Tax Company

Hi all,
What is Tax Company in context of US payroll? What are Tax Types and Tax Form Groups?
Thanks in advance.

Hello Niharika,
The tax company is the legal reporting company that this defined by the business process.
Tax types are the type of tax. In SAP tax type 01 is withholding. Common wage types that are assoicated with this tax type are /301, /401, /601, /701, /Q01 and /N01.
Tax form groups are only used in Tax Reporter, transaction PU19. Tax form groups are containers used to cumulate tax data or other wage types such as wages. Tax form fields will then take this data and display it on the form. You can review the Tax Reporter guide on the HRUSA web site service.sap.com/hrusa under documentation on the left side menu.
Regards,
Manny

Similar Messages

Company Code and Tax company

Hi Experts,
Help me to define what's the difference between the company code and a tax company. Do we have any integration between company code and tax company. I have a scenario with a client where they have only one company code and asking me to define multiple tax companies so that the can generate the W'2 seperately based on the tax company. My concern in this was when we run the tax reporter it will look for the temse files so if we define multiple tax companies with one company code will it effect us any way when we do the w'2 from the tax reporter at the year end.
Any help is appreciated
Thanks in advance
Regards,
Raj Aitha

Hi,
1) Tax Cos are not assigned directly to co.Code. These are assigned to the Personnel areas (Table V_t5uop).
2) Tax co.is assigned to a distinct Employer Identification Number (EIN) and is mapped to a BSI tax company for tax calculation purposes.
3) You may also want to check feature UTXRP & UTXTM based on your requirement & business process.
Hope this helps.
Sarika

CX_HRPA_INVALID_CUSTOMIZATION - No tax company info in table T5U0P

Hello Gurus,
We are upgrading from 4.6C to ECC 6.
SAP has included new functionality in program SAPUP50R that throws an exception when trying to hire a new U.S. employee. It is a result of the table T5U0P not having a tax company.
In 4.6 C this table (and it's data) is identical and yet this new SAP code makes an assumption that T5U0P contains tax company info.
Any idea why we need tax companies defined in this table for ECC when this was not a requirement in 4.6C?
Below is the short dump text. You can see on line 48 SAP writes in the comments that "txcmp must exist or there are serious config issues"
thanks,
Matt
Runtime Errors UNCAUGHT_EXCEPTION
Except. CX_HRPA_INVALID_CUSTOMIZATION
Date and Time 2008/04/11 00:09:42
Short text
An exception occurred that was not caught.
What happened?
The exception 'CX_HRPA_INVALID_CUSTOMIZATION' was raised, but it was not caught
anywhere along
the call hierarchy.
Since exceptions represent error situations and this error was not
adequately responded to, the running ABAP program
'CL_HRPAYUS_EMPLOYER===========CP' has to be
terminated.
Error analysis
An exception occurred that is explained in detail below.
The exception, which is assigned to class 'CX_HRPA_INVALID_CUSTOMIZATION', was
not caught in
procedure "UPDATE_WITH_UP50R_ADAPTER" "(FORM)", nor was it propagated by a
RAISING clause.
Since the caller of the procedure could not have anticipated that the
exception would occur, the current program is terminated.
The reason for the exception is:
Invalid Customizing
Missing RAISING Clause in Interface
Program SAPUP50R
Include UP50RU02
Row 14
Module type (FORM)
Module Name UPDATE_WITH_UP50R_ADAPTER
Trigger Location of Exception
Program CL_HRPAYUS_EMPLOYER===========CP
Include CL_HRPAYUS_EMPLOYER===========CM004
Row 51
Module type (METHOD)
Module Name GET_TAX_COMPANY_TAB
Source Code Extract
Line
SourceCde
21
subty = space
22
objps = space
23
sprps = if_hrpa_read_infotype=>unlocked
24
begda = p_period-begda
25
endda = p_period-endda
26
no_auth_check = if_hrpa_boole_d=>true
27
IMPORTING
28
infotype_tab = lt_prelp.
29
30
CALL METHOD cl_hr_pnnnn_type_cast=>prelp_to_pnnnn_tab
31
EXPORTING
32
prelp_tab = lt_prelp
33
IMPORTING
34
pnnnn_tab = lt_p0001.
35
36
PROVIDE FIELDS werks btrtl
37
FROM lt_p0001 INTO l_p0001
38
VALID l_p0001_exists
39
BOUNDS begda AND endda
40
BETWEEN p_period-begda AND p_period-endda.
41
42
get tax company from T5U0P
43
SELECT SINGLE txcmp FROM t5u0p
44
INTO l_txcmp
45
WHERE werks = l_p0001-werks
46
AND btrtl = l_p0001-btrtl.
47
IF sy-subrc <> 0 OR l_txcmp IS INITIAL.
48
 serious configuration problem: no taxcompany specified
49
MESSAGE e005(hrpayus_ce) WITH l_p0001-werks l_p0001-btrtl INTO dummy.
50
MOVE-CORRESPONDING sy TO l_msg.
>>>>>
RAISE EXCEPTION TYPE cx_hrpa_invalid_customization
52
EXPORTING msg = l_msg.
53
54
ENDIF.
55
IF p_use_cp IS INITIAL.
56
l_value-begda = l_p0001-begda.
57
l_value-endda = l_p0001-endda.
58
l_value-gpval = l_txcmp.
59
APPEND l_value TO p_values.
60
ELSE.
61
IF i5ucp_compm IS INITIAL.
62
 Fill buffer for t5ucp_compm.
63
 This is NOT done in the constructor / get_instance method because
64
 the table is read in the common paymaster case only.
65
SELECT * INTO TABLE i5ucp_compm FROM t5ucp_compm
66
ORDER BY PRIMARY KEY.
67
ENDIF.
68
PROVIDE FIELDS compm
69
FROM i5ucp_compm INTO l_5ucp_compm
70
VALID l_5ucp_exists

