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W-4 Employee’s Withholding Certificate and Federal Income Tax Withholding for 2020

New updates+++

July 7th: Section ‘In PA30 – Withholding Info W4/W5 US (0210) infotype’ has been updated:

  • Marital Status

 

SAP has delivered updates to address to relevant technical changes to prepare for the new W-4 form model for year 2020. The aim of this document is to provide informational implementation that needs to be performed in SAP side for activating the new/changed functionality supported by SAP.

 

W-4 business background/impact

Affects payroll processing from the first pay period of year 2020. Changes will impact Master Data, Tax Computation, BSI Interface and related Employee Self Services.

 

What You Need to Know About the New Federal Form W-4

In September 2018, the IRS announced that it would delay the Form W-4 revisions until January 1, 2020. The 2020 version is expected to fully reflect tax law changes made by the Tax Cuts and Jobs Act (TCJA) and help employees improve the accuracy of their federal income tax withholding. With that, you should keep in mind that:

 

  • The new form includes three filing statuses (single or married filing separately; married filing jointly or qualifying widow/-er; and head of household).

2019 Version

 

2020 Version

 

  • Added the Step 2 for people with Multiple Jobs or whose Spouse Works

 

  • “Total number of allowances”, line 5, replaced by Step 3 – Claim Dependents

 

  • Added the Step 4 – Other adjustments, with 3 additional fields: and other anticipated tax credits (such as education tax credits and the foreign tax credit), and other adjustments to income that will either increase or decrease withholding.

 

What You Need to Know About the New Federal Form W-4 in SAP system

  • Employees who have submitted a Form W-4 in any year before 2020 will not be required to submit a new form merely because of the redesign.
  • New employees who fail to submit a Form W-4 are treated as a single filer with no other adjustments.
  • If an employee only completes Step 1 (Filing Status) and signs the form, withholding will be computed based on the employee’s filing status’s standard deduction and tax rates, with no other adjustments.
  • The 2020 withholding have been revised to accommodate both employees who have submitted a Form W-4 in any year before 2020 and employees who have submitted a 2020 Form W-4.
  • 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 2880846TAX: Lock-in letters not overriding New W-4. 

 

Section 1: Major changes to SAP System

With W-4 Tax Filing in 2020, SAP has adapted its interface, as follows:

 

In PA30 – Withholding Info W4/W5 US (0210) infotype

 

Previous

 

New

 

 

The Marital Status values effective 01/01/2020 are:

  • Single (01)
  • Married Filing Separately (03)
  • Married Filing Jointly (04)
  • Head of Household or family (06)
  • Widow(er) (08)

*These statuses must be maintained in T5UTK. For more information, you can refer to SAP Note 2870071 – TAX: Table T5UTK entries for W-4 for year 2020.

For records beginning before 2020, filing status 02 (Married) should still be available. Check if the entry for 02 is still valid in T5UTK.

The following fields will be displayed in the infotype for records with begin date (BEGDA) greater or equal to 01.01.2020:

  • Use Higher Withholding Rates Schedule (P0210-MULT_JOBS_IND)
  • Total credits for dependents (P0210-DEPS_TOTAL_AMT)
  • Other Income (P0210-OTHER_INC_AMT)
  • Additional deductions (P0210-DEDUCT_AMT)

 

In Employee Self-Services (ESS)

Previous

Currently , in the ESS application for Form W-4 any change made to the record is effective the current date only and cannot be in the future.

New

In the ESS, for the new form W-4 for 2020, employees can submit a new W-4 to the employer using the first pay period of 2020. As the first pay period of 2020 can begin in 2019 (with a payment data of 01 Jan 2020), the previous solution prevented an employee from submitting a new W-4 via ESS until after payroll has been processed for the first pay period of 2020.

SAP is working on an enhancement to enable employees to set the begin date of the record to be editable (in the future) by which an employee can determine the withholding certificate to use in the upcoming pay period or later.

Note: This enhancement is planned to be released on December 20th.

 

Important SAP Notes:

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

 

Manual steps – to run the 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)

Manual steps – Run the report NOTE_2850174 in your system

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

Manual Activities –
Manual Post Instructions for SAP Note 2855896.pdf,
Run the report NOTE_2863489_DDIC,
Run the report NOTE_2863489

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.
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

2873856 New W-4 fields not disabled in PA30/PA40 for Exempt employees after applying SAP note 2872242

2876794 TAX: NWI parameter misplaced in BSI Interface for TaxFactory 10.0

This SAP Note is only relevant for the Payroll log, and does NOT affect tax calculation.

2880390 W-4 ESS: Changing field property and usage of BAdI HRXSS_PER_BEGDA

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
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

2884856 – Prerequisite objects for SAP Note 2880846
2880846 – TAX: Lock-in letters not overriding New W-4

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.

2888094 – TAX: Lock-in letters override for W-4 exempt

2881773 – W-4 ESS: ESS Web Dynpro enhancements

If you are using Tax Factory 10.0 SaaS and is facing issues with results in tax withholdings, please verify if your system is updated with the SP 72 (or the corresponding CLC). You must have the contents of the SAP Note 2780204, which is only delivered via SP.

 

Phase I State Notes:

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

 

Frequently Asked Questions – FAQ

 

1- Is W-4P for Pensioners supported? Is there an updated version for W-4p?

The Infotype 0210 is designed to support the regular W-4 form only.

 

2- When you change the start date to 2020, the new fields appear in PA30, but in ESS, they are not available. Is this able to create new record W4 for 2020 in ESS with start date of 01/01/2020?

