Solution : https://service.sap.com/sap/support/notes/1049268 (SAP Service marketplace login required)
Summary :
When an employee receives over $1,000,000 in supplemental wages across subsidiary businesses, the SAP standard system may not comply with the required 35% withholding per federal laws. A new field, 'Controlling Tax Company' (COMCO), was added to the 'Tax Identification Numbers' table (T5UTI) to address this. For accurate tax withholding, users must update COMCO for each controlling subsidiary in T5UTI for Tax Type 01. Implementation guidance and required HR Support Package details vary by system release and are provided in the SAP Note. Attachments with updates are available for systems R/3 Enterprise 4.70, mySAP ERP 2004, and SAP ERP 6.0.
Key words :
gov/pub/irs-irbs/irb06-37, million-dollar supplemental tax calculation, field entitled controlling tax company, consult internal revenue bulletin 2006-37, million-dollar supplemental wages, tax identification numbers table, standard system fails, federal legal requirements, prerequisites functional enhancement, tax authority fed
Related Notes :
| 1051243 | |
| 480180 | Download and installation of attachments for SAP notes |
| 13719 | Preliminary transports to customers (note for customers) |