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Page 1: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

PUBLIC

Mani Kak, Reinhard Andreaus, Boris Cruz, Marcelo Rescigno

October 08, 2020

SAP HCM U.S. Payroll & Tax ReportingYear End 2020 Update

Local Solutions. Global Success.

Page 2: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

PUBLIC

Stay safe!

We are in together – an extraordinary 2020!Thank You!

Page 3: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

Presenters

Mani Kak (GS)

Product Manager

23 years with SAP -HCM - US

PM for 15 yearshttps://www.linkedin.com/in/mani-kak-69702b1

Reinhard Andreaus (GS)

Area Product Manager

21 years with SAP

HCM US - 11 years

Marcelo Rescigno (GS)

PO – Payroll/BSI

10 years with SAP

HCM US - 10 years

Dagmar Becker (AIS)

Product Manager

25 years with SAP

HCM – 15 years

Q&A PanelViswanath

Ramamurthy (GS)

Product Manager

13 years with SAP-HCM

PM for 5 years

Gustavo Leuck (GS)

PO – TR, BN, GRN

(effective June ’20)

10 years with SAP-HCM

Richard Rambor (GS)

PO –ESS & CA

(effective June ’20)

13 years with SAP-HCM

Boris Cruz (GS)

Dev– Tax Reporter

9 years with SAP

HCM US - 8 years

Gabriel Bellina (GS)

PO – 3PR, FSLA, PS

(effective June ’20)

10 years with SAP-HCM

HCM US Dev team (GS)

on Q&A behind

scene responding to

questions posted

Robert Moeller (ECP)

Product Manager

26 years with SAP-HCM

Page 4: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

4PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Agenda

?

• U.S. Announcement

• U.S. Payroll and Tax Update

• U.S. Tax Reporter Update

• HRSP/CLCs for Year End

• Important SAP Links

• Guest speaker - Dagmar Becker

Q & A

Page 5: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

Announcement

Page 6: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

6PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Announced via SAP Note 2825014 for on-premise and

SAP Note 2825036 for SAP SuccessFactors Employee Central Payroll

▪ BSI TAxFactory 10.0 to be decommissioned on January 11, 2021

▪ Effective Jan 12th, 2021 ONLY TaxFactory 11.0 will be supported.

▪ NEW decommissioned date for TaxFactory 10.0 is April 30, 2021

*no TUBs will be available for TF10.0 after decommission date !

▪ Recommended Cyclic - latest cyclic available, currently TF 11.b.1

▪ SAP Community Blog TaxFactory 11.0 and Main Note 2760305

BSI TaxFactory Release 11.0

Page 7: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

7PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Looking for COVID-19 related Legal Changes

Check here for the latest legal changes to cope with Covid-19 in

SAP Payroll and SFSF Employee Central Payroll Localizations.

COVID-19 Impacting our Solutions

Page 8: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

8PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Non-discretionary bonus - Master data enhancement▪ Bonus reference dates in Infotypes 0015 and 0267 (secondary infotypes)

▪ EC Spot Bonus updated accordingly

Non-discretionary bonus - Payroll enhancement▪ Payroll function RGRTE was enhanced to use bonus reference dates.

The parameter NDB was delivered for this purpose

▪ Log of payroll function RGRTE provides detailed information about each step of this calculation

Planned Release

▪ As of EHP8 November/2020 Sync HRSP (SAP_HR and EA-HR 608-86)

▪ SAP Note Payroll - 2929225

▪ SAP Note Infotypes - 2923573

FLSA Overtime Valuation Enhancement – Nov/2020 (Labs Preview)

Page 9: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

9PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Non-discretionary Bonus in

Master Data

▪ Within the Reference Period for Payment

group, new fields Start Date and End Date

are available

▪ By filling these dates, system handles this

payment as a non-discretionary bonus

▪ New dates are stored in secondary infotypes,

3430 for Additional Payments (0015) and

3431 for Additional Off-Cycle Payments (0267)