Refer to Section 1: Major changes to SAP System -> In Employee Self-Services (ESS) section.

 

3- Regarding the SAP Note 2845529 for ESS W-4 Form for 2020, how are we able to test this to see the new fields since it seems to be using the current date, which is prior to 2020?

Refer to Section 1: Major changes to SAP System -> In Employee Self-Services (ESS) section.

 

4- Will the changes to the ESS W-4 also be applied to the UI5/Fiori versions?

No, Fiori for W-4 is not planned to be delivered.

 

5- I was able to display the new form in ESS only after I saved IT0210 with an effective date of 1/1/2020 for a specific test employee, but we should not have to create new records in order for them just to show up in ESS.

Refer to Section 1: Major changes to SAP System -> In Employee Self-Services (ESS) section.

 

6- How to remove the alphanumeric string displayed before the Tax Authority? 

If you are facing this issue, please refer to SAP Note 2871658 TAX: Missing field labels for ESS

W-4 2020.

 

7- Are these changes applied to customer-specific state forms?

Changes will be reflected only to Federal.

 

8-  How does SAP deliver customizing entries for filing status?

Filing status in T5UTK table must be maintained with your own entries in the system. The SAP Note 2870071-TAX: Filing Status customizing for W-4 for year 2020 serves only as a guide for you to create your own entries, and is valid only for federal entries. So you can change it accordingly with your business needs.

 

9- How is marital status 2 (Married) configured as of 2020 in SAP system?

Employees are not required to submit a W-4 for 2020. For employees who do not submit a new W-4 for 2020, the record for 2019 is still valid, and the marital status 02 is passed to BSI. The same happens for all states.

For employees who submit W-4 for 2020, value 02 is not allowed anymore. Then, records starting from 01.01.2020 must either use 03 or 04 for married status.

 

10- Where can I find the checkbox for W-4 step 2C: Multiple Jobs or Spouse Works in the IT0210?

This is the field MULT_JOBS_IND with the description “Use Higher Withholding Rates Schedule” in the Status panel.

The details are in the F1 help.

This field indicates the following conditions:

  • An employee who holds only two jobs or;
  • If married, both employee and spouse work are taken into account as two jobs in total. The correct amount of withholding depends on income earned from both jobs. For this case, if employee and spouse have similar income, the withholding will be most accurate if the adjustments are made for the highest paying job.

Use: This checkbox is used if there are only two jobs total.

This option is accurate for jobs with similar pay. Otherwise, more tax than necessary may be withheld.

 

11- Where can I find the checkbox for W-4 step 3: Claim Dependents in the IT0210?

This is the field DEPS_TOTAL_AMT with the description “W-4: Total credits for dependents” in the Exemptions panel.

The details are in the F1 help and Indicates the total amount based on the number of dependents employee is claiming.

 

12- In 2020 W-4 form, there is no longer a checkbox concerning last name differs from that shown on the SS card. Will this change be included in the system?

While this field is not part of the current W-4 form, it did not require SAP to prevent employers from capturing this additional data point. Therefore, this field does not affect payroll computations or subsequent processes.

 

References

https://blogs.sap.com/2019/12/07/w-4-form-for-year-2020/comment-page-1/#comment-485450

134 Comments
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  • This should have been done as the first step and then keep updating with new notes as required.

    But this is a good place to see all them at one place.

    Thank you Virginia.

     

  • Thank you!

    A couple comments…

    You are missing an additional OSS note – this note was released to fix note 2872242

    2873856 – New W-4 fields not disabled in PA30/PA40 for Exempt employees after applying SAP note 2872242

    Also – how do we know when a person should have marital status 04 (Married filing jointly) versus 08 (widow/er)?  These two marital statuses are the same option on the 2020 W-4 form.

    • Thanks for posting this question.  I do not know why there is a separate status “08- Widow/er”; I checked with BSI and didnt get a straight answer either.  The drop downs values in ESS has to match with what is there on the new W4 form from 1/1/20.  We can’t have two different values; it will only confuse people potentially increasing the calls to the help desk.

      • Chandra –

        I spoke with our BSI contact and this is what I have been told.  For BSI, the MS:8 Widow(er) status is because other tax authorities have this option – it is NOT specific to FEDERAL.  I told her that is where everyone is confused because the comment from SAP was to change T5UTK for Federal with these statuses.

        For tax calculations, the MS:4 and MS:8 will use the same exact table.  Therefore, it is our decision on how to word the text in T5UTK for this option (ex: MS:4 Married filing jointly or Widow(er)) and this is likely how mine will be configured.

        I hope this helps clear up the confusion for you and others as well.

        • Thanks  Alicia Robinson for posting BSI clarification.  This is very helpful.  This is how we are customizing our T5UTK table – since the SAP table goes by Tax Authority, we are delimiting status 2 (Married), 3 (Married filing separately), 8 (Widower), 15 (Married at single rate) for Federal by end of December.  From Jan 1, only status 1 (Single or Married filing separately), 4 (Married filing jointly or Widow(er)) and 6 (Head of household) will be available and update the text of the statuses accordingly to reflect IRS W4 form. Since the table is tax authority driven, we will still have status 8 available for states.  We are still in testing mode, so unless we find something this is the route we are taking.  Our remuneration statement also has some customizations for status text (common to all tax authorities), so we have to figure out how to have different texts for Federal and states.

          • Chandramouly Veeramony Are you doing anything to prevent errors on invalid marital status, for existing infotype records that start before 1/1/2020 and end sometime later?

