This chapter contains the following topics:
After you process a payroll cycle, you should verify the integrity of the tax history. You use this history for:
Government reports
Year-end forms
Internal reporting purposes
To verify tax history integrity, run the Tax History Integrity report. This report identifies missing, inaccurate, or incomplete information in the Tax History table (F06136). You should regularly verify the integrity of the taxation history to ensure that the correct information appears on the quarterly tax reports and employees' year-end forms.
To identify taxation integrity errors, you first run the Tax History Integrity report in proof mode so that you can research errors and enter any manual corrections before you update the table. When you run the integrity report in proof mode, the system identifies possible errors, but does not change any information in the history table. Running the integrity report in update mode automatically corrects some errors.
To help determine the action that you must take to correct integrity errors, review an explanation of the error code from the error code list found later in this chapter.
To correct taxation integrity errors, use history revision forms to enter manual corrections, and then run the Tax History Integrity report in update mode. When you run an integrity report in update mode, the system corrects information in the Tax History table and generates a report that indicates the errors that could not be corrected. Review all of the errors, correct them as instructed, and rerun the integrity report until all of the errors are corrected. (Some entries on the report might reflect valid conditions for the data.)
To simplify the process of regularly verifying the payroll history integrity, you can set up the integrity reports to run during the final update step of each payroll cycle. The versions of these reports that you run during final update should be set up to run in proof mode. You should also run these reports monthly, quarterly, and before you begin year-end processing.
To complete the tax history integrity tasks, you must:
Run the report first in proof mode to identify the errors.
Run the report again in update mode to correct the errors.
Run the report a final time in proof mode to verify that all updates were performed.
When you review employee tax history, note that each tax history record is assigned a tax history type. The tax history type that is assigned to tax history records is determined by the tax method that you assign to the employee during the employee setup process. The system uses the tax history type to determine the year-end form on which the employee's earnings are reported. For example, if an employee has a blank tax method (regular), the tax history type is also blank. All tax history records with a blank history type are reported on the W-2 form. This table lists the year-end form on which each type of tax history is reported:
| Tax Method | Description | Tax History Type | Year-End Form |
|---|---|---|---|
| Blank | Regular | Blank | W-2 |
| Not applicable | Third-Party Sick Pay | 1 | W-2 (separate) |
| C | Contract | C | 1099-MISC |
| P | Pension | 2 | 1099-R |
| 4 | Medicare Qualified | 3 | W-2 |
| 5 | FICA/Medicare Exempt | 4 | W-2 |
| R | Regular - Puerto Rico with Tax Area = 72 | R | 499R-2 |
For U.S. payroll cycle processing, the Pay Check History Tax Ledger table (F06166) is the detail tax history table and the Tax History table (F06136) is the corresponding tax summary table.
The Tax History table contains the wage and tax history, which is based on this information:
Tax area
Tax type
Company
Tax ID
Year
History type
You can access this information from an online review form.
This section provides an overview of tax history integrity errors, lists prerequisites, and discusses how to:
Run the Tax History Integrity report (R077011).
Set processing options for the Tax History Integrity report (R077011).
You use the Tax History Integrity Report (R077011) to identify errors in the Tax History table (F06136). The system uses the information in this table to produce government year-end forms for employees. Keeping this table error-free simplifies the year-end processing tasks. The Tax History Integrity Report identifies three types of information:
Errors that you must correct manually.
Errors that the program corrects when you run the report in update mode.
Irregularities that are not necessarily errors. For example, a situation in which no federal tax was withheld might be a valid condition for a low-wage earner.
The system also creates a backup table, Tax History Integrity (Temp) (F077011), of the summary history table when you delete records, such as invalid records that contain negative amounts. We recommend that you call customer support for help in restoring the backup table.
You run integrity reports in proof mode to identify possible errors without changing any of the information in the history tables. You also run integrity reports in proof mode so that you can research errors before correcting and updating the appropriate tables. You use processing options to specify that the Tax History Integrity Report run in proof mode.
