Title
Substantial Presence Test

Description
Execute the Substantial Presence Test to determine the taxation statusof non-U.S. citizens who are present in the United States on a temporarybasis. Depending upon a person's classification in the Residence statusfield of the Residence Status infotype (0094), the report initiallydetermines whether that person is qualified to undergo the SPT andperhaps attain the advantageous taxation status accorded to non-residentaliens.

Prerequisites
To be qualified to undergo the Substantial Presence Test, a person musthave a current, valid record in the Residence Status infotype (0094)with Residence status field set at value A. Thispre-defined value initially designates that person as a non-residentalien, but only within the system. To qualify as a non-resident alienfor actual taxation purposes, the person must first undergo (and pass)this report, the Substantial Presence Test.
If the person has no record in the Residence Status infotype (0094), orif the person has a record that reflects a residence status other thanA, then the report will withdraw that person from SPTdetermination as the report processes the specified personnel selection.

• Note

If before executing the report you wish to exclude from the personnelselection all employees who are not non-resident aliens, then select the
Exclude Residents checkbox.
Finally, if you wish to review or configure the residence statuscategories that are used in the Residence Status infotype (0094), thenyou may do so in Customizing for Payroll USA (PY-US) by choosingSupplements Public Sector US -> Payroll -> Non-Resident AlienProcessing -> Non-Resident Alien Master Data -> Maintain ResidenceStatus Categories.

Activities
To execute the Substantial Presence Test, perform the following steps.
Review the selection period of the report, which is set by default toUp to today. To obtain the most accurate results, we recommendthat you retain this setting.
Specify the personnel number(s), area(s) and subarea(s) for which youwould like to execute the Substantial Presence Test.
Select the group of people to be displayed on the final report output:all persons, only persons with errors, or only persons without errors.
If desired, select Exclude Residents, as mentioned above.
Upon making the appropriate selections, choose Execute.

Note
During execution of the Substantial Presence Test, the system assumesthat all selected persons will remain in the United States after the enddate of the selection period. For example, if the selection period isset from 01/01/1800 to 12/01/1998, the system assumes thatall selected employees will remain in the U.S. from 12/02/1998 onward.
Furthermore, the SPT only considers current Override records; allpast Override records are ignored. If a certain person hasprevious Override records, but no current ones, then the SPT willprocess that person as if no Override records had ever existed.Consequently, the final output of the report may differ from previousrecords.

Output
To avoid data overflow or excess processing time, the SPT processes anddisplays up to 99 records at one time for persons within the system.
During SPT processing, if any data is missing or incorrect for a certainperson, then an error message is issued. SPT processing is stopped forthat person, and the SPT-STATUS of the person on the final reportoutput is automatically set to Resident.
Otherwise, the SPT-STATUS of any given person is set toResident once that person has spent a minimum of 31 days in theUnited States during the current year and a minimum of 183 days in theUnited States over the past three reporting years.
Finally, once you have reviewed the report output to your satisfaction,you may elect to export the output to a local file, if you so desire. Tothis end, choose the corresponding option from the application toolbarof the report output screen, then specify the local file destination.