This essay supplements the technical essay entitled Balances in Oracle Payroll. Specifically, it covers the following topics:
Balance initialization elements
Supported dimensions
Overview of tax-related balances
Balances that require initialization
Required US legislative balances
US users should run the "Initial Balance Structure Creation" process to create the elements and input values required to feed the predefined legislative balances.
Note: You can remove these elements by running the Initial Balance Structure Creation (Undo) process. You cannot run the Undo process if there are any payroll actions in your business group.
You may need to define additional elements and input values to set up initial balances for your own earnings and deductions.
The following balance dimensions (BD) are currently supported:
ASG_GRE_YTD -- Assignment within GRE Year to Date
ASG_GRE_QTD -- Assignment within GRE Quarter to Date
ASG_GRE_PTD -- Assignment within GRE Period to Date
At the Federal level, the SUBJECT_TO_TAX dimension is supported for balances that hold Earnings/Deduction amounts that are subject to Tax:
SUBJECT_TO_TAX_ASG_GRE_QTD
SUBJECT_TO_TAX_ASG_GRE_YTD
SUBJECT_TO_TAX_ASG_GRE_PTD
For Jurisdiction (State, County, City, School District) level taxes, the dimension of Jurisdiction (JD) is supported:
ASG_GRE_YTD_JD
ASG_GRE_QTD_JD
ASG_GRE_PTD_JD
In accordance with the tax related information entered in the Oracle HRMS database, the payroll run can build tax-related balances for each of the following tax types.
The federal tax types follow:
FIT
FUTA
SS
Medicare
Earned Income Credit
The state tax types follow:
SIT
SUI
SDI
Head Tax
The local tax types follow:
City Tax
County Tax
Head Tax
School District Tax
The following tax-related balances are created for each employee assignment:
Gross Earnings
Exempt Earnings
Gross Earnings Subject to Tax
Gross Earnings Subject to Tax and not Withholdable
Gross Earnings Subject to Tax and Withholdable
401k, 403b, 457, 125, Dependent Care Reductions, and Other Pretax
Pretax Redns
Reduced Subject to Tax and Withholdable Earnings
Employee withheld
Reduced Subject EIC
EIC advance
Employer Liability
For taxes with upper earnings limits, the following balances are created.
Taxable Earnings
Excess Earnings
dummy
Alien 1042s for NWSIT
Alien 1042s for SIT
SIT Alien Gross
SIT Alien Subj NWhable
SIT Alien Subj Whable
SIT Alien Withheld
SIT NON W2 Def Comp 401
SIT NON W2 Def Comp 403
SIT NON W2 Def Comp 457
SIT NON W2 Dependent Care
SIT NON W2 Other Pretax
SIT Non W2 Pre Tax Dedns
SIT Non W2 Section 125
Tax-related balances exist in the system in the following locations:
SOE
View Tax Balances
W2
941
Tax Summary Report
Tax Related Reports (Tax Remittance Reports, Payroll Register Report, etc.)
Following is a list of US balances that should be initialized in Oracle Payroll in order to obtain accuracy and consistency in the different areas of the system that use and report such balances.
The US earnings and deductions balances that should be initialized follow:
Individual balances
Oracle Payroll does not require initialization of individual balances for Earnings and Deductions in order to derive the necessary tax-related balances. However, if there is a requirement to initialize these balances for reporting or any other reason, the system does support loading of such balances. Initialization of individual balances does not impact calculation of tax related cumulative balances.
Gross Earnings (GROSS_EARNINGS_BD)
Gross Earnings must be initialized; it cannot be derived from individual Earnings type balances.
For each Federal Tax type, you must load the following appropriate balances in order to get accurate values for derived balances:
Gross Earnings (GROSS_EARNINGS_BD)
Regular Earnings (REGULAR_EARNINGS_BD)
Supplemental Earnings for Tax (SUPPLEMENTAL_EARNINGS_FOR_TAX_BD)
Supplemental Earnings for NWTax (SUPPLEMENTAL_EARNINGS_FOR_NWTAX_BD)
Oracle Payroll differentiates between Earnings Types for tax calculation rules and as such holds balances for the different types (Regular Earnings and Supplemental Earnings in particular). Supplemental Earnings and Imputed Earnings that are subject to tax are rolled into a single balance: Supplemental Earnings for Tax. If your current system does not maintain these split balances, you could roll your single "Subject to Tax" Earnings balance into either bucket. Additionally, a bucket, Supplemental Earnings for NWTax, is provided for your Supplemental and Imputed Earnings that are subject to tax, but are not withholdable.
