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Author's profile photo Graziela Dondoni

U.S. Tax Reporter Year End 2020

Hello community,

This blog is not updated anymore, instead the blog for 2021 was created:
U.S. Tax Reporter Year End 2021 | SAP Blogs

This is our U.S. Tax Reporter Year End 2020 blog. If you have questions about 2020 Year-End reporting, you can post it here. This blog will be updated with tips, best practices and, SAP Notes related to this subject.

To be able to access the Year-end 2020 in the Globalization finder page you need to be logged on (similar to SAP Service Marketplace) because it is a gated area and would need authorization.

To review the planned Legal changes for US, start the Announcement of Legal Change application. You can find detailed information about the Announcement of legal changes on this blog.

SAP Notes

Tax reporter notes

2956914 – W-2 / 1099-R Forms, Envelopes and PR Approval letter for year 2020
2954621 – U.S. Tax Reporter Year End 2020 Announcement
2955032 – Year End 2020 Phase I for U.S. Tax Reporter
2975038 – Year End 2020 Phase II for U.S. Tax Reporter
2994384 – (Prerequisite objects for SAP Note 2975038)
3001227 – Year End 2020 Phase III for U.S. Tax Reporter
3006708 – (Prerequisite objects for SAP Note 3001227)
3009810 – TR: Year End 2020 additional U.S. Tax Reporter changes.
3012513 – TR: Cleveland OH requires State Employer Account Number in RS record location 248
3010979 – TR: 1099-R Employee Form being generated for Distribution Codes with zero amounts
3012492 – TR: EFW2 file format changes for the Commonwealth of VA for Tax Year 2020
3017122 – TR: Idaho W-2 electronic file rejected by Tax Authority due to incorrect Date formatting in Record RS

General notes

2922369 IMG: Runtime Error for 3PR Cluster Views V_T51RK_1 and V_T51RX
2990487 – BEN: Limits for retirement, savings plans and Health FSA contribution in tax year 2021
2991544 – RPCPRRU0: Exempt wage types incorrectly configured in TAXT group
3000740 – GARN: IRS Publication 1494 for tax year 2021

Taxes
3008339 – TAX: Community Safety Payroll Taxes for Eugene
3013127 – BSI: Enablement of Tax Type 106 for Concurrent Employment

Important:

If you had upgrade the system to SAPK-60886INSAPHRCUS you need to run report RPUPAV00 as explained in SAP note note which is included in this Support Package:
2923573 – FLSA: Extension of Infotypes 0015 and 0267 to Support Overtime Premium Over Bonuses

This is just for release 608, because infotypes 0015 and 0267 were extended and now have two additional fields so that you can inform the period of reference of the bonus payments. Due this you should run the report.

The ASUG HCM US Webcast 2020 Slide Deck has been attached to SAP Note 2954621 – U.S. Tax Reporter Year End 2020 Announcement. In case you are an ASUG member, you can view the webcast recording via video on-demand.

Kind regards,
Graziela

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      Author's profile photo Graziela Dondoni
      Graziela Dondoni
      Blog Post Author

      Hello colleagues,

      Notes have been released:

      3008339 - TAX: Community Safety Payroll Taxes for Eugene

      3013127 - BSI: Enablement of Tax Type 106 for Concurrent Employment

      Kind regards,
      Graziela

      Author's profile photo Jamal Noorani
      Jamal Noorani

      Hi All ,

      I have already developed 1099 NEC1 2020  ,You can download the “IDWTCERT_US_1099NEC1” ( 2 Copies per page for NEC 1099 2020 ) from the below link from google drive :

      https://drive.google.com/file/d/1wqD635lzaz8fBc7N1430eiDNPvOkKmy0/view?usp=sharing

      Request your development team to upload in SAP as PDF form – “IDWTCERT_US_1099NEC” so that you don’t need to do custom BADI implementation for IDWTREP_ADOBEPRINT.

      I hope SAP will release this for all US customers soon as a new notes .