Enter the current year as a two-digit year in the data selection. Also, if all companies within the organization have the same paymaster, do not include the home company in the selection criteria.
Lastly, do not change the data sequence for this report. Changing the data sequence can produce undesirable results.
After you run the Tax History Integrity Report in proof mode, you must research each error that appears on the report. The JD Edwards EnterpriseOne Payroll 9.0 Implementation Guide provides an error code list that describes each type of payroll-tax history integrity error. Use this error code list to determine the action, if any, that you must perform to correct each error. You must correct these errors so that the quarterly reports and year-end forms are accurate.
This table lists error codes that might appear on the report. These codes are defined in user-defined code table 06/IX:
| Error Code | Description |
|---|---|
| 0101 - Taxable wage less than tax | The amount of taxable wage [Gross minus (Excludable + Excess)] is less than the amount of tax withheld or paid on the same earnings.
Determine whether taxable wages should be less than tax. For example, the amount might include a refunded tax or a voided check from a prior year. If an error occurs, you can disregard it, repost the information from the Pay Check History Tax Ledger table (F06166) to the Tax History table (F06136), or manually adjust the records in the F06136 using the Tax Summary form. |
| 0102 - Sign mismatch on gross/tax | A mismatch exists between the taxable wages and tax. Either the taxable wages value is positive and the tax negative, or the taxable wages value is negative and the tax is positive.
Determine the cause of the sign mismatch between the two numbers and decide which is correct. For example, someone might have entered the tax as a negative number. You can disregard the mismatch, repost the Pay Check History Tax Ledger table, or manually adjust the Tax History table by using the Tax Summary form. |
| 0103 - Sign mismatch on earnings | A mismatch exists between the various wage fields in the Tax History table. One or more of the wage fields is positive, and the other is negative.
Determine the cause of the sign mismatch between the earnings fields and decide which one is correct. For example, someone might have entered the wage as a negative number. You can disregard the mismatch, repost the Pay Check History Tax Ledger table, or manually adjust the Tax History table by using the Tax Summary form. |
| 0104 - Mismatch on Social Security (OASDI) amount | A difference exists between the Federal/D wage or tax amount and the Federal/E wage or tax amount. That is, the employee portion differs from the employer portion.
Determine the cause of the mismatch between the Federal/D record and the Federal/E record, and decide which is correct. For example, an interim check might have an override of the employee tax but not the employer tax. Or a pay type, deduction, or benefit might be set up as exempt from one tax type but not the other. You can disregard the mismatch, repost the Pay Check History Tax Ledger table, or manually adjust the Tax History table by using the Tax Summary form. |
| 0105 - Mismatch on Medicare | A difference exists between the Federal/P wage or tax amount and the Federal/Q wage or tax amount. That is, the employee portion differs from the employer portion.
Determine the cause of the mismatch and decide which record is correct. For example, an interim check might have an override of the employee tax but not the employer tax. Or a pay type, deduction, or benefit might be set up as exempt from one tax type but not the other. You can disregard the mismatch, repost the Pay Check History Tax Ledger table, or manually adjust the Tax History table by using the Tax Summary form. |
| 0106 - Mismatch on Tier I | A difference exists between the Federal/R wage or tax amount and the Federal/S wage or tax amount. That is, the employee portion differs from the employer portion.
Determine the cause of the mismatch and decide which record is correct. For example, an interim check might have an override of the employee tax but not the employer tax. Or a pay type, deduction, or benefit might be set up as exempt from one tax type but not the other. You can disregard the mismatch, repost the Pay Check History Tax Ledger table, or manually adjust the Tax History table by using the Tax Summary form. |
| 0107 - Tax area not on record | No tax area exists on the Tax History record.
Delete the erroneous transaction from the Tax History table. If you include this record when you build the workfile for the year-end form, the program ends abnormally with an array index error. |
| 0108 - State wages greater than federal | The total of the wages for State/C Federal Unemployment Insurance (FUI) records is greater than the Federal/C wages.