I'm experiencing the same problem.
In my case, ESS W4 tax withholding is issuing the call, and an error is displayed in the portal,
"An exception occurred that was not caught,. error key: RFC_ERROR_SYSTEM_FAILURE"
After further investigation, it is a result of the t5u0p table not being populated.
Any ideas?

Do we have one corresponding tax company code to one company code or can we have different or any number of tax company codes?

do we have one corresponding tax company code to one company code or can we have different or any number of tax company codes?

Hi Arveen,
Check calculation procedure using T.code OBYZ(IMG > Financial Accounting> Financial Accounting Global Settings--> Tax on Sales/Purchases --> Basic Settings -
> Assign Country to Calculation Procedure.)
Select new entries--Enter tax procedure for India TAXINN-TAx procedure INdia
Save.
Use T.code OBBG....select position...enter IN....against that assign the tax procedure created above and save.
Hope this resolves.Let me know if you still encounter problem.
Thanks
Aravind

Tax Company is US Payroll

Hi,
Do any one know, what is Tax Company in context to US Payroll.
Your expert guidance required.
Thanks
Atul Ajmera

Hi
Find the following link on Taxing for US.
http://help.sap.com/saphelp_erp2005vp/helpdata/en/fd/b943c86ed711d2bb0700805f4628e2/frameset.htm
Once we create the Tax Company, we need to assign that to Personel Area in the table "V_T5U0P", In this table you need to select your personnel Area and Click on Magnifier and select you tax company and save.
This will avoid an in the Payroll simulation saying "Personnel area XXXX and PSA YYYY is doesnt exisited in the table V_T5U0P"
Regards
Anil.C
Reward the points if my answer helps you out

Where to customize the company's withholding tax ID in SAP

Hello,
I would like to get the 1099 report for US tax withholding to be displayed with the company tax ID in the header.
When executing transaction for Generic tax withholding reporting, the system can display the company tax ID in the header (it is missing today) and the only way I have found to enter this information is in the extended withholding tax menu (Withholding tax > Extended withholding tax > Company code > Assign withholding tax types to company codes) which I do not want to use, as I am not using any withholding tax types.
Does anyone know if the information can be customized somewhere else?
Best regards,
Ronan

Hi,
Go to OBY6, select your company code.
On next screen, go to "Additional Details" button
and there you can enter the withholding tax ID in the field "TDS No."
Regards<
SDNer