            We’re not crazy about getting an error on these infotype records if you need to touch them for some reason.  They were valid infotype records before delimiting T5UTK, but afterward they have to be delimited at 1/1/2020 if you need to save them again.

            In order to delimit as of 1/1/2020 you would really need to get information from the employee for the new record.

          • The error message is raised by BSI and its only informational, it doesnt prevent anything, or end user would not see them (the error message is raised by BSI during the BSI interface). We are end dating statuses that are no longer valid in 2020, and if there are any Infotype 210 records (obviously there will be many), SAP will send those statuses to BSI and BSI will revert to default status (single or married filing separately) for its calculation with a warning message.  This is the approach we are taking.

            Thanks

            Chandra

          • Chandramouly Veeramony Thanks.  I was talking about error messages when using PA30 to edit existing infotype 0210 records.

            When you delimit the marital statuses in T5UTK, you receive error messages if you try to edit the existing records with an “old” status in PA30.

          • Yeah, sorry, I missed that.  Yes, there is an issue in PA30 when editing or making changes with the old form if the filing status is no longer valid. The validity check is done for the end date of the Infotype 210 record, so the infotype raises a hard error.  This will be a problem and I dont know if there will be a workable solution or a workaround available!

  • Hi

    We have many employees with married status 02 in our system. As per BSI, the married status has been divided into 2 different status – Married filing separately(03) and Married filing Jointly(04). Does all these employees need to submit the new W4 2020?
    Can you please advise if SAP is going to provide any config option/override option to convert existing martial status 02 value to  Married filing Jointly(04), since most of the married employees file jointly.

    Thanks for your help in advance.

    • Hi Kesagani,

      Employees are not required to submit a W-4 for 2020.

      For employees that do not submit a new W-4 for 2020, the record for 2019 is still valid, and the marital status 02 is passed to BSI.

      For employees that do submit W-4 for 2020, value 02 is not allowed anymore. Then, records starting from 01.01.2020 must use either 03 or 04 for married status.

      Regards,
      Gustavo

        • All –
          This is how I understand our marital status options need to be after discussions with our BSI contact.

          I do not know how this works for the SAP ESS process since we do not use that.

          /
        • Hi Kelli,

           

          I’ve been asking the same question.

          I’ve tested and looks like we can delimit 02 as of 12/31/2019. That way, 02 still goes through for those who sumbitted W-4 before 2020 and is not displayed for a new W-4 form from 01/01/2020.

           

          But, I hope someone from SAP confirms that this is how it should be.

          Regards,

          Euna

  • In our testing of IT210 starting 1/1/2020 and beyond we are no longer able to select “Exempt, Reportable”.  The field is there and we are able to select the values but when we save we get an error stating the following:

     

    “Changes to field “Tax Exempt Indicator”, which is not designed for use, are deleted”

    “End Date Proceeds Start Date” (This is a red line error)

    And you ask what dates am I using???  The BEGDA is 1/1/2020 and the ENDDA is 12/31/999 so how could my End Date proceed my Start Date?  After you click past the error the end date is automatically set to 12/31/2019 thus the error.

     

    I have a ticket open with SAP about this but was curious if anyone else is having the issue?

    • Kyle –

      We don’t have this issue and I’ve tested with all the exempt values.  I’m just curious if you have this note applied.  It was released to fix another note and maybe if you are missing it that is the issue.

      2873856 New W-4 fields not disabled in PA30/PA40 for Exempt employees after applying SAP note 2872242

       

  • Thank you, Virginia! This is helpful

    Also, do you know of the status on the enhancement below for the ESS W-4 yet?

    “SAP is working on an enhancement to enable employees to set the begin date of the record to be editable (in the future) by which an employee can determine the withholding certificate to use in the upcoming pay period or later.”

    Thank you,

    Tam

    • Hi Tam Ly,

      Improvement for ESS ABAP WebDynpro application has been released through the following SAP Notes:

      • 2876047 – Prerequisite objects for SAP Note 2868576
      • 2868576 – W-4 ESS – Allowing the configuration of begin date in standard ESS

      Regards,

      Virginia

      • Thank you, Virginia!

        We have successfully applied these 2 notes.  However, I noticed the following issues:

        ~There are two validity date sections

        ~The “I claim. . .” section still have 2019 instead of 2020 for the new record saved

        ~Received error of the additional withholding should be blank when claim “Exempt”, but all my withholding fields are blank.

        Wonder if anyone experience the same.

        Thanks,

        Tam

         

        • Does the “From Today” selection work for you?  It does not seem to work for our tests.  My developer confirmed we cannot disable that validity choice without a syntax error.  Thus, causing even more confusion for the employees.

           

          Thank,

          Stanette

  • Our technical team is not able to install Version 5 for Note 2870221 (Post-implementation objects for SAP Note 2845529)

    The assistant SNOTE reflects that this note does not contain valid correction instructions. We have implemented all the prerequisites for this note.

    Is anyone else experiencing the same issue ?

  • We are on 10.0w 179 and I am running payroll for employee who makes $5000 on a biweekly basis.  He is claiming single and $500 credit for dependent.  When I payroll I get $937.21.  The only way I can get to this amount is if I do not take the standard deduction of $8600 and the $500 credit for dependent.  Is anyone getting the calculation to work correctly.  I looked in the file we send BSI and I do not see where we are sending the $500 credit for dependent and how does it now if you are sending a pre 2020 or 2020 W-4?

    Thanks for all your help!