Review the transactions and each State/C record to determine whether these totals should balance to the Federal/C balance. For example, if an employee lives in one state and works in another, the system updates both records with total gross wages. You must manually adjust the discrepancy, using the Tax Summary form. |
| 0109 - Invalid tax ID number | The corporate tax ID number on the tax areas with tax types of F through N (State or Local) is blank. For these types of taxes, the tax ID must be numeric and from 2 to 9 characters in length.
Verify that the corporate tax ID is set up on the Corporate Tax ID Revisions form located on the Taxes and Insurance menu (G07BPTI4). Then rerun the Tax History Integrity Report in update mode. |
| 0110 - Employee number is invalid | The employee number does not exist or has been deleted from the Employee Master Information table (F060116).
Add the employee number to the Employee Master Information table. Then run the Tax History Integrity Report in update mode. |
| 0111 - Tax area does not exist | The tax area code on the record does not exist in the Payroll Tax Area Profile table (F069016).
Add the tax area to the Tax Area Information form located on the Taxes and Insurance menu (G07BPTI4). Then run the Tax History Integrity Report in update mode. |
| 0112 - Tax ID does not exist | The corporate tax ID on the record does not exist in the Payroll Corporate Tax Identification table (F069086).
Add the corporate tax ID on the Corporate Tax ID Revisions form. Then run the Tax History Integrity Report in update mode. |
| 0113 - Tax ID does not match | The corporate tax ID on the record does not match the corporate tax ID in the Payroll Corporate Tax Identification table.
Verify that the tax ID on the Corporate Tax ID Revisions form is correct. This ID might have changed, but history records exist with the prior number. If the tax ID is incorrect, change it, and then run the Tax History Integrity Report in update mode. Note: Year-end forms do not print correctly when the Federal A Corporate Tax ID in the Tax Summary field contains punctuation or spaces. The Federal A tax area is the default federal tax area. If this tax area contains punctuation or spaces, you cannot print year-end forms for employees. |
| 0114 - School district code missing | A school district code is not present in the school district tax history record.
Currently, the system does not check for this error. |
| 0115 - Uncollected taxes | Uncollected payroll taxes exist for the tax area and type. This condition, which is most common in an environment in which employees earn tips, could occur if you have requested the system to arrear taxes and it adjusted the tax to have net pay equal to zero.
Determine whether you should be arrearing taxes. If so, this error message lets you know that uncollected taxes exist and that these amounts will be printed on the year-end form (in box 12) if the tax types are FICA or Medicare. |
| 0120 - Social Security Over/Under-withheld | The amount of Social Security was either over-withheld or under-withheld based on the annual maximum defined by the Internal Revenue Service (IRS).
To correct the over-withheld or under-withheld tax, enter an interim payment for the correct amount. The system changes the tax withheld to match the FICA taxable wage. Alternatively, you can report the amount on the employee's year-end form, and the employee is then responsible for recording an overpayment or underpayment on the tax return. |
| 0121 - Medicare Over/Under-withheld | The amount of Medicare was either over-withheld or under-withheld.
To correct the over-withheld or under-withheld tax, enter an interim payment for the adjustment amount. The system corrects the tax. Alternatively, you can report the amount on the employee's year-end form so that the employee becomes responsible for reporting an overpayment on the tax return. |
| 0131 - Record contains no dollars ($) | All of the amounts in the F06136 table are blank (zero dollars).
Delete each of these records from the table by using the Tax Summary form. |
| 0140 - State taxable wage, no tax | Taxable wages exist for the employee, but no tax was withheld. This situation might have occurred because of reciprocal agreements between states or because the employee has claimed enough exemptions to prevent tax from being withheld.
