Payroll Statutory Deductions and Reporting

Payroll Statutory Deductions and Reporting Overview

Oracle Payroll enables you to calculate an employer's tax liability and deduct the appropriate sums from employee earnings. You can calculate employer and employee tax liabilities for all the taxes and statutory deductions that are applicable to your country. For example, this includes employer liability for state taxes such as State Unemployment Insurance and employee liability for federal, state and local taxes in the US, PAYE and NIC in the UK, PAYE and PRSI in Ireland, Social Security, Unemployment and Complementary Pension in France, Standard and Special tax and Social Insurance in the Netherlands, and so on.

In each instance, Oracle Payroll enables you to enter details of the tax liability and process it at regular intervals.

Reporting on Payroll Statutory Deductions

See: Reports and Processes in Oracle HRMS, Oracle HRMS Configuring, Reporting, and System Administration Guide

Payroll Statutory Deductions and Reporting

Oracle Payroll allows you to process tax and insurance deductions for employers and employees and helps you comply with the legislative requirements applying to your organization.

Is Oracle Payroll flexible enough to calculate taxes according to different legislative needs?

Yes. Oracle Payroll supports many country specific models of taxation, including the local, Federal, and state tax requirements of organizations operating in the US.

Is the entry of tax and social insurance details sufficiently flexible to meet the needs of my organization?

Yes. You can calculate taxes for different types of employer to represent the diversity of your organization. You can also make retrospective adjustments to allow for overpayments and underpayments.

Is Oracle Payroll capable of implementing the latest updates to taxation and social insurance?

Yes. The details of taxation policy and social security entitlements are constantly changing, but Oracle Payroll is always promptly updated so that your processing includes the most recent updates.

What are the Taxability Rules for Earnings and Deductions Categories?

Regular and overtime earnings are always subject to Federal and state taxes; however, at any point in time, other categories of earnings, and certain categories of pre-tax deductions, may be subject to different types of taxes and tax withholding at the federal and state levels.

What are the Taxability Rules for Workers Compensation?

States have different rules regarding the earnings categories to include in the payroll exposure used to calculate Workers Compensation liability.

Workers Compensation liability calculations also require that your jobs be assigned the Workers Compensation codes of one or more states. Associated with each state's codes are the rates of the WC insurance carrier or carriers in the state.

What are the Rules for State Quarterly Wage Listings on Magnetic Tape?

For the quarterly wage listings distributed to states in which you have employees, there is a requirement to maintain data for several different kinds of records. The Interstate Conference of Employment Security Agencies, Inc. (ICESA) has developed a format for magnetic reporting of state wage listings. The ICESA format designates the records required for state wage listings by code letters, as in the following table:

Code Record Name Purpose
A Transmitter Record Identifies a GRE serving as a transmitter of wage listing files to a state.
B Authorization Record Identifies equipment used to create the file.
E Employer Record Identifies GREs whose employee data (S and T records) are included in a file.
S Employee Wage Record Gives wage and tax information for individual employees.
T Total Record Gives totals of S records for an employer.
F Final Record Indicates the end of a file.

States that have not adopted the ICESA format for wage listings use the EFW2 (formerly MMREF) format or a variant of this format. Some of these states do not explicitly require the Transmitter (A) and Authorization (B) Records but do require some of the information appearing on these records.

Important: Use the State Periodic Wage Listing (Enhanced) process to generate the magnetic output files needed for submitting state unemployment reports to the applicable state agencies as per each state's requirements. The State Periodic Wage Listing (Enhanced) (SPWL) process generates State Quarterly and Monthly Wage listing reports. This process uses the Oracle XML Publisher technology to generate the reports and there is only one concurrent program to run both the quarterly and monthly processes. See: Running the State Periodic Wage Listing (Enhanced) Process

What Tax Information Must I Maintain for my Organization?

For the correct calculation and reporting of employee and employer tax liabilities at the Federal, state, and local levels, including Workers Compensation liabilities, you must maintain tax-related information for:

What are the Rules for Wage and Tax Reporting (W-2s)?

Employers must report to their employees the amounts paid and withheld so the employees can complete their own income tax returns and pay any amount owed to the Internal Revenue Service, and state and local governments.

Employers accomplish these reporting goals with the Wage and Tax Statement or Form W-2.

Use information from this form to enforce the appropriate tax laws as legislated by Federal and state governments.

In addition to reporting taxable income, some nontaxable amounts must also be reported to ensure that employees correctly complete their individual income tax return. The same is true for state reporting, except that the amounts reported are generally limited to taxable income and taxes withheld.

How do I Calculate my Unemployment Tax Liability?

Employers use Form 940 to determine your FUTA taxable wages for the calendar year and the FUTA tax liability on those wages after accounting for applicable state unemployment tax credits and FUTA tax deposits made during the year.

If you are covered by FUTA, you must report your liability annually on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. See IRC 3306(a) and IRS Regulation 31.3306(a)-1(b) for eligibility requirements.

Using Form 940, you can also pay your fourth quarter liability if the liability is less than $500.

Who Must File a Quarterly Federal Tax Return (Form 941)?

All employers must file this quarterly report if they withhold Federal income tax from employee compensation and are subject to withholding and payment of social security and/or Medicare taxes.

Form 941, Employer's Quarterly Federal Tax Return, provides the IRS with a report of each employer's total taxable wages paid and payroll tax liability, which is then reconciled with the employer's record of tax deposits and wage and tax information provided to employees on their W-2 forms.

See Reporting Quarterly Federal Tax Returns

What are Experience Rates?

The Experience Rate is the rate an employer uses to determine the amount of unemployment taxes it must pay. The experience rate is determined by the employers Experience Rating which in turn is determined by the employers unemployment benefit charges and average annual taxable payroll. The state provides the employer with its experience rate.

Employers with a high turnover generally have a higher experience rate. Employers with little turnover have a lower experience rate.

Who Must File Retirement Plan Listings (Form 1099-R)

At year's end, employers who make distributions of retirement income from qualified plans are required to report those distributions and any amount withheld for FIT/SIT/LIT on form 1099-R. Employers with more than 249 retirees are required to file Forms 1099-R on magnetic media, unless a waiver has been granted. Beginning in tax year 2006, the IRS will no longer accept 3 1/2 inch diskettes for filing information returns.

Employers must report any distributions from all types of qualified retirement plans; both periodic and lump-sum payments must be reported as well.

Form 1099-R requires distributions from any of the following be reported:

WC Insurance Carriers and Monopolistic or Competitive States

Some states are monopolistic with respect to the WC insurance carrier, which means that employers in these states can use only the state fund as their carrier.

Other states are competitive, which means they permit employers to use either private insurers or the state agency to fund WC programs. If your enterprise has GREs in different states, you likely have a different carrier in each state. If your enterprise has more than one GRE in a competitive state, it is possible for each to have a different WC carrier. However, each GRE can have only one WC carrier per state, whose name you enter in the system.

How are Workers Compensation Premiums Calculated in Oracle HRMS?

Premiums paid for worker's compensation insurance, whether it is a monopolistic or competitive state, are generally based on the type of business the employer does and the size of the payroll.

Employers are assigned classification codes based on the nature of the business. A dollar value is then assigned to the code and a calculation method is used to determine the employer's and employee's worker's compensation premium.

Calculation Methods

There are three calculation methods for determining both employee and employer contributions to Workers Compensation Insurance. These methods apply to the employer and employee numbered portions (if required) independently.

Percent of Subject Earnings: The employer and employee rates are expressed as a percentage.
Hourly Rate: The employer and employee rates are expressed in dollars per hour, where the hours used to calculate the amount deducted are the regular hours worked.
Flat Amount Per Period: The employer and employee rates are expressed in dollars per specified period of time, such as a year, a month, or a quarter.

Some businesses are deemed to be more dangerous than others and have a higher dollar amount assigned to the business. However, some employees may be assigned to a different and less expensive code because they are not involved in the more dangerous aspects of the business. This is known as an exception classification.

You must maintain information on:

How are Workers Compensation Insurance Rates Calculated?

Each state uses a set of work classification codes to represent its WC rates. The codes and their associated rates are intended to reflect the risk of injury or work-related illness in different types of work.

For each state in which you have a GRE, your jobs require WC classification codes. A given job does not necessarily have the same classification and code from state to state. Within a state, the same code normally covers a number of different jobs judged to have a similar risk level, so in each state all your jobs may fall into a fairly small number of codes.

Example Jobs and WC Codes for a State
Job Code
Bookkeeper 8810
Clerk/Typist 8810
Installer 5538
Repair People 5538
Senior Installer 5542
Outside Sales 5542

In a competitive state that permits employers to use private WC insurance carriers, all the carriers use the same set of codes, but need not use the same rates for each code. Also, the rate a private carrier charges for a code can vary according to the locations within a state. That is, particular geographical areas or job sites in a state can have special rates for the same code.

In addition to each carrier's default rates, you must maintain any special rates the carrier uses for particular locations.

Example WC Codes and Rates for WC Carrier A, by Location
Code Carrier A, Default Rates Carrier A, Rates for Site H
8810 .97 .94
8742 1.36 1.34
5542 6.70 6.65
5538 15.37 15.40

How do Surcharges and Rebates Affect my Companies Insurance Rate?

Reflecting your history as an employer with respect to WC claims, all states apply an Experience Modification Rate to the base premium, which can either reduce or increase your WC liability. Also, many states use:

Employer's Liability Rate An Employer's Liability Rate, applied before the Experience Modification Rate, which adds a percentage to the premium total. The system multiplies the premium total by the percentage to obtain the new total.
Example: For an Employer's Liability Rate of 4%, the system multiplies the total by 1.04.
Premium Discount Rate A Premium Discount Rate, applied after the Experience Modification Rate and certain surcharges that may be present. This modifier always reduces the premium total. The system multiplies the premium total by the Premium Discount Rate to determine the discount amount, and then subtracts this amount from the premium total.
Surcharges In addition to the modifiers mentioned above, some states apply surcharges, which can be either additional charges or rebates, to the WC premium calculation. One or two surcharges may be applied after the Experience Modification Rate but before the Premium Discount Rate. Another surcharge may be applied after the Premium Discount Rate. Some surcharges are added into the running total of the premium, while others are held separately and applied to the premium calculation at the end.
Unique State Provisions In addition to the commonly occurring modifiers and surcharges, a state may use special modifiers, surcharges or rules not found elsewhere.