Def Comp 401K (DEF_COMP_401K_BD)
Def Comp 401K for Tax (DEF_COMP_401K_FOR_TAX_BD)
Def Comp 403B (DEF_COMP_403B_BD)
Def Comp 403B for Tax (DEF_COMP_403B_FOR_TAX_BD)
Def Comp 457 (DEF_COMP_457_BD)
Def Comp 457 for Tax (DEF_COMP_457_FOR_TAX_BD)
Section 125 (SECTION_125_BD)
Section 125 for Tax (SECTION_125_FOR_TAX_BD)
Dependent Care (DEPENDENT_CARE_BD)
Dependent Care for Tax (DEPENDENT_CARE_FOR_TAX_BD)
Other Pretax (OTHER_PRETAX_BD)
Other Pretax for Tax (OTHER_PRETAX_FOR_TAX_BD)
Pretax Deductions for Tax (PRETAX_DEDUCTIONS_FOR_TAX_BD)
Tax Calculation requires the amount that is reduced from the Subject to Tax Earnings amount. This reduced amount is derived from subtracting the amount of Pre-Tax Deductions that are subject to Tax from the total Pre-Tax Deduction amount. Example: Def Comp 401K is the total pre-tax amount. Def Comp 401K for Tax is the amount of pre-tax deduction that does NOT reduce Subject to Earnings, and as such must be initialized only if it is nonzero. The same is true for Section 125, Dependent Care, and Other Pretax.
Employee TAX Withheld (TAX_WITHELD_BD)
EIC Advance (EIC_ADVANCE_BD)
Taxable Earnings for taxes with upper limits (TAX_TAXABLE_BD)
Taxable Earnings must be set for FUTA, SS and Medicare. The balance initialization process does not include validation for upper limit and hence the amount initialized must NOT exceed the upper limit.
Note: Medicare Taxable will be equal to the subject amount following recent legislation changes.
Employer Liability Balances
The following balances are DERIVED from the values entered in the balances mentioned above.
Note: Do not initialize these explicit balances for Federal level taxes.
Subject Witholdable = Regular Earnings + Supplemental Earnings for Tax
Subject Nwhable = Supplemental Earnings for NW Tax
401 Reductions = Def Comp 401K - Def Comp 401K for Tax
403 Reductions = Def Comp 403B - Def Comp 403B for Tax
457 Reductions = Def Comp 457 - Def Comp 457 for Tax
125 Reductions = Section 125 - Section 125 for Tax
Dep. Care Reductions = Dep. Care - Dep. Care for Tax
Other Pretax Reductions = Other Pretax - Other Pretax for Tax
Subject Earnings = Subj Whable + Subj NWhable
Exempt = Gross - Subject Earnings
Reduced Subj Whable = Subj Whable - 401 Reductions - 403 Reductions - 457 Reductions - 125 Reductions - Dep Care Reductions
Excess = Reduced Subj Whable - Taxable
For each Jurisdiction Tax type, the following appropriate balances must be initialized:
Note: At the jurisdiction level, the subject balances do not require the "SUBJECT_TO" dimension.
Gross Earnings (TAX_GROSS_BD_JD)
Total Gross Earnings earned within a particular jurisdiction
Because of the earnings accumulations rules (due to possibility of a percentage of time worked in different jurisdictions), for nonfederal taxes, the "Subject" and "Reduced" tax-related balance values are not derivable directly from the cumulative Earnings/Deductions type balances. Hence the "Subject" and "Reduced" tax-related balance values must be initialized explicitly.