      Thanks & Regards

      Jamal Noorani

      Author's profile photo Monica Dahlberg
      Monica Dahlberg

      Hello Graziela,

      We noticed that when running the 941 for QTR 1 of 2021, the form is not checking the "Report for this Quarter of 2021" box for the quarter. This function works for the 2020 form but not working for the 2021 form. I have not found any notes in OSS. Can we inquire here for a solution?

      Regards,

      Monica

      Author's profile photo Graziela Dondoni
      Graziela Dondoni
      Blog Post Author

      Hello Monica,

      This is because form HR_F_941_20_Q3 is being generated, because the valid of this is 12/31/9999 07/01/2020.

      The new note for Quarter 1, 2021 should be released with a new form 941.

      Kind regards,
      Graziela

      Author's profile photo Monica Dahlberg
      Monica Dahlberg

      Hello Graziela,

      We do get a new version of the form 941, dated July 2021 though.  It is interesting that the  revision date says July 2021 but it is definitely a new form specifically for 2021. Any further recommendations?

      Regards,

      Monica

      Author's profile photo Graziela Dondoni
      Graziela Dondoni
      Blog Post Author

      Hi Monica,

      The revision date for 941 form HR_F_941_20_Q3 is July, the year 2021 is fulfilled by the selection in Tax Reporter.

      My recommendation is to wait for Quarter I note for 2021.

      Kind regards,
      Graziela

      Author's profile photo Monica Dahlberg
      Monica Dahlberg

      Thank you Graziela.  We will watch for it.

       

      Regards,

      Monica

      Author's profile photo Jahnavi Kavuru
      Jahnavi Kavuru

      Hello Graziela,

      Has the note to update 941 form for 2021 been released? I could not find it. Should this be enquired at some other place? If this is not the right place, could you please point me to it?

       

      Thanks,

      Jahnavi

      Author's profile photo Graziela Dondoni
      Graziela Dondoni
      Blog Post Author

      Hello Jahnavi Kavuru,

      This is not released yet. You can follow up in the announcement of legal changes. As per the information that I have Developer will post the changes there, the note number and the planned release date.

      P.S.: this is not posted yet, but you can keep an eye on it.

      To review the planned Legal changes for US, start the Announcement of Legal Change application. You can find detailed information about the Announcement of legal changes on this blog.

      Kind regards,
      Graziela

      Author's profile photo Kim Grantham
      Kim Grantham

      Hi Graziela,

       

      We applied note 3036495 - TR: Form 941 (FED) update for Q1/2021 in our sandbox.  When we test our 941, it has a revision date of July 2021 and the IRS website is March 2021.  Any suggestions?

       

      Thanks and Kind Regards,

      Kim

      Author's profile photo Graziela Dondoni
      Graziela Dondoni
      Blog Post Author

      Hi Kim,

      Did you upload the new form delivered in note 3036496 in SFP transaction?
      The manual steps.

      I´m my internal this is correct.

      Kind regards,
      Graziela

      Author's profile photo Kim Grantham
      Kim Grantham

      Hi Graziela,

      Hopefully you meant note 3036495.  And yes, the manual steps were performed.  The tables were all double checked and HR_F_941_21 is in V_51T5_B.

      Kind Regards,

      Kim

      Author's profile photo Graziela Dondoni
      Graziela Dondoni
      Blog Post Author

      Hi Kim,

      Yes, this was a typo.

      But the form in SFP transaction?


      Could you check if it is active?

      Kind regards,
      Graziela

      Author's profile photo Kim Grantham
      Kim Grantham

      Hi Graziela,

      Yes, the form is active.

      Kim

      Activated%20Form

      Activated Form

      Author's profile photo Kim Grantham
      Kim Grantham

      Hi Graziela,

      We found an issue in how the note was applied.  After making the correction, it is now printing the correct revision date.  Thank you for your time and assistance.

      Kind regards,

      Kim

      Author's profile photo Graziela Dondoni
      Graziela Dondoni
      Blog Post Author

      Hi Kim,

      Thanks for the update.