How is Overtime Pay Affected by Workers Compensation?

States have different rules regarding the inclusion of overtime pay in employees' WC payroll exposure, depending on whether these earnings are paid at straight time or premium rates. Further, some states impose an Executive Weekly Maximum, which sets an upper limit on the amount of an employee's earnings available for inclusion in his or her payroll exposure. Overtime hours can also be included, independent from subject wages.

Can I Change a Workers Compensation Code for an Employee?

Sometimes you must override the regular WC job classification codes for certain employees. For example, when employees in a high risk job classification are working at a construction site, you may be required to give everyone at the site, including clerical personnel and similar lower risk workers, the higher risk code.

What Tax and Wage Reports am I Required to Submit?

The federal-level reports on taxes and wages that each GRE must produce include:

At the state level, employer's electronically submit report of employee wages subject to SUI to the states in which they have employees. Use the State Periodic Wage Listing (Enhanced) process to generate the magnetic output files needed for submitting state unemployment reports to the applicable state agencies as per each state's requirements. The State Periodic Wage Listing (Enhanced) (SPWL) process generates State Quarterly and Monthly Wage listing reports. This process uses the Oracle XML Publisher technology to generate the reports and there is only one concurrent program to run both the quarterly and monthly processes. See: Running the State Periodic Wage Listing (Enhanced) Process

Data for Reporting Electronically

For GREs and other organizational units submitting Federal and state tax and wage reporting electronically, you must maintain some special data. This data serves to identify things like the GREs that are serving as transmitters of the media, the GREs whose employer and employee data appears on a particular tape or diskette, and the equipment used to generate the files submitted.

The best practise for employers is to submit your files electronically.

How do I Report for Multiple Worksites?

Employers with multiple worksites must file quarterly employment and wage reports. This information is used by the Bureau of Labor Statistics (BLS) to provide analyses of U.S. employment. This Multiple Worksite Report (MWS) is submitted on magnetic media.

Certain industries such as gas and oil exploration, construction, and contract logging are exempted from reporting. Employers with less than 10 employees total in their multiple worksite locations are also exempted from filing this report.

See the Bureau of Labor Statistics Report BLS 3020 for complete details of who must file.

Oracle strongly urges you to file electronically.

US Gross to Net Summary Report

US Gross to Net Summary Report

The US Gross to Net Summary report shows current totals for the results calculated from payroll runs, quick pays, and payroll reversals by earnings, deductions, and other elements of pay. The US Gross to Net Summary report groups totals by element classification, thereby showing a gross to net view. Oracle Payroll generates the output of the US Gross to Net Summary in PDF format.

Any non-zero values of the element totals appear in the following categories:

All element totals appear in the Total column of the US Gross to Net Summary report. If there is an hour designation associated with the element, the total number of hours for each listed element appear in the Hours column of the report. Totals for both dollar amounts and hours appear at the end of each category listing.

You run the US Gross to Net Summary Report for a single GRE or all of the GREs in the organization. You run this report for a specific payroll or consolidation set.

US Gross to Net Summary is not a YTD reconciliation tool. Run this report after each payroll run or, at a minimum, on a quarterly basis.

Sort Options

You organize US Gross to Net Summary reports according to user-defined criteria or sort options. Oracle Payroll does not require you to use sort options to generate your report, but they are the best way to configure the report to your specific needs. You can sort reports by any or all of the following options:

Note: Select GRE as a sort option only if you have included all GREs in the US Gross to Net Summary report.

The sort options are hierarchical. Making a selection to the Sort Option One field enables Sort Option Two. Making a selection to the Sort Option Two field enables Sort Option Three.

Example of Sort Options

The following is an example of how to use sort options to configure the US Gross to Net Summary Report.

If you want to create an US Gross to Net Summary Report sorted by GRE, Location, and Organization:

  1. Enter GRE into the Sort Option One field.

  2. Enter Location into the Sort Option Two field.

  3. Enter Organization into the Sort Option Three field.

Using these Sort Options, Oracle Payroll generates the report listing each employee by location within each organization for the selected GRE or business group. The US Gross to Net Summary report lists totals at all levels, not just the bottom level.

Note: The application nests the sort options. Using the previous example, if you change Sort Option Two from Organization to Location, the process automatically clears Sort Option Three.

Running the US Gross to Net Summary Report

Run the US Gross to Net Summary report from the Submit Single Request window.

Note: US Gross to Net Summary is not a YTD reconciliation tool. Run this report after each payroll run or, at a minimum, on a quarterly basis.

To run the US Gross to Net Summary report

  1. In the Single Request field, select US Gross to Net Summary.

  2. Click in the Parameters field and select the parameters for the report (as detailed below).

  3. Click OK and then Submit.

    This report creates a PDF file in the output directory that you view through Acrobat Reader.

US Gross to Net Summary Parameters

The following parameters exist for the US Gross to Net Summary:

Starting Date and Ending Date Use these fields to enter a date range for the report.
GRE Select from the List of Values to limit the report to a single GRE. The report contains information for all valid GREs if the field is left blank.
Payroll Select from the List of Values to run this report for a specific payroll. You must enter either a payroll or a consolidation set to run the report.
Consolidation Set Select from the List of Values to run this report for a consolidation set. If you select a payroll in the Payroll field that is associated with a consolidation set, the consolidation set automatically populates. You must enter either a payroll or a consolidation set to the report.
Sort Options There are three fields for sort options. See the Sort Options section for more information on how to properly use these parameters.
Template This field defaults to US Gross to Net Summary (PDF)

Report Messages

The results of the US Gross to Net Summary report vary depending on what post-payroll processes you ran prior to running this report. The following table explains the message conditions for this report:

Message Reason
Informational - Payment information not available; Prepayment has not been run for any pay runs/quick pays selected for the report Run the US Gross to Net Summary report after a payroll run or quick pay, but no pre-payment processes have occurred for the any of selected runs.
Informational - Payment information not complete; Prepayments have not been run for all pay runs/quick pays selected for the report. Run the US Gross to Net Summary report after a payroll run or quick pay, but not all pre-payment processes have occurred for the selected runs.
Informational - Disbursements have not been run for all pay runs/quick pays selected for the report. Run the US Gross to Net Summary report after a payroll run or quick pay, but not all pre-payment processes and disbursements have occurred for the selected runs.
Informational - Pay process and disbursement processes complete. Run the US Gross to Net Summary report after all payroll check, third party check, and NACHA processes have occurred for the selected runs.

Local, State, and Federal Taxes

Understanding Taxes

When setting up Oracle Payroll for tax calculation and data entry, there are many requirements you must consider.

You can enable the Address Validation Using Vertex Web Services feature to automatically validate addresses for taxation purposes. See: Address Validation Using Vertex Web Services

Address Validation Using Vertex Web Services

Address details are the defining criteria for employee and employer taxation in the United States. It is important to use appropriate address details for correct tax deductions. Payroll administrators manually validate address details of employees to identify the taxation city for the address. If the taxation city is different from the city associated with the mailing address, then the payroll administrator adds the taxation address. In addition, the calculation of school district tax is determined by the school district code available in the employee county or city tax record.

Oracle US Payroll integrates with Vertex to optionally automate address validation using the Vertex address validation web service and to determine the correct taxation address. When an address is validated using Vertex Web Services, the Vertex response also includes school district details applicable to an address. This feature helps payroll administrators with employee records that are associated with states that have school district taxes such as Kentucky, Ohio and Pennsylvania.

For information on how to enable address validation using Vertex Web Services, see: Enabling Address Validation Using Vertex Web Services, Oracle HRMS Implementation Guide (US)

When the Vertex Web Services address validation feature is enabled, Oracle US Payroll validates:

  1. The person's primary address details available in the:

    • Address window (People)

    • Address window (FastPath)

    • Enter Employees window (Maintain Using Templates)

    • Maintain Employees window (Maintain Using Templates)

    • Main Address region, Personal Information page (Employee Self-Service responsibility)

  2. The location address available in the Location window.

Note: Address changes in any other Oracle HRMS windows or self-service pages are not validated.

Features of Address Validation Using Vertex Web Services

Important: The Vertex Web Services address validation feature is initiated if the address details such as Address Line, City, County, State or Zip Code are changed. If the Telephone or Mobile Number is updated, then the address validation is not initiated.

In the following description, the term user indicates a payroll administrator for Oracle US Payroll and an employee for self-service.

  1. Oracle US Payroll compares user entered address details and taxation address details with the details returned by the Vertex Web Service. If there is a difference between these two addresses, then the application alerts the user.

  2. The application gives the user the option to choose between the address returned by the Vertex Web Service and the existing address. If the user chooses to use the address returned by the Vertex Web Service, then Address Details and Taxation Address will be populated with the Vertex returned information. Otherwise, the application retains the user entered address details.

    It is possible that some addresses may differ in "Address" details and some may differ in "Taxation Address". When the address details are validated, the application first displays the recommendation for the "Address" details. Next, the recommendation for "Taxation Address" is displayed. The user can chose or ignore the Vertex recommendation for Address and Taxation Address separately. When Multiple Taxation Addresses are returned by Vertex for an address, even if the entered taxation address matches one of the recommended addresses, both are displayed to the user so that they are aware of the scenario that multiple taxation addresses are returned for the current address.

  3. If Vertex returns an error for the existing address details, then the application displays the error details so that the user can further review the address details.

  4. If address validation does not occur due to incomplete or incorrect setup, then the application displays a warning so that the user can review the setup to ensure successful validation. Users can still continue to save their address even if the validation is unsuccessful.