Do not initialize the Supplemental Earnings, Withholdable and Notwithholdable, balances for jurisdiction level taxes. Instead, initialize the following explicit balances:
Subject Withholdable (TAX_SUBJ_WHABLE_BD_JD)
Subject Notwithholdable (TAX_SUBJ_NWHABLE_BD_JD)
401 Reductions (TAX_401_REDNS_BD_JD)
403 Reductions (TAX_403_REDNS_BD_JD)
457 Reductions (TAX_457_REDNS_BD_JD)
125 Reductions (TAX_125_REDNS_BD_JD)
Dep Care Reductions (TAX_DEP_CARE_REDNS_BD_JD)
Other Pretax Reductions
Employee Withheld (TAX_WITHHELD_BD_JD)
Taxable Earnings for taxes (SDI, SUI) with upper limits (TAX_TAXABLE_BD_JD)
Employer Liability
The following balances are derived:
Subject Earnings = Subj Whable + Subj NWhable
Exempt = Gross - Subject Earnings
Reduced Subj Whable = Subj Whable - 401 Reductions - 403 Reductions - 457 Reductions - 125 Reductions - Dep Care Reductions
Excess = Reduced Subj Whable - Taxable
Other balances to consider follow:
Net (NET_BD)
This Balance holds Net Pay, exclusive of non-payroll payments.
Payments (PAYMENTS_BD)
This balance holds Net Pay, inclusive of non-payroll payments.
You must initialize the above two balances in order to see accurate YTD Net Pay figures on the on-line Statement of Earnings. Currently the YTD Net on the check stub and deposit advice is derived and does not use these balances explicitly. However, a design change has been scheduled for the near future to make these reports consistent, so that all of them will use the explicit Payments/Net Balance.
W2_UNCOLL_SS_TAX_TIPS
W2_UNCOLL_MED_TIPS
W2_GROUP_TERM_LIFE
W2_401K
W2_403B
Note: Do not load the 403B balance directly to the seeded W2_403B balance. You must create a user defined element and attach the element to the Oracle delivered balance W2_403B, and use the new element to load the balance amounts.
W2_408K
W2_457
W2_501C
W2_NONTAX_SICK
W2_EXCISE_PARACHUTE
W2_EXPENSE_REIMB
W2_UNCOLL_SS_GTL
W2_UNCOLL_MED_GTL
W2_QUAL_MOVE
W2 NONTAX COMBAT
W2_MSA
W2_408P
W2_ADOPTION
W2_NONQUAL_STOCK
W2 HSA
W2 NONQUAL DEF COMP
W2 409A NONQUAL INCOME
W2_PENSION
W2_TP SICK PAY
MISC1_COUNTY_TAX_WITHHELD_WK holds the balance for BOONMH (For KY Boon County Mental health tax)
MISC1_COUNTY_TAX_WITHHELD_RS holds the balance for BOONOC (For KY Boon County occupational tax)
WD/HC (for NJ SUI)
W2 BOX 14A
W2 BOX 14B
W2 BOX 14C
W2 BOX 14D
W2 BOX 14E
W2 BOX 14F
W2 BOX 14G
W2 BOX 14H
W2 BOX 14I
W2 BOX 14J
W2 State Pickup
W2_NONQUAL_457
W2 MIF
Territory Taxable Comm (For Puerto Rico)
Territory Taxable Allow (For Puerto Rico)
Territory Taxable TIPS (For Puerto Rico)
Territory Retire Contrib (For Puerto Rico)
Territory Pension Annunity (For Puerto Rico)
Capital Gain
EE Contributions Or Premiums
Unrealized Net ER Sec Apprec
Other EE Annuity Contract Amt
Total EE Contributions
The W2 Balances hold the specific W2 Box related balances; as such, they must be initialized based on your reporting requirements.
For ongoing maintenance of these balances, you must set up the Balance feeds explicitly for these balances. To do so, use the Balance/Balance Feeds window. W2 related balances do not have pre-defined feeds.
The following table lists required US legislative balances.
Note: The Balance Names and Dimension Names are case sensitive and MUST be loaded in Initcaps. This is similar to how they are stored in the Balance Type and Dimension tables in Oracle Payroll.
