Other Taxes US - Copy and Update Record
Use this procedure to copy an existing Other Taxes US (0235) infotype record and update it with necessary changes. Using the Copy action will retain the history of the previous record.
Certain groups of employees are exempt from some taxes because of the nature of the work they do. These may include:
Exemptions from Federal Taxes
Exemptions from State Taxes
These groups of employees require an Others Taxes US (0235) record created to exempt them from these taxes processing through payroll.
If exemptions are needed for Federal Withholding, refer to the Withholding Info W4/W5 US - Create New Record procedure instead.
Enter transaction code PA30 in the command field and click the Enter button.
Complete the following field:
- Personnel no.
Click Enter to populate the employee information.
On the Payroll tab, select the Other Taxes US radio button.
Click the Overview button.
Select the record you wish to copy.
Click the Copy button.
Enter the appropriate Start and To dates.TIPS:
When using the Copy button, the Start and To dates will populate with the dates of the existing record. Be sure to enter the new Start and To dates to keep the history of the existing record.
The From date should reflect the actual check date the exemption is to begin.
The To date should reflect the end date of the exemption:
- If the exemption is ongoing, use 12/31/9999.
- If the exemption is to end, use the day before the check date in which the exemption ends.
When entering an ESD approved exemption to WA Cares Fund / LTSS premiums, the exemption letter will state the effective date of the exemption. The To date should be the actual check date immediately following the effective date of the exemption.
When making a retroactive change in accordance with a specific check date, retroactive changes will only process the initial period if another infotype record is also maintained for the same pay period.
HRMS will not retroactively collect taxes from an employee, but will refund an employee and correctly adjust the employer amounts (both collect or refund).
For this example, the employee’s exemption will be effective for one pay period only, therefore dated with the check date for the period exempted.
Enter the necessary changes to the record.TIPS:
Exemption selections are as follows:
- Blank - Not exempt.
- R - Exempt, reportable: use for an employee that is exempt from taxation, but whose earnings are reportable.
- X - Exempt, partly reportable: use for an employee when no tax is withheld and the /6XX wage types are built, but the /7XX wage types are not.
- Y - Exempt, not reportable: use for an employee that is both exempt from certain taxes and whose earnings should not be reported, such as a foreign national
Paid Family and Medical Leave (PFML) Tax Types are:
- 087 – Employee Family Leave Insurance Tax
- 099 – Employee Medical Leave Insurance Tx
- 100 – Employer Medical Leave Insurance Tx
Refer to the Washington Paid Family & Medical Leave program on the Employment Security Department’s website for questions related to an employee’s PFML exempt status or contact the PFML program at email@example.com.
WA Cares Fund / LTSS Tax Type is:
- 113 – WA Cares Fund LTC Tax - EE
You may notice tax type 114 – WA Cares Fund LTC Tax – ER listed on this infotype. This was created and delivered by SAP and should be ignored. WA Cares Fund is funded entirely by employee contributions, there are no employer premiums for this program.
Employees who have received an ESD approved exemption to the WA Cares / LTSS premiums, should have their Exempt status set to R – Exempt, reportable.
Other employees who are not liable for WA Cares / LTSS premiums, should have their Exempt status set to Y – Exempt, not reportable.
It is strongly recommended to record the reason for exemption using Maintain Text.
Click the Enter button to validate the information.
Click the Save button.TIPS:
Be aware that most exemptions should be delimited in the event of a Separation or Transfer to a new agency, as many exemptions do not follow the employee.
One exception is employees with an ESD approved exemption to the WA Cares Fund / LTSS program. These employees’ Exempt status (R – Exempt, reportable for tax type 113 – WA Cares Fund LTC Tax -EE) should remain active upon transfer or separation.