      Regards,
      Graziela

      Author's profile photo Deborah Moses
      Deborah Moses

      Is anyone having issues with running 1099s? Did we miss a note or anything? Something is missing because 1099NEC is not listed in the DMEE tree type for WTRE.

      Format tree  does not exist for tree type WTRE

      Author's profile photo Graziela Dondoni
      Graziela Dondoni
      Blog Post Author

      Hi Deborah,

      As per your description this 1099 is from FI and not Tax Reporter.

      I found the FI-AP-AP-Q1 note:
      732265 DMEE: Creation of XML files, some errors in the DMEE

      But I cannot help too much, as this is not my area.

      Kind regards,
      Graziela

      Author's profile photo Rishikesh Nalapur
      Rishikesh Nalapur

      Moses,

      We too are facing same issue generating 1099 NEC file from RFIDYYWT. The program ends up with error ‘Format tree does not exist for tree type WTRE’.

      We have implemented following notes, yet the error occurs.

      2987409 – US Legal Change 2020 -1099 NEC Form

      2919655 – US IRS New Withholding Tax Form 1099-NEC and Legal changes 2020.

      3008444 – US 2020 Legal Change – 1099 File Changes

       Let me know if you can find a fix, meanwhile we have raised an OSS with SAP.

      Regards,

      Rishikesh Nalapur

      Author's profile photo Deborah Moses
      Deborah Moses

      Rishikesh Nalapur  - we raised an incident with SAP also. I will let you know what we get back from them. Please let me know if you hear something.

      Author's profile photo Syed Yaseen
      Syed Yaseen

      I was able to fix the 'Format tree does not exist for tree type WTRE' error by entering the DME file fields in the 'Define Output Groups' for 'US_1099NEC'

      Select 'Download file to Frontend' under DME file

      In the format tree field add -  'IDWTFILE_US_1099NEC' . These two were not mentioned in the manual steps of the OSS note.

      Author's profile photo Rishikesh Nalapur
      Rishikesh Nalapur

      Yes we too were able to fix the issue by maintaining the missing DMEE entry. Not sure, why SAP didn’t capture this part in post manual steps of note 3008444. Thanks for the update. 

      Regards,

      Rishikesh Nalapur

       

      Author's profile photo Jamal Noorani
      Jamal Noorani

      Hi Yaseen ,

      SAP has suggested to add BADI filter value as per Notes 3008444 updated last week .

      Do not forget to update it in SAP otherwise once you upload the file on IRS portal for e-filing you will get error .

      Thanks & Regards

      Jamal Noorani

      Author's profile photo Syed Yaseen
      Syed Yaseen

      Thanks Jamal. We will look at the BADI filter values.

      Author's profile photo Jamal Noorani
      Jamal Noorani

      Hi All ,

      Once you implement SAP notes for 1099 , PDF forms will be generated successfully , but when you will try to upload file in IRS portal for e-filing 1099 NEC - you may get the error:

      " 1 is the sequence number of your record that is not in ascending numerical sequence. This is the first record where we detected an error in the sequence. The sequence number is located in position 500-507 of each record. Please review your entire file for this error. Refer to the publication 1220 or contact your software company or service provider for further information."

      Solution : Filter value for NEC DMEE tree needs to be added in BADI implementation "DMEE_US_WTRE_01", I hope SAP will release this SAP notes soon for US customers .

      Alternatively , you can create your custom BADI implementation for " DMEE_BADI_01 " and the below filter values which is DMEE files for 1099 :

      IDWTFILE_US_1099

      IDWTFILE_US_1099G

      IDWTFILE_US_1099INT

      IDWTFILE_US_1099NEC

      and also copy and paste the code from BADI implementation - DMEE_US_WTRE_01 method - MODIFY_OUTPUT_FILE in the custom implementation.

      Hope this will help .

      Thanks & Regards

      Jamal Noorani

      Author's profile photo Jamal Noorani
      Jamal Noorani

      Hi All ,

      IRS has separated 1099 NEC (Non-Employee Compensation) FORM and 1099 MISC (Miscellaneous).

      In SAP notes - 2919655 you can get the details to implement 1099 changes for 2020.