    Regards,

    Margaret

    • Margaret Walter – the dependent credit is sent in BSI interface under TC (when using 2020 W4).  Check line EDC under Federal tax type 001.  If using 2019 W4 form, the number of allowances are sent in the interface – look for NE under HUD line.

      note1: we were also not able to match BSI calculation to the IRS’s calculation sheet.

      note2: IRS tax calculation excel spreadsheet is available here

      Thanks

      Chandra

      • I have my test employee set up with a 2020 W-4 Married filing separately and $500 for Credits for Dep.  I am able to match up with IRS if he was set up as Single with no Allowances so it is not reading the $500 credit for dependents. I’ve attached a screenshot of our BSI interface and you will see the $500 credit for dep is missing.  So I’m wondering were we supposed to do something else so it appears in the interface?  As I stated we are running on 10.0w 179 and we have applied our support packs and CLC’s.
        Regards,
        Margaret
        /
        • Margaret Walter , hope you had a merry Christmas!

          I just tried a similar scenario as you had mentioned – associate with “Single or Married filing separately” and with dependent credit =$500. However I do see the “TC” command filled out correctly (have attached a screenshot).  I also notice that in your screenshot of the BSI interface, I dont see the “WF” command which identifies whether the associate has the new W4 form or the old one.

          Refer to note 2855896 for details of the new commands:

          BSI Interface script

          When executing the payroll driver with the “Display log” option set, you can check the new commands in the BSI Interface. They are:

          • EPC WF (Withholding Form)
            • 0,0: Form model before 2020
            • 1,1: Form model after 2020 with “Use Higher Withholding Rates Schedule” unchecked
            • 1,2: Form model after 2020 with “Use Higher Withholding Rates Schedule” checked
          • EDC TC (Tax Credit Amount): “Total credits for dependants” amount
          • ADD NWI (Non Wage Income Amount): “Other Income” amount

          “Additional deductions” uses the existing command EDC AE.

          I’m wondering if the notes have been applied correctly in your system.  This is the only thing I can think of right now.  Would you be able to verify? if the BSI interface codes are not populating correctly, it points to an issue in the SAP code. You may want to have the developer verify if all the notes have been applied correctly and the code corrections are implemented /available in the system.

          Thanks

          Chandra

          /
          • Forgot to mention: In my previous posts I had mentioned we were not able to match the exact tax calculation with IRS new calculation spreadsheet. After raising this with BSI and upon further investigation, it turns out the issue is with number of pay periods we have in 2020. We have one additional weekly and biweekly checks in 2020 which is messing with the calculation whereas the IRS spreadsheet uses 52 weekly and 26 biweekly checks in their calculation.

          • Margaret:

            Did you find a solution for this?  We have a similar problem, although in our case we did have the parameter EPC WF (Withholding Form) , but we are missing the parameter for EDC TC (Tax Credit Amount): “Total credits for dependents” amount. Thus the “Credits for Dep Amount” from IT0210 field DEPS_TOTAL_AMT was never passed to BSI.

            Regards, Tim

  • We are on 608 – HRSP 74 which has most of the notes you mentioned already in place. 

    We assumed the payroll log update mentioned to be in an HRSP would be in 74.  Can you indicate which HRSP the update of table TAX in the payroll log will be in?  If it is going to be delayed, can we get it in an OSS note instead?

     

    Thanks

     

    David

  • Hi ,

    We have successfully implemented OSS note: 2845128 TAX: W-4 Form for Year 2020 – Master Data (SAP_HR) and along with the screen fields with post date 01012020 .

    But, I am not able to release Transport req(tasks) to QA , it asks for permission(access key) to activate the Function modules  to release.

    We are Two users worked on the Implementation of this OSS note,   one of them do not have developer key . All the changes with Dev key transported to QA but without did not transport .Will this be the reason for error .

     Anyone faced similar issue.

    Pls suggest!

  • Hello,

    I am testing an employee who currently has a lock in letter (IT161 record). In the testing environment, I noticed if I changed the IT210 in the 2020 W4 form, it would supersede the mandate based on my calculation. The check box in the new IT210 still has the IRS mandate box checked.

    I had thought even though IT161 is not currently updated, it shall still supersede the 2020 W4.

    Can you please advise?

    • IRS issued guidance in Publication 15 for lock-in letters received before 2020.  They require us to continue to follow the instructions in the lock-in letter and use the withholding methods described in Publication 15-T for an employee with a Form W-4 from 2019  or earlier.  We are to follow these instructions until a release letter is received or we receive a modification notice from the IRS or the employee provides a new Form W-4 that results in more withholding.  We tested an employee who has a 2019 lock-in letter with Single, 0 allowances.  In our scenario we submitted a 2020 W-4 of Married Filing Jointly with a $1,000 credit for Dependent.  The tax calculation used the Single, 0 allowances.  However, the 2020 record in IT0210 resulted in a WF 1,1 code being sent to BSI which triggered use of the 2020 W-4 withholding method and the $1,000 credit for Dependent was deducted in tax withholding calculation—both of which don’t seem to be in compliance with the IRS regulations.  Is anyone else having this issue?  We’ve submitted a ticket with SAP.

  • We are on 604 and we have the label for checkbox User Higher Withholding Rates Schedule is missing from our ESS form.  What notes fixes this issue?

    Regards,

    Margaret Walter

    • Hi Margaret,

      I am on 604 + Tub 179 and my screen and calculation work fine.

      Did you apply Note 2855896 TAX: W-4 Form for Year 2020? Also there is a post implementation for this note which you need Technical team to apply because it deals with BAPI, text module + my tech guy said he even needed a repair key.