  5. The application saves the status of the address validation. Address details are validated if the payroll administrator enters a new address or updates an existing address. When address details are updated, the application determines whether the actual address details or other information such as a telephone number are being updated. Address validation is performed only if there is actual address change. If an address was not validated earlier, then it will be validated by the Vertex web service.

  6. Payroll administrators can run the Validate US Addresses using Vertex Web Services concurrent process to validate addresses in bulk. See: Running the Validate US Addresses using Vertex Web Services Program , Oracle HRMS Implementation Guide (US)

  7. If an approval or notification mechanism is set up for self-service updates, then the payroll administrator or manager receives a notification on the address change.

  8. In the event Vertex Web Services goes down or if the setup is incorrect or corrupted, Oracle US Payroll will be unable to validate address details using Vertex web services. Payroll Professional users will be given a warning about the situation. However, no such warning is given to employees who use self-service to update their address details. Instead a notification will be sent to the employee's designated HR/Payroll Representative about the unavailability of Vertex Web Services along with any error details. If Vertex Web Services become available once more, that is, Vertex web services are restored and the details entered by the employee are validated successfully, then another notification will be sent to same designated HR/Payroll representative indicating Vertex web services availability.

The following sections explain how person address and location address validation occurs in Oracle HRMS and Oracle SSHR.

Person Address Validation in the Address Window

The US-specific Address window has the provision to capture the taxation address if the details specified in the Address region are different from the taxation locality. Only the primary address is validated by Vertex Web Services as this is critical for tax calculation. See: Entering People's Addresses at Sites with Oracle Payroll , Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide (US)

Understanding the Application Behavior During Address Validation

The following sections explain the different scenarios during address validation:

  1. Setup errors: During address validation, the application displays the following errors messages if it detects any incorrect or incomplete setup:

    • Vertex credentials are incorrect: The application displays a Login Error message if the login to Vertex Web Services is unsuccessful due to incorrect or missing user ID and / or password.

    • Vertex credentials are incorrect: The application displays a Login Error message if the login to Vertex Web Services is unsuccessful due to incorrect or missing user ID and / or password.

    • Proxy details are not set: The application displays a Connection Error message that proxy related profile options must be set correctly.

  2. Vertex returns an error for the entered address: Vertex may display an error for the user entered address indicating that the entered Street Address or Postal Code is not valid. In such scenarios, the application displays the error returned by the Vertex Web Service so that the user can correct their address. If a user feels that the address details provided by them are correct, then they can ignore the Vertex response.

  3. Vertex returns an address different from the user entered one: If Vertex returns an address different from the user entered one, then the user will be informed about the difference and provided with an option to choose between the Vertex returned value and the user entered value.

  4. Address details entered without the Taxation Address, when required: When only address details are entered and no taxation address is present, the application displays a Vertex recommended Address message with an option to save the Vertex

  5. Address details entered with the Taxation Address: When address details are entered along with taxation address, the application displays a Vertex recommended Address message if Vertex returns a different taxation address. The user can choose to save the recommended address or click No to retain the user entered Taxation Address.

  6. Address for which multiple taxation addresses are returned: When Multiple Taxation Addresses are returned by Vertex for an address, even if the entered taxation address matches one of the recommended addresses, both are displayed to the user so that they are aware of the scenario that multiple taxation addresses are returned for the current address.

  7. Feedback for address validation: When address validation occurs for primary address details in the person Address window, the application displays the following feedback for those addresses not previously validated by Vertex web services:

    a. Feedback for address validation: When address validation occurs for primary address details in the person Address window, the application displays the following feedback for those addresses not previously validated by Vertex web services:

    b. In the case of address details entered with the Taxation Address and if Vertex returns the same address, then the application displays a confirmation message that the address validation is complete and that the Vertex recommended address matches the entered Taxation Address.

Person Address Validation in People Management Templates

Payroll administrators can add or update person addresses using People Management Templates. Address validation using Vertex Web Services will be performed when the person address is created or updated using the Enter Employees or Maintain Employees templates and the user will be provided with any Vertex recommended address. For more information, see: Features of Address Validation Using Vertex Web Services. Note that during address validation, recommendation for Taxation Address will be displayed only in the person Address window. The People Management templates will display only the recommendations for the "Address". When an address which was saved in the People Management template is opened in the person Address window, then this address will be validated and taxation address recommendations are displayed.

Person Address Validation in the Employee Self-Service Page

Employees can update their address details using the Main Address region in the Personal Information self-service page. When an employee updates the address details, Vertex Web Services validates address details and displays a warning to the user if a correction is required. The application presents an option to either Ignore the recommended address or Replace the address with the recommended address. If Replace is selected, then the existing address will be replaced with the Vertex recommended address. If Ignore is selected, then the existing address is saved and Vertex recommendation is ignored. If Vertex cannot locate the address entered, then the application displays a message that the entered address could not be located.

The self-service page does not have fields to capture the "Taxation Address". The recommendation provided by Vertex on Taxation Address is not displayed to the Self-Service user as they might not be aware of the taxation requirements of their jurisdiction. For such address changes, the payroll administrator can run the Validate US Addresses using Vertex Web Services concurrent program to validate all the addresses modified through self-service. They can also validate the addresses using Person Address window, if the number of addresses updated are one or two, instead of running the concurrent program.

Street Address Validation

When address details entered in Oracle HRMS and Oracle SSHR are passed to Vertex Web Services, Vertex Web Services provides necessary corrections to street address details along with the taxation details. Users can choose to utilize the Vertex recommended Street Address or continue to save the details that they entered.

Location Address Validation

The Location Address window for the US localization has a provision to record the taxation details of the address. For more information on how the location address validation feature works, see: Features of Address Validation Using Vertex Web Services.

Populate School District Details to Employee County or City Tax Records

When address details are validated using Vertex Web Services, then along with taxation details, the applicable School District is returned. When Vertex returns "School District" information for an address, then the School District code will be added to the City tax record automatically. The School District code will be added only if there is no School District already entered for the Employee tax records. For Pennsylvania, School District code will be added even if the School District code is already present for some other City in that state.

Tax Information for GREs

Each GRE represents an employer for which the US Internal Revenue Service provides an identifying number for tax purposes (generally called the employer identification number). When creating an organization classified as a GRE, you must define federal, state, and local tax rules for it.

These rules include:

Taxation Processing when an Employee's GRE Changes

For US legislation, all the taxation processing happens based on the values associated to a particular GRE. If there is any change of GRE for an employee, the taxation processing happens under the new GRE where the employee is considered a new employee. If it is necessary to consider the tax details present in earlier GRE for the employee, either of below mentioned approaches can be followed.

The My Oracle Support note: Changing Assignment's Payroll or GRE Gives Inconsistent Results in Payments and Balances (Doc ID 1348898.1 recommends that customers can chose to create a new assignment for an employee rather than changing the employee GRE. However, the creation of new assignment is suitable only if one or two employees require GRE change. If major population of employees requires GRE change, then Balance Adjustments or Tax Group is a suitable option.

Employer Local Taxes

Oracle Payroll for US enables employers to calculate employer head tax or employer city tax liability for specific localities. This topic discusses the components that Oracle Payroll for US supports to process employer local taxes.

Control Calculation of Employer Local Taxes at the GRE Level

The ability to control the calculation of local employer taxes is provided at the Government Entity Reporting (GRE) level. Payroll administrators can select the following values in the Local ER Tax Rules window for a GRE:

Depending on the values selected for these fields in the Local ER Tax Rules window, the application calculates the employer local taxes during a payroll run or QuickPay for employees.

Important: The application calculates employer local taxes based on where the employee works. If the employee resides in one of the supported localities, but works in a non-supported location, no employer local tax will be calculated.

The following table provides a list of employer local taxes that Oracle Payroll for US supports:

  State Type Frequency Liability Locality
1 CA ER Annually 1.35% x taxable wages of all employees working in city limits San Francisco
2 CO Employee and Employer Monthly if over 25 employees otherwise Quarterly $2.00 per month for Employee and Employer per employee earning over $250.00 in Gross Wages per month. Aurora
3 CO Employee and Employer Monthly if over 10 employees otherwise Quarterly Employee rate of $5.75 per month; Employer rate of $4.00 per month per employee earning over $500.00 in Gross Wages per month Denver
4 CO Employee and Employer Monthly if over 6 employees otherwise Quarterly $5.00 per month for Employee and Employer per employee earning over $750.00 in Gross Wages per month. Glendale
5 CO Employee and Employer Quarterly $2.00 per month for Employee and Employer per employee earning over $250.00 in Gross Wages per month. Greenwood Village
6 CO Employee and Employer Monthly if over 9 employees otherwise Quarterly $3.00 per month for Employee and Employer per employee earning over $500.00 in Gross Wages per month. Sheridan
7 IL Employer Annually $4 per employee per month working in city limits Chicago
8 MO Employer Quarterly .5% x gross earnings for employees working or living in city Saint Louis
9 NJ Employer Quarterly 1% x (total wages, tips, and other comp subject to Federal Income Tax - adjustments for partial work done in or out of Newark) Newark
10 OR Employer Quarterly .6% x taxable wages of all employees working in district City of Sandy
11 OR Employer Quarterly .68% x subject wages of work done in district Canby
12 OR Employer Quarterly .6% x subject wages of all employees working in district Molalla
13 OR Employer Quarterly .5% x gross wages of all employees working in district City of Wilsonville
14 PA Employer Quarterly .55% x gross wages of employees working in city or gross wages attributed with work done in city Pittsburgh

Predefined Elements

The following predefined elements are delivered to process and calculate employer head tax or employer city tax:

Set up Information to Process Local Employer Taxes

You must complete the following setup steps to process local employer taxes:

  1. 1. Specify local employer tax rules. See: Entering Local Employer (ER) Tax Rules for a GRE.