Request for the creation of a new Unemployment account for tax

Hi Guys,
This is a question with regard to US tax. We have received a request for the creation of a new Unemployment account for the payment of taxes. This is because the account assignment number has changed for a particular company code in Tennassee state. Please let me know where this change could be made in SAP.
Thanks,
Subbaiah

Subbaiah,
Table T5UTL is used for New Tax Company Codes. If this is a new legal entity, youu2019ll need to set up the Tax Company here. Youu2019ll also need to assign at least one Personnel Area to this new Tax Company. This must be established in order to update the next table shown below, but only if itu2019s a new legal entity. The user will know.
Table T5UTH is for establishing the account number to be used in BSI. It must be established in order to update the next table shown below.
Table T5UTI is for assigning account numbers by Tax Company Code. Youu2019ll need one for Tax Authority TN, Tax Type 10. The user will need to supply this information to you.
Table BTXRATE will need to be updated with the Tax Company Code, year, and the State Unemployment Insurance rate & taxable wage amount.
Once this is done, youu2019ll need to update BSI.
If Tennessee is a new state, youu2019ll have work to do with the tax models.
Regards,
Howard

Withholding Tax line item in Vendor Invoice (F-43)

I am implementing EXT Withholding Tax for a client. I have made all the settings but while doing the invoice after selecting the withholding tax codes for the vendor, system is not showing any line items for the withholding tax.
I have made the settings like this:
Defined business place, section codes, withholding tax keys, tax types, tax codes, applied the tax codes in the vendor master with 'liable' tick, defined in the tax code the posting indicator 1 for posting separate line item and activated the Ex Withholding tax in the company code. I have also made the field status of withholding tax as optional for posting key as well as FSV for GL accounts involved in the postings. Also made the vendor account group field status as optional for Withholding tax postings.
I am not getting where I have missed. System is also not shooting any error.
Please share your views.

Hi,
Did you do Configuration steps of Extended Withholding Tax(EWT) as follows.
1.Define withholding tax type for invoice posting
IMG----->financial accounting>financial accounting global settings>withholding tax---->
Extended withholding tax-->calculation>withholding tax type--
>define withholding tax
type for invoice posting
2.Define withholding tax type for advance posting
IMG----->financial accounting>financial accounting global settings>withholding tax---->
Extended withholding tax-->calculation>withholding tax type--
>define withholding tax
type for payment posting
3.Define withholding tax codes
IMG----->financial accounting>financial accounting global settings>withholding tax---->
Extended withholding tax-->calculation>withholding tax codes--
>define withholding tax
codes
4.Define formulas for calculating withholding tax
IMG----->financial accounting>financial accounting global settings>withholding tax---->
Extended withholding tax-->calculation>withholding tax codes--
>define formulas for calculating withholding tax
5.Assign Withholding tax type to company code
IMG-->Financial accounting--->financial accounting global settings>withholding tax----->
extended withholding tax-->company code--
>assign Withholding tax type to company code
6.Activate extended withholding tax
IMG-->Financial accounting--->financial accounting global settings>withholding tax----->
extended withholding tax-->company code--
>activate extended withholding tax
7.Assignment of accounts for automatic posting-----OBWW
IMG---->financial accounting--->financial accounting global settings>withholding tax--->extended withholding tax>postings>accounts for withholding tax--
>define accounts for withholding tax to be paid over
8.Maintain company code settings for india
IMG----->logistics-general--->tax on goods movements>India>basic settings--
> maintain company code settings for india.
9.Assign tax codes in vendor master----
XK02
Regards
Venkat

EWT-Tax on Down Payment and Invoice

Hello,
I've activated the accumulation feature in the Withholding Tax Type for both IV as well as Payments. The tax code is the same for both tax types.I've also defined the minimum base amount for Witholding Tax code as Rs.5000 for Official Withholding Tax key 194A and have also maintained formula for Tax code i.e tax should only get calculated if tax amount is more than Rs 5000.
However I've noticed that the tax is getting calculated on the accumulated amount of both Payment and IV separately.
Example:
Tax Type for IV is 01
Tax type for Payment is P0
Tax code is T1 @ 11.33%
I've made a down payment entry using T-code F-48 for Rs 4000 (Tax type P0 and Tax code T1). Now Tax is not getting calculated on this amount which is correct.
Now if I post an Invoice for Rs 1500 for the same vendor (Tax type 01 and Tax code is T1), ideally my tax should get deducted on Rs 5500 (4000 of DP and 1500 of IV) @11.33%. Howver this does not happen. The accumulation feature is working for Payments and IVs separately.
Can someone please help me on this. Is it a particular config which I've missed?
Thanks and Regards,
Sumita

