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W-4 Form for Year 2020

Hello community,

This is our W-4 discussion blog. If you have questions about topic, you can post it here. This blog will be updated with tips, best practices and, SAP Notes related to this subject.

2760918 BSI: TaxFactory 11.0 – DDIC Changes
2763228 BSI: TaxFactory 11.0 – Function Modules Changes
2770832 BSI: TaxFactory 11.0 – General Technical Changes
2780204 BSI: TaxFactory 11.0 – Changes required for TaxFactory SaaS
2790902 BSI: TaxFactory 11.0 – Payroll Driver Changes
2845130 Prerequisite objects for SAP Note 2845128
2853402 Correction of report NOTE_2845130
2845128 TAX: W-4 Form for Year 2020 – Master Data (SAP_HR)
2850174 TAX: W-4 Form for Year 2020 – Master Data (EA-HR)
2845529 TAX: W-4 Form for Year 2020 – ABAP Webdynpro ESS and Renewal (EA-HR)
2870221 Post-implementation objects for SAP Note 2845529
2863489 Prerequisite objects for SAP Note 2855896
2855896 TAX: W-4 Form for Year 2020
2870177 TAX: W-4 2020 – Not reading infotype 0210 for periods in 2019 with checkdate in 2020
2871658 TAX: Missing field labels for ESS W-4 2020.
2873856 New W-4 fields not disabled in PA30/PA40 for Exempt employees after applying SAP note 2872242
2872242 TAX: Exempt indicator does not change fields for W-4 for year 2020
2875533 Delimited Filing Status Description resulting in validation error in Decoupling Framework in specific situations
2876794 TAX: NWI parameter misplaced in BSI Interface for TaxFactory 10.0
2880390 W-4 ESS: Changing field property and usage of BAdI HRXSS_PER_BEGDA
2877736 TAX: W-4 Payroll log changes for TAX (PC22T) table
2886638 Prerequisite objects for SAP Note 2881830
2881830 TAX: Additional W-4 Payroll log changes for TAX (PC22T) table
2884856 – Prerequisite objects for SAP Note 2880846
2880846 – TAX: Lock-in letters not overriding New W-4
2888094 – TAX: Lock-in letters override for W-4 exempt
2935484 – TAX: Payroll incorrectly using Hire Date to read Infotype 0210
2944973 – TAX: New Parameters for Formula Number Decision) and all its prerequisites should be applied.
2952323 – Prerequisite objects for SAP Note 2951750
2951750 – Redesigned Withholding Compliance Lock-In Letters 2800C and 2808C

 

IMPORTANT -> these notes contains a lot of manual steps, that must be implemented.
– There is a minimum Support Package requirement to these notes to be implemented.

Improvement for ESS ABAP WebDynpro application.

2876047 Prerequisite objects for SAP Note 2868576
2868576 – W-4 ESS – Allowing the configuration of begin date in standard ESS
With this enhancement, users will be able to set the start date of the records created in their ESS. More information can be found in the notes.

2878349 – PAYSLIP: W-4 Form for 2020 – Fields enablement for PE51
2881474 – PAYSLIP: W-4 Form for 2020 – Fields enablement for PE51 – additional functionalities
2881471 – Prerequisite objects for SAP Note 2880845
2880845 – Tax Infotype Summary Report for W-4 2020
2881773 – W-4 ESS: ESS Web Dynpro enhancements

Important Basis Note correction:
2844646 – Ignore the local class definition, implementation, definition deffered, definition load , definition local friends changes

FAQ blog:
https://blogs.sap.com/2019/12/16/w-4-employees-withholding-certificate-and-federal-income-tax-withholding-for-2020/

States W-4 blog:
https://blogs.sap.com/2020/04/03/w-4-state-withholding-tax-calculation-2020-based-on-the-state-or-state-equivalent-withholding-certificate/

Phase I and II W-4 State:

2895426 – Prerequisite objects for SAP Note 2878657
2878657 – 2020 State Withholding Tax Calculation – Based on the State (or State-equivalent) Withholding Certificate (SAP_HR) – Phase I
2891794 – State Withholding Tax Calculation – Based on the State (or State-equivalent) Withholding Certificate (EA-HR) – Phase I
2916238 – 2020 State Withholding Tax Calculation – Based on the State (or State-equivalent) Withholding Certificate (SAP_HR) – Phase II.

