Other Taxes US - Create New Record
Use this procedure to create a new Other Taxes US (0235) infotype record. Creating a new record is necessary when the employee has become exempt from certain state or federal taxes.
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, click the box to the left of Other Taxes US.
In the Time period section, select the Period radio button and enter the effective dates of the new record.TIPS:
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, use the day after the last check date. For example, if the change you are making affects the July 10th check date, enter a start date of June 26.
Depending on the tax type, HRMS may 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.
In the Direct Selection Infotype STy, enter the appropriate Subtype for your exemption:
- WA - State Exemptions
- FED - Federal Exemptions
Click the Create button.
Complete the following field:
The following field is mandatory:
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 firstname.lastname@example.org.
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 all 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.