      I think this was the reason where the label for checkbox is missing.

      Best Regards,

      Ta

  • Hello,

    Can anyone confirm the following –

    1. Delimit entry for Married(02) to 12/31/2019 in T5UTK or not?
    2. Define New filling status – Head of Household (06) effective 1/1/2020 (Note 2870071 doesn’t say anything about this)

    Thanks

    Sukhbir

    • Same here. We need CLEAR clarification.

       

      Note 2870071 tells us to do have

      03) Married Filling Separately

      04) Married Filling Jointly

      08) Widower

      However, 2020 W-4 requires “Head of Household” status (06) that Alicia Robinson mentioned. And she got answer from BSI. From my knowledge, Married Filling Jointly and Widower are being calculated from same exact table.

      Please let us know asap.

      • Sukhbir Singh,Dennis Choi,

         

        The entries in T5UTK serve only as guides for the user to create their own entries in their system. SAP Note 2870071 delivered only the new filing statuses, hence the “Head of Household” status (06) is not included, as it already exists form previous years. For records beginning before 2020, filing status 02 (Married) should still be available, so you can delimit this entry according to your business needs.

         

        Regards,

        Virginia

  • I just want to say that there is something systematically wrong with the setup of the Marital Statuses in T5UTK.  First, we have to end date Married and Married/Single Rate because they are no long valid as of 1/1/2020.  So in our table we end dated the records with a 12/31/2109 date.  However, because ESS reads the date range of that table anyone who wants to view their old W4 form can’t even see their Marital Status if it is one of these values.

    Secondly, there really needs to be a way to “View” the old record and also a button to create a new record.  It is absolutely unacceptable to have to make people open up their old form, click save and all the sudden the 2020 fields appear.  I am trying to be nice but this is a complete disaster.

  • I will add my frustration with the T5UTK table and the tax calculations as well.  I know that I added comments on the 2020 W-4 blog about what we are using for T5UTK and I’ll add those here as well. This table used to be updated by SAP and I have yet to understand why that was stopped so many years ago since the marital status codes need to pass from SAP to BSI in order to get the right tax calculated.  And unfortunately I’m afraid we have issues in other tax authorities as well that we now have to find the time to figure out what marital statuses are correct and fix those entries.

    We have our own in-house ESS and in order to make everything old and new work correctly we did NOT delimit any of the old marital statuses – we only added the new ones beginning 1/1/2020.  I will  say that I tried to remove the 08 Widow(er) status because it’s not on the old or new FEDERAL W-4, but it’s still there.  Now to figure out where it’s coming from.

    FED 01 12/31/9999 01/01/1980 Single            Single
    FED 02 12/31/9999 01/01/1980 Married          Married
    FED 03 12/31/9999 01/01/2020 Sin/MarSep   Single or Married filing separately
    FED 04 12/31/9999 01/01/2020 MarJnt/Wdw  Married filing jointly or Widow(er)
    FED 06 12/31/9999 01/01/2020 Head house   Head of household
    FED 08 12/31/9999 01/01/2020 Widow(er)      Widow(er)
    FED 15 12/31/9999 01/01/1980 Ma.si.tax        Married single tax rate

    We have over 1,000 new hires and counting coming in for our first payroll of 2020 – which has a start date of 12/29/2019 – and we run on 1/3/2020 for a pay date of 1/10/2020.  This has been a nightmare for us!!  Our new hire data can start processing as much as 60 days in advance so you can already see where our issues begin – what W-4 form will be used??  The only form available at this time was the 2019 W-4 and the marital statuses that go with this form.  So even if a person’s hire date is not until 1/5/2020 the 2020 form wasn’t available to them and they completed a 2019 form.  This leads to several issues – the biggest is the tax calculation.  In testing some of these new hires, if they have Married (02) selected on the 2019 form this is no longer available and gets converted by BSI to Single (01) in the payroll process.  This happens even though we did NOT delimit the “02” status in T5UTK, but because the person’s hire date is in 2020.  You will only see this in the BSI Messages in the log.  The person has allowances from the 2019 form, but these will not show on the person’s IT210 record because that field doesn’t exist for 2020, but the allowances do get picked up by BSI in the log and are used for determining taxes withheld.  How can we determine if a person’s tax is correct unless we can figure out what is being used for each person by reviewing the BSI log because what shows (or doesn’t show in this case) on IT210 doesn’t match the W-4???  We can NOT do this for number of persons we process in our payroll!!!!  We are now at a point of having to communicate to all of these new hires and tell them to review their taxes and to complete a new 2020 W-4 form, because we simply can NOT guarantee that the correct taxes have been withheld. This will be something we have to do over the next couple of months – not just for the first payroll.  How does that look on us as the employer?? Not very well in my opinion!!

    • Alicia Robinson thanks for posting this.  This has been a mess with all sorts of issues from different directions. Our first payroll was earlier this week and we do have all the issues that you have highlighted. Unfortunately no easy solution. This being a holiday week, we are not seeing that much calls but expect to spike over the coming weeks.

      Thanks

      Chandra

  • Hello,
    When we are trying to apply Note  2877736 via SNOTE, system is issuing following error:
    FUNC HR_PL_D_PC22T Changes to L31USU15 are forbidden by SAPChanges to L31USU15 are forbidden by SAPMessage No. EU522
    It seems this function has attribute “Edit Lock” set. We aer up to date on W-4 related notes.
    Just created incident – 3850 / 2020 Error applying Note 2877736

    Thanks, Sukhbir

  • We delimited the FED 02 entry in T5UTK as of 12/31/2019.  Now ESS won’t let us update FED and gives us an error that says there is no entry for 02 with an end date of 12/31/9999.  Does anyone know if there is a workaround or fix for this?  It happens in PA30 too ( saw this mentioned in an earlier post ) but that one is a little easier to deal with.