FLSA Overtime Valuation Enhancement - Example

Page 10: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

10PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Non-discretionary bonus in payroll

log: Payroll function RGRTE

▪ Parameter NDB is available for Payroll

Function RGRTE and should be called

after P0015 and P0267

▪ When the period with the non-

discretionary bonus is executed, RGRTE

uses the bonus reference start and end

dates to identify all periods and

weeks that require FLSA overtime

reevaluation

FLSA Overtime Valuation Enhancement - Example

Page 11: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

11PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Payroll function RGRTE log: Bonus

rate for proration

▪ Payroll periods 1 (01.01.2020 - 01.15.2020)

and 2 (01.16.2020 - 01.31.2020) and all

their weeks were considered as relevant to

be reevaluated.

▪ The bonus amount should be prorated for

the FLSA Overtime calculation. This is done

by finding the bonus rate for proration:

divide the bonus amount by the total hours

from all relevant weeks (the hours can be

configured on view V_T596J_US_NDB)

FLSA Overtime Valuation Enhancement - Example

Page 12: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

12PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Payroll function RGRTE log:

Adjustment rate calculation per period

▪ Using the bonus rate for proration, it is

possible to define the amount of bonus per

period

▪ This amount is then added to the FLSA

Overtime calculation rules, to calculate a

new adjustment rate

▪ The same calculation is performed for all

relevant weeks

FLSA Overtime Valuation Enhancement - Example

Page 13: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

13PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Payroll function RGRTE log: Wage types re-evaluation

• The differences between the original amount and the amount recalculated with the non-

discretionary bonus is inserted into the output wage type

FLSA Overtime Valuation Enhancement - Example

Page 14: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

14PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Enhancements - Fiori Apps

Online W-2 Election

▪ Fiori version of W-2 Election is currently being evaluated

Online W-2 View/Print

▪ Currently being evaluated internally.

▪ Responsive UI for mobile devices.

Planned Release

▪ EHP8

▪ End of H1/2021

If on EHP8 and interested --

- Email [email protected]

- Subject - Fiori Apps - Online

W-2 + Customer name

Engagement

Page 15: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

15PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Online W-2 View/Print (Labs Preview)

Enhancements – Fiori Apps

Subject to Change

Page 16: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

U.S. Payroll and Tax UpdatesFor Years 2020 and 2021

Page 17: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

17PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Cyclic

▪ Current - TF 11.b.1 and TF 10.x.2

▪ Planned TF Cyclic 11.c to be released by BSI in October 2020.

Tax Regulatory Bulletins

▪ Current - TF 11-31 and TF 10-198

Links for some Sync Information (no changes from past):

▪ User Guide: SAP Note 2541110 - PY-US: User guides for Payroll HCM US attachment Sync_Tax_Data_BSI.pdf

▪ FAQ: SAP Note 2082725 - BSI: Synchronize Payroll Tax Data - FAQ

BSI TaxFactory

Page 18: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

18PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

BSI TaxFactory 11 changes

▪ Handling of negative amounts (Reverse Engine)

▪ New Exempt Wages (/9xx)

BSI TaxLocator for TF11

▪ Make sure to install SAP Notes

– 2847047 - TaxLocator: changes to support TaxFactory 11

– 2934419 - TAX: TaxLocator not proposing Tax Areas in TaxFactory 11

▪ Maintain tax types mapped in your dataset to avoid issues with TaxLocator in TF11

SAP Notes

▪ SAP Note 2760305 - BSI: Tax Factory 11.0 - Main Note

BSI TaxFactory

Page 19: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

19PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Overview▪ FFCRA:

– Employers are eligible for Medicar and Social Security credits on applicable wages– Tax types 571 through 573 for ER Medicare Leave Credit– Tax types 574 through 576 for ER Social Security Leave Credit

▪ CARES:– Employers can defer Social Security taxes on applicable wages– Tax types 577 through 579 for ER Social Security Tax Deferral

▪ Taxability model needs to be adjusted with the wage types relevant for the Credit and Deferral.