      This will be useful if you are trying to implement newly delivered 1099 changes for 2020 PDF-FORMS and wondering when SAP is going to deliver the "IDWTCERT_US_1099NEC1" .

      If we use "IDWTCERT_US_1099NEC" - we will be able to print two vendors in a single page, which business team will not like to do.

      SAP has delivered recently these forms but they have no plan to deliver "IDWTCERT_US_1099NEC1" as per SAP notes (FAQ - 1099)- 2973935 :

      Q9. Does SAP have any plan to release Form IDWTCERT_US_1099NEC1?

      A9. No, SAP does not have any plan to release Form IDWTCERT_US_1099NEC1.

      When I was going through SAP notes on marketplace, I was looking for PDF-FORM "IDWTCERT_US_1099NEC1" as Business Team used to print two copies in a single pageThen I decided to develop "IDWTCERT_US_1099NEC1" with reference to "IDWTCERT_US_1099MISC1" which was delivered by SAP, I did minor enhancement in the PDF-FORM

      "IDWTCERT_US_1099NEC".

      I am attaching the FORM "IDWTCERT_US_1099NEC1" for your reference with a hope that it might be helpful to someone or SAP can use it and release it for all US customers.

      I have two options once I completed the development "IDWTCERT_US_1099NEC1":

      1. Overwrite the PDF FORM - "IDWTCERT_US_1099NEC" with "IDWTCERT_US_1099NEC1" :

      and it will work perfectly fine - assuming all the configuration is maintained for the NEW PROCESS TYPE - "US_1099NEC" - US - 1099 NEC Reporting" (You can refer to SAP notes 2919655 for configurations steps).

      OR

      2. Define a new process type as "US_1099NEC1" and complete the configuration. However, we need to do one additional steps - we have to create custom implementation for BADI - "IDWTREP_ADOBEPRINT" - you can refer to implementation created "IMPUS_IDWTREP_ADOBE" and add the filer value as "IDWTCERT_US_1099NEC1" form name . We may have to create few methods while implementing BADI - you can refer again to "IMPUS_IDWTREP_ADOBE" and copy paste code from the implemented BADI.

      Note: When creating a new PDF FORM "you are uploading the XML - Please save under package "ID-FI-WT".

      Hope this will help. All the best !!!

      Thanks & Regards

      Jamal A Noorani

      Author's profile photo Manmohan Shetty .M
      Manmohan Shetty .M

      Hi Jamal,

      Thanks for the detailed approach, my client does not have Adobe licenses, can we use the above notes to activate and generate smart forms without adobe license.

       

      Thanks&Regards,

      Mohan.

       

       

      Author's profile photo Jamal Noorani
      Jamal Noorani

      Hi All ,

      You can also refer to SAP notes – 2873935 for FAQs on USA IRS TAX legal changes 1099 2020 , this is very useful as well .

       

      Thanks & Regards

      Jamal Noorani

      Author's profile photo Randall Allred
      Randall Allred

      Hello Graziela Dondoni,

      Some of our tax reporter number ranges are getting close to the max value, and the number length cannot be extended any further. An example would be our Control number for simulation runs. Is it okay to restart from the beginning of the range? What is the best approach?

       

      Thanks.

      Randall

       

      Author's profile photo Chandra Veeramony
      Chandra Veeramony

      Randall Allred can you check this section in your tax reporter configuration? - SPRO> Payroll US> Tax Reporter > Additional settings for Tax Reporter.  This configuration segment has few optimization options for number range issues; please check if you are utilizing these. The Configuration nodes in this section has more details about this optimization.

      Thanks

      Chandra

      Author's profile photo Randall Allred
      Randall Allred

      Thanks Chandra. We are using those options for the control number range. Our issue is with simulation control number range and log number ranges are getting close to limit. The number length is already at the max per domain. Is the best option to restart the number range? I have not found any documentation on SAP to address these scenarios.

      Author's profile photo Prakash Gone
      Prakash Gone

      I have the same scenario, did you fix the issue? If yes, can you please let me know the process how to fix it.