     

    • Tim Holt are you getting the error if you create a new FED record with effective date of 01/01/2020? filing status “02” is no longer valid after 01/01/2020, so you would have to choose an appropriate/equivalent status.  SAP delivered a new filing status “04” (Married filing jointly or Widower) effective from 01/01/2020.

      • Chandramouly,

        It seems that OSS 2868576 helps with this issue.  That plus the realization that we had a custom configuration on the W4 Webdynpro.   Anyway, Thanks!

        Tim

         

    • So I wonder how this works with pre 2020 and now 2020 since we have garnishments already set up to with pre 2020 dates and now we will have new entries that will need to use 2020.

      The list just continues to grow…….

      • We just applied the SAP note for the 1494 updates. Since IRS hasn’t updated their filing status, SAP hasn’t updated it as well. I’m confused on how this will work with the new filing status thats on the Infotype 210 from 1/1/2020 (for at least those who have submitted their new W4) vis-a-vis the old status for 2020 1494 publication.

  • Hi Virginia Soares,

     

    I’m wondering if SAP is adjusting the description of filing status (03) to ‘single or married filing separately’ as it was mentioned at the beginning of this blog?

     

    Regards,

    Euna

    • Euna –

      It’s been mentioned several times that the description in table T5UTK is totally up to the customer and SAP only makes ‘suggestions’ for the entries, so I wouldn’t look for a change from SAP.

      For our purposes, we put the text in the table as “Single or Married filing separately”.  Per BSI, they use the same tax table.

      Hope this helps.

  • 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

  • Hello,

    Is it correct for two different employees having the same wages and setup on Infotype 210 to have a different Federal Withholding tax amount just because one has a W-4 in 2020 and other has a W-4 in 2019 or before? We have the below setup for two different employees:

     

    Employee 1 –

    Wages – $3,000

    Filing Status – Single

    Number of exemptions – 0

    W-4 effective date in infotype 210 – 1/6/2019 to 12/31/9999

     

    Employee 2 –

    Wages – $3,000

    Filing Status – Single

    Number of exemptions – 0

    W-4 effective date in infotype 210 – 1/1/2020 to 12/31/9999

     

    When first pay period of 2020 is processed (pay date 1/3/2020), Employee 1 has a tax amount of $473.11 and Employee 2 has a tax amount of $403.04. I did some investigation and found BSI has used a standard deduction of $8,600 for Employee 2. Employee 1 does not have any standard deduction because the number of allowance is 0. Has anyone noticed this and found to be correct? Per my understanding, BSI will use the same table for Single, so I’m not following this variance when two employees have the same earnings.

     

    Thanks,

    Mitesh

    • Mitesh –

      BSI will not use the same table for Single or any marital status if the W-4’s are in different years.  It will use the old table for 2019 and prior, but it’s using the new table for 2020.

      • Alicia,

        Thank you for your response. I was reading the Quick Formula section on BSI website and below is mentioned for Tax tables:

        (Use these tables if the Form W-4 is from before 2020, or if the Form W-4 is from 2020 or later and the box in Step 2 of Form W-4 IS NOT checked.)

         

        I used the same table in my manual calculation for both the employees and Employee 2 has an advantage of standard deduction, thus reducing the Tax amount.

  • Hello community,

    Just noticed…and maybe it has already been mentioned, there is not “checkbox” for Step 2 on the W4 form on the IT0210 screen.  We have applied all the notes related to IT0210 as of today’s date.

    Am I missing something.  Thanks so much for the feedback and help.

    Thanks

    Evelyn Campos

     

     

     

     

      • Hi Virginia,

        Apologies I did not know that is the box referred to on Step 2 of the W2.  I have confirmed this by running a test on an employee and it WORKS!!!

        Thank you sooo much for your prompt reply.  It is much appreciated.

        Evelyn Campos

         

         

  • Community,

    The way I read the W4 instructions, a person that is exempt from withholding is not required to complete filing status.  However, in PA30, the field is still required and you have to enter something.  Is anyone else facing this problem?

    Thanks

    Tim

     

    • Tim –

      I’m glad you posted this question because even though we didn’t think about the marital status not being needed – it’s a good question.  We do have to enter a marital status or the IT210 won’t save.

      I was going to post a query about an EXEMPT person and the check box “use higher withholding rates schedule” still allowed to be checked even though the person has been marked as EXEMPT.  I know SAP made additional changes to remove all the new monetary fields if a person is exempt, but I don’t think any of us thought of this checkbox.

      So SAP should the marital status and the checkbox both be grayed out if a person is exempt?

  • Hello. Is anyone experiencing issue with submitting  ESS 2020 form for Arizona?

    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 initially there on form,   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.

     

    Thanks,

    Vandana

      • We started experiencing this issue after implementing OSS Note: 2854021 – ESS: Fields of Reduced Withholding for MO not updating correctly.
      • We identified during debugging that there is a new set of code inMethod: IF_HRPA_UI_CONVERT_STANDARD~OUTPUT_CONVERSION
      • added by code corrections of OSS Note 2854021.
      • Class: CL_HRPA_UI_CONVERT_0210_US

       

      Arizona state is unique and require alternate formula. Is there a  plan in place to  address this issue.

