Maintaining Withholding Tax Rate
Info
Use
Use this to establish and maintain withholding tax rate information for both state taxes and non-resident alien withholding taxes.
These are specific withholding tax rates. A rate may have to be withheld from a check (for example, if there is no proper tax ID).
Procedure
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1. At the SAP Easy Access menu, choose Logistics à Production and Revenue Accounting à Revenue Accounting à Revenue Distribution à Tax Maintenance à Withholding Tax Rate.
The Withholding Tax Rate: Initial Screen is displayed.
2. Select Create.
The Create Withholding Tax Rate: Overview screen is displayed.
3. Select either State (U.S. state), or Foreign Owner. Based on your selection, the screen will now display various fields for data entry.
The following is an explanation of the fields on the Withholding Tax Rate: Initial Screen:
|
Field |
Description |
|
State or Foreign owner |
The state or foreign owner radio buttons allow you to indicate whether the withholding tax rate that is established will apply to state-based taxes or to non-resident alien taxes |
|
State |
Identifies the state to which the tax rate will apply. In order for the tax to be deducted for a property/DOI, the state withholding tax rate must be established |
|
Tax type |
Identifies the tax to which the withholding rate applies. Once you have selected a state, the field will be populated with all the tax types that are applicable in that state. In order for a tax amount to be calculated for a tax type, a state withholding tax rate must be entered for the selected tax type |
|
Interest type |
Identifies the owner interest type to which the tax rate will apply. All owner interest types that are subject to the tax must be established on this screen |
|
Effective from date |
The start date, when the information becomes effective |
|
Effective to date |
The end date, after which the information is no longer valid |
4. Save your record.