Balance | Dimension |
---|---|
Gross Earnings | Assignment within GRE Year to Date |
Net | Assignment within GRE Year to Date |
Payments | Assignment within GRE Year to Date |
Regular Earnings | Assignment within GRE Year to Date |
Supplemental Earnings for Federal Tax | Subject to Tax for Assignment within GRE Year to Date |
Supplemental Earnings for NW Federal Tax | Subject to Tax for Assignment within GRE Year to Date |
Pretax Deductions | Assignment within GRE Year to Date |
Pretax Deductions for Federal Tax | Subject to Tax for Assignment within GRE Year to Date |
Def Comp 401K | Assignment within GRE Year to Date |
Def Comp 401K for Federal Tax | Subject to Tax for Assignment within GRE Year to Date |
Def Comp 403B | Assignment within GRE Year to Date |
Def Comp 403B for Federal Tax | Subject to Tax for Assignment within GRE Year to Date |
Def Comp 457 | Assignment within GRE Year to Date |
Def Comp 457 for Federal Tax | Subject to Tax for Assignment within GRE Year to Date |
Section 125 | Assignment within GRE Year to Date |
Section 125 for Federal Tax | Subject to Tax for Assignment within GRE Year to Date |
Dependent Care | Assignment within GRE Year to Date |
Dependent Care for Federal Tax | Subject to Tax for Assignment within GRE Year to Date |
Other Pretax | Assignment within GRE Year to Date |
Other Pretax for Federal Tax | Subject to Tax for Assignment within GRE Year to Date |
EIC Advance | Assignment within GRE Year to Date |
Federal Tax 125 Redns | Assignment within GRE Year to Date |
Federal Tax 401 Redns | Assignment within GRE Year to Date |
Federal Tax 403 Redns | Assignment within GRE Year to Date |
Federal Tax 457 Redns | Assignment within GRE Year to Date |
Federal Tax Dep Care Redns | Assignment within GRE Year to Date |
Federal Tax Other Pretax Redns | Assignment within GRE Year to Date |
Federal Tax Pre Tax Redns | Assignment within GRE Year to Date |
Federal Tax Gross | Assignment within GRE Year to Date |
Federal Tax Subj Whable | Assignment within GRE Year to Date |
Federal Tax Subj NWhable (Applicable only for FIT) | Assignment within GRE Year to Date |
Federal Tax ER 125 Redns | Assignment within GRE Year to Date |
Federal Tax ER 403 Redns | Assignment within GRE Year to Date |
Federal Tax ER 457 Redns | Assignment within GRE Year to Date |
Federal Tax ER Dep Care Redns | Assignment within GRE Year to Date |
Federal Tax ER Other Pretax Redns | Assignment within GRE Year to Date |
Federal Tax ER Pre Tax Redns | Assignment within GRE Year to Date |
Federal Tax ER Gross | Assignment within GRE Year to Date |
Federal Tax ER Subj Whable | Assignment within GRE Year to Date |
Federal Tax Withheld | Assignment within GRE Year to Date |
Federal Upper Limit Tax Taxable | Assignment within GRE Year to Date |
Federal Tax Withheld | Assignment within GRE Year to Date |
Federal Tax ER | Assignment within GRE Year to Date |
Jurisdiction Tax Gross | Assignment in JD within GRE Year to Date |
Jurisdiction Tax Subj Whable | Assignment in JD within GRE Year to Date |
Jurisdiction Tax Subj Nwhable | Assignment in JD within GRE Year to Date |
Jurisdiction Tax 401 Redns | Assignment in JD within GRE Year to Date |
Jurisdiction Tax 403 Redns | Assignment in JD within GRE Year to Date |
Jurisdiction Tax 457 Redns | Assignment in JD within GRE Year to Date |
Jurisdiction Tax 125 Redns | Assignment in JD within GRE Year to Date |
Jurisdiction Tax Dep Care Redns | Assignment in JD within GRE Year to Date |