  • We have integrated the SAP Notes released for the 2020 W4 and the ESS. The IRS form on the ESS does not look anything like the actual form. We don’t find it user friendly. Does SAP plan on making updates to the 2020 W4 ESS version to closer match what an employee sees on a paper form? And if so, do you have a timeline?  I’ve seen references for the JAVA WebDynpro but have not seen any for the ABAP WebDynpro.

    Thank you,

    Nancy

    • Hi Nancy Nichols,

      An improvement for ESS ABAP WebDynpro application has been delivered through the following SAP Notes:

      • 2876047 Prerequisite objects for SAP Note 2868576
      • 2868576 – W-4 ESS – Allowing the configuration of begin date in standard ESS

      With this improvement, users will be able to set the start date of the records created in their ESS. More information can be found in the notes.

      Regards,

      Virginia

      • Thank you for your quick response, Virginia.

        Yes, we have already applied the 2 notes that are referenced.  I may have not been very clear on what I am asking.  The IRS W4 form does not match the format provided for the ESS W4 ABAP WebDynpro form.  Does SAP plan on changing the ESS W4 form to match the IRS W4 form?

        /
        • Hi Nancy Nichols, ,

          Thanks for your feedback! The W-4 changes in ESS are following the IRS W-4 form, according to its final version.

          The new Marital Status values effective 01/01/2020 in Step 1 in IRS W-4 Form is displayed in ESS, as follows:

          Step 2 in IRS W-4 Form is displayed in ESS, as follows:

          Step 3 is displayed in ESS, as follows:

          Hope this clarifies.

          Best regards,

          Virginia

      • 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,

  • Okay I’m as confused as everyone else on the filing statuses. It seems that this should be simple but I’ve seen contradicting information provided. I understand 2020 prior and 2020 going forward so again this should be simple. My question is why in Note 2870071 do they have you configure something that doesn’t match what is on the Federal Form? There is no separate widow(er) selection on the New W4 why configure it? For 2020 forward it looks like there should be 3 statuses that are sent to BSI – 03,04,06 please confirm if my picture below is accurate. In BSI 10.0 Regulatory Bulletin 179 there is no reference to expected filing statuses are we to guess what should be sent to BSI and possible returned taxes?

    Please provide clarity in this area.

    Thanks,

    Greg

     

    /
    • Greg Zifchock– The configuration provided in SAP Note 2870071 is just a suggestion from SAP and the actual entries to be configured is for the customer to decide. We have not delimited any entry in table T5UTK because we are displaying the text of filing status on the Remuneration statement. You will have to check the entire process from creating master data to tax calculation and display on Remuneration statement to decide the entries that are required in table T5UTK.
      BSI has provided the values of filing status in the documentation released for cyclic W. Hope this helps.
      Thanks,
      Mitesh
      • Mitesh,

        Thank you for pointing me to the documentation for BSI Cyclic W. …..

        The following Marital Status values will be used for 2020 Federal Withholding:

        • Single or Married Filing Separately (MS:1 and MS:3)
        • Married Filing Jointly (MS:4)
        • Head of Household  (MS:6)
        • Widow(er) (MS:8)

        Can BSI verify that MS:8 and MS:4 calculate the same, because on the new Federal form they are on one line? If they do not then this is a disjoin that doesn’t match the new form. This would allow me to configure T5UTK to match what is on the new W4 which is only 3 lines. “Married Filing Jointly or Qualifying Widow(er)” = MS:4

        Thanks,

        Greg

        • Greg –

          BSI confirmed with me at one point of my questions on the whole martial status misunderstanding that MS:4 and MS:8 will use the same tax table.  For me, there is no way for us to know which they are because they are on the same line on the W-4 form so it makes no sense to have both options in the T5UTK table.

           

  • Hello SAP/Community:

    I have a question/comment regarding the changes to IT0210 and for those of us who display the information on our Remuneration Statement.  In our case we not only display the Filling Status but also the number of Allowances.  Now since the Filling Statues are being delimited on the table, for anyone that does not have a new IT0210 as of 01/01/2020 the Filling Status field is blank, but the allowances still show up which can be confusing.  Does anyone else have this situation, and how are you addressing it? (aside from removing that field on the Remuneration Statement).

    Any feedback is appreciated.

    Evelyn Campos

     

     

     

    • Evelyn Campos, – We also show filing status on Remuneration statement and that is the reason we have not delimited any entry in T5UTK. We still have employees with W-4 prior to 2020 with filing status that are not valid for 2020. We do not use ESS for W-4, so it was an easy decision for us to just leave them with an end date of 12/31/9999.
      If you have delimited the entries and still want to show the text, you can work with your technical team to explore the options of writing custom code in include RPCEDSZ9 which is used by the main program for Remuneration statement (RPCEDTU0). SAP logic reads table T5UTK as of the system date and you can write your custom logic to read T5UTK without any date condition. This is the only option I can think of as of now.
      Thanks,
      Mitesh
      • Mitesh – Thank you  so much for the feedback.  Unfortunately for us we use ESS so the options had to be delimited.  I will look into working with our technical team then.

        Thanks a lot.

        Evelyn.

         

  • Yes, we have the same issue. We did delimit married because in testing, ESS will allow an employee to save a form created after 01/01/2020 with the filing status of married. We did not want this.

  • Looking for guidance from the experts here on what specific notes I need to implement to get the field changes on Infotype 0210 as well as if I need to do a Service Pack update.