  2. 2. Navigate to the Link window, and link the following elements to all payrolls or create an applicable link for your specific organizational needs:

    • City ER HT RS

    • City ER HT RS

    • City ER HT RS

    • City ER SUBJECT2 WK

    • City ER SUBJECT2 WK

    • City ER SUBJECT RS

    • City ER SUBJECT WK

    • City ER WK

  3. 3. Set up the tax balance adjustment elements, if required. This step is optional and is required only if you want to make any tax balance adjustments for employer local taxes. The Adjustment elements would be used for the manual Balance Adjustment process. See: Setting Up the Tax Balance Adjustment Elements

W-4 and Other Tax Data for Employees

For each employee assignment, you maintain information taken from the W-4 Employee's Withholding Allowance Certificate that employees must complete, as well as certain additional tax-related information.

Additional Information: If an employee has more than one assignment, you must enter identical data for each.

See: Tax Information for an Employee Assignment

Entering W-4 and Other Tax Data for Employees

To review and change default tax information for an employee, use the appropriate Tax Rules window. Information in these windows are maintained date effectively.

Note: All changes effect the tax calculation as of the date paid, not the date calculated.

See Also:

State Tax Rules

County Tax Rules

City Tax Rules

Percentage Tax Rules

SUI Wage Base Override Changes

States allow for unemployment wages already taxed by a prior state to qualify towards the SUI wage base limit, as long as the employee works for the same employer in both states in the same tax year.

Note: The state of Minnesota is an exception to this rule. If an employee transfers from any state to Minnesota, there is no credit of SUI wages allowed. Oracle Payroll also requires the employee be in the same Government Reporting Entity (GRE).

Oracle Payroll provides the following when you make modifications that result in a change to the SUI state:

A change to the SUI state occurs by either changing the work location on the assignment window, or manually changing the SUI state on the employee's federal tax window.

Oracle Payroll also populates the SUI Base Override field with the remaining amount of taxable wages. If the combined SUI ER taxable wages in all states except the current state for the same GRE in the same tax year is less than the SUI wage limit of the current state, the system sets the SUI Base Override field to the difference of the two. If the combined ER taxable wages are equal to or greater than the limit of the current state, the SUI Base Override field is set to zero.

Note: You can disable this functionality by setting the Automate SUI Wage Credit field in the Employer Identification window to No.

See: GREs: Entering Employee Information, Oracle HRMS Enterprise and Workforce Management Guide

You must still run the Clear SUI Wage Base Override as part of the Year Begin processes. The process clears the SUI Wage Base Override field whether automatically or manually input.

If the SUI wage limit changes as a result of an update to the Jurisdiction Information Tables, the system does not self adjust the limit entered in the SUI Wage Base Override field.

Note: If you have employees that transfer to a different work state during the tax year, it is mandatory you run the Year Begin Process to clear the SUI Base Override field. See: Clear SUI Wage Base Overrides Process

Non Resident Alien Tax Calculation

Employers are responsible for ensuring that nonresident aliens have taxes withheld appropriately. It is the employers decision as to how to change the set up to withhold the correct amount of taxes.

You use the Extra Information Type (EIT) VISA Residency Details to set the Non Resident Alien parameter. The EIT determines if a person is a resident or non-resident. Oracle passes the residency information to Vertex for use in the tax calculation.

Override tax amounts and override tax rates take precedence over setting the Non Resident Alien parameter. If an override tax amount or tax rate exist, and the Non Resident Alien parameter is set to true, the application processes the override instead of calculating the tax using the Non Resident Alien parameter.

When additional tax amounts exist, Oracle Payroll adds the additional amount to the tax calculation for the current period. The tax calculation amount may or may not include override tax amounts or rates. The Non Resident Alien parameter does not affect the processing of additional tax amounts.

Tax Withholding Methods

To calculate the Employee Withheld balance, payroll runs use the regular or supplemental method. At the Federal level, the cumulative withholding method is also available.

Regular withholding (also called Percentage or Annualized Wages withholding) The default withholding method of Regular runs. These payroll runs process employees once each period to produce their regular earnings for time worked and may also process supplemental earnings and final pay for terminating employees.
Regular runs apply supplemental withholding to any supplemental earnings whose input value Tax separately has the entry Yes.
See: Supplemental Withholding in Regular Runs, Oracle HRMS Compensation and Benefits Management Guide
Supplemental withholding The default withholding method for Federal and state income taxes in Supplemental runs. You initiate these runs whenever necessary to process supplemental earnings and final pay for terminating employees. You enter in the Federal Tax Rules window, the supplemental withholding calculation method a GRE uses.
Supplemental payroll runs act like regular runs when processing final pay, using regular withholding except for any supplemental earnings with an entry of Yes in its Tax Separately input value.
Cumulative withholding Can apply only to employees whose earnings occur unevenly over the year; it can be beneficial for such employees. Regular and supplemental runs both use cumulative withholding in calculating Federal taxes for the regular earnings and commissions of those employees who qualify for and have requested this method.
You mark employee assignments for cumulative withholding when entering tax information for individual employees.

The Tax Calculation Process

When all the necessary tax information is in place, the payroll run calculates the tax withholding of your employees and the tax liabilities of their GREs.

For each employee, it first creates gross earnings balances. Then it calculates their withholding, applying the appropriate withholding method, and the GRE's tax liability for the employee.

Note: For the state-level calculations of employer liability for Workers Compensation payments, the run does special calculations.

See: WC Elements and Formulas in Oracle Payroll

Calculation Provision and Maintenance

The tax rules used to produce the tax balances can be complex. Moreover, they are subject to frequent changes. Developing and maintaining current US tax calculations at the federal, state and local levels requires many researchers with specialized skills and experience.

For this reason, an independent, well-established US payroll tax vendor is the best source for tax calculation routines and updates. Oracle has concluded an agreement with Vertex Inc. to supply these tax calculation programs.

Each Oracle Payroll installation incorporates into the payroll run, tax calculations that Vertex provides and maintains. The payroll run calls these calculations at the appropriate times, so that they automatically go into effect.

You receive Vertex documentation together with Oracle Payroll. There is no online access to Vertex formulas and tables; however you can obtain a variety of reports on the tax calculations, described in the documentation. For tax calculation maintenance, Vertex provides you with data on diskettes or tapes. When you apply this data to your system it overlays all existing data in the Vertex tables, so that all data in these tables is current.

Tax Information for an Employee Assignment

Oracle Payroll and HR only users must maintain the tax-related information each employee provides on form W-4 Employee's Withholding Allowance Certificate, as well as certain additional tax information for employees. The payroll run uses this information to determine employee tax withholding at the Federal, state, and local levels.

To review and maintain employee tax information, use the Federal, State, County, City, and sometimes Percent Tax Rules windows. Entries to these windows are date effective.

You can enable the Address Validation Using Vertex Web Services feature to automatically validate addresses for taxation purposes. See: Address Validation Using Vertex Web Services

Tax Records for New Hires

When you hire a new employee, you must enter a primary residence address for them. Each new employee must also have a work location with an address that includes a city or town and a state. The work location is the location of the organization included in the employee assignment.

Note: This assignment may be the default assignment of the employee either to the Business Group or to the organization to which he or she was an applicant, or may be another assignment entered as a correction to the default assignment.

The system date-effectively creates default Federal, state, and local tax records for each new hire, using:

The filing status of these default tax records is Single, and the default for the number of allowances is Zero. If a new employee's W-4 form contains different information from that of the default records, enter this information using the Federal Tax Rules window.

Note: Oracle Payroll does not automatically create default tax records when the Location Address changes, the Payroll Tax City, State, Zip and County override location address fields are used, or when the Taxation Location override on the GREs and Other Data window changes.

Note: If you change the Location Address or the Payroll Tax City, State, Zip and County fields for the location, you must run the Update Work Location Tax Records concurrent program. This program creates default tax records and provide a report of all employees affected by the change. You then must update the individual tax records affected by the change and modify the SUI State's withholding information and percentage tax rules, as required. If you skip this step, payroll taxes will be incorrect for future payrolls until the appropriate change is made.

Note: If you make a change to the SUI state, Oracle Payroll automatically populates the SUI Base Override field with the remaining amount of taxable wages to the limit for the new state. However, an employer can manually override the data in this field. The system issues a warning that based on the limit, the amount entered is not correct.

Tax Record Changes for Current Employees

Tax Record Changes for Current Employees

Scenario 1

Whenever changes occur to the city, county, or state of the current primary address for an employee, the system checks the employee's tax records and date effectively and makes changes to the local or state and local tax records, as required.

For example, when you change the primary address to a new state, county and city, Oracle Payroll creates default tax records for the new state and locality, with 0% as the time worked in the new state and locality.

Depending on the rule you entered for the state in the State Tax Rules window, the filing status and number of allowances for the new state and local records either defaults from those on the employee's Federal tax record or go in as Single and Zero.

Scenario 2

Whenever the city, county, or state of a location address changes, or the Payroll Tax City, State, Zip, and County fields for the location changes, you must run the Update Work Location Tax Records concurrent program. This program creates the default tax records, and provides a report of all employees affected by the change. You must access the individual tax records effected and modify the SUI state withholding information and percentages, if required.

Note: If you skip this step, payroll taxes will be incorrect for future payrolls until the appropriate change is made.

For example, when you change the Location address or Payroll Tax fields to a new state, county and city and then run the Update Work Location Tax Records concurrent program:

If the employee is working 100% of the time in the new state and/or locality, or is not working 100% of the time in the new state and/or locality but is working elsewhere for some percentage of time, you must access the individual tax records effected and modify the percentages and withholding information percentages, as required.

Scenario 3

Whenever you update the Taxation Location override field is on the GRE and Other Data window (on the Assignment form), Oracle Payroll does not update employee tax records to reflect the Taxation Location override. You must create individual tax records for the new state and locality, and then modify the withholding information and percentages, if required. If you don't, the employee will be taxed improperly the next time you run payroll, because Oracle Payroll has not created default tax records for the employee.

State and Local Tax Exemptions

If an organization employs persons living in a state or locality where there is no business address for the organization, the employer may choose not to withhold any applicable state or local residence taxes for those employees. In order to achieve a state or local tax exemption, an employer defines exemption rules for each GRE that apply to all assignments in that GRE.