Jurisdiction Tax Other Pretax Redns | Assignment in JD within GRE Year to Date |
Jurisdiction Tax Pretax Redns | Assignment in JD within GRE Year to Date |
Jurisdiction Tax Withheld | Assignment in JD within GRE Year to Date |
Jurisdiction Tax Withheld in State | Assignment in JD within GRE Year to Date |
Jurisdiction MISC1_COUNTY_TAX_WITHHELD_RS | Assignment in JD within GRE Year to Date |
Jurisdiction MISC1_COUNTY_TAX_WITHHELD_RS | Assignment in JD within GRE Year to Date |
Jurisdiction Misc1 State Tax Liability | Assignment in JD within GRE Year to Date |
Jurisdiction Misc1 State Tax Withheld | Assignment in JD within GRE Year to Date |
Jurisdiction Upper Limit TAX Taxable | Assignment in JD within GRE Year to Date |
Jurisdiction Tax ER | Assignment in JD within GRE Year to Date |
W2_UNCOLL_SS_TAX_TIPS | Assignment within GRE Year to Date |
W2_UNCOLL_MED_TIPS | Assignment within GRE Year to Date |
W2_GROUP_TERM_LIFE | Assignment within GRE Year to Date |
W2_401K | Assignment within GRE Year to Date |
W2_403B | Assignment within GRE Year to Date |
W2_408K | Assignment within GRE Year to Date |
W2_457 | Assignment within GRE Year to Date |
W2_501C | Assignment within GRE Year to Date |
W2_NONTAX_SICK | Assignment within GRE Year to Date |
W2_EXCISE_PARACHUTE | Assignment within GRE Year to Date |
W2_EXPENSE_REIMB | Assignment within GRE Year to Date |
W2_UNCOLL_SS_GTL | Assignment within GRE Year to Date |
W2_UNCOLL_MED_GTL | Assignment within GRE Year to Date |
W2_QUAL_MOVE | Assignment within GRE Year to Date |
W2 NONTAX COMBAT | Assignment within GRE Year to Date |
W2_MSA | Assignment within GRE Year to Date |
W2_408P | Assignment within GRE Year to Date |
W2 Adoption | Assignment within GRE Year to Date |
W2_NONQUAL_STOCK | Assignment within GRE Year to Date |
W2 BOX 14A through W2 BOX 14J | Assignment within GRE Year to Date |
W2 State Pickup | Assignment within GRE Year to Date |
W2 HSA | Assignment within GRE Year to Date |
W2 Nonqual Def Comp | Assignment within GRE Year to Date |
W2 409A Nonqual Income | Assignment within GRE Year to Date |
W2 MIF | Assignment within GRE Year to Date |
W2 Pension Plan | Assignment within GRE Year to Date |
Capital Gain | Assignment within GRE Year to Date |
EE Contributions Or Premiums | Assignment within GRE Year to Date |
Unrealized Net ER Sec Apprec | Assignment within GRE Year to Date |
Other EE Annuity Contract Amt | Assignment within GRE Year to Date |
Total EE Contributions | Assignment within GRE Year to Date |
Important: The list of balances related to the Federal Level that capture the values calculated in Payroll run are maintained by the system. These balances will be used in reporting if the "PAY: Use Direct Balances for US Federal Taxes" profile option is set as Yes. If this profile option is not set, then these balances will be not be used. If a customer is using Direct Balances for US Federal Taxes, i.e. if they have their profile PAY: Use Direct Balances for US Federal Taxes set as Yes, then it is necessary to perform balance adjustments to these balances also.
Note: For Pennsylvania you must initialize both Jurisdiction Tax Withheld and Jurisdiction Tax Withheld in State to correctly load the balances for Head Tax. For all other states with a Head Tax, you only initialize Jurisdiction Tax Withheld.
The following balances are delivered to capture the Pre-Tax Deductions calculated for each Federal tax during payroll processing. These are going to be used in Reporting like Employee W2, Year End Reports etc.