    We do not do payroll in SAP – we use the PU12 Toolbox to generate a Payroll interface file for import to ADP. We do not use ESS for our USA based employees.

    SAP pointed me to the blog site and provided a list of notes but am not sure if I need to do Service Pack Updates.

    Our Component version is – SAP ECC 6.0 and we have installed EHP7

    SAP_HR Release is 604 with SP-Level 0072

    SAP_HRCUS Release is 604 with SP-Level 0072

    EA-HRCUS Release is 607 with SP-Level 0023

     

    SAP advises – To install the SAP Notes with the W-4 changes, the minimum HRSP required for software component EA-HRCUS 604 is HRSP B9.

     

    Your guidance is appreciated….Thank You

    • Hi Greg Walsh ,

       

      It is recommended to install the following SAP Notes:

      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
      2875533 Delimited Filing Status Description resulting in validation error in Decoupling Framework in specific situations

       

      Regards,

      Virginia

  • Hello –

    Has anyone run into an issue with Nebraska and IT210?  We have new hires that are filling out a form W-4 for Nebraska.  Apparently they released their own W-4N back in November and are not using the Federal W-4 any longer.  Our IT210 screen doesn’t allow us to even enter a marital status (it is grayed out when you key the tax authority).

    Thanks!

    • Alicia – We are not having this issue and are able to create IT210 records for Nebraska. I’m curious to know if this started after you implemented the changes with SAP notes. Are you using the new forms for Nebraska? I would just check if there is something in table T5UTZ for Nebraska that is preventing you from entering a marital status.

      Thanks,

      Mitesh

      • Mitesh –

        Thanks for the reply!  In the past T5UTZ is also one of those tables that has been updated by SAP – not sure if that has changed.  Nebraska never had it’s own form so it was blocked in T5UTZ from being created on IT210.  Since there is a new form we had a few employees submit the new form but we were unable to process it due to the T5UTZ settings.  I have changed those settings to allow the form now.  I would still like to know if this is another table that SAP will no longer update.

        • T5UTZ is updated when you execute the Synchronization program as part of the BSI TUB update process. I don’t think the program updates existing records because we have changed settings in the same table and the custom changes still exists. I just make sure to check the custom changes after executing the program.

  • I was wondering if any one has had this issue.  We are using webdynpro ESS for employees to update their W-4.  We had an employee whose last w-4 was from prior to 2020.  So he went in and updated his allowances and selected the declaration and the system saved the data.  I know that there is logic if the W-4 has a date on or after 1/1/2020 it will not using the allowances.  But how have you prevented employees from doing these types of updates?

    • Margaret Walter we are using a BAdI to validate and control the start date of the changed/new W4 (to coincide with payroll begin date).  We have incorporated validations regarding dates, filing status, etc., and also added the newly introduced enhancement “Add” button to the form. This has enabled us to prevent users from submitting such erroneous records.

  • 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!

  • Hello,

    Has anyone noticed an issue when a user elects an exempt W4 status?  When an exempt W4 record is selected either thru PA30 or thru ESS there are two records created.  Since the exempt election is only valid for one tax year, the first record will end in February of the next year.  The second record will start in February of the next year and end 12/31/9999.  The problem is that the second record is storing with an invalid filing status since filing status options have changed effective January 1, 2020.

    I created an incident for this but so far it has not been picked up by SAP.

    I am wondering if anyone has had this same issue.

  • Hi community,

    A new SAP Note (2881773 – W-4 ESS: ESS Web Dynpro enhancements) has been released to address and solve the following scenarios:

     

    • When opening a W-4 entry, the Filing Status (P0210-TXSTA) dropdown list is not loaded properly if there are delimited entries in the Marital Status (T5UTK) view.
    • The customer enhancements made in methods in the HRESS_C_W4 Web Dynpro Application are not called.

    Regards,

    Virginia

  • Hello:

     

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

    Thsi note is not working as mentioned. Neither itwipes out the exemption/additiona amount etc and also not graying out teh fileds to display only.

    Anyone face this issue?

    Also note says it is for PA30. Does that mean SAP will release another one for ESS ABAP WD?

    Thank you,

    Raj Mahadevan

     

     

     

  • Hi Virginia Soares ,

    Is it possible to move the declaration to the top of the form? The system asks you to select the declaration box before you can create a new tax record. Unfortunately, you must look for the declaration box which is close to the bottom of the page.

    Please advise.

    /
  • Virginia,

    It appears that federal additional withholding is not working with the new W4.  I’m sure there must have been a note to apply by now, but I don’t see it.  Can you please let me know what note needs to be applied in order to correct this?  Thanks.

    Steve French

  • Hello Community,

    Has anyone encountered an issue with creating more than one future dated entry, taking advantage of the new functionality, and the latest record created ‘overriding’ the prior future dated record?  We are in the process up finally opening the form in ESS and in testing that new functionality the issue came up.  We are using the W4 ABAP version.

    Thank so much for any feedback and/or comment.

    Evelyn Campos

     

  • HI Virginia ,

    We had implemented the note 2880846 to accommodate the IRS Mandate old form, however the IRS now has updated to the new forms and we started receiving the new forms as of July. What are the changes that we need to make in order for the Future forms to work going forward without affecting current forms?.

     

    Thanks

    Muthu

    • Hi Muthuraj Selvaraj ,

      Can you share the new IRS requirement? You can either send link via this blog or open an incident under component PY-US-TX, providing the link to the new IRS requirement in the incident.

      Thanks,

      Virginia