SAP Notes

▪ 2917910 - TAX: The Families First Corona Response Act (FFCRA) and Coronavirus Aid, Relief and Economic Security (CARES) Employer Payroll Changes

▪ 2946959 - TAX: FFCRA Wages Subject to Social Security Tax

FFCRA and CARES act

Page 20: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

20PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Overview

▪ Employee portion of Social Security taxes can be deferred under the following conditions:

– Configuration option CTXDE turned on

– Employee chooses to have the deferral

– Check date between September 1st, 2020 and December 31st, 2020.

– Employee’s applicable bi-weekly wages are equal or lower than USD 4,000.00.

▪ New Deferral Wage Types:

– /TD3 - Tracks the amount of regular Social Security deferred

– /TD5 - Tracks the amount of Railroad Tier 1 Social Security deferred

– /TD6 - Tracks the amount of Railroad Tier 2 Social Security deferred

▪ Employers are still responsible for repaying the Social Security taxes back between January and April 2021.

SAP Notes

▪ 2963480 - [TAX] Executive Order for Payroll Taxes Deferral

Executive Order - Payroll Tax Deferral

Page 21: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

21PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

New W-4 layout for Federal and states

▪ New W-4 layout, marital statuses and withholding calculation formula.

▪ Federal W-4 blog: https://blogs.sap.com/2019/12/07/w-4-form-for-year-2020/

▪ State W-4 blog: https://blogs.sap.com/2020/04/03/w-4-state-withholding-tax-calculation-2020-based-on-the-state-or-state-

equivalent-withholding-certificate/

SAP Notes

▪ SAP Note 2855896 - TAX: W-4 Form for Year 2020

▪ SAP Note 2878657 - 2020 State Withholding Tax Calculation - Based on the State (or State-equivalent) Withholding Certificate (SAP_HR) - Phase I

▪ 2911187 - 2020 State Withholding Tax Calculation - Based on the State (or State-equivalent) Withholding Certificate - Employee Central Payroll

▪ SAP Note 2911130 - 2020 State Withholding Tax Calculation - Based on the State (or State-equivalent) Withholding Certificate - On Premise

▪ 2891794 - 2020 State Withholding Tax Calculation - Based on the State (or State-equivalent) Withholding Certificate (EA-HR) - Phase I

W-4 2020 Redesigned format

Page 22: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

22PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

New Fields in IRS Limits USA (0161) Infotype

Lock-in Letters Redesigned Format

PA30 HR Renewal

Page 23: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

23PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

New Fields in IRS Limits USA (0161) Infotype

▪ For new entries you can choose which format to be used: Original or Redesigned

▪ Filing status field is valid for both layouts

▪ Regardless of which Lock-in layout is chosen the system will also consider the employee’s Withholding info

W-4 (0210) infotype and decide for the one that generates the higher withholding tax between Lock-in and

W-4.

▪ Blog: https://blogs.sap.com/2020/08/17/redesigned-withholding-compliance-lock-in-letters-2800c-and-2808c/

SAP Notes

▪ SAP Note 2951750 - Redesigned Withholding Compliance Lock-In Letters 2800C and 2808C

▪ SAP Note 2951871 - TAX: Incorrect withholding for employees with lock-in and deductions in W-4

▪ SAP Note 2967813 - TAX: Additional Withholding not Being Considered in Redesigned Lock-in Letters 2800C and 2808C

Lock-in Letters Redesigned Format

Page 24: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

24PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

IRS Publication 1494 for tax year 2021

▪ Amount Exempt from Levy on Wages, Salary, and Other Income

▪ Publication expected to be released by the end of this year.