Oracle Payroll automatically withholds taxes for all defined states and localities unless you introduce exemption rules. For local taxes, the exemption rules apply only to resident taxes. Oracle Payroll withholds work locality taxes based on the work location regardless of whether those localities are defined in the exemption rules.

Note: In previous releases of Oracle Payroll, you could define exemption rules only at the assignment level. By being able to define exemption rules at the GRE level, you can easily identify those employees for which tax exemptions exist.

Examples of State and Local Exemption Rules

Following are sample scenarios that illustrate typical uses of State and local tax exemptions.

Scenario 1: No State or Local Tax Exemptions

This is the system default. Oracle Payroll withholds taxes from all fifty states and subordinate localities unless you specify otherwise.

Scenario 2: Doing Business in Only One State with No Local Tax Exemptions

In the Employer Identification screen, the State Tax Withholding Rule field must be set to States under State Tax Rules. In the State Tax rules screen, information should be entered and maintained only for the state that the company is doing business in.

The system default is for taxes to be withheld for all localities in the state in question. This means that on the State Tax Rules screen, the Exempt State Income Tax field is set to No, and the Local Income Tax Withholding Rule field is set to All Localities.

Scenario 3: Doing Business in Some States with Some Local Tax Exemptions

In the Employer Identification screen, the State Tax Withholding Rule field must be set to States under State Tax Rules. In the State Tax Rules screen, information should be entered and maintained only for the states that the company is doing business in. The Exempt State Income Tax field should be set to No.

In the State Tax Rules screen, the Local Income Tax Withholding Rule field should be set to Only Localities Under Local Tax Rules. In the Local Tax Rules screen, tax rules should be set up only for those localities that employees reside in. The Exempt Local Income Taxes field should be used to determine if you want to withhold taxes for this locality.

Note: If you have a business location in a certain locality, you have to withhold taxes for that locality.

Setting up Exemption Rules

You define Oracle Payroll tax exemption rules at the GRE level. Oracle Payroll can create a tax exemption for any state or locality set up in your system. You can also have Oracle Payroll withhold all applicable taxes for all states and localities in the United States.

Identifying Existing Exemption Rules for Employees

When entering W-4 tax information for an employee, Oracle Payroll informs you if a tax exemption applies for the state or locality where the employee resides. If state income tax is being withheld, then the SIT Withheld box in the State Tax Rules screen is checked. If county or city income tax is being withheld, then LIT Withheld box is checked on the County Tax Rules window or the City Tax Rules window.

A tax exemption may exist for any of the following reasons:

Note: A state tax exemption may not exist for an employee whose primary address is in the same State as their work location. A local tax exemption may not exist for an employee whose primary address is in the same city or county as their work location.

Entering Puerto Rico Withholding and Exemption Details

Use the PR Withholding Details assignment EIT to enter the withholding and exemption details for employees for the state of Puerto Rico.

The data that you configure in this assignment EIT is included in the following reports:

Following fields are available for this EIT:

Assignment Location Rules Overview

The defaulting tax rules process creates tax records whenever the following assignment location rules are met:

The following tax rules records are created with the effective start date as the date on which the defaulting tax rules criteria was met for the first time and the effective end date as the end of time:

Assignment Location Rules Overview Example

An employee moves to three different states, A, B, and C in a year. In state A, the employee works in two different counties, D and E. In State B, the employee works in city G (which is located in county F). In State C, the employee works in an unspecified area. The employee's percentage in each of these areas is expressed in the following table:

Work Location State A State B State C
County D 30% 0% 0%
County E 20% 0% 0%
County F 0% 0% 0%
City G 0% 30% 0%
Unspecified 0% 0% 20%
Total in State this year 50% 30% 20%

Note: The state totals add up to 100% for the year.

Mechanisms for Updating Tax Records

There are three update mechanisms:

Update Assignment Location

Assuming that tax records do not already exist for the second assignment location, the following events occur when you update an assignment location:

Update With Insert Assignment Location

Update with Insert allows you to create a new tax record and insert it between two existing records.

An employee transfers from current Location 1 to future Location 2. Before the employee actually transfers to Location 2, the plans change, and the employee transfers to Location 3.

Note: The transfer to Location 2 is not altered by this action, and the change will take effect as planned.

The transfer to Location 2 is not altered by this action, and the change will take effect as planned.

Update Override of Assignment Location

Update override allows you to insert a future dated assignment location and override any existing future dated assignment locations.

An employee in Location 1 transfers to Location 2 in a few months time. But before the transfer happens, plans change, and the employee is now transferring to Location 3.

The records for Location 2 are created, but the percentage records for State, County, and City for location 2 are set to zero. However, the records for Location 3 are created and as of the default date, until the end of time, the employee percentage records for State, County, and City are set to 100% for Location 3 as of the transfer date until the end of time. Note also that the Federal tax record is set for Location 3 as well.

In update Override, the following process occurs:

Reporting Federal Unemployment Tax (FUTA)

Generally all employee compensation is subject to FUTA tax unless exempted under IRC 3306(b) and IRS Reg. 31.3306(b)(2)-1 - (b)(10)-1.

Oracle Payroll provides certain information in the form of a work sheet that you then transcribe to the official form 940; however, some information must be provided by you:

FUTA Credit

An employer can reude their FUTA tax rate through credits they can take based on the amount and timeliness of the state unemployment taxes it pays. Oracle Payroll has two methods to estimate the allowed credit:

Warning: Once you have selected one of the two methods for estimating FUTA credit, do not switch methods mid-year.

The IRS allows credit only when SUI payments are on time. Since Oracle Payroll does not contain payment information, this determination cannot be made by the software.

An employer can make excess voluntary payments to SUI with the objective to lower their SUI rate. Since SUI payments must be required by law in order to qualify for the normal FUTA credit, these excess payments are not currently supported in the calculation method.

The Employer Tax Credit element classification holds the credit rate.

Net FUTA Liability Calculation Method

To calculate the FUTA Liability net of the FUTA Credit, you must first determine your liability rate.

Currently, the normal FUTA rate is 6.2%. The IRS allows a maximum credit against this rate of 5.4%. The liability net rate is the difference between the two, in this instance 0.8%.

This rate overrides the rate currently used by the Vertex formulas and calculates the FUTA liability balance at the percentage entered.

Enter Net FUTA Liability on the Federal Tax Rules window.

Maximum FUTA Credit Calculation Method

FUTA liability is calculated at the standard rate used by Vertex, and the credit is reflected in a separate balance. You do not enter a FUTA liability net rate at the Federal level with this calculation method.

In this FUTA Tax Credit calculation method, you enter the maximum FUTA credit percentage for each state taxability rule within a GRE.

In one of the states in which you have employees working, the IRS allows a maximum credit of 5.4%. This rate is entered in the State Tax Rules for that state.

Note: This rate may vary from state to state.

Enter the Maximum FUTA Calculation in the State Tax Rules window.

Note: You can cost both the FUTA liability and the FUTA credit to the same GL account. Costing in this manner produces the same results as the Net FUTA calculation method. (This option is provided in the event that future legislation incorporates State specific credits.)

Purging Tax Rules Records

Purging tax rules records is allowed, however, no other kind of deletion is allowed. The purging descends down the tax percentage records, thus whenever a tax rules record is purged, the corresponding tax percentage record is also automatically purged.

Note: Percentage tax records cannot be created nor deleted through the percentage screen. They are created only when their tax rules records are created. They are deleted only when their corresponding tax rules are purged.

State tax rules records can be purged only if:

County tax rules can be purged only if:

City tax rules can be purged only if:

Payroll Tax Address Overrides

Oracle Payroll supports address overrides for payroll tax purposes. In many areas of the US, mailing address alone is not specific enough to indicate the proper taxing authority. The various payroll tax address overrides in Oracle Payroll allow additional tax attributes to be defined for a mailing address to indicate the proper taxing authority. These overrides are found in the following areas:

Two possible uses for this feature are:

Tax Overrides are entered in:

When tax overrides exist for employees, assignments, or locations, this information is displayed in the Federal, State, and County Tax Rules Windows for the employee.

Tax Override Scenarios

The following scenarios are offered as examples of how you might use payroll tax overrides in your organization.

General Scenarios (PA Townships)

In certain locations, such as in Pennsylvania townships, tax jurisdictions may cross city or county boundaries. In these cases, Oracle Payroll, when using a mailing address to indicate the taxing jurisdiction may not be correctly withholding the proper tax. If this problem occurs, you need to enter an address override to make the adjustment to the proper taxing authority.

You may need to enter an override:

To enter an override when an employee's taxation address is different from their mailing address:

  1. Specify an Override Pay Tax Address in The Employee Address Window.

To enter an override when a work location's taxation address is different from its physical address:

  1. Specify a Payroll Tax City, State, Zip, and County in the Location Window.

Indiana County Tax Scenarios

Indiana law requires you to withhold county tax for employees working in the state based upon either their primary address or work location as of January 1st.

You may need to manually adjust a taxation address when:

Oracle Payroll automatically enters an override in the employee Address window when an existing employee who was an Indiana resident as of January 1 changes primary address. You can manually change or remove the information Oracle Payroll puts in the Override Pay Tax Address region in the Address window.

To remove an override for an employee (hired on or before January 1) who moves to a state with county taxes but continues to work in Indiana:

  1. After entering the new address in the Address window, remove any data in the Override Pay Tax Address region.

To enter an override for an employee (hired on or before January 1) who moves from a work location with county tax to an out of state work location but continues to work in Indiana:

  1. After entering the new address in the Address window, the employee's home address as of January 1 automatically moves to the Override Pay Tax Address region of the Address window.

  2. Enter the county tax non-resident rate into the LIT Override Rate field in the County Tax Rules window.

  3. Remove any data in the Taxation Location field of the GREs and other data window.

To enter an override for an employee (hired on or before January 1) who lives and works in Indiana counties with tax, moves to a state with with residence based taxes and continues to work in Indiana:

  1. After entering the new address in the Address window, remove any data in the Override Pay Tax Address region.

  2. Enter the county tax resident rate into the LIT Override Rate field in the County Tax Rules window for the old residence address.

