GL account, for ONE tax code and ONE vendor. Is this possible to set up, and if so, how?
Thank you!

Dear all,
You should create Your WT type and WT code to the IT country and then to link the WT type to the specific G/L account for Italy (that You created by FS02) by transaction OBWW. then You have to link WT type and code to Your vendor master data by FK02.
Remember also to define the WT type at Company code level with a validity period.
Please test.
I hope this helps You.
Thanks.
Mauri

ESS Business Package - W4 Input Screen - Non Resident Alient option

I've been asked to create a specific input screen for NonResident Alient(on W4 screen) of current ESS standard solution, this is an official request that came from IRS(government rule), and SAP provided it in some notes. We have this notes on current SP, but I don't know where exactly I can customize this option to appear on W4 view.
Is there any way I can do this through configuration rather than developing an enhancement?
Thanks,
André

Hi all, do you have some idea on that case? OSS notes were applied, I just don't know where I can customize this option.
Thanks,
André

ITunes in English for the non-resident

An Englsih reader who lives in a foreign country has little choice ordering through iTunes in Englsih; since even when opening a new account, iTunes opens up in the language of where the credit card is billed automatically and there is my problem. I don't read for pleasure in Spanish or French.
Anway out short of asking a friend for his credit card?
I

Since you can only use the iTunes Store of the country you're in, no, there probably is no solution. But you can check here:
http://support.apple.com/kb/HT2242
and see if your country's iTunes Store is one where English is an option.
Regards.

ESS - W4 Input Screen - Non Resident Alient option

I've been asked to create a specific input screen for NonResident Alient(on W4 screen) of current ESS standard solution. This is an official request that came from IRS(government rule), i guess that SAP must provide this new option but i don't know if this is in a SAP note / OSS neither if it can be done by configuration / customizing.
Is there any way I can do this through configuration rather than developing an enhancement?
Thanks,
Robert

Hi all, do you have some idea on that case? OSS notes were applied, I just don't know where I can customize this option.
Thanks,
André

How apply online for USA TAX ID for non resident in U.S ??

Hi
I try any ways for this, but nothing is clear.
The TAX ID is required for publish in Ibook Store.
If you not have that tax id you must contact the certified aggregator to provide content, but this is not answer my emails or forms filled.
What is the easy way for this?

https://discussions.apple.com/thread/3669526?tstart=30

Non-Residence Tax - Withholding

I am preparing masterdata setup to do functional testing on TUB # 197. Within SAP, how do you set up the masterdata to test out Non-Residence Tax? Specifically, How do you get a township's withholding to pass to BSI? How should the deduction be setup in SAP and ensure that it is being passed to BSI to calculate?
Being that this is a non resident tax, I would assume that it would be the work record. I need recommedations on how to pass the withholding for a particular authority. The Regulatory Bulletin changes the tax rate in the TaxFactory database. It will not change the information passed to BSI to calculate.
Thanks,

Howard, I checked table T5UTI and the tax area is there. The tax authority is already in table T5UTE as well. I think the problem may be with the tax model associated with the tax area. The TUB is delivering a change to the tax area where there is a decrease in the Non-Residence Tax Rate from 1% to .5%. When I test an employee that has this specific tax area on the IT0208 record the results are as follows,,,,
It pulls in tax type 84 which in PA is local service tax prorated amount of $2 per pay period. I expected to see tax type 01 withholding since this change is affecting withholding tax.
So, I summize that the tax model that is attached to this particular tax area is incorrect. Not sure which tax model I should change it to.
Thanks,

Force No NYC Withholding

Hi: My company uses PeopleSoft for payroll and taxes, and I would like to know if there is a way to force no NYC income tax withholding within the PeopleSoft system. The situation is that I am a non-resident of New York State for income tax purposes, despite having a NYC address, and therefore should have no NYC income tax withheld for all of 2013 (according to NYS rules). I'm assuming there must be a way to do this, and just want to confirm so I can help the people do the correct withholding. Thx.

