Tax Reporter 

Purpose

This component enables you to produce payroll tax and other reports for government authorities in the format required by each authority.

Tax Reporter generates the following forms:

·         Form 940 – Employer’s Annual Federal Unemployment Tax Return

·         Form 941 – Employer's Quarterly Federal Tax Return

·         Form 941C

·         Form W-2 – Wage and Tax Statement

·         Form W-2C

·         1099-R

·         1099-RC

·         Multiple Worksite Report (Combined format for Bureau of Labor Statistics)

·         Unemployment Insurance reports for all states

Tax Reporter also supports all transmittal forms associated with the above forms, including Forms W-3, W-3c, 945, 1096 and 6559. Aside from Forms W-2c and 941c, Tax Reporter supports correction forms for Form 1099-R and all SUI and MWR forms.

At the state level, Tax Reporter supports the following forms:

●     Puerto Rico: W-2, W-2c, 940 and 941

●     New York: Fourth-quarter combined wage reporting

●     Arkansas: Reporting of exempt wages (on form AR-TX).

At the local level, Tax Reporter supports year-end magnetic media reporting requirements for a number of local tax authorities.

Implementation Considerations

Tax Companies

Tax Reporter can only be run in production mode for an entire tax company. In the SAP system, you assign tax companies to employees indirectly – via the personnel area and subarea (using the IMG path: Payroll USA → Tax → Tax companies). You should therefore ensure that tax companies have been defined correctly and are represented properly in employee payroll results before you start testing tax reporter.

Client-dependent entries

Where SAP delivers preconfigured tax form tables for a magnetic media report (diskette or tape) such as the SUI or W-2 reports, the configuration is loaded to your system either as a transport or as a Human Resources Support Package (HRSP). For this reason, it is very important for the IT support teams responsible for HR to understand how to properly cascade customizing entries from client 000 to the test and production clients.

Worksites

If you are producing a Multiple Worksite Report (MWR) from the SAP Tax Reporter component, these worksites must exist in the configuration for US Personnel Administration. End users should be trained to enter the worksite on the Unemployment State infotype (0209) when hiring or transferring employees.

Features

Tax Reporter supports at least one of the required media formats for each tax authority and report provided. For example, some reports are set up to be compliant for magnetic tape reporting as opposed to diskette or paper, and the supported format may vary from one tax authority to another.

Additionally, users can create their own tax reports for authorities and/or forms not supported in the standard SAP Payroll system. For example, if you have employees in the state of Pennsylvania, you may want to create a number of custom tax reports for reporting withholding and occupational taxes and wages to the many school districts and other tax authorities in that state.