  3. On the Percentage form for the current work location, change the City and County percentages to 100% for the old residence address.

To enter an override for an employee (hired on or before January 1) who lives in an Indiana county with tax and works in an Indiana county without tax, moves to a state with residence based taxes and continues to work in Indiana:

  1. After entering the new address in the Address window, remove any data in the Override Pay Tax Address region.

  2. Create a location based upon the employee's address as of January 1 and then select it in the Taxation Location field of the GREs and other data window for the employee's assignment.

  3. Enter the county tax resident rate into the LIT Override Rate field in the County Tax Rules window for the old residence address.

To enter an override when you hire a new employee who was an Indiana resident at the beginning of the calendar year:

  1. Enter the employee's current primary address in the Address window.

  2. Enter the employee's home address as of January 1 in the Override Pay Tax Address region of the Address window.

  3. Select the employee's current work location in the Location field of the Assignment window.

  4. Select the employee's location as of January 1 in the Taxation Location field of the GRE's and other data window.

    If the old work location does not exist in the system, you need to create it.

  5. Ensure percentages are correct in the Percentage window.

    Note: You may be required to set up a work location in Oracle Payroll for the purpose of correctly withholding tax for new employees. This location is not an actual place of business for your organization, and is for taxation purposes only.

To enter an override when an Indiana work location's address changes to a new address outside of the county:

  1. Enter the new address for the location in the Location Address window.

  2. Enter the old address into the Location Address window as a overriding Payroll Tax City, State, Zip and County.

    The overriding Payroll Tax Tax City, State, Zip and County will only be used until January 1, at which point Oracle Payroll will remove it.

    New employees assigned to this location need to be taxed at their location as of January 1, not the overriding payroll tax address set up here. You will have to enter a location override for the employee's assignment in GRE's and Other Information window to override the original location override. The overriding location for the new employee may have to be set up before you can can do this.

Supplemental Tax Override

Sometimes highly compensated employees, amongst others, sometime request to withhold supplemental taxes at a rate higher than legislatively required.

Oracle Payroll supports supplemental tax override rates at the assignment level for federal, state, county, and city taxes.

Separate rates can be specified for each locality and the federal level on the employee's tax information.

Note: To use a supplemental tax override rate, the GRE must have flat percentage override selected as a calculation method, a non-zero override rate must be specified, and it must be a supplemental payroll run. All three of these conditions must be met, or the default withholding method will be used.

FIT Override Region

In the FIT Override region on the Federal Tax Rules window, you can specify regular and/or supplemental federal tax overrides.

If you want to specify a FIT override, enter a percentage in the Regular Rate field to override the regular rate used in FIT withholding calculations.

To withhold a fixed FIT override amount each period with no tax calculations occurring, enter the amount in the Regular Amount field.

If you want to withhold a supplemental tax, enter a percentage in the Supplemental Rate field to override the delivered supplemental rate used in federal supplemental withholding calculations.

SIT Override Region

In the SIT Override region on the State Tax Rules window, you can specify regular and/or supplemental state tax overrides.

If you want to specify an SIT override, enter a percentage in the Regular Rate field to override the regular rate used in SIT withholding calculations.

To withhold a fixed SIT override amount each period with no tax calculations occurring, enter the amount in the Regular Amount field.

If you want to withhold a supplemental tax, enter a percentage in the Supplemental Rate field to override the delivered supplemental rate used in state supplemental withholding calculations.

LIT Override Region

In the LIT Override region on the County and City Tax Rules windows, you can specify LIT tax overrides.

If you want to specify an LIT override, enter a percentage in the Rate field to override the regular rate used in LIT withholding calculations.

To withhold a fixed LIT override amount each period with no tax calculations occurring, enter the amount in the Amount field.

If you want to withhold a supplemental tax, enter a percentage in the Supplemental Rate field to override the delivered supplemental rate used in local supplemental withholding calculations.

State Supplemental Tax Override

To specify a state supplemental tax override for an employee, you must first specify a flat rate calculation method for the employee's GRE.

Select the supplemental state withholding tax calculation method to be used for employees of this GRE. The options follow:

Option Description
00 Specifies that the state's default method always be used to calculate supplemental state withholding taxes for employees of this GRE. 00 is the default value for the Supplemental Tax Calculation Method field.
02 Specifies that in addition to the state's default method, a flat percentage rate also can be used to calculate supplemental state withholding taxes for employees of this GRE.

Note: If you plan to apply a supplemental tax override rate to override the default rate used in state supplemental withholding calculations for any employees of this GRE, you must specify a value of 02 in the Supplemental Tax Calculation Method field.

Entering a Blocking Factor for E Records

You must enter a blocking factor for a GRE's E records.

To enter a blocking factor for a GRE's E record, start from the Organization window to make an entry in the SQWL Employer Rules (1) window.

To enter a blocking factor for a GRE's E records

  1. In the Organization window, query the GRE for which to enter a blocking factor, if it does not already appear there.

  2. With Government Reporting Entity selected in the Organization Classifications region of the Organization window, choose Others and select SQWL Employer Rules (1).

  3. Click in the Additional Organization Information field to open the SQWL Employer Rules (1) window.

  4. In the Blocking Factor field, enter the blocking factor (not to exceed 85) for this GRE's Employer (E) Record.

Entering Generic A and B Record Data for GRE Transmitters

For each state to which you submit quarterly wage listings, you must identify a GRE with employees in that state as a transmitter of these listings. Do this by entering GRE data for the Transmitter (A) Record and the Authorization (B) Record. Depending on the states to which a GRE is transmitting wage listings, you may need to enter state-specific data in addition to generic data for these records.

Use the Organization window to make entries for a GRE in the SQWL Generic Transmitter Rules window.

See Entering State A and B Record Data for GRE Transmitters for more information.

Important: SQWL reports contain specific information tailored for specific states. Consider a strategy of grouping states with similar transmitter requirements, and then prepare and run the reports sequentially. This minimizes the amount of effort in preparing SQWL reports for multiple states.

Note: SQWL requires two processes to generate each report. Depending on how you configured your concurrent manager, you may have to stagger submitting your SQWL reports until previously submitted reports have finished processing.

To enter generic transmitter data for A and B records

  1. In the Organization window, enter or query a GRE serving as a transmitter of state quarterly wage listings.

  2. In the Organization Classifications region, place the cursor on Government Reporting Entity, choose the Others button, and select SQWL Generic Transmitter Rules.

  3. Click in the Additional Organization Information field to open the SQWL Generic Transmitter Rules window.

  4. Specify the parameters for this SQWL Generic Transmitter:

    • Transmitter GRE

      Select Yes to identify this GRE as a transmitter of state wage listings.

    • Computer (optional)

      Enter the manufacturer's name of the computer you used to transmit the state wage listings.

    • Internal Label

      Select ANSI standard, IBM standard, No label, or Non-standard.

    • Density

      Select the tape density: 1600 BPI (blocks per inch), 6250 BPI, or 38000 BPI.

    • Recording Code

      Select EBCDIC or ASCII.

    • Number of Tracks

      Select the number of tracks: IBM 3480 cartridge or Reel tapes.

    • Blocking Factor

      Specify the blocking factor of the file (not to exceed 85).

    • Company Name

      Specify

    • EFW2 Contact Name

      If you are reporting to a EFW2-compliant state, specify your EFW2 contact here. Oracle Payroll derives their contact information from their employee data.

      Note: EFW2 contact information must include a phone type of W1 (Work Phone).

      If you are not reporting to a EFW2-compliant state, leave this field blank and populate the "Transmitter Contact," "Transmitter Contact Phone Number," and "Transmitter Contact Extension" fields.

      Note: Make sure the Phone Numbers window (accessed by way of Person | Others | Phones) contains the proper work phone number for this employee. The SQWL reports will format these phone numbers to comply with the Form's requirements. This is the number that appears in the magnetic file.

      • All non-alphanumeric characters are removed, including all variations of extension, spaces, and "-" (dashes).

      • The phone field allocates 15 spaces for the phone number and extension. This field is left-justified, and unused spaces are padded with blanks.

      • The first 10 digits are used for the Contact Phone field.

      • The last five digits are used for the Phone Extension field.

      • Do not preface the phone number with "1," as this would cause the phone number to overflow into the extension field.

      For example: A phone number entered as:

      222-333-4444Ext555

      would appear as:

      2223334444555

      on the Form's magnetic file.

    • Transmitter Contact

      If you are not reporting to a EFW2-compliant state, specify the title of the person responsible for state wage listing transmission here.

    • Transmitter Contact Phone Number

      If you are not reporting to a EFW2-compliant state, specify the phone number of the person with this title.

      Note: Make sure you use the proper format when specifying the phone number/extension number. The SQWL reports will format these phone numbers to comply with the Form's requirements. This is the number that appears in the magnetic file.

      • All non-alphanumeric characters are removed, including all variations of extension, spaces, and "-" (dashes).

      • The phone field allocates 15 spaces for the phone number and extension. This field is left-justified, and unused spaces are padded with blanks.

      • The first 10 digits are used for the Contact Phone field.

      • The last five digits are used for the Phone Extension field.

      • Do not preface the phone number with "1," as this would cause the phone number to overflow into the extension field.

      For example: A phone number entered as:

      222-333-4444Ext555

      would appear as:

      2223334444555

      on the Form's magnetic file.

    • Telephone Extension

      If you are not reporting to a EFW2-compliant state, specify the phone extension of the person with this title.

    • Media Transmitter/Authorization Number

      Enter any authorizing code or number provided by the state to which this GRE is transmitting quarterly wage listings.

    • Hours Worked Calculation Method

      Choose an hours-worked calculation method.