Regards,
Graziela

333 Comments
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  • Hello,

    Does SAP also updating W4 form for Java based webdynpro application? I understand this is updated for ABAP webdynpro application but our company is still using Java based web dynpro application.

     

    Regards,

    Nirmod

  • Hello,

     

    In note 2870071 – TAX: Filing Status customizing for W-4 for year 2020, there are new entries for marital status, 03, 04 and 08 effective 01/01/2020.

     

    For 04, being ‘Married filling jointly’, are we supposed to delimit ’02’?

    Tax Authority Filing Status Text Long Text Start Date End Date
    FED 03 Ma. Sep. Married filling separately 01.01.2020 31.12.9999
    FED 04 Ma. Joint. Married filling jointly 01.01.2020 31.12.9999
    FED 08 Widow(er) Widow(er) 01.01.2020 31.12.9999

     

    Thank you and Happy Holidays!

    Euna

  • Hi –

    I am still having a problem displaying the new W4 fields in ESS.  The component controller context node IT0210 has the new fields, but the context node IT0210 in the view V_W4 does not.  We do have enhancement code.  Commenting out that code entirely does not change the fact that the new fields do not exist in the view.

    We’ve implemented all the W4 notes.  What could we be missing?

    Thank you.

  • Hi,

     

    We have been creating a 210 effective 1/1/2020 to test ESS.  I thought if I tried to edit an existing federal 210 on 1/1/2020, the new fields would show up without the additional record.  I see that this is not the case.  I don’t see the new fields until a 2020 record is saved. Am I doing something wrong?

    Thanks

  • Does anyone know if this note is related to the SAP ESS process only?  Or do we all need to apply this note?

    2874752 – TAX: W-4 Additional Technical Improvements (SAP_HR)

  • Does anyone have this issue with SAP ESS or PA30 after applying all the W-4 changes?

    Ex: Rehire in 2020 who termed previously in 2006, IT210 for FED and MA were not delimited in 2006 upon termination (still infinite dated).  Rehire now has FED and CT for IT210.  We can create the new FED record of 1/5/2020-12/31/9999 because it auto delimits the old 2006 record and we can create the new CT record for the same dates because it’s totally new.  However, the system won’t let us delimit the old MA record from 2006.  We get the error about control record retro date (change before earliest date according to control record for py area).  We set our main PA03 control record back 3 years due to W-2C’s so it is set at 12/27/15 for a couple more periods.

    According to my payroll team, this worked before we put all these changes in for the W-4.  We do NOT use the SAP ESS process, but this is not working for PA30 either now.

    Any input/suggestions would be appreciated.

    Thanks!

    • We are having the same issue as well.  Hopefully SAP will deliver a fix for this.  You can choose delimit from PA30 and enter the appropriate date and it will delimit the record appropriately as a workaround.  You can also copy the record you are trying to delimit and enter the new begda/endda dates, then delete that record.  That is what we are doing for now. 

  • Graziella,

    We have applied all the necessary notes for the new W4 and are still experiencing problems showing the new fields on ESS, even after we have created a 1/1/2020 W4 using the SAP GUI for IT210.  I’m not sure what we are missing, but I’m guessing it must be a manual process we have neglected to correct.

    Steve F.

    • Steve, are you using the ABAP Webdynpro version or the JAVA version of the form? The changes for 2020 are only available for the ABAP version….

  • Hi Team,

    We have upgraded HRSP to 72 and then installed all the required notes for new W-4 2020. IT 0210 looks fine, filing status updated as well. BSI is currently on tub 179. However SAP payroll is not considering the with holding amount maintained in the IT 0210 & resulting in higher federal withholding taxes.

    Attached few screen shots of the same.

    The only thing that we missed is the BSI cyclic W, not really sure if thats the one causing this issue.

    Can you please help. What could be causing the issue for SAP not to consider the exemption amount maintained in the IT 0210. This is urgent appreciate all the inputs

    Thanks

    JK

    • Cyclic W was effective beginning with TUB 175, so you should apply this.