FIT 125 Redns
FIT 401 Redns
FIT 403 Redns
FIT 457 Redns
FIT Dep Care Redns
FIT Other Pretax Redns
FIT Pre Tax Redns
FIT Gross
FIT Subj NWhable
FIT Subj Whable
Medicare EE 125 Redns
Medicare EE 401 Redns
Medicare EE 403 Redns
Medicare EE 457 Redns
Medicare EE Dep Care Redns
Medicare EE Other Pretax Redns
Medicare EE Pre Tax Redns
Medicare EE Gross
Medicare EE Subj Whable
Medicare ER 125 Redns
Medicare ER 401 Redns
Medicare ER 403 Redns
Medicare ER 457 Redns
Medicare ER Dep Care Redns
Medicare ER Other Pretax Redns
Medicare ER Pre Tax Redns
Medicare ER Gross
Medicare ER Subj Whable
SS EE 125 Redns
SS EE 401 Redns
SS EE 403 Redns
SS EE 457 Redns
SS EE Dep Care Redns
SS EE Other Pretax Redns
SS EE Pre Tax Redns
SS EE Gross
SS EE Subj Whable
SS ER 125 Redns
SS ER 401 Redns
SS ER 403 Redns
SS ER 457 Redns
SS ER Dep Care Redns
SS ER Other Pretax Redns
SS ER Pre Tax Redns
SS ER Gross
SS ER Subj Whable
EIC 125 Redns
EIC 401 Redns
EIC 403 Redns
EIC 457 Redns
EIC Dep Care Redns
EIC Other Pretax Redns
EIC Pre Tax Redns
EIC Gross
EIC Subj Whable
FUTA 125 Redns
FUTA 401 Redns
FUTA 403 Redns
FUTA 457 Redns
FUTA Dep Care Redns
FUTA Other Pretax Redns
FUTA Pre Tax Redns
FUTA Gross
FUTA Subj Whable
For an employee, it is necessary to determine the taxes and wages that are applicable to the Resident and Work locations. This needs to be done at the State, County, and City levels if these localities have taxes. Once the taxes and wages of employee at resident and work locations are estimated in the legacy system, then balance adjustments or Initial Balance Upload can be performed in the Oracle system. To indicate which value corresponds to which location, it is necessary to use the related Jurisdiction Code in Balance Adjustment/Initial Balance Upload for Jurisdiction Input Value.
To adjust Resident and Work City tax values, it is necessary to have two different elements created. One for Resident value, which feeds City RS Reduced Subject and City RS Withheld balances. Other for Work value, which feeds City RS Reduced Subject and City RS Withheld balances. Both these elements must feed City Withheld balance also. While uploading or adjusting the City level tax values for the Resident Value, use the elements which feed to City RS Reduced Subject and City RS Withheld balances. For Work Value, use the elements which feed to City WK Reduced Subject and City WK Withheld balances. For each of these elements, it is necessary to specify the appropriate Jurisdiction to get the values considered as required.
The following table shows balances reported on W2 and 941 forms.
Balance Name | On W2 | On 941 |
---|---|---|
Reduced Subject Withholdable (Derived) | Yes | Yes |
Subject not Withholdable | Yes | Yes |
FIT Wittheld | Yes | Yes |
SS EE Taxable | Yes | Yes |
SS EE Withheld | Yes | Yes |
Medicare EE Taxable | Yes | Yes |
Medicare EE Withheld | Yes | Yes |
EIC Advance | Yes | Yes |
Dependent Care | Yes | |
*W2_UNCOLL_SS_TAX_TIPS | Yes | |
*W2_UNCOLL_MED_TIPS | Yes | |
*W2_GROUP_TERM_LIFE | Yes | |
*W2_401K | Yes | |
*W2_403B | Yes | |
*W2_408K | Yes | |
*W2_457 | Yes | |
*W2_501C | Yes | |
*W2_NONTAX_SICK | Yes | |
*W2_EXCISE_PARACHUTE | Yes | |
*W2_EXPENSE_REIMB | Yes | |
*W2_UNCOLL_SS_GTL | Yes | |
*W2_UNCOLL_MED_GTL | Yes | |
*W2_QUAL_MOVE | Yes | |
*W2 NONTAX COMBAT | Yes | |
*W2_MSA | Yes | |
*W2_408P | Yes | |
*W2_ADOPTION | Yes | |
*W2_NONQUAL_STOCK | Yes | |
* W2 BOX 14A through W2 BOX 14J | Yes | |
W2 State Pickup | Yes | |
W2 HSA | Yes | |
W2 Nonqual Def Comp | Yes | |
W2 409A Nonqual Income | ||
W2 MIF | Yes | |
* W2 Pension Plan | Yes | |
SIT Subj. Whable | Yes | |
SIT Withheld | Yes | |
County Subj Whable | Yes | |
County Withheld | Yes | |
City Subj Whable | Yes | |
City Withheld | Yes |
* Balance feeds for these balances are not pre-defined and must be defined by the user based on specific reporting requirements.