Please refer to Payroll US for documentation on Tax processing. It explain very clearly how Federal, State and Local taxes are being processed in SAP.
http://help.sap.com/printdocu/core/print46c/en/data/pdf/PYUS/PYUS.pdf
Refer from page 333 onwards relating to Tax processing.
Hope this helps

NRA withholding for payments to Foreign vendors

Hi
I would like to discuss with configurators from other US companies as to how they have implemented NRA withholding.
In particular, how they handle varying tax rates for certain countries under tax treaties.
Thanks
Deepa

How to determine the amount to be withheld
Question 16: If a payment to a foreign person (foreign vendor) is determined to be FDAP and U.S. sourced, how much should be withheld?
Answer 16: The statutory withholding rate is generally 30%. This rate should be generally applied to the gross amount of the payment. See Q&A-19 below concerning this rate.
Question 17: When should the tax is withheld?
Answer 17: Withholding is required at the time that the payment is made. A payment is considered to be made when the beneficial owner of the payment realizes income. There does not need to be a transfer of cash or other property.
Question 18: When should the tax withheld be deposited?
Answer 18: The amount of tax that the US withholding agent and is required to withhold determines the frequency of the deposits. The frequency could be annual, monthly, or quarter-monthly. Publication 515 details the specific rules for making deposits including the deposit due dates, which forms to use, electronic deposit requirements and penalties for failure to make deposits timely.
Question 19: Can the statutory rate (30%) be reduced?
Answer 19: If the foreign vendor is a resident in a country that has a tax treaty with the United States, the rate may be reduced. Each treaty has specific provisions which determine the reduced withholding rate. These provisions reduce the withholding rate based on the type of income and the status of the recipient.
Question 20: Is there a listing of treaties and rates to be applied?
Answer 20: Publication 515 provides a listing of tax treaties and the withholding tax rates to be applied to various types of income under each treaty. The Publication 515 is located on the IRS website which is www.irs.gov.
Question 21: How can a foreign vendor certify its foreign status?
Answer 21: The foreign vendor must provide the withholding agent with form
a properly completed W-8 or Form 8233 (see FAQ section 5 for further information).
5. How should the withholding agent properly document the foreign status or treaty claim of a foreign person
Question 22: Must we obtain documentation from a foreign person to support its claim of foreign status or treaty eligibility?
Answer 22: In order to reduce the amount that is required to be withheld on a payment of U.S. sourced FDAP income to a foreign person (foreign vendor), or to exempt such a payment from withholding tax, the withholding agent must have documentation from the foreign vendor to certify its non-U.S. status and, if applicable, its eligibility for the treaty benefits claimed. Such documentation must be submitted by the foreign vendor in the form of a Form W8-IMY Form W-8 or Form 8233.
Question 23: Which forms would be most commonly used by foreign vendors?
Answer 23: Form W-8BEN (Beneficial Owner), Form W-8IMY (Intermediary), Form W-8ECI (Effectively Connected Income) and Form 8233.
Question 24: When should Form W-8BEN be used by foreign vendors?
Answer 24: Form W-8BEN should be used by the foreign vendor to certify that it has non-U.S. status. If a treaty claim is made by the vendor Part II of the
W-8BEN must be completed to be eligible for the treaty benefits.
Question 25: When should Form W-8ECI be used by our foreign vendors?
Answer 25: Form W-8ECI should be used by a foreign vendor to certify that the payment is income that is effectively connected with a U.S. trade or business. No withholding is required on such income. Rather, such income must be on some cases, a W8-BEN can be provided by a U.S. Branchu2019s income tax.
Question 26: When should Form 8233 be completed by a foreign vendor?
Answer 26: If you make a payment to a non-resident alien individual as compensation for personal services performed for you in the United States, that individual may have to provide you with Form 8233 instead of Form W-8. See Form 8233 and its instructions for further information.
Question 27: Are we responsible for the validity of the documentation presented to us by the foreign vendor?
Answer 27: In order to rely on the documentation, it must be valid. In order to be valid, the documentation must meet the requirements of Treasury Regulation 1.1441 and must be completed in accordance with the applicable Form instructions (see Instructions for the Requester of Forms W-8BEN, W-8ECI, W-8EXP and W-8IMY).
In addition, in order for the documentation to be valid, the US withholding agent or multi-national must not know, or have reason to know, that the information provided on the documentation is unreliable or incorrect. If the US withholding agent (multi-national) has such knowledge, or if the documentation is invalid for any reason, the withholding agent must apply the presumption rules set forth in Treasury Regulation Section 1.1441, 1.