Garnishments

Page 25: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

25PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP ERP HCM Benefits Management USA - 2020 Update

Released

• COBRA General Notice and Election Notice Forms for Year 2020: SAP Note 2924659

• COBRA Administration Outbreak Period 2020: SAP Note 2932996

• Health Flexible Spending Account Carryover Amount and Grace Period Changes for 2020: SAP Note 2939028

• Health Savings Account Annual Contribution Limits for Tax Year 2021: SAP Note 2928764

Planned: pending final rules, forms, and instructions (subject to change)

• SAP ACA Federal Reporting for Tax Year 2020: SAP Note TBD

• How to find assistance for Affordable Care Act (ACA): SAP Knowledge Base Article (KBA) 2458635

• For more information, join the SAP Jam Collaboration Group: SAP ERP HCM Benefits Management USA.

1. Send email to [email protected] with the subject “SAP ACA” and brief message including your company name, name and title, company email address (email domain must match the company name registered with SAP)

2. Receive approval email and follow the instructions to accept invitation to join Note: Once you have joined the SAP JAM Group: SAP ERP HCM Benefits Management USA, join the Subgroup or Discussion Group ‘SAP ACA Reporting’ to begin collaborating.

Page 26: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

U.S. Tax ReporterYear End 2020

Page 27: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

Announcement

Page 28: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

28PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Form 941-X PR for Q2▪ Draft not available, yet

Form 941 for Q3▪ Tax Reporter Q3/2020 Form 941 – COVID19 (link)

▪ ECP Tax Reporter Q3/2020 Form 941 – COVID19 (link)

Form 941x for Q3▪ Draft ver published by IRS – Oct 2nd

Form 941 PR for Q3▪ Draft not available yet

Form 941x PR for Q3▪ There will be a newer version

Tax Reporter – upcoming Quarterly Forms - 941’s

Page 29: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

29PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Overview

▪ Employee portion of Social Security taxes can be deferred under the following conditions:

– Employee chooses to have the deferral

– Check date between September 1st, 2020 and December 31st, 2020.

– Employee’s applicable bi-weekly wages are equal or lower than USD 4,000.00.

▪ Employers are still responsible for repaying the Social Security taxes back between January and April 2021.

▪Reporting on W-2 (Forms / File formats)– SAP is awaiting further guidance from the IRS / The Secretary of the Treasury.

– https://www.irs.gov/newsroom/guidance-issued-to-implement-presidential-memorandum-deferring-certain-employee-social-security-tax-withholding

– https://www.irs.gov/pub/irs-drop/n-20-65.pdf

Executive Order - W-2 Reporting of Payroll Tax Deferral

Page 30: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

30PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Configuration change

▪ Done through IMG activity.

Tax Reporter – SSN truncation

Truncate by replacing the first 5 digits of the 9

digit number with Xs (for example, an SSN would

appear on the employee copies as

XXX-XX-1234).

Forms impacted

▪ W2 4/up

▪ W-2 SS

▪ W-2c

▪ 1099-R 4/up

▪ 1099-Rc 4/up

▪ 3rd Party Data file for printing Forms W-2/W-2c

▪ SAP Note - 2955032

Possibility of changing

the label text

Page 31: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

Year End Phase I, II, III + +

Page 32: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

32PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Form W-2 – Authority copy, W-2 4/up, W-2 Self Sealer (Layout)

▪ Authority Copy (HR_F_W2_07)

▪ W-2 4/up (HR_F_W2_MULT_11)

▪ W-2 Self Sealer (HR_F_W2_MULT_SS)

▪ Audit Report (HR_F_W2_AUDIT)

Form W-3

▪ Minor changes - (HR_F_W3_15)

SAP Note 2955032

Forms and Envelopes – SAP Note 2956914

Form W-2 /W-3 for Tax Year 2020

SSN truncation

FFCRA - Box 14

Page 33: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

33PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Form W-2c

▪ Employee Copy (HR_F_W2C_15_EE )

▪ Employer Copy (HR_F_W2C_15_ER)

Form W-3c

▪ No changes so far (HR_F_W3C_14) (Publication not released yet)

SAP Note 2955032

Forms and Envelopes – SAP Note 2956914

Form W-2c /W-3c for Tax Year 2020

SSN truncation

FFCRA - Box 14

Page 34: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

34PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Form W-2

▪ Data for employee copy (HR_F_W2_TP_TEMPS)