      Our log number ranges has been reached to the maximum limit, can anyone help on this please.

      Author's profile photo Sandra A. Pelkey
      Sandra A. Pelkey

      Good morning,

      we ran Tax Reporter yesterday morning, the Feature UTRES is set to 1 day, we do not see the W-2 online in Accessport nor IT3228.  do you have any suggestions?

      Author's profile photo Larry Suttles
      Larry Suttles

      Sandra,

      Have you set the generation date? The 1 day in feature UTRES starts from the date entered.

      Larry

      Edited - Actually I'm not sure if my above comment is true or not. Feature documentation says nothing about the "Filing date" in PU19 having to be filled in.

      Author's profile photo Sandra A. Pelkey
      Sandra A. Pelkey

      Thank you Larry,

      It was the user, they executed tax reporter in the online vs background, asked the area to rerun with overwrite mode in the background, it processed successfully.

      Thank you!

      Author's profile photo Graziela Dondoni
      Graziela Dondoni
      Blog Post Author

      Hello community,

      Note has been released:
      3017122 - TR: Idaho W-2 electronic file rejected by Tax Authority due to incorrect Date formatting in Record RS

      Kind regards,
      Graziela

      Author's profile photo Lena Cromwell
      Lena Cromwell

      Hello everyone,

       

      Does anyone have W2 reporting for Massachusetts? We now have to upload because we have more than 50 employees and we are having issues with the length not being 512. The form looks fine in configuration but when we download the MMREF-1 form out of PU19 it has all records on one line (RS, RW etc.). I am hoping that there is something I can do in sm34 to fix this. We get this message when we try to upload to tax authority:

      "All records must be 512 in length. This record must be corrected before it can be further validated."

      Regards,

      Lena

      Author's profile photo Carlos Accorsi
      Carlos Accorsi

      Hello Lena,

      Some forms require the carriage return to be customized.

      This way, could you please update the form as per instructions of the following SAP Note?
      133613 - Formatting temse files for download

      This should solve the issue you are facing.

      Best Regards,
      Carlos

      Author's profile photo Lena Cromwell
      Lena Cromwell

      Hello Carlos, thank you I will give these steps a try. Hope it works!

       

      Regards,

      Lena

      Author's profile photo Juli Thompson
      Juli Thompson

      We recently received the W-2 dataset format specs for the CCA (Central Collection Agency) for Ohio.  This file spec is much more detailed than I’ve seen previously and there are several decisions that are required to determine the correct codes to send for several fields.

      One example is if the taxing municipality is found in Appendix B positions 7-9 are reported as this…but if the municipality is not found in that appendix then do this.  Actually there are 3 options as you steps through the logic which complicates the correct value.  I didn’t see a delivered file from SAP (ex. HR_F_MMREF_1_OHR) to use for CCA (OH).

      Has anyone worked on a file format like this for Tax Reporter?  Is there a document that I can review which would explain how to setup a file that requires several decisions vs. static data?

      thanks,

      Juli 

      Author's profile photo Deborah Duron
      Deborah Duron

      Hello everyone,

      Does anyone know where to find IRS form 1098 Mortgage Interest Statement in the configuration or if standard program available for generating the form?  My colleague on the Finance side is looking for the statement in the Finance Module but was told it comes delivered in the Payroll Module.  I checked the forms available  in Tax Reporter configuration but could not find. The forms there begin with 1099.

      Any insight would be appreciated.

      Thanks,

      Debbie

       

      Author's profile photo Chandra Veeramony
      Chandra Veeramony

      1098 would be an Industry specific student lifecycle management solution, not included as part of the generic PU19 tax reporter.  Please check this SAP help page relating to this topic.

      Thanks

      Chandra

      Author's profile photo Katherine James
      Katherine James

      Our company is missing the state and local summary page (PU19) for the state of NH. How would we go about getting this setup for NH? Is this something that requires configuration or is this something that SAP maintains?

      Thanks,

      Katherine

      Author's profile photo Graziela Dondoni
      Graziela Dondoni
      Blog Post Author

      Hi Katherine,

      I believe my colleague has already worked on the case you open, correct?