Question 28: When should the Form W-8 or Form 8233 be obtained from the foreign vendor?
Answer 28: In general, the documentation must be in the possession of the withholding agent at the time of payment.
6. How to report NRA payments and withholding
Question 29: What forms should we use to report payments to foreign persons (foreign vendors) of FDAP income that is U.S. sourced and any amounts withheld on such payments?
Answer 29: Forms 1042, 1042-S and 1042-T are the forms that a withholding agent (multi-national) must use to report payments to foreign persons of FDAP income that is U.S. sourced and any amounts withheld on such payments.
Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons should be submitted to the IRS in order to report the total aggregate NRA payments, withholdings and deposits made by the withholding agent during the applicable year.
Form 1042-S, Foreign Personu2019s U.S. Source Income subject to Withholding is an information return. The withholding agent should submit these information returns to the IRS and the payee in order to report the payments and withholdings made during the year that are specific to the payee, the type of income paid and the withholding rate. Form 1042-T, Annual Summary and Transmittal of Forms 1042-S should be used to transmit paper Forms 1042-S to the IRS.
7. What to expect from an IRS audit regarding NRA reporting and withholding responsibilities
Question 30: If upon audit, it is determined that there has been under reporting and under withholding, will the IRS assess penalties and interest in addition to the under withholding amounts due?
Answer 30: If deficiencies in reporting, withholding and depositing with regard to NRA payments are found on audit, the IRS will consider all applicable penalties, including, but not limited to the following:
Failure to file (IRC Section 6651)
Failure to pay (IRC Section 6651)
Failure to deposit (IRC Section 6656)
Failure to file information returns (IRC Sections 6721-6723)
Negligence (IRC Section 6662)
In addition, interest will be assessed on the under withholding.
Question 31: If upon audit, it is determined that there has been under withholding, on account of a failure to document any vendors, as described above what recourse does the withholding agent have in order to reduce the under withholding?
Answer 31: The withholding agent can obtain certification of foreign status and the treaty claim from the foreign vendor. This is accomplished by the vendor completing a valid Form W-8. A valid Form W-8 will allow a reduction in the under withholding from the 30% statutory rate for the type of income paid.
Since the documentation is being obtained after the payment is made, the foreign vendor should provide an additional statement indicating that all facts and elections made on the Form W-8 were true, correct and complete at the time of the payment. Documentation other than this statement might be considered based on the facts of the particular case.
Question 32: If the under withholding has been u201Ccuredu201D by obtaining a
Form W-8 or other applicable documentation after a payment, according to
Q&A-31 above and such documentation is found sufficient is there any remaining liability to the withholding agent?
Answer 32: In general, there is no remaining liability for tax, interest and penalties. Exceptions to this apply in case in which the withholding agent is relieved from the tax liability by showing that the underwithholding tax was paid by the payee. In those cases, the withholding agent may still be liable for interest and applicable penalties. In other cases, reporting-related penalties might still apply where no underwithholding results on account of the cure, but the filed Form 1042-S reflected incorrect information.

Report resident titular of accounts abroad - model DD2

Hello,
somebody knows if the report of collections and outer payments executed through the account open in the organization non-resident is in SAP or of somebody has implanted that it?
This report is given to the Bank of monthly Spain.
Thank you very much beforehand.

Sounds like a corrupted file in system software. Boot into Recovery Mode and run Disk Utility. Most likely it will find a problem and be able to correct it. Read about Recovery mode here:
OS X: About OS X Recovery - Apple Support
You may need to reinstall OS X as part of this. I hope you have a Time Machine backup?
Good luck!

Resident rates and School District rates

Hi Experts,
Could you please tell me where do we configure Resident rates (Example: for Ohio locals) and School district rates. Do we need to configure those in SAP and BSI? or only in BSI? Because I could not find any table to configure in those SAP.
Please reply.
Thanks and Regards,
Sreenivas

Hi Sreenivas,
This is Kathy from BSI Support. The resident and non-resident tax rates are maintained by BSI. The only thing you need to do is continue to apply regulatory bulletins as usual.
If you have any further questions or need additional assistanc,e, please contact us at support.
Regards,
BSI Support - Kathy

California Non-Resident Withholding

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