      Also if you check the marital status in the BSI log, you see it shows MS:2 which does not match your IT210 screen of MS:3 (unless this is how you have configured your table T5UTK).

      Another thing you could check is the BSI Message Viewer to see if it gives you more information about how the tax is being calculated.

      • Thanks Alicia Robinson will apply Cyclic W & verify as well. Yes the screen shot for the BSI was wrong i guess i verified again now the MS value in BSI is 3 as well which is matching with IT 0210/T5UTK.

         

        Will keep you posted

        Thanks

        Jk

      • Hi Alicia,

        I am having similar issue as JayaKrishna

        We are on BSI 11 (A-13) and have applied all the notes as you have mentioned but during testing, system ignores “Dep. Credit Amt” and just calculate tax as per default filing status (Single/0).

        I reached out to BSI and together, we did testing on TaxFactory, there it was calculating correctly, and according to their conclusion, it is SAP issue.

        Can you please advise, I will greatly appreciate it.

        • Rizwan –

          We aren’t on BSI 11 yet so not sure I can advise for this issue.  I can offer a few question that you can check:

          • What marital status code is being used?  Typically if BSI is converting this to another status the one you are using is no longer applicable.
          • Have you reviewed the BSI Message log to see what messages it has?  This would tell you if the marital status is not valid and other messages as well.

          Hope this helps to find your issues.

          • Thanks for the response Alicia,

             

            For marital status 03, when I processed payroll, BSI message was “Your request to use 3 marital status for the federal withholding tax is not all owed. This tax has been calculated using the 1 martial status“.

            But when I downloaded BSI interface and tested in Tax-Factory, it process fine

            I was working with BSI support, they were suggesting it is SAP issue,

          • /
          • Rizwan –

            Sorry I can’t help on this one.  The table looks good since MS:3 is active.  We aren’t on BSI 11 yet so not sure if there is something in those settings that could be causing you an issue.  The only thing I can suggest is to verify you have all the OSS notes needed and then check the BSI interface within the payroll log to make sure it’s doing everything correctly as well.

          • No Worries, thanks, I am suspecting our development team might have missed a step or two while implementing those Notes. SAP is releasing HRSP 76 next week, therefore, we will update those, and hopefully that will correct if any Note was not applied correctly.

            Again thanks for your time and effort,

            Regards,

            Rizwan

          • Today, we finally resolved this issue.

            • Initially we opened a ticket with BSI, they concluded that it is SAP issue,
            • We created an incident with SAP
            • SAP suggested few Notes, but those were already implemented
            • SAP then asked us to check the SAP-BSI connection, which we did there was nothing wrong
            • Then today we had another screen-sharing session with BSI, and during the session, they identified an issue with server file (it was old one), updated server file was applied and system started working fine.
          • Hi Rizwan Khan ,

            Appreciate you for sharing the final outcome of the issue.

             

            Does the new server file has to come with upgrade (from Tax Factory 11)?

            Where can we get the new server file or check if we have the new file in our own server?

            And can we update the file one own or only BSI can do it?

            We have same issue now, as we are in process of TF11 upgrade.

             

            Regards,

            Aditya

             

             

          • Hi Rizwan,

            We are having same federal tax being higher and we are upto date on all the notes in this blog. Can you please provide some details on this server file that you had to apply so we can work with BSI with the right request?

             

            Thanks

            Ambily

  • Hi,

    I was wondering with the new Federal W4 changes in place. What does this do to IT0161 IRS Limits USA? We are facing issues since we have updated the T5UTK table with the correct filing status. The letter we received states Married, which is no longer an option. What are other companies doing in this case?

  • Hello All,

     

    My client is based out of Colorado state and they are looking for 2020 withholding tax formula, but still I could see BSI has not release any formula for 2020. Could you please share if you have any information related to this.

    Thanks in advance

     

  • Hi Graziela,

    Will the new W4 fields be available for inclusion on the Remuneration Statement so the employees can confirm their choices were applied to the payment?

    Thanks,

    Stanette

     

      • I am part of the pilot and just finished verifying pilot note 2878349 worked and SAP has been notified, so I would think the note will be published shortly.