Hi Sumita,
Please follow the below mentioned steps for this issue.
Steps:
1. Define Withholding Tax Type for Payment Posting
Path: FA/****/Withholding Tax/Extended Withholding Tax/Basic Settings/Calculation/Withholding Tax Type/Define Withholding Tax Type for Payment Posting
Here create 2 Withholding Tax Types:
1. 1st for TDS (Basic@10%) Tax Type: S1 and
2. 2nd one for Education Cess (EC@3%) Tax Type: S2
2. Define Withholding Tax Codes
Path: FA/****/Withholding Tax/Extended Withholding Tax/Basic Settings/Calculation/Withholding Tax Codes/Define Withholding Tax Codes
Create 2 Tax codes (One for Basic and another one for Education Cess)
In that screen, give the following inputs
Give WT Key also on the same screen
Save the data
WT Name    WT Type    Tax Code    Base Amount     Calculation
1. Basic               S1               C1                             100%                    10%
2. EC                  S2                C2                             10%                       3%
3. Define Min/Max Amounts for Withholding Tax Codes
Path: FA/****/Withholding Tax/Extended Withholding Tax/Basic Settings/Calculation/Minimum and Maximum Amounts/Define Min/Max Amounts for Withholding Tax Codes
Letu2019s say there is no TDS up to Rs. 1,50,000 per annuam
Monthly amount or Invoice amount Rs. 12,500 per month
There is no TDS up to Rs. 12,500 and TDS will be charged if the salary exceeds Rs.12,500 p.m.
WT Name    WT Type     Tax Code     Max Amount     Minimum Base Amt
1. Basic                  S1                         C1                 99,999,999,999      12,501
2. EC                      S2                         C2                99,999,999,999      375.03
4. Assign Withholding Tax Types to Company Codes
Path: FA/****/Withholding Tax/Extended Withholding Tax/Company Code/Assign Withholding Tax Types to Company Codes
5. Update Withholding Tax Codes in the Vendor Master (Employees A/c u2013 Employees will be treated as vendors here)
Give WT Type and WT code here
WT Type     WT Code
        S1              C1
         S2              C2
Note:
1. Please follow the above example and apply it in your case.
2. We have created 2 tax codes for Basic W Tax and Education Cess.
3. Assumed there is no Sur charge.
Hope this is clear and let me know if you have any queries.
Regards,
Kannusamy S

Business Area Withholding Tax

Dear Expert,
Kindly need your help.
We have configured Withholding type for payment posting.
When posting document by using the F-53 Business Area for Withholding Tax is same with line item vendor.
How to make Business Area for Withholding Tax same with line item payment (Cash/Bank) NOT with line item vendor ?
Example :
Issue :
Vendor   (Business Area : 6100)
      Bank (Business Area : 3000)
       Withholding Tax ( Business Area : 6100)
Our Requirement :
Vendor   (Business Area : 6100)
      Bank (Business Area : 3000)
       Withholding Tax ( Business Area : 3000)
Thanks and Regards,
YL

Hi Sudhir,
Thank you for your reply.
Our requirement is valid for Cross company code Transaction
Here is the detail :
Vendor   (Company Code : 6000; Business Area : 6100)
      Bank (Company Code : 3000; Business Area : 3000)
       Withholding Tax ( Company Code : 3000 ; Business Area : 3000)
Above solution maybe can't be applied for cross company code transaction because the program only substitute business area not company code.
Thank and Regards,
YL

With Holding tax On Down Payment not picking

Dear All,
I have configured with holding tax on Payment posting, assigned to vendor,company code it is working fine for invoice positng and vendor payment.
When I am trying to post down payment f-48 the with holding tax codes selection screen is not pop-up or it calculates with holding tax.
Why the with holding tax selection tax is not displaying.
B.S.Rao