The system cannot identify which states have or do not have tax amounts. You must determine which records are valid. If you determine that the records are invalid, you must manually delete the records using the Tax Summary form. |
| 0141 - Tax in non-taxing state | The state listed is a nontaxing state, as defined by user-defined code list 06/TA; but tax has been withheld due to an interim payment tax override.
Remove the tax amount from the nontaxing state record or enter a tax refund through the interim payment facility. If you manually adjust the record, you should add the adjusted amount to another state that withholds state income tax. |
| 0150 - Negative gross wage amount | The gross wage amount contains a negative value.
Determine whether a negative balance is justified for the tax area and tax type. If it is not justified, adjust the balance by using the Tax Summary form. Run the Tax History Integrity Report again to verify that no other problems exist. |
| 0152 - Negative excludable wage amount | The excludable wage amount contains a negative value.
Determine whether a negative balance is justified for the tax area and tax type. If not, adjust the balance using the Tax Summary form. Run the Tax History Integrity Report to verify that no other problems exist. |
| 0154 - Negative paid-in-excess wage amount | The paid-in-excess wage amount contains a negative value.
Determine whether a negative balance is justified for the tax area and tax type. If it is not justified, adjust the balance by using the Tax Summary form. Run the Tax History Integrity Report again to verify that no other problems exist. |
| 0156 - Negative tax paid amount | The tax withheld and paid amount contains a negative value.
Determine whether a negative balance is justified for the tax area and tax type. If it is not justified, adjust the balance by using the Tax Summary form. Run the Tax History Integrity Report again to verify that no other problems exist. |
| 0199 - History record deleted | The program deleted the tax history record from the Tax History table.
Determine whether the record should have been deleted. If it should not have been deleted, restore the backup table. |
| 0250 - No federal tax taken | Federal taxable wages exist for the employee, but no tax was withheld. This condition might have occurred because the employee has claimed enough exemptions to prevent tax from being withheld
If you determine that the federal transactions are invalid, you must manually change the records, using the Tax Summary form. |
| 0251 - Work state, county, city mismatch tax area | The tax area on the Tax Summary record does not match the work state, work county, or work city fields on the same record.
Determine whether the tax area in the tax history record matches the Payroll Tax Area Profile table (F069016). If it is correct, run this report again in update mode to correct the WST, WCNT, and WCTY fields. |
| 0252 - Invalid statutory code | The statutory code on the Tax Summary record does not match the statutory code in the Payroll Tax Area Profile table.
Verify that the statutory code on the Tax Area Information form is correct. If it is not correct, correct it and then run the Tax History Integrity Report in update mode. |
| 0253 - Invalid century field | The Century field in the Tax Summary record is blank.
Run the Tax History Integrity Report in update mode to correct the Century field in the Tax Summary record. |
| 0254 - Fed Tax Wages not equal to State Tax Wages | The amount of federal taxable wages does not equal the amount of state taxable wages.
Verify that the taxable wages are correct for both federal and state. If you determine that the taxable wages are incorrect, you can change this information by using interim payments or you can manually update tax information by using the Tax Summary form. |
| 0256 - Hospital insurance withheld wrong: Employee salary over 200,000 (Release 9.1 Update) | The withholding amount for the Medicare hospital insurance tax is either to high or too low. Employees with wages over $200,000 pay taxes at an additional 0.9%. To correct the discrepancy, enter an interim payment for the adjustment amount to enable the system to correct the tax. Alternatively, you can report the amount the employee's year-end tax forms. This approach makes the employee responsible for reporting an overpayment on the tax return. |
| 999 - Invalid | The error code is not set up in user-defined code list 06/IX. |
Before you complete the tasks in this section:
Back up the Tax History Integrity (Temp) table (F077011).
The system does not create a backup of this table when you run the integrity report.
Set the processing mode to Proof in the processing options to ensure that the system runs the report without updating data.
Enter the appropriate tax earnings limitations and rates in the processing options.
Without this information, the system cannot identify certain types of errors.