         

        Larry

        • Hi Larry,

           

          I have been trying to configure the statement to include the new fields but have not been successful. I think I have something wrong in the line layout and rules. Any assistance on what the rule and line layout should look like would be greatly appreciated.

          Regards,

          Lena

          • Hi Larry,

            I suspect many customers have this same struggle. Ultimately, clumsy as it may be, a set of screenshots and some written instructions or tips would probably help the greatest number of people. Or, perhaps you could record your Teams or WebEx session and create a video for others to view? Though I for one am not part of the Youtube generation that learns best through videos — I need written directions and not having to hit pause all the time, lol!

            In short… would you consider putting together your method as a blog post? I suspect it would be quite popular.

            On a side note, for future reference, we do ask (as moderators) that you do not include personal information such as email addresses in your posts or comments on the Community. It invites becoming a target for spam, so it’s not a good idea. Instead, you are free to include this information in your profile/bio, or if you and another member follow each other, send it via DM.

            Cheers,
            Matt

  • Unable to save 2020 Arizona ESS form – We are currently at SAP support level 608/74 and in addition we have applied All W4 related ESS notes from Level 76. When we try to submit ESS – Arizona form, the field alternate formula is initial there  On saving form system returns an exception that “Fill in the missing fields” and then alternate formula field  is no longer on the screen.

    This is the only state that we are experiencing issue.

  • We have applied all the Notes, and have upgraded to BSI 11 (A – 13). When I test the payroll, system is calculating at single and zero (default filing status) and ignores amount in “Dep. Credit Amount”. I checked with BSI, and when we ran BSI Interface in TaxFactory, it calculates the correct tax amount. but in SAP it is just calculating at default filing status. Any idea?

  • Can someone tell me if SAP is supporting the W-4P? It is the W-4 for pensioners. Prior to the change this year, the W-4 and W-4P were pretty much the same. Now the W-4 changed but the W-4P didn’t so they are different. W-4P still has exemptions etc. How can we handle this for the different groups?

      • Thank you Alicia.

         

        I see SAP doesn’t support the W4-P, however per the US Federal Government it is a valid form and therefore we should have a solution from SAP to support this legal form. My client is pushing for a solution. I am hoping SAP will respond so I know what to tell them.

  • Hi all –

    – -Tax Factory 10 cyclic W bulletin 181 – –

    I am not seeing any difference in my FED withholding when toggling the Multiple Job Indicator checkbox. It seems to be using the first tax table regardless. I have attached a couple screenshots.

    Any help is appreciated?

     

     

  • The validity date added into the ESS screen is very good, however when we go into the screen it is not visible because it is at the bottom.  Employees do not initially think of scrolling.  Since HR / Payroll is a date driven system, why is the Validity section at the bottom instead of at the top?  It should be either before the “Personal Information” section or at least before the “W-4 Information” section.  Especially since by changing the date to a 2020 date the display in the W-4 section changes.

    Please move the Validity section up higher on the ESS form to a more logical location.

    Thanks,

    • If SAP does not do this (it actually matches/consistent with most all of their other ESS WDA apps), it is very easy to  create a custom WDA configuration and move it to where you like.

      • Thanks Chris, as an example to your custom suggestion we have customized the ESS JAVA and Web Dynpro ABAP applications to more closely match the actual W-4 form. (We modified both as we started out planning to use Web Dynpro but we decided to go with JAVA for now to match our other production applications):

        Keep in mind that this was done by our Web team (programmers) and it is not configuration:

  • H All

    we are using Symmetry and we have uploaded the new W4 -FED

    However, we are encountering an issue with the 6 states that have new W4 form like DE, CO, UT, NM the new fields are not showing it IT0210.. we did the mapping as requested by symmetry  . it’s working for FED but not for the states that are following the W4-Federal Form ( Delaware , Utah, New Mexico, Colorado…etc ).

    Will SAP be releasing new notes for States following the FED W4 format.

    This is an urgent requirement please if you can assist.

    Thank you!

    • Cheryl –

      This question has been asked and SAP’s reply was that they are only releasing Federal.  I’ve seen in the comments that a few people have logged a message with SAP, but haven’t seen that any of them have gotten a response from SAP yet.  I will be joining the others and logging a message with SAP in the next few days.