  5. Save your work and choose OK to return to the Organization window.

    See: Entering State A and B Record Data for GRE Transmitters

Entering a FUTA Credit

To enter a FUTA override rate

  1. Enter the override rate in the FUTA Override Rate field on the Federal Tax Rules window.

To record a maximum FUTA credit percentage for each state taxability rule

  1. Enter the rate in the Maximum FUTA Credit Percentage field in the State Tax Rules window.

Running the Annual FUTA Tax Return Work Sheet

Before you can run this worksheet, you must know which of your employees are exempt from FUTA and have marked them appropriately on the Tax Rules window. See IRC 3306(c), (s) and IRS Reg. 31.3306(c)(1)-1 - (c)(18)-1 for types of employment that are exempt from FUTA.

The Oracle concurrent process for the Form 940 now includes an additional worksheet. The new additional worksheet is meant to assist customers with completing line 10 of the Form 940 for employers who have some, but not all, FUTA wages exempt from SUI tax or who had employees in a credit reduction state.

You run the Annual FUTA Tax Return Work Sheet from the Submit Request window.

To run the Annual FUTA Tax Return Work Sheet

  1. Enter or query Annual FUTA Tax Return Work Sheet (Form 940) in the Name field.

    The Parameters dialog box displays.

  2. Enter the appropriate GRE in the Government Reporting Entity field.

  3. Enter the appropriate tax year in the Tax Year field.

  4. Enter the appropriate state code in the State Code field (optional).

  5. Select OK.

    The dialog box disappears, and the Submit Request window is filled in.

  6. Submit the request.

  7. To check on the progress of the processing, use the Concurrent Requests window, or from the Help menu, select View My Requests.

Entering an Experience Rate

To enter an experience rate

  1. Navigate to the State Tax Rules window.

  2. Enter the experience rate in the SUI ER Experience Rate 1 field.

    Important: Oracle Payroll supports only one yearly experience rate. If your experience rate changes during the year, you must track it separately. SUI ER Experience Rate 2 field is reserved for future development.

  3. Save the entry.

Entering State A and B Record Data for GRE Transmitters

Start this entry of data specific to particular states from the Organization window, to make entries in the SQWL State Transmitter Rules window.

Important: SQWL reports contain specific information tailored for specific states. Consider a strategy of grouping states with similar transmitter requirements and then prepare and run the reports sequentially. This minimizes the amount of effort in preparing SQWL reports for multiple states.

Note: SQWL requires two processes to generate each report. Depending upon how you configured your concurrent manager, you may have to stagger submitting your SQWL reports until previously submitted reports have finished processing.

To enter A and B record data for FL, IL, KS, MO, NJ, PA, and TX

  1. In the Organization window, query the GRE serving as a SQWL transmitter (if it does not already appear there).

  2. With Government Reporting Entity selected in the Organization Classifications region of the Organization window, choose Others and select SQWL Generic Transmitting Rules.

  3. Click in the Additional Organization Information field to open the SQWL Generic Transmitting Rules window.

  4. Make sure the following fields are blank:

    • Computer

    • Internal Label

    • Density

    • Number of Tracks

    • Blocking Factor

  5. If these fields are not blank, change them so that they are blank and then save your changes.

    Once saved, your changes apply to subsequent State Quarterly Wage Listing Reports transmitted by this GRE. You do not need to repeat this step.

  6. Click OK to close the Additional Organization Information field.

  7. With Government Reporting Entity selected in the Organization Classifications region of the Organization window, choose Others and select SQWL State Transmitter Rules.

  8. Click in the Additional Organization Information field to open the SQWL State Transmitter Rules window. Make entries only for the state or states to which this GRE is transmitting quarterly wage listings.

    Florida

    In the SQWL State Transmitter Rules window:

    1. If your organization is filing on behalf of another company, specify your Agent ID Number.

Entering State Data for E and T Records

There are certain state-specific requirements for entries to a GRE's Employer (E) Records, Total (T) Records, or both. The states with unique requirements for these records are the following: Illinois, Kentucky, Missouri, Montana, North Carolina, New Hampshire, New York, Ohio, Pennsylvania, Texas, and Wyoming (S record only).

To enter E and T record data for IL, KY, MO, and MT

To make entries for the E or T records of a GRE with employees in these states, start from the Organization window to make entries in the SQWL Employer Rules (1) window.

Note: For information about making entries to the Blocking Factor field in this window see: Entering a Blocking Factor for E Records.

  1. In the Organization window, query the GRE for which to enter SPWL record data (if it does not already appear there).

  2. With Government Reporting Entity selected in the Organization Classifications region of the Organization window, choose Others and select SQWL Employer Rules (1).

  3. Click in the Additional Organization Information field to open the SQWL Employer Rules (1) window.

  4. Make entries only for the state, or states, in which the GRE has employees.

Illinois (for the GRE's E and T records)

  1. If a previous overpayment is being applied to the balance due, enter the overpayment amount in the Credit/Overpayment field.

  2. Enter the Document Control Number from the Quarterly Filing Notice. If unknown, enter the number 1.

  3. Enter any interest and penalty due in the Interest and Penalty fields.

  4. Enter any previous quarter (s) underpayment (including previously due penalty and interest) in the Previous Quarter (s) Underpayment field.

  5. Enter the appropriate tax type code (Taxable employer or Reimbursable employer) in the Tax Type Code field.

Kentucky (for the GRE's E records)

  1. Enter the industry code from form UI-3.

Missouri (for the GRE's T records)

  1. Enter 85 in the Blocking Factor field.

  2. Enter the total payment submitted for the GRE in the Amount Remitted field.

  3. Enter the amount of all outstanding credits in the Credit/Overpayment field.

  4. If the Contribution and Wage Report shows an amount due for interest assessment, enter this amount in the Employer Assessment Amount field.

  5. When interest is due for quarterly reports that were not filed by the due date, multiply the contributions due by the monthly interest rate (from the Contribution and Wage Report). Enter the interest due in the Interest field.

  6. Enter the amount of all outstanding amounts due in the Previous Quarter(s) Underpayment field.

Montana (for the GRE's T records)

  1. Enter any overpayment existing on the file generation date in the Credit/Overpayment field.

  2. Compute interest by multiplying the Qtr. UI Taxes Due amount by the rate of .05% per day. Enter the results in the Interest field.

  3. For payments 30 or fewer days late, the penalty is $10.00 or 10% of the Qtr. UI Taxes Due, whichever is greater. For payments more than 30 days late, the penalty is $15.00 or 15% of the taxes due, whichever is greater. Enter a penalty amount in the Penalty field.

  4. Enter the amount of all adjustments or amendments to previous quarter reports in the Previous Quarter(s) Adjustments field.

To enter E and T Record Data for NC, NH, NY, OH, PA, TX and WY

To make entries for the E or T records of a GRE with employees in these states, start from the Organization window to make entries in the SQWL Employer Rules (2) window.

  1. In the Organization window, query the GRE for which you want to enter SPWL record data (if it does not already appear there).

  2. With Government Reporting Entity selected in the Organization Classifications region of the Organization window, choose Others and select SQWL Employer Rules (2).

  3. Click in the Additional Organization Information field to open the SQWL Employer Rules (2) window.

  4. Make entries only for the state, or states, in which the GRE has employees.

North Carolina (for the GRE's E records)

  1. Enter the 6-digit Remitter Number assigned by the state Employment Security Commission (ESC) in the State Control Number field. A GRE with no number must contact the ESC to obtain one.

New Hampshire (for the GRE's E records)

  1. Enter the name and title of the contact person for the GRE.

New York (for the GRE's E records)

  1. If the GRE hires seasonal labor, select Yes in the Seasonal Employer Indicator field.

Ohio (for the GRE's E records)

  1. If the Bureau of Employment Services has assigned a 3-digit number to the GRE for multiple plant charging, enter the number in the Unit/Division/Location/Plant Code Field.

Pennsylvania (for the GRE's E records)

  1. If the GRE is approved for plant reporting, enter its plant number.

Texas (for the GRE's T records)

  1. If the record for this GRE is one of several employee records on the tape (so that the A record for the tape includes an Allocation List), enter in the Allocation Amount field the dollar amount for this GRE's account.

  2. Select a county in which the GRE has the greatest number of employees.

  3. In the Multi State Employment Indicator field, select Yes for a GRE which, during the year, reports wages to another state for employees whose wage information is included on this tape.

Wyoming (for the GRE's S records)

  1. In the Workers Compensation State Insured field, indicate if the GRE is insured through the state Worker's Compensation fund.

  2. Enter the appropriate numbers in the Workers Compensation Control Number and Workers Compensation Account Number fields.

To enter T Record Data for Tennessee for the SPWL ICESA (Bulk) File Format Option

The Tennessee Department of Labor and Workforce offers an extended Bulk File Format option for customers to use when they need to file their quarterly taxes for multiple GREs. The TNPAWS file format will continue to be supported when filing for a single GRE.

The following file formats are available for TN when you run the State Periodic Wage Listing (Enhanced) process:

If you are generating the quarterly tax reports for multiple GREs in the ICESA (Bulk) file format, then the fields related to the T record in SQWL Employer Rules 4 must be entered manually:

  1. In the Organization window, query the GRE for which to enter SPWL record data (if it does not already appear there).

  2. With Government Reporting Entity selected in the Organization Classifications region of the Organization window, choose Others and select SQWL Employer Rules (4).

  3. Click in the Additional Organization Information field to open the SQWL Employer Rules (4) window.

  4. Enter appropriate values in the following fields:

    • Interest (TN)

    • Penalty (TN)

    • Job Skills Fee Rate (TN): Note the value entered here is the percentage amount.

    • Job Skills Int. Due (TN).

To enter T Record Data for the SPWL Report for Kentucky

Complete the following steps to report the Service Capacity Upgrade Fund (SCUF) rate in the State Periodic Wage Listing (SPWL) report for Kentucky.

  1. In the Organization window, query the GRE for which to enter SPWL record data (if it does not already appear there).

  2. With Government Reporting Entity selected in the Organization Classifications region of the Organization window, choose Others and select SQWL Employer Rules (4).

  3. Click in the Additional Organization Information field to open the SQWL Employer Rules (4) window.

  4. In the SCUF Rate (KY) field, enter the percentage rate value. The default value for this segment is set at 0.075, which is the SCUF Rate for all employers. You can change the default rate percent.

