SAPHCM(HR)

SAP uses the BSI tax engine to calculate U.S. taxes. The BSI tax engine covers four types of payments:

• Regular payments
• Supplemental payments
• Cumulative payments
• Vacation payments

The regular payment methods are:

• Regular
• Maximum wage
• Self adjust
• Year-to-date

BSI determines the appropriate regular payment method and assigns it to each tax. This pre-assigned method is used in the calculation when the type of payment indicated via the Payment Type parameter is Regular Payments.

The supplemental payment methods are:

• Regular payment
• Flat rate
• Separate aggregation
• Rate table
• Cumulative
• Aggregation with pay periods
• Wage-associated
• Concurrent
• Regular no exemption
• System selected

The cumulative payment methods are:

• Regular payment
• Cumulative

The vacation payment methods are:

• Regular payment
• Vacation

BSI supports all payroll tax authorities at the following levels:

• Federal
• State
• County
• City
• School district