On the Corporate Tax ID Revisions form, ensure that no dashes or spaces exist in the tax ID for the Federal A tax area.
Select Advanced and Technical Operations (G07BUSP3), Tax History Integrity Report.
Processing options enable you to specify the default processing for programs and reports.
These processing options specify the mode in which to run the Tax History Integrity report, whether the system deletes certain information, and which error types the system displays on the report. You can also enter information that might vary from year to year, such as the tax rate and limit for Social Security.
Specify whether you want to process the report in proof mode or update mode. Values are:
0: Proof mode. The system prints a report without updating the history tables. Use the report to review errors and to determine the information that you need to correct manually before you run the report in update mode.
1: Update mode. The system prints a report and updates the summary history table with the corrected information. Use this mode after you have reviewed and corrected all errors that you can correct manually.
Specify whether you want the system to delete the records in the Tax History table for which the company, tax area, and tax type have no corresponding records in the Corporate Tax ID table. In some situations, these records are valid and should not be deleted. For example, if you are waiting to receive a corporate tax ID from the government, you might have entered applied for in the Corporate Tax ID table. In this case, you would not want to delete the tax history records, even though they do not correspond to the records in the Corporate Tax ID table.
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Caution: Deleting tax history records can cause significant loss of information that you might need for year-end processing. Before you set this processing option to 1, contact technical support for assistance. |
Specify a numeric value that represents the amount of wages on which employees must pay Social Security tax. For example, if the annual wage limit is 77,000 USD, employees pay Social Security tax until their wages for the year reach 77,000. After employees' wages reach the wage limit amount, any additional wages that they earn that year are free from Social Security tax. The annual wage limit might vary from year to year.
Specify a numeric value that represents the percentage of wages that employees must pay in Social Security tax for the current year. For example, if the Social Security tax rate is 4.2 percent, enter 4.2 in this processing option.
Specify a numeric value that represents the percentage of wages that employers must pay in Social Security tax for the current year. For example, if the Social Security tax rate is 6.2 percent, enter 6.2 in this processing option.
Specify a numeric value that represents the percentage of wages that employees must pay in Medicare tax for the current year. For example, if the Medicare tax rate is 1.45 percent, enter 1.45 in this processing option.
Specify a numeric value that represents the percentage of wages that employers must pay in Medicare tax for the current year. For example, if the Medicare tax rate is 1.45 percent, enter 1.45 in this processing option.
Specify a numeric value that represents the increased percentage of wages that employees must pay in Medicare tax for the current year. This is only applicable if the employee's wage earned is over the specified limit. For example, if the Additional Medicare Tax rate is 2.35 percent, enter 2.35 in this processing option.
Specify the error codes that you do not want to print on the report. To print all error codes, leave all fields for this processing option blank. Enter 4 digits for each error code that you want to omit. Use leading zeros for codes that are less than 4 digits, for example, 0101. For a list of valid error codes, see UDC 06/IX.
This section provides an overview of correcting tax history integrity errors, lists prerequisites, and discusses how to correct tax history integrity errors manually.
After you run the Tax History Integrity Report (R077011) in proof mode and review the errors, you must correct these errors so that the quarterly reports and year-end forms are accurate.
Running the integrity report in update mode automatically corrects certain errors, such as an invalid statutory code. To correct other errors, such as an incorrect tax ID, you must manually revise the payroll data before you run the report in update mode. Some entries that appear on the report might not be errors for the data. For example, taxation error 0250 - No Federal Tax Taken might appear for a low-wage earner for whom no federal tax should be withheld.
After you run the Tax History Integrity Report in update mode, you should run it again to produce an error-free report. When the system finds no errors, it generates only the cover page.
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Note: If running the Tax History Integrity Report does not generate errors, the review form does not enable you to review information. This form is used only to review and revise errors that are generated by the report.Back up the Tax History Integrity (Temp) table (F077011) after you run the Tax History Integrity Report in proof mode. The system does not create a backup of this table when you run the integrity report. |
After you run the Tax History Integrity Report (R077011) in proof mode and review the errors, you must correct these errors so that the quarterly reports and year-end forms are accurate.
