IRS Limits USA - Change Existing Record

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Procedure Updated: 
04/15/19

Use this procedure to update or end an override to the employee’s exemptions using the IRS Limits USA (0161) infotype. An override is necessary when you have received an IRS mandate ordering a specific withholding status and exemption for an employee.

Tips: 

When an IRS Limits USA (0161) exists, HRMS will use either the IRS Limits USA (0161) infotype or the employee’s Withholding Info W4/W5 US (0210) infotype exemptions, whichever is more favorable to the IRS.

Please note per the Education Jobs and Medicare Assistance Act the W5 is no longer used.

  1. Step 1

    Enter transaction code PA30 in the command field and click the Enter button.

    Screenshot of command field.

  2. Step 2

    Complete the following field:

    • Personnel no.

    Screenshot of personnel number.

  3. Step 3

    Click Enter to populate the employee information.

  4. Step 4

    On the Payroll tab, click the box to the left of the IRS Limits USA.

    Screenshot of payroll tab.

  5. Step 5

    Click the Overview button.

  6. Step 6

    Click the box to the left of the record you wish to correct or end.

    Screenshot of IRS records.

  7. Step 7

    Click the Change button.

    TIPS:
    • Using the Change button overwrites the existing record and should only be used when making corrections or ending the record.

  8. Step 8

    Enter the necessary changes to the record.

    Screenshot of IRS record.

    TIPS:
    • In most cases, the Start and To dates should not be changed. Changing the Start or To dates will delete the record being updated.

    • HRMS will not calculate changes based on previous tax years. Corrections should be made to current tax year only.

  9. Step 9

    Click the Enter button to validate the information.

  10. Step 10

    Click the Save button.

    TIPS:
    • Creating the IRS Limits USA (0161) infotype record will not create a new Withholding Info W4/W5 US (0210) record, it will only turn on the indicator in the IRS mandates box on existing records.

      To verify the entry was processed correctly, view the employee's Withholding Info W4/W5 US (0210) record to ensure the IRS mandates box is checked if the override is active or removed if end dated.

      Screenshot of withholding screen.

    • The system defaults to collect the most amount of funds from the employee depending on what is keyed on the IRS Limits USA (0161) or Withholding Info W4/W5 US (0210) infotype records.

    • The Exemptions # field on the employee's Earnings and Deductions Statement will continue to reflect the number of exemptions entered on the Withholding Info W4/W5 US (0210) infotype.