Understanding BSI 10.0 and Its Integration with SAP US Payroll

  • by Imran Sajid, Senior Education Consultant, SAP
  • February 4, 2015
Learn about the relationship between SAP and BSI 10.0 for US payroll. Companies running SAP Payroll in the US need this functionality. Learn about the key information that you need to know to update your system to BSI 10.0 as required by SAP.
Learning Objectives

By reading this article, you will learn:

  • About the updates to Business Software Incorporated (BSI) TaxFactory 10.0, including new processes for Tax Update Bulletins (TUBs) and new processes for BSI issues
  • How to view the BSI level in the payroll schema and test the BSI connection
  • The configuration of BSI 10.0, including feature and table entries
  • BSI and SAP configuration integration points, including the employer ID number to the BSI tax company and the BSI tax company experience rate
  • How to update the user interface (UI) overrides using SAP table V_BTXRATE and BSI UI rates
Key Concept
BSI 10.0 is the latest version of the Business Software Incorporated—BSI—TaxFactory software that is used in an SAP system to calculate taxes. The payroll data is then sent over to BSI TaxFactory for calculating taxes and returned to SAP Payroll for processing.

Business Software Incorporated (BSI) is a third-party company that interfaces with SAP systems to provide the tax results for US payroll via its BSI TaxFactory product. When you run US payroll within an SAP system, a standard interface sends data via a remote function call (RFC) so that the taxes can be calculated and returned for processing within the SAP Payroll Driver. All companies that run SAP Payroll in the US must have the BSI interface because US taxes cannot be calculated within an SAP system.

BSI releases tax updates per IRS regulations via Regulatory Bulletins. These Regulatory Bulletins contain tax changes that need to be updated in the BSI client, and also within the SAP system. SAP has traditionally released Tax Update Bulletins (commonly known as TUBs) after BSI releases its Regulatory Bulletins.

BSI 10.0 Update

The latest version of BSI is 10.0, which was released in July 2013. SAP originally announced that the previous version (BSI 9.0) would be decommissioned on November 30, 2014, and that all companies must be on the new version by then. In response to complaints, and due to issues with upgrading to the new version, SAP announced an extension of this date to March 31, 2015, in the ASUG 2014 Payroll Year-End presentation and has stated that “There are no options for extending BSI TaxFactory 9.0 support after March 31, 2015.” (For more information about the BSI TaxFactory 10.0 roadmap, see SAP Note 1875218 which is updated as SAP announces any relevant changes; log-in is required.)

The key difference between the old process and new process is that you no longer have to wait for SAP to release its updates after BSI releases its related Regulatory Bulletin, and you have a new tool to synchronize the data. Previously, with BSI 9.0, BSI would release a Regulatory Bulletin and then you would have to wait for SAP to release the corresponding TUB, which you would then download and apply in your SAP system. In my experience, companies would end up waiting for SAP to release the TUBs so that they could apply them even though BSI had already released the bulletin a week or two earlier. The new process not only improves the overall processing time of releasing tax updates, it also reduces the overall time that it takes to apply the updates and ensures that the data is synchronized between SAP and BSI.

Imran Sajid

Imran Sajid is a Senior Education Consultant at SAP based in the Atlanta, GA, area. At SAP, he focuses on teaching classes in the HCM area within both SAP and SuccessFactors. Previously, Imran was a consultant who implemented and provided post-go-live support for more than a dozen different client systems spanning many industries, including manufacturing, automotive, retail, information systems, the public sector, and energy. He is the author of the book entitled, The Payroll Control Center for SAP ERP HCM and SAP SuccessFactors, as well as a frequent contributor to SAP Experts, where he has published almost a dozen articles. Imran is also frequent blogger on SAP Community Network (SCN). He graduated from the Georgia State University Robinson College of Business with a degree in Computer Information Systems. Imran can be found on Twitter @ImranSajidSAP.

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