Ask the HR Expert: The Basics of Taxable Wages

  • by Steve Bogner, Managing Partner, Insight Consulting Partners
  • June 15, 2004
The author provides background information about how SAP US Payroll configuration tables operate. He also explains how to see what wage types go into the /601 taxable wages technical wage type.
Key Concept

Dear HR Expert,
In SAP payroll (US) how do you see what wage types go into the /601 taxable wages technical wage type?

Thank you.

-Venkata Atkuru, Systems Analyst

Dear HR Expert,
In SAP payroll (US) how do you see what wage types go into the /601 taxable wages technical wage type?

That’s a great question! The process of determining the components of taxable wages, wage type /601 in this case, is important since it affects regulatory reporting and employee taxes.

SAP US Payroll uses three configuration tables to determine how to tax a wage type. The three tables — T5UTE, T5UTM, and T5UTY — are collectively called the tax model. Report RPUTMDU0, or transaction S_AHR_61018777, is a user-friendly report of that data, as shown in Figure 1. Although the structure of the tax model tables has changed from one release to another, RPUTMDU0 looks the same, and the process for determining wage type taxation has not changed.

Steve Bogner

Steve Bogner is a managing partner at Insight Consulting Partners and has been working with SAP HR since 1993. He has consulted for various public, private, domestic, and global companies on their SAP HR/Payroll implementations; presented at the SAP user's group ASUG; and been featured on the Sky Radio Network program regarding SAP HR.

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