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U.S. Tax Reporter Year End 2019

Hello community,

This is our U.S. Tax Reporter Year End 2019 blog. If you have questions about 2019 Year-End reporting, you can post it here. This blog will be updated with tips, best practices and, SAP Notes related to this subject.

SAP notes:
2817168 – U.S. Tax Reporter Year End 2019 Announcement
2835543 – TR: Q3/2019 Functional changes for U.S. Tax Reporter
2826499 – Year End 2019 Phase I for U.S. Tax Repórter
2837192 – W-2 / 1099-R Forms, Envelopes and PR Approval letter for year 2019

To be able to access the Year-end 2019 in the Globalization finder page you need to be logged on (similar to SAP Service Marketplace) because it is a gated area and would need authorization.

To review the planned Legal changes for US, start the Announcement of Legal Change application. In ‘Adapt Filters’ you can define an SAP ERP U.S. Tax Reporter Year End view with a default filter, for example for component PY-US-TR and Planned Delivery Date between 01/Oct/2019 and 31/Jan/2020.

ASUG Webcast: HCM U.S. Payroll and Tax Reporting 2019 Year End Update

When: October 03, 2019 (1 hr with 30 min ext max on need basis)
•09:30 AM (PT)
•10:30 AM (MT)
•11:30 AM (CT)
•12:30 PM (ET)

This presentation will provide an Annual Year End update for SAP customers on HCM U.S Payroll. Learn whats new and what is coming next for:
•SAP ERP HCM U.S. OP Payroll and SAP EC Payroll
•SAP Payroll Tax Calculation
•SAP HCM U.S. Tax Reporter
•SAP HCM U.S. Year End Support

Register via the ASUG event page.

Regards,
Graziela

64 Comments
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  • Hi Graziela,

    As part of SNote 2743729, we are expecting the Form W2 Box 20 to include PSD code instead of the 2 digit locality number. However, I am still seeing the 2 digits locality number even after applying the corresponding HRSP. I checked the table view V_T5F99K0 and it has the entry ” TR: ENABLE W-2 TO REPORT FULL PSD CODE” for Option TR003 and Ctry code 10.

    Can you please advise.

    Thanks,

    Ashish.

    • Hello Ashish,

      The activation is done in V_T5F99K2.

      Refer to the note:
      To generate the PSD code as abovementioned, you need to activate this solution by creating an entry in the Customer values for configuration options (V_T5F99K2) view table for option TR003 with value 1 (Enable PSD code XXXXXX-XX) for a period where the Reporting Period End Date from PU19 screen is contained into.

      You will need to insert this entry.

      Regards,
      Graziela

  • Any update on the new W-4 IRS is planning for 2020?  I know IRS published few draft versions but not sure if they have released the final version.  Would be great to know if this is planned along with December SPs or sometime in Q1?

    Thanks

    Chandra

    • Hello Chandra,

      I just discussed this with developer and they still have the draft for this legal change. The final version of the requirement is not available yet.

      We will update the KBA 2656756 – 2019 W-4 Changes. Also, this will be published on:
      2382863 – How to use Legal Change Announcement app in SAP One Support Launchpad

      Regards,
      Graziela

       

      • Graziela –

        Can SAP not start on the programming changes now based on the IRS statement on the second draft?

        “Although the final Form W-4 will not be posted for a few months, there will be no further substantive changes. One of the primary reasons the IRS is releasing the drafts is so that this draft and the forthcoming draft Pub. 15-T can be used for programming payroll systems now.”

        If we wait until the final is released in a ‘few months’ then we are going to be where we were last year and it will be too late for any changes.

        Thanks!

        • Alicia,

          I have discussed this with the Product Owner and following his answer:

          Once changes in W-4 affect how BSI tax calculation is done, SAP cannot deliver changes without the corresponding BSI changes.
          SAP is currently aligning these with BSI and new will be published to customers as soon as possible through LCNaaS (Launchpad).

          Regards,
          Graziela

          • Graziela –

            This is the response I got from BSI on 9/24, so does SAP have an anticipated release date for the certification?

            2020 Federal updates have been included in cyclic W, which was released to vendors on 09/21/19.  Once SAP certifies the release, it will be made available for download to all customers.

            Thanks,

            Alicia

  • Looking to implement Note 2335169 – BSI: Experience rate needs to be maintained in both SAP and BSI TaxFactory. The note was loaded with the Support Pack, however, I am unsure of how this process actually works.

    How exactly does BSI clients get updated? Does it only update the Development client? The note reads that the rate is given to BSI through the EP parameter. To me this sounds like it only send the data to BSI from the SAP table and doesn’t truly update the BSI client with the new rate.

    Any guidance would be greatly appreciated.