Form W-2c

▪ Data for employee copy (HR_F_W2_TP_TEMPC)

– Extra record ‘I’ created

SAP Note 2955032

Forms and Envelopes – SAP Note 2956914

Form W-2/W-2c Data file format for 3rd Party paper printing for

Tax Year 2020

SSN truncation

FFCRA - Box 14

Page 35: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

35PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Form 1099-R and its correction form - Authority copy and 4/up

▪ Re-numbering of some boxes (12 to 19) and minor text changes

– Box 12 FATCA filing requirement

– Box 13 Date of payment

▪ New form version (HR_F_1099R_ER_20)

Form 1096

▪ Minor text change

▪ Checkbox 7 deactivated

▪ New form version (HR_F_1096_20)

SAP Note 2955032

Forms and Envelopes – SAP Note 2956914

Form 1099-R for Tax Year 2020

SSN truncation

Page 36: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

36PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

EFW2

▪ No change on layout

▪ Data will be reflected due to changes on Box 14

EFW2C

▪ No change on layout

▪ Data will be reflected due to changes on Box 14

SAP Note 2955032

Forms and Envelopes – SAP Note 2956914

File Formats for Tax Year 2020Due date – Feb 01, 2021 (Same as paper)

Page 37: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

37PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

New Municipalities in Table T5UX5

▪ New municipalities should be added to table T5UX5

– R.I.T.A - SAP Note 680308

– Cleveland - SAP Note 909505

– Ohio School Districts - SAP Note 694865

– City of Columbus - SAP Note 702613

Configure Table T5UX9 for different type of information

▪ Reference SAP Note 903349

Update Tables for Year End 2020

Page 38: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

38PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Form W-2/W-2c for Puerto Rico for Tax Year 2020▪ Version

▪ New checkbox

▪ New exempt code

Form versions▪ Form W-2 Puerto Rico (HR_F_W2_PR_LP_20)

– OP (link)– ECP (link)

▪ Form W-2c Puerto Rico (HR_F_W2C_PR_LP_20)– OP (link)– ECP (link)

▪ Approval Letter - Forms submitted for approval

SAP Note 2975038

Forms and Envelopes – SAP Note 2956914

Year End Phase II – What should you expect?

Page 39: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

39PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

File formats

▪ States impacted

- no changes so far by states who have released specifications.

- Research is on!

▪ Localities Impacted – too early to say, Research is on!

▪ 1099-R (Publication 1220) – minor changes in Record B

SSN Truncation – IMG activity

▪ Possibility of Label text changes

Year End 2020 Phase II for U.S. Tax Reporter – SAP Note 2975038

Year End Phase II – What should you expect?

Page 40: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

40PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

IRS has published the draft version of Form 940. So far we …..

▪ Form 940 and Form 940 Schedule A

▪ Form 940 PR and Form 940 PR Schedule A

▪ Philly Recon Report

*Final Version expected mid-December timeframe.

File formats

▪ Any Magnetic Media changes that cannot be incorporated into U.S. Tax Reporter with Phase IIwill be delivered to customers at a later date.

▪ Depending on the size and contents of the changes to come, Tax Reporter Development willcombine subsequent changes for delivery in Phase III, or release these changes via individualSAP Notes

▪ SUI 4th Quarter - If we find any change during our research, an SAP Note will be released andpublished at Announcement of Legal Change Notification tool.

Year End 2020 beyond Phase II – What should you expect?

Page 41: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

41PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

◼ SAP delivered more than 330 PDF-based forms in Tax Reporter. It is highly likely that the

formatting you are trying to introduce already exists in one of those forms.

◼ Tax Reporter PDF-based forms contains a lot of scripting and many form-level exits, as well as

special fields.

◼ After you create a new form, make sure you test it extensively using the testing tool in

transaction SFP. Unless you are satisfied with the test results, do not execute the new form in

production mode.