      Thank you,
      Graziela

      Author's profile photo Katherine James
      Katherine James

      Yes we are working on this currently.

      Thanks!

      Author's profile photo Katherine James
      Katherine James

      While reviewing our 2020 W2's, we found out that box 18 is doubled for a teammate where employee lives in one PA local and works in other PA local where as taxes withheld for both locals, /701 is same for both locals. SAP adds /701 of both locals and duplicate box 18. These cases should have /701 not duplicated.

      We have an employee  who lives in PBM9 and works in PB7P.

      When we run US W2 for this employee, we could see her box 18 is doubled with /701 wages of both locals.

      PBM9 YTD for /701 is 74,891.61

      PB7P YTD for /701 is 74,891.61

      Total of both 149,783.22 (box 18)

      This is incorrect as BOX 18 in this case should report only one /701 which is 74,891.61

      Anyone encounters the same?

      Thanks,

      Katherine

      Author's profile photo Graziela Dondoni
      Graziela Dondoni
      Blog Post Author

      Hi Katherine,

      I took over your case and I´m checking this.

      Kind regards,
      Graziela

      Author's profile photo Greg Zifchock
      Greg Zifchock

      Graziela,

      In BSI TUB 46 introduced a new Tax for Ohio - Tax Type 107 - ER MUTUALIZED ACCOUNT TAX

      Do we know when SAP is going to release a Note on configuring this tax? This is retroactive back to 1/1/2021.

       

      Thanks,

      Greg

      Author's profile photo Marcelo Rescigno
      Marcelo Rescigno

      Hello Greg,

      We are working on the new Wage Types. The SAP Note should follow soon.

      Thanks for the patience and best regards,
      Marcelo

      Author's profile photo Graziela Dondoni
      Graziela Dondoni
      Blog Post Author

      Hello Greg,

      SAP note 3033836 - BSI: Tax Type 107 - Employer Mutualized Account Tax has been released.

      Kind regards,
      Graziela

      Author's profile photo Katherine James
      Katherine James

      I am being informed that on the W2, box 16 for NJ state wages should not exclude cafeteria plan benefits. I am working to confirm this is correct. If so, this is a change that would be made by SAP or is this configuration?

      Thanks,

      Katherine

      Author's profile photo Chandra Veeramony
      Chandra Veeramony

      That will be a config, Katherine James . Adjust the tax model for NJ state so that taxes come out correctly for the employees on their paycheck and will eventually correct the box 16.

      Thanks

      Chandra

      Author's profile photo Katherine James
      Katherine James

      Chandra,

      Thank you for the information.

      Author's profile photo Juli Thompson
      Juli Thompson

      Will the 2021 Year End blog be setup in the next several weeks?  Also how do we find out the link to access the site?

      I am watching for the SAP Note level required for Year end.

      Author's profile photo Graziela Dondoni
      Graziela Dondoni
      Blog Post Author

      Hi Juli,

      The Year End blog is already in draft.
      Once developers release the announcement note I will post here the blog with all the details.

      Kind regards,
      Graziela

      Author's profile photo Graziela Dondoni
      Graziela Dondoni
      Blog Post Author

      Hello Juli,

      The blog was just posted.
      U.S. Tax Reporter Year End 2021 | SAP Blogs

      There will be some updates in the next days.

      Kind regards,
      Graziela

      Author's profile photo Juli Thompson
      Juli Thompson

      Hi Graziela,

      I appreciate the information for the YE 2021 blog.

      Juli

       

      Author's profile photo Katherine James
      Katherine James

      We recently started filing in Florida and looking to see if anyone successfully uses the FL SUI magnetic media file. If so, which file do you use? We have less than 20,000 so not required to use the XML file. Anyone have success using the MMREF file?

      Thanks,

      Katherine

      Author's profile photo Sukhbir Singh
      Sukhbir Singh

      Hello Katherine,

      We at Duval in Jacksonville has a custom program generating XML file for state of Florida SUI.

      Thanks

      Sukhbir