    Thanks,

    Katherine

    • Katherine James – prior to note 2335169, BSI experience rates have to be maintained in both SAP and BSI TaxFactory.  Note 2335169 does away with that.  After note 2335169, you can just maintain the experience rates in SAP only, and not required to maintain the rates in BSI TaxFactory.  There is no requirement to update the BSI TaxFactory anymore.

      Hope this helps.

      Thanks

      Chandra

      • Chandra,

        Thank you for the response. I was under the impression that the BSI site would get updated.

        I am currently testing this in the development client, I do see that the tax rate calculation is correct, however, the taxable limit is not calculating correctly. Does this still come from the BTXRATE table?

        Thanks,

        Katherine

        • After this note,  both the experience rate and max salary is maintained in only one place – SAP.  The rates are NOT updated in BSI and not required to be maintained in BSI as well.  You have to maintain in only one place – SAP.  Basically it just avoids the duplicate data entry.

          Both the “Experience rate” and “Maximum Salary” field, if filled out correctly in BTXRATE table, is sent to BSI for calculation.  The BSI tax calculation should consider these and calculate accordingly.  To validate if SAP is sending both these values correctly to BSI, enable the “Display Log” in the payroll driver, and navigate to “USTAX” segment in the payroll log, and check the “BSI Interface” under “Processing segment”. Once inside this,  check out the LUD line item under the tax type 010 for the state you are checking and look for values next to “ER” – Experience rate and “MO” – Maximum Salary” – these values should correspond to the values in the BTXRATE table.

          Thanks
          Chandra

  • Hi Graziela,

    can you confirm that we do not need to do  HRSP’s for YE and we can just do CLC update only in October?(that is what I understand by looking at the note)  We are on EHP8 SP Level 67 as of now. The note below suggests that we must install the base HRSP from October but is that only if we are using employee central payroll or HR renewal? I know phase 1 of year end is normally in the HRSPs but I can apply that note(s) without applying HRSPs right? I use to in the past.

    * Current release for SAP’s Employee Central Payroll.

    To run Year End 2019 processes successfully and for SAP to provide support, you must have installed the minimum levels of the Sync. HRSP and CLC available in October, where applicable, as specified for your release.  Installing the Base HRSP from October also effectively provides those minimum levels.

    Normally when doing mid and year end support packs we do not allow any system changes to go through the landscape once we apply maintenance to our dev system. We allow for unit testing and UAT which covers over a couple months. Due to many projects going on at my company we were trying to minimize this process by just doing CLC’s. Do you see any issues with us doing that? Will it truly impact our YE HRSP process if we do not apply YE HRSPs before 1/1/2020?

     

    I look forward to your feedback

    Regards,

    Lena

    • Hello Lena,

      There are 2 options:

      Support Package 67 + the October CLC or Support Package 72.

      As your system level has the SP67, you will need to apply the US CLC to get the Year End changes.
      After this you can apply the other Phases notes.

      I can talk about the USA packages, if you have the CLC you will get all the changes for US. This CLC has been created so you don´t need to apply the complete Support Packages, just the CLC for the country you need.

      Hope this helps,
      Graziela

      • Yes it did thank you!

         

        If we just did the US CLC package would that still be considered a maintenance project where we would have to go through maintenance planner?

         

        If we still have to block the transport path to do the CLC, I don’t think it buys us anything. Can you confirm?

         

        Regards,

        Lena

        • Hi Lena,

          Yes, typically you would still use Maintenance Planner to setup the CLCs for download and create a stack xml. And yes, they apply just like regular support packages, so transports that “jump the queue” require special handling.

          The advantage is that the impact of changes on the system is considerably reduced, so the testing can be more highly focused. That, and the time to import the CLCs is quicker, since they are smaller, so downtime is reduced (or perhaps eliminated).

          Cheers,
          Matt

  • Hello Graziela Dondoni  – I know this is not related to the tax but nevertheless compliance related and wanted to highlight here.  We have been having issues with the newly released EEO-1, Component 2, pay data report in our system.  We just applied the most recent correction that was released (2824492) last week.  Our first issue before applying 2824492 was that the program dumps due to memory issue (even in the background mode; type 6 dumps); we applied the recent fix 2824492 that changed the way the various types of reports (type 2,3,4,6, etc.) are downloaded in the EEO, thinking that it would have solved the issues somehow but after applying this we are getting a new problem of type conflict (ASSIGN_TYPE_CONFLICT).

    Any help would be very much appreciated as we are racing against time to file this report with EEO.  I will be opening a OSS message soon.

    Thanks

    Chandra

    • Hi Graziela,

      I tried to apply Note 2835543, but the forms attached to the note were in XDP format (Adobe Acrobat XML Data Package File) instead of XML and could not be uploaded via SFP.  Do I need to try to convert these files to XML (and if so, please advise how) or will SAP re-issue the forms in .XML format?