      We also use Symmetry, but chose not to make the changes because it would only cause us more issues.

  • Hi All,

     

    We are just realizing that we are having the same issue with concurrent employment that Larry mentioned back on December 10.  Employees are having additional assignments added so they now have a 2020 record and have not submitted a new W4.  I opened a note with SAP but has anyone found a way to get around this?

     

    Thanks
    Brenda

      • We are having the same issue.  We have opened a message with SAP also, 64590 / 2020, and received a very frustrating initial response that we should change on CE configurations to not copy IT0210 across all assignments. Unacceptable. We need SAP to resolve this CE issue with the new W-4.

        • I went through the same experience with SAP. It was suggested by someone on here to update Table V_T582G to use value “”X Before Assignment Start” in column “Group before/From Assgmt Start”. We did this but it causes errors when an EE already has more than 1 assignment. So we are now creating a utility program to update ALL EE CE records so the data matches. All this just to avoid the W-4 election from changing when an additional assignment is added.
          Larry
  • Good afternoon all.  We have taken the route of adding HRSP up to E9 to cover all the notes and activities required but still cannot display the new fields in ESS.  We are still running ESS in Java.  We have added the new status entries in Table T5UTK and those are displayed but cannot get the field for Credits for dep.

    In test we deleted a W4 so that we could create new with no luck still.  Can anyone tell me what we may have missed?  It is almost like we need to activate something.  All new fields are visible in ECC.

    We are running SAP_HRCUS 604 0148 SAPK-604E8INSAPHRCUS Sub component SAP_HRCUS of SAP_HR.

    I found today that there is a pilot note 2876327 which is referenced for JAVA ESS but I do not have access.  May we be added to the pilot group for access?  Thanks.

     

  • Hi,

    With the new W-4 in ESS Webdynpro ABAP is there a way to display the current W-4 (pre 2020) so Employees see what they currently have?  We are getting a lot of calls regarding this.  The current W-4 is in the overview but does not include all the details and once you click on this to open it is displaying the NEW form.

    Thanks

    Trudy Karley

  • Hello,

    Beginning January 1, 2020, Employee’s Withholding Allowance Certificate (Form W-4) from the Internal Revenue Service (IRS) will be used for federal income tax withholding only.

    You must file the state form Employee’s Withholding Allowance Certificate (DE 4) to determine the appropriate California Personal Income Tax (PIT) withholding.

    Is SAP planning on releasing a note for the ABAP WebDynpro ESS requiring an employee to complete a new CA withholding form when completing a new FED W4?

    Thank you!

    Nancy

  • Shameless self promotion…..for those looking to customize the ESS W4 Webdynpro app, I did a  series of blogs….

    https://blogs.sap.com/2020/01/24/ess-anatomy-of-the-2020-w-4-webdynpro-application-and-customization/

    https://blogs.sap.com/2020/01/21/ess-2020-w-4-filing-status-fix/

    https://blogs.sap.com/2020/01/24/ess-2020-w-4-filing-status-value-fix/

    https://blogs.sap.com/2020/01/29/ess-2020-w-4….lets-talk-label-texts-and-customization/

    Each blog also refers to this blog (link back). Hope it helps!

  • Hi All,

    Regarding supplemental tax when an employee has selected Exempt status on IT 0210

    Prior to the W-4 update for 2020 we had the Tax Exempt Indicator field grayed out and our users entered 99 Allowances if they wanted to be exempt from Federal tax withholding.  With the changes we lost the Allowances field so we un-grayed the tax exempt indicator field.  However, when we process a supplemental payment, e.g. a bonus, in a regular payroll both the regular wages and the supplemental payment are tax exempt.  Can anyone tell me how they handle this so that the supplemental wages are taxed correctly even when the employee chooses exempt status?