TIPS – for PDF Based forms

Page 42: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

42PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

◼ Testing should include actual printing of the new form to ensure that it fulfills the formatting

needs of your enterprise, as well as your tax authority.

◼ If you encounter the error message “Error in generating the PDF form: <Form name>”

within the Tax Reporter Log, contact your Basis team to check your ADS connection.

TIPS – for PDF Based forms

Page 43: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

43PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Using one Adobe Document Services (ADS) installation from several systems:

▪ To optimize the use of your system landscape, it is possible to connect several ABAP-based

SAP systems to one SAP NetWeaver® AS Java running the ADS for the generation of the

Interactive Forms output formats. In general, this setup is suitable for the use of Interactive Forms

in interactive scenarios, or in printing scenarios where slower performance is acceptable.

▪ To take full advantage of the performance improvements for high-volume printing shipped via

SAP NetWeaver, you require a remote ADS for each system from which you want to realize a high-

volume printing scenario. This precludes the possibility of using one ADS for several systems.

▪ For all scenarios using one ADS installation for several systems, ensure that the Java system

and the corresponding ADS are at least on the same Support Package Stack level.

TIPS – for PDF Based forms

Page 44: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

44PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Post-Installation Configuration

Customers need either apply the October HRSP or October CLC to obtain year-end legal changes

for SAP ERP 6.0, SAP enhancement package 4 for SAP ERP 6.0 and HR Renewal 2.0 (608).

To obtain BASE year-end legal changes for 2020

▪ To take full advantage of the performance improvements for high-volume printing shipped via

SAP NetWeaver, you require a remote ADS for each system from which you want to realize a high-

volume printing scenario. This precludes the possibility of using one ADS for several systems.

▪ For all scenarios using one ADS installation for several systems, ensure that the Java system

and the corresponding ADS are at least on the same Support Package Stack level.

Page 45: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

HRSP/CLC for Year End 2020Tax Reporter

Page 46: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

46PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Delivery of U.S. Tax Reporter Legal Changes

To obtain BASE Year End Legal Changes for Tax Year 2020

◼Apply the May 2020 Synchronization HRSP, which serves as the Year End Base HRSP.

◼Apply the CLC for the U.S. Localization version, delivered in October* (Year End Phase I).

* Mandatory for Year End 2020

Year End Roadmap - SAP Note Year End 2020 – Announcement was published on August 21, 2020

Year End Blog - Live effective Aug 18, 2020 https://blogs.sap.com/2020/08/18/u.s.-tax-reporter-year-end-

2020/

Page 47: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

47PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Delivery of U.S. Tax Reporter Legal Changes

Year End Phase I (SAP Note 2955032) - October HRSP/CLC, planned availability Oct 8th 2020)

Remaining CLCs for Year End 2020

◼Year End 2020 Phase II – December (Released via SAP Note 2975038 around Thanksgiving)

◼Year End 2020 Phase III* – January 2021 (Released via SAP Note around Christmas)

* depending on number of legal changes

SAP HR Release Ehp Release Option 1

Oct HRSP

Option 2

Oct CLC

SAP_HR 6.08 HR Renewal 2.0 Ehp8 HRSP 85 CLC 85

SAP_HR 6.0 Ehp4 to Ehp7 HRSP F7 CLC F7

SAP_HR 6.0 ECC 6.0 To Ehp3 HRSP J1 CLC J1

Page 48: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

Important SAP Links Launchpad, Blog, SAP Notes, Documents

Page 49: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

49PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP One Support Launchpad

SAP recommends that you use SAP One Support Launchpad to search for Notes.