      Thanks,

      Larry

  • Hello SAP team,  can we update the ASUG Webcast event information to the 2019 one in the YE2019 SAP KBAs that are being released?  For e.g. the KBA or legal change notification – “Tax Reporter State of Oregon W-2 Box 14 – Report Transit Tax Withheld” , the ASUG YE event URL is taking to the 2018 ASUG webinar page.

    Thanks

    Chandra

  • Hello Team – I’m trying to download all the notes (listing) for HR from the SAP download center included in a range of HR support packs – for e.g. SAP 608, SP60 to SP71.  I can know we can download a list of all notes for each of the SAPHR and EAHR components separately by navigating to each component via the download center/support packages.  This is time consuming.  I was wondering if there is a better way to download a list of all notes for a range of HR support packs. For e.g. to download a list of all the side-effects notes, all you have to do is choose the highest version you want, navigate to the side-effects tab and then choose the source/current level.  This will give a listing of all the side effects that are available for those range which can be downloaded to an excel/csv.  Do we have a similar option available to get a list of all notes for a range of SP? – specify the highest and lowest levels of SAP HR or EA HR component to get a list of all the notes.  Or is there any other better way?

    Thanks

    Chandra

  • Hello Team,

    The City of Jackson (Authority :MI0B) is now requiring all employers to file W2 s electronically for year 2019.The authority is expecting EFW2 format and RS record must be included to provide the city information.So,Do we know tentative timeline for this legal change to produce mag media file from tax reporter?

    Thanks

    Gopi Meka

  • Hello Team,  just got this notification: this is for New Jersey ACA filing.  NJ is requiring a separate filing of the 1094/1095 forms.  Are these being planned? I didn’t see any mention of this in the ASUG 2019 YE webcast.

    Guidance for Health Coverage Filings (1094/1095)

    Starting with Tax Year 2019, the New Jersey Legislature requires third-party reporting to verify health coverage information supplied by individual Income Tax payers. Employers and all other providers of Minimum Essential Coverage to New Jersey residents must send health-care coverage returns to the State for the 2019 Tax Year. Filers will transmit coverage returns through New Jersey’s system for processing W-2 forms.

    Coverage returns will contain the information specified by federal Internal Revenue Service (IRS) rules and regulations for 1094 and 1095 filings. Companies are encouraged to send data pertaining only to New Jersey full-year and part-year residents. However, for ease of filing, New Jersey will accept the same 1094/1095 data files sent to the IRS, even if they include data about individuals who are not residents of New Jersey. Filers who provide information on non-residents of New Jersey should consult privacy and other laws pertaining to residents of other States before sending any sensitive or personal data to New Jersey. Filers must provide 2019 coverage information electronically by March 31, 2020.

    The State expects filings of Form 1094-CTransmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and Form 1095-CEmployer-Provided Health Insurance Offer and Coverage. Filers of Form 1094-B,  Transmittal of Health Coverage Information Returns, and Form 1095-B,  Health Coverage, should use those forms for New Jersey filings.

    More details here

    Thanks

    Chandra

    • Hi Chandra,

      Please notice that this blog aims to discuss issues related with the U.S. Tax Reporter Year End 2019 process.

      The ACA solution is not part of this scope so we have a different site in which this topic can be verified.

      Please read the KBA 2458635 in the Jam collaboration group section.

      Regards,

      Roger Oliveira

  • Hello Graziela,

     

    Can we upgrade BSI Cyclic W with only YE Phase 1 or we will have to wait for Phase 2 notes to be released? Is there any order we need to follow?

    If we upgrade BSI Cyclic W and then YE Phase 1 EHSP would it throw errors?

     

    Thank you,

    Dharitree Ravat

      • I am sorry for the confusion. As per ASUG yesterday, specifically W-4 Federal Fort Changes are dependent on BSI TD 10. W/BSI TF 11.0 A and the YE Phase 1 and Phase 2.

        We are planning to upgrade to Cyclic W this year first and then upgrade to EHP4 E5.

        I am just wondering if it would cause any issue if we don’t wait until phase 2 as ASUG presentation said Phase 1 will have DDIC changes and Phase 2 will have Program/Layout changes.

        Thanks and regards,

        Dharitree

  • We did not receive an email about the Webinar, so I just now realized we were not registered and missed it yesterday.  We thought it would be later in October. Will a recording be available?  If so, do you have the link?

  • Hi Graziela,

    PR (puerto rico) will require an electronic formatted .txt file for 3rd quarter reporting.Do we know tentative timeline for this change to produce file from tax reporter?

     

    Thanks

    Gopi Meka

  • Hi Virginia,

    Thanks for response! I’m referring to “Chauffeurs tax electronic file format” for 3rd quarter reporting for PR.

     

    Thanks

    Gopi Meka