    Thanks,

    Averil

      • Hi Virginia,

        Due to a number of comments on this and, I think, on your other W-4 blog, about errors that crop up in PA30 when editing records with “old” W-4s using the old marital statuses, many of use ended up leaving the old statuses as valid alongside the new ones, in order to avoid those errors. So, we end up with a T5UTK that looks like this:

        Authority Status Text Long Text Start Date End Date
        FED 1 Single Single 1/1/1980 12/31/9999
        FED 2 Married Married 1/1/1980 12/31/9999
        FED 3 Ma. Sep. Married filing separately 1/1/2020 12/31/9999
        FED 4 Ma. Joint. Married filing jointly 1/1/2020 12/31/9999
        FED 6 Head house Head of household or family 1/1/1980 12/31/9999
        FED 8 Widow(er) Widow(er) 1/1/2020 12/31/9999
        FED 15 Married/SR Married but w/hold at higher single rate 6/1/2018 12/31/9999

        Perhaps Note 2875533 (Delimited Filing Status Description resulting in validation error in Decoupling Framework in specific situations) fixes this issue?

        Cheers,
        Matt

  • Hi Graziela,

    The current design is unforgiving if a PA30 keying mistake occurs on the start date of the W4 requiring the pre-2020 form to be active for some portion of the 2020 year.

    We locked retro on our Payroll Control Record to Pd1 2020 last week after the W2s were filed.  We have always been told not to delete the production system’s Payroll Control Record for any other reason.

    Issue:

    Employee provides updated W4 to be effective 2/1/2020.  Mistakenly keyed date as 1/1/2020, deleted record starting on 1/1/2020 but cannot correctly extend or create a new record for the extension of 1/1/2020-1/31/2020 matching the 2019 W4 format.

    Essentially, the 2019 active record should have been copied with a start date of 2/1/2020 but was not.

    If the employee expects their changes on 2/1, we cannot use the 2020 W4 format for the gap of 1/1/-1/31/2020.

    What is your recommendation for this type of correction without deleting the control record?

     

    Thanks,

    Stanette

  • Hi,

    After updating BSI to 10w TUB level 182 to get the 2020 W-4 working properly for non-resident aliens (NRAs), we found significant Federal tax calculation errors on former NRAs who became residents and had the NRA checkbox on IT0210 cleared – but the alternative formula was inadvertently left as 2.  Prior to TUB 182, this formula 2 data entry error was ignored and the employees were taxed regularly (married or single, and all allowances taken into consideration).    After TUB 182 these employees are taxed single, high rate table, and as though they have a deduction credit entered equal to their entered allowances times 2 times 4300.  We are unable to correct these as it would require we convert these pre-2020 W4s to post 2020 W4s in IT0210.  I am wondering if anyone else has experienced this?

    Regards,

    Gregg

     

      • Hi Deepak,

        I opened a note with SAP/BSI on 2/7/20 and it seems to have stalled in their “Tier 1” support.  I have since inquired about the status repeatedly.  Each response being they are still working on resolving the issue.  I hoped that, with this blog entry, I could solicit additional inquires to SAP/BSI regarding the issue; possibly prompting them to consider a more timely correction.

        Gregg

  • 2872242 TAX: Exempt indicator does not change fields for W-4 for year 2020

    This note is not working as mentioned. Neither it wipes out the exemption/additional amount etc and also not changing the to display only.

    Anyone face this issue?

    This note says it is for PA30.

    Does that mean SAP will release another one for ESS ABAP WD? Are they suggesting us to hide Exempt status in ESS?

    Thank you,

    Raj Mahadevan

  • Hi,

     

    We’re trying to apply note2881474 and my BASIS asked about new values in step 1-4 in the manual instruction.

     

    There’s only one field, WHFYR, is marked. Can anyone advise what is the other field?

     

    Thank you,

    Euna

  • Hi Team,

    I am having same issue as Rizwan Khan .

    We are in the process of upgrading to Tax factory 11.
    With Tax Factory 10, we don’t have any issues in payroll tax calculations.

    Right now in upgrade environment, we are on TaxFactory 11.0.b | Cyclic B | Regulatory 020 | TaxLocator 09 and during testing, system ignores filling status 04 Married filling jointly and just calculate tax as per filing status (Single/01).

    The BSI messages log is as below:

    1008
    YOUR REQUEST TO USE 4 MARITAL STATUS FOR THE FEDERAL WITHHOLDING TAX IS NOT ALL
    OWED. THIS TAX HAS BEEN CALCULATED USING THE 1 MARITAL STATUS.