The following apps are available to you on the Launchpad:

Announcement of

Legal ChangeMy SAP Notes & KBAs SAP Legal Change Notes

Page 50: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

50PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP Launchpad: Adding Announcement of Legal Change App

Step 1:

Click on Personalize

Step 2:

Enter ‘Announcement of

Legal Change’ in the

search box

Step 3:

Left Click on the title and

select the group to which

you would like to add the

tile to

Check:

Click on Home and

find the title in the

specified group

Page 51: SAP HCM U.S. Payroll & Tax Reporting Year End 2020 Update

51PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP Launchpad: Announcement of Legal Change (YouTube)

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SAP HR Support PackagesSupport.sap.com > Maintenance > Maintenance Information > Schedules for Maintenance Deliveries

https://support.sap.com/en/release-upgrade-maintenance/maintenance-information/schedules-for-maintenance-deliveries.html

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Year End 2020 Blog

Live effective Aug 18, 2020 - Post queries

https://blogs.sap.com/2020/08/18/u.s.-tax-reporter-year-end-2020/

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Dagmar Becker, SAP

October 2020

SAP HCM On-Premise

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Press Releases and BlogsSAP Human Capital Management for SAP

S/4HANA, on-premise edition (H4S4)

▪ Press release:https://news.sap.com/2018/01/hcm-on-premise-s4hana/

▪ Blog:https://blogs.sap.com/2019/09/25/sap-human-capital-management-for-

sap-s4hana-on-premise-edition-updates-available-in-2022-with-a-

technical-co-deployment-in-sap-s4hana/

.

In February 2020, SAP announced a maintenance

extension of the Business Suite 7 to 2027 (2030).

▪ Press release :https://news.sap.com/2020/02/sap-s4hana-maintenance-2040-clarity-choice-sap-

business-suite-7/

▪ Blog: https://blogs.sap.com/2020/02/17/sap-business-suite-7-extension-what-this-means-for-

sap-erp-human-capital-management-customers/

▪ SAP Note: https://launchpad.support.sap.com/#/notes/2881788

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Current Situation for HCM On-Premise

2022 20252020 2027 2030

HCM (as part of the Compatibility

Pack/in S4-landscape)

HCM for S/4 (end of 2022)

2040

HCM (as part of the Business Suite)

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How do we proceed with SAP ERP HCM and H4S4

2022 20252020 2027 2030 2040

H4S4HCM (as part of the SAP Business Suite

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Personnel Management

• Personnel Management

• Organization Management

• Benefits

• Enterprise Compensation Management

• Personnel Cost Planning & Simulation

• Pension scheme

• MSS / ESS (WDA and Fiori)*

Payroll

• Payroll

• SAP Travel Management (part of SAP S/4HANA)

Talent Management

• SAP Learning Solution *

• SAP E-Recruiting

• Talent Management & Development

• Objective Settings & Appraisals

Time Management

• Time

• Shift Planning

• CATS

Public Sector

• Public Sector

• Position Budgeting and Control

• HR Funds & Position Management

• Shift Planning for Public Sector*Without JAVA components

SAP Human Capital Management for SAP S/4HANA on-premise edition Solution Scope – the Most Recent Component of an HCM Topic is Planned to be Supported

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Dagmar Becker

Product Manager ERP HCM

[email protected]

Thank you! HCM in Business Suite

Press release – Extension of Business Suite maintenance:

https://news.sap.com/2020/02/sap-s4hana-maintenance-2040-clarity-choice-sap-

business-suite-7/

Blog BS maintenance extension in context of HCM :

https://blogs.sap.com/2020/02/17/sap-business-suite-7-extension-what-this-means-for-

sap-erp-human-capital-management-customers/

SAP Note regarding Business Suite maintenance extension:

https://launchpad.support.sap.com/#/notes/2881788

H4S4

Press release:https://news.sap.com/2018/01/hcm-on-premise-s4hana/

Blog regarding H4S4:

https://blogs.sap.com/2019/09/25/sap-human-capital-management-for-sap-s4hana-on-

premise-edition-updates-available-in-2022-with-a-technical-co-deployment-in-sap-s4hana/

Requirement collection for H4S4:

https://influence.sap.com/sap/ino/#campaign/2261

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“Never lose HOPE, storms make people STRONGER and NEVER last forever”.— Martin Luther King Jr.

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Best of Luck for the Year End!

We will do it! Stay Safe!