    Important: If any values are reported in any other field in SQWL Employer Rules (4), then the SCUF Rate must be populated even if it is the default rate.

Entering R Record Data for the State of Maine

If semi-weekly payments were deposited with Maine Revenue Services during the quarter, there needs to be one R record for each deposit representing each date wages were paid. Payments may have been made using voucher (Form 900ME) or Electronic Funds Transfer (EFT).

To enter R record data for ME

To make entries for the R record for the state of Maine, start from the Organization window to make entries in the SQWL Employer Rules (3) window.

  1. In the Organization window, query the GRE for which to enter SPWL record data (if it does not already appear there).

  2. With Government Reporting Entity selected in the Organization Classifications region of the Organization window, choose Others and select SQWL Employer Rules (3).

  3. Click in the Additional Organization Information field to open the SQWL Employer Rules (3) window.

  4. 4. Make entries for the following fields:

    • State Code – Enter state code.

    • Date Wages Paid – Enter date wages or distribution paid (mmddyyyy).

    • Amount Withheld – Enter the amount of the income tax withheld during the payment period.

    • Amount Deposited – Enter the amount of the withholding payment deposited with State for the payment period.

Handling Claims For More Than 10 Allowances

If the employee claims more than 10 allowances, you must send a copy of the W-4 to the IRS and to the appropriate state tax authorities. The IRS and state authorities may independently issue notices rejecting the claim and reducing the number of allowances.

Important: Ensure that you have set the correct effective date before entering any tax information.

To record a rejection of an employee's requested allowances

  1. Enter the notice date in the Lock In Date fields in the Federal Tax Rules or appropriate State Tax Rules region.

  2. Reduce the employee's allowances as of this date.

    You can enter information for local tax withholding in any locality within the states for which you entered state tax rules.

See: Entering Federal Tax Rules for an Employee

See:Entering State Tax Rules for an Employee

Reporting Third Party Payments

When employees receive payments from a third party (such as an insurance company), you must report these payments as income.

Third party payments would include:

Use the Adjust Tax Balances window to report third party payments.

To report third party payments

  1. Adjust the appropriate wage balances for FIT, SIT, and LIT.

    See Adjusting Employee Withheld Balances Only for additional instructions.

  2. If the third party payer withholds any taxes, you must add those taxes to the employee's tax balance.

  3. Check the FIT withheld by third party check box.

  4. Save your changes.

Tax Form Audit Report

Through the Tax Form Audit Report, organizations can report on the employee tax withholding information you entered and edited in the Oracle Self Service HRMS Online Tax Forms module (such as Federal W-4 and State W-4 information). Use this report to track changes that occur to employee online tax withholding information at both the federal and state level.

To meet audit requirements, Oracle Payroll provides the Generate Federal Employee W-4 program to produce Federal W-4 forms of employees. This concurrent program applies only to Federal W-4. After employees update their Federal W-4, as a payroll administrator, you can run this program to generate Federal W-4 PDF reports. Run this program to produce Federal W-4 reports at the federal level either for a single employee or multiple employees. For more information, see Running the Generate Federal Employee W-4 Program

Run the Tax Form Audit report from the Submit Request window.

To run the Tax Form Audit report

  1. In the Request field, select Tax Form Audit Report.

  2. Click in the Parameters field, and select the parameters for the report (as detailed below).

  3. Submit the report.

Tax Form Audit Report Parameters

The following parameters exist for the Tax Form Audit Report:

Start Date and End Date Use these fields to enter a date range for the report.
Jurisdiction Level Select Federal, State, or Federal and State from the List of Values. The report displays information for the jurisdiction level you select.
State If you are reporting at the State Jurisdiction Level, you can select a state to narrow the report output to a single state. If you leave this field blank, the report displays information for all states where Tax Form information exists.
Government Reporting Entity Select a GRE to get Tax Form Information only for employees in that GRE. Leave this field blank to report on employees in all GREs.
Assignment Set Select an Assignment Set to get Tax Form Information for employees in that particular Set.
Employee Name and Social Security Number Use these fields to get information on a specific Employee

You can use these parameters to customize the report output to a specific group of employees within a business group. The parameters do not discount each other (for example, if you select a State and an Assignment Set, the report only displays information for employees in the selected Assignment Set that have tax information for the selected state).

Tax Form Audit Report Output

The Tax Form Audit report is formatted to print in landscape fashion on 8.5 x 11 paper. Each page of the report contains the name of the business group, as well as the selected report parameters. The report lists tax information alphabetically by employee last name. Where multiple records exist for an employee, the most recent records are listed first.

If you have selected Federal and State in the Jurisdiction field, the Tax Form Audit report displays all federal tax information for all employees included in the report and then displays all state tax information for each included state.

Running the Generate Federal Employee W-4 Program

The Tax Form page that is available through the Employee Self-Service responsibility enables employees to update their Federal W-4 and State W-4 withholding information. After making changes, employees can review their tax details using a PDF report. For more information, see Tax Form (W-4) (US), Oracle Self-Service Human Resources Deploy Self-Service Capability Guide. Note that employees can review their updated Federal W-4 form in PDF format after making changes. No PDF document is provided for the state tax forms.

To meet audit requirements, Oracle Payroll provides the Generate Federal Employee W-4 program to produce Federal W-4 forms of employees. This concurrent program applies only to Federal W-4. After employees update their Federal W-4, as a payroll administrator, you can run this program to generate Federal W-4 PDF reports. Run this program to produce Federal W-4 reports at the federal level either for a single employee or multiple employees.

Important: The program generates the pre Federal 2020 Form W-4 or 2020 Federal Form W-4 depending on the filing status and other W-4 information entered for employees in the system.

Run the Generate Federal Employee W-4 program from the Submit Request window.

To run the Generate Federal Employee W-4 program

  1. In the Name field, select Generate Federal Employee W-4.

  2. Enter the parameters discussed in the following table.

    Year (required) Select the year for which you want to run the report.
    Selection Criteria (required) Select from the following list to run this report for a specific criteria:
    • Assignment

    • Consolidation Set

    • Employee Name

    • GRE

    • Organization

    • Payroll

    Payroll (optional) If you selected Payroll in the Selection Criteria field, then select a payroll available in the business group to limit the report to a single payroll. If this field remains blank, then the report contains information for all payrolls in the business group.
    Consolidation Set (optional) If you selected a Consolidation Set in the Selection Criteria field, then select a consolidation set from the list. If you select a payroll in the Payroll field that is associated with a consolidation set, then this field automatically populates the consolidation set value.
    Government Reporting Entity (optional) If you selected GRE in the Selection Criteria field, then select a GRE from the list to limit the report to a single GRE. If this field remains blank, then the report contains information for all valid GREs in the business group.
    Organization (optional) If you selected Organization in the Selection Criteria field, then select an organization from the list of organizations in the business group.
    Assignment Set Name (optional) If you selected Assignment Set in the Selection Criteria field, then select a set from the list. Only employees in the selected GRE appear on the report. Note: This report does not support dynamic assignment sets.
    Person (optional) If you selected Employee Name in the Selection Criteria field, then choose an employee from the list.
    Sort Option (optional) Use the sort option fields to sort your report results.
    Print Terminated Employees (optional) Select Yes to include terminated employees in the report. Otherwise, select No.
  3. Click OK and then Submit.

Viewing the Report Output

The Generate Federal Employee W-4 program produces a PDF report that consists of the following sections:

Running the Tax Form Exceptions Report

The "Tax Form Exceptions" report flags any tax withholding form updates made by employees (using the Oracle Online Tax Forms module) that need to be reported to the IRS.

Once identified, you can report these exceptions as appropriate. You can use this report to track the exceptions that occur from changes to employee online tax withholding information at both the federal and state level.

Run the Tax Form Exceptions report from the Submit Request window.

To run the "Tax Form Exceptions" report

  1. In the Request field, select Tax Form Exceptions Report.

  2. Click in the Parameters field, and select the parameters for the report (as detailed below).

  3. Submit the report.

Tax Form Exceptions Report Parameters

The following parameters exist for the Tax Form Exception Report:

Start Date and End Date Use these fields to enter a date range for the report.
Jurisdiction Level Select Federal, State, or Federal and State from the List of Values. The report displays information for the jurisdiction level you select.
State If you are reporting at the State Jurisdiction Level, you can select a state to narrow the report output to a single state. If you leave this field blank, the report displays information for all states where exceptions exist.
Government Reporting Entity Select a GRE to get exceptions for employees in that GRE. Leave this field blank to report on employees in all GREs.
Sort Option One and Sort Option Two Use these fields to sort your report by Employee Name, SSN, or Date Filed

Tax Form Exception Report Output

The Tax Form Exception report is formatted to print in landscape fashion on 8.5 x 11 paper. Each page of the report contains the name of the business group, as well as the selected report parameters. The report lists tax information alphabetically by employee last name. Where multiple records exist for an employee, the most recent records are listed first.

If you have selected Federal and State in the Jurisdiction field, the Tax Form Exception report displays all exceptions for all employees included in the report and then displays all state tax exceptions for each included state. The Tax Form Exception Report highlights all tax records that have allowances greater than the threshold limit. For each state, the allowances limit is stored in the STA_INFORMATION10 column of the PAY_US_STATE_TAX_INFO_F table. If an employee has claimed SIT Exempt, but earnings per week is more than the threshold limit, then that employee is shown in the output as an exception. The limit of Earnings per week to claim exemption is stored in the STA_INFORMATION11 column of the PAY_US_STATE_TAX_INFO_F table.

Running the State or Local Tax Form Link Update Program

Payroll administrators can override the state income tax withholding links that are visible to employees in self-service. This allows them to update any withholding links that have been changed by the state and have not yet been delivered by Oracle in a patch. Administrators may also add local withholding links if desired (these are not maintained by Oracle).

Run the State or Local Tax Form Link Update program from the Submit Request window.

To run the State or Local Tax Form Link Update program

  1. In the name field, select State or Local Tax Form Link Update.

  2. Enter the following parameters