    Raised issue with BSI too and haven’t received their analysis yet.

    Checking if someone faced/facing similar issue while upgrading and have a solution.

    Rizwan Khan Does the new server file has to come with upgrade (from Tax Factory 11)? Where can we get the new server file or check if we have the new file in our own server? And can we update the file one own or only BSI can do it?

    • Hi Aditya,

      The employee that you are testing has IT161?

      As IRS didn´t release the new IT161, you need to use in this case the old status.

      Regards,
      Graziela

        • Graziela Dondoni

          I received the below update from BSI support:

          “There was update change on TF11b.  The command lines where the parameters are placed are different in TF11b from TF10.

          You will need to communicated to your payroll provider that the parameter: [WF:] will no longer displays on the EPC line of the BSI Interface log, but will now be entered on the ADC line of the BSI Interface log.

          For Example:

          BSI Interface

          ATC ET: 0

          IPC CC: XXX  GC: EG99

          EPC PP: 12 CD: 00/00/2020 PT: REG

          YP: 4 PH: 0.00

          GU: 0

          BD: 00/00/1971 RS: NY PS: NY

          RC: 1 DT: 01/31/2009

          GW: 0.00 WF: 0,0 <= Old display

          ADC TC: BSI00000000 NR: 0 RP: 0 RC: 0 SE: 0 NX: 0 WF: 1,1 <= new display”

           

          Please check and let me know if this is already released through SAP note.

           

          Regards,

          Adiitya

           

          • Hi Aditya Surapaneni ,

             

            This change is delivered via SAP Note 2878657 – 2020 State Withholding Tax Calculation – Based on the State (or State-equivalent) Withholding Certificate (SAP_HR) – Phase I.

             

            For more information, you can refer to this blog https://blogs.sap.com/2020/04/03/w-4-state-withholding-tax-calculation-2020-based-on-the-state-or-state-equivalent-withholding-certificate/, in the BSI Interface section.

            Kind regards,

            Virginia

          • Hi Virginia,

            Applied the note and my issue to calculate the FED taxes based on the status Married – 4, rather the status Single -1 is now resolved.

             

            However, I started seeing the below message in the BSI message and status:

            1055
            THE WITHHOLDING FORM’S YEAR AND/OR MULTIPLE JOBS BOX 2 VALUES ARE INVALID AND HAVE BEEN IGNORED. THE CALCULATED TAXES SHOULD BE CHECKED FOR ACCURACY.

            As I cross checked, all the calculations are happening correct. I ran the payroll for following pay periods as well and the message keeps on coming in all the pay periods logs.

             

            Thank you

            Virginia Soares Graziela Dondoni

          • Hi Aditya Surapaneni

            These messages from BSI do not always mean an error. If your taxes are correct, you can ignore such message.

            However, if you think that something is incorrect, you can open an incident under component PY-US-TX for further analysis.
            Kind regards,
            Virginia
          • Hello Virginia Soares

            I did the batch test with the log in the BSI portal and don’t see these message out of BSI.

            Seems, this is being generated only because of SAP.

            As stated earlier, no tax calculation issues at this point. But we like to know the root cause, so that we can be sure for any future scenarios in production system.

            Do you want me to open an Incident with SAP for this?

             

            Regards,

            Aditya

          • Hi Aditya Surapaneni ,

            Considering that there are no errors and no tax calculation issues, you can open an incident with medium priority, if you think is needed. If you open an incident, just mention about the interaction we had in this blog and the solution provided and that you’d like further investigation on the message, even though tax calculation was correct.

            Kind regards,
            Virginia
          • Hi Aditya,

            I am getting the same message as well, though the results look fine but this message is bothering me. I am glad that you have created an incident already, therefore, I will watch this thread for an update.

            Please do update us, once you hear back from SAP.

            Regards,

            Rizwan

          • Hi Rizwan/Team,

            The messages are due to passing the W42020 Withholding form (WF) values through all the Tax Authorities in the payroll run.

            Ideally, the WF 1,1 or etc entries are valid only for FED (Tax Authority) 001 (Tax Type).