Hi,
1. Please check withholding tax type is assigned to the company code, IMG: Withholding tax>Extended withholding Tax>Company Code>Assigned Withholding Tax Types to Company Code.
Note: also check the here the proper dates u201Cw/tax obligated frmu201D and u201COblig.to w/tax untilu201D e.g. 01.01.1900 and 31.12.9999.
2. Go to OBWW also check the GL is assigned or not.
3. Also check the field status of recon. account & alternative recon account assigned for special GL for down payment, fields e.g withholding tax code and withholding tax amounts etc. should not be suppressed.
Thanks
Javed

Extended Withholding Tax error

I have done EWT configuration. But while posting the entry, TDS is not deducted and no posting to TDS accounts are made.
I have assigned GL accounts & done the settings in sequence given in SAP nodes
What wrong setting i would have done ?

Hi,
1. Please check withholding tax type is assigned to the company code, IMG: Withholding tax>Extended withholding Tax>Company Code>Assigned Withholding Tax Types to Company Code.
Note: also check the here the proper dates u201Cw/tax obligated frmu201D and u201COblig.to w/tax untilu201D e.g. 01.01.1900 and 31.12.9999.
2. Go to OBWW also check the GL is assigned or not.
3. Also check the field status of recon. account & alternative recon account assigned for special GL for down payment, fields e.g withholding tax code and withholding tax amounts etc. should not be suppressed.
Thanks
Javed

Withholding tax settings(not extended withholding tax)

Hi,
I am working on withholding tax(not extended withholding tax). Previously we have one company code for that we created withholding tax and withholding tax codes. Now we are going to create another 2 new company codes. Now how to assign the withholding tax codes to the 2 new company codes.
In extended i can assign withholding tax codes to company code but in withholding tax how i can assign withholding tax codes to the 2 new company code.
Regards,
Sankar

Hi
You can assign the same w tax code to another company code also,for that you go through this:
Path: spro>financial global setting>Withholding tax> extended with holding tax
Company code  Assign with holding tax types to company codes
Path: spro>financial global setting>Withholding tax> extended with holding tax
Company code  Activate extended with holding tax
May be this information is useful to you
If you have any doubt feel free to ask
Regards
Surya

Withholding Tax not picking for the current Fiscal year 2014

Dear Gurus,
Withholding tax assigned to the vendor is getting picked up for the fiscal year 2013 but when the same vendor is invoiced for year 2014 with the same WHT tax code we could see that there is no tax line getting generated against the Vendor. All the configurations related to WHT are verified. As far as i Know we will not maintain any end date for WHT tax code. request yout to advance.
Thanks in advance.
Thanks & Regards
Srikanth

hi,
Please check below mentioned Path - and check date from & to given period
SPRO- Financial Accounting (New) - Financial Accounting Global Settings (New) -Withholding Tax -Extended Withholding Tax - Company Code -Assign Withholding Tax Types to Company Codes
select WHT type against Company code -
W/tax obligated frm 01.04.2010 Oblig.to w/tax until 31.12.2999
and check vendor master data -
Thanking you
Regards
Mahesh

Inter company services

Dear all,
We have two company codes.Company code -A and Company code - B
Company code A will provide service to company code B.
This process will be thru Service PO and Service entry sheet and then MIRO
Sevice tax is also applicable in both the company codes.
Now please advice how to configure this inter company transaction so that
Expenses towards services and amount payable to company code A will be booked in company code B and
Income towards services and Amount receivable from company code B will be booked in company code A
Regards,
Shivaji

Hi Harin,
Thank you for your reply.The document given by you will not meet our requirement.Let me explain in details with accounting entry for this cross company code transaction.
As mentioned Company code A will provide service to company code B.For ex.the service amount is Rs.100 and on that service tax is Rs.10.Following entry should generate in the books of both the company codes while posting cross company code document.
In Company code A -This is a income
Company code B a/c(customer)   Dr 110
Income a/c Cr                                             100
Service tax payable a/c Cr                             10
In Company code B - This is expenses
Expenses a/c Dr                               110(Including service tax)
Company code A a/c (Vendor)                              110
Regards,
Shivaji

Tax Company

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