Running the integrity report in update mode automatically corrects certain errors, such as a missing tax ID code. To correct other errors, such as negative tax paid amount, you must manually revise the payroll data before you run the report in update mode.
The payroll error code list helps you determine the actions that you must perform to correct each payroll history error that appears on the Tax History Integrity Report. You might need to manually revise history records, tax area information, or corporate tax IDs before running another integrity report in update mode. For example, you might need to make these corrections:
Delete a record that contains zero dollars.
Change a tax ID number.
Correcting tax history ensures that the correct information appears on the quarterly tax reports and year-end forms.
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Important: This program must have the highest possible level of system security. Be aware that when you revise payroll history manually:The system does not update the JD Edwards EnterpriseOne General Accounting system. You must manually enter the appropriate journal entries. The system does not create an audit trail of the changes that you enter when you revise payroll history manually. The summary totals does not equal the detail totals. |
After reviewing the Tax History Integrity Report (R077011) and making any manual corrections, you run the report in update mode to update the Summary History table with the corrected information. Errors that are corrected automatically are corrected when you run an integrity report in update mode. For example, you might have entered a new tax ID or corrected an existing one. When you run the report in update mode, the system updates all history records with the new tax ID.
Consult the payroll error code list for information that you might need to correct before running the integrity report in update mode.
You can correct these errors by running the Tax History Integrity Report in update mode after you have made any necessary corrections as instructed for each error on the error code list:
0109 - Invalid Tax ID number.
0112 - Tax ID does not exist.
0113 - Tax ID does not match.
0251 - Work State, County, City mismatch tax area.
0252 - Invalid Statutory Code.
0253 - Invalid Century Field.
Error codes 0251, 0252, and 0253 are for fields in the table only. The information is not visible from any review forms.
To correct errors automatically, set the processing mode to Update in the processing options for the Tax History Integrity report to print the report and update the table.
Review the error codes that appear on the report.
| Form Name | FormID | Navigation | Usage |
|---|---|---|---|
| Work With Taxation History Review | W077001A | Advanced and Technical Operations (G07BUSP3), Tax History Integrity Review | Review tax history integrity errors. |
| Corporate Tax ID Revisions | W059081AB | On the Work With Taxation History Review form, select a record in the detail area and then select Corp Tax ID (Corporate Tax Identification) from the Row menu. | Enter or correct a corporate tax ID. |
| Work With Payment History | W070601C | On the Work With Taxation History Review form, select a record and then select Paycheck Review from the Form menu. | Void a payment. |
| Work With Tax Area Information | W069012C | On the Work With Taxation History Review form, select a record in the detail area and then select Tax Area Cnsts (Tax Area Constants) from the Form menu. | Access the Tax Area Revisions form. |
| Tax Area Revisions | W069012B | On the Work With Tax Area Information form, click Add or select a record and then click Select. | Enter or correct a tax area. |
| Work with Tax History | W070920A | On the Work With Taxation History Review form, select a record in the detail area and then select Tax History from the Row menu. | Review or revise an employee's tax history. |
Access the Work With Taxation History Review form.
Enter a code that identifies a specific organization, fund, or other reporting entity. The company code must already exist in the Company Constants table (F0010) and must identify a reporting entity that has a complete balance sheet. At this level, you can have intercompany transactions.
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Note: You can use company 00000 for default values such as dates and automatic accounting instructions. You cannot use company 00000 for transaction entries. |
Enter a two-digit number that specifies the applicable year. If you leave this field blank, the program uses the system date.
Enter a 4-digit number assigned to all errors.
Enter a user-defined code (07/TH) that specifies the type of information being tracked for the employee in the US Taxation Summary History table (F06136) or the Canadian Tax History table (F0713). The value in this field determines what type of year-end form the system generates.