            WF entries are passed into BSI log throgh SAP for non FED 001 entries as well. Hence the log shows the message 1055.

            Since at this point payroll calculation/tax calculation is not impacted, we are been asked to move forward.

            However, I have requested to check if SAP can stop generating WF for non FED 001 types. Which may remove the 1055 message from the log.

            SAP is working on it.

            Regards,

            Aditya Surapaneni

          • Hi Aditya,

            We are getting the high FED taxes and the 1008 message about filing status 04 not being allowed.

            Did applying note 2878657 immediately resolve the issue or was there config you needed to do? Did you reload the server file too?

            We have note 2878657 in place and set up filing status 04 in T5UTK, but the issue persists. I have created an incident, but was wondering if you can perhaps remember an extra step that might be helpful to us 🙂 This is such a great forum for knowledge sharing!

            Thank you!

            Vicky

      • Hi Graziela,

        IRS released the new 2020 form for lock-in letters. ? We received our first lock in letter with the new form and the 161 is not compatible.

        Any idea when SAP going to do a release for this? I could see it is scheduled for 08/14 planned release. hope it will be released this Friday.

        Thanks

        Gayathri

  • Hi Graziela / Virginia,

     

    Since the new W-4 screen in IT0210 doesn’t have any allowances field at FED level, does this mean that the IT0161 can be ignored at FED level as there is nothing to compare the lesser value to exempt ?

     

    I’ve tested the existing prior to 2020 W-4 record and created a record in IT0161 and system is behaving as expected.

    I assume that the IT0161 and IT0210 comparison will remain as-is.  However, i’m curious to test for some of the states states which recently announced the changes based on new W-4 form. eg: DE

    As indicated by Aditya, i’ve come across the same issue for Federal allowances which is ignoring the new Filing status which is based on W-4 form and calculating at single status and also BSI is returning the message. Will apply the note and see if this is taken care.

    Thanks

    Madhav

    • Hi Madhav B,

       

      In this other blog page https://blogs.sap.com/2019/12/16/w-4-employees-withholding-certificate-and-federal-income-tax-withholding-for-2020/, you can refer to the What You Need to Know About the New Federal Form W-4 in SAP system, section where it says:

      • Infotype 161 – IRS Limits reflects the IRS Lock-in letters. At the time of writing this post, the Lock-in letter still didn’t have a new version. However, we have updated Infotype 0161 to handle the Lock-In letters for FED in 2020 through SAP Note 2880846 – TAX: Lock-in letters not overriding New W-4. 

      Let me know in case you have further questions.

      Kind regards,

      Virginia

      • I am having somewhat a similar issue, we have an existing IT0161 for an employee and have  updated IT210 effective 1/1/2020, After the update I am seeing that , IT 0161 is completely ignored and the system is calculating taxes based on IT 210 rather than on IT 0161 , where the marital status is “2” and no of exemptions are “1”

        I have already applied the Note 2880846 and 2888094   , and I am yet to apply  SAP Note 2878657

        We are on BSI 11/ Bulletin 20 / Cyclic A

        Will applying SAP Note 2878657  Fix the issue , anyone facing a similar issue

         

        The BSI Log is calculating on the new Parameter WF: 1,1 , Rather than the old as stated in Note 2888094 

         

         

        ATC ET: 0
        IPC CC: US01 GC: EG99
        EPC PP: 26 CD: 01/10/2020 PT: REG
        YP: 0 PH: 85.75
        GU: 0
        BD: 01/01/1970 RS: MI PS: MI
        RC: 1 DT: 06/08/2019
        GW: 1396.07 WF: 1,1
        ADC TC: FED NR: 0 RP: 0 RC: 0 SE: 0 NX: 0
        HUD TT: 001 FN: 1 PW: 1396.07 HW: 80.00 MS: 3 NE: 0
        ADD TE: 0 RN: 0 PW: 1.00 RF: 0
        VDC AT: 0
        SDC SM: 9 BW: 1396.07
        EDC DE: 0 NA: 0 TC: 3000.00
        LUD ES: 0 SA: 0 PND: 0 MND: 0 QND: 0 YND: 0