SAP Tax Configuration

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

Regular 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.

Supplemental 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

Cumulative Payments

The cumulative payment methods are:

  • Regular payment
  • Cumulative

Vacation Payments

The vacation payment methods are:

  • Regular payment
  • Vacation

Supported Tax Jurisdictions

BSI supports all payroll tax authorities at the following levels:

  • Federal
  • State
  • County
  • City
  • School district
For configurations check 

10 thoughts on “SAP Tax Configuration

  1. If you had the choice between taking out $40,000.00 of your inherited cash which is part of a larger IRA to pay off debts (but did not have to sell stocks to get that $ & your tax bracket is $15% but perhaps less since I am on SSD & earn less than 14,000.00 a year) or take out a 9% re-fill on a 2nd home, which is being rented for $1000.00 a month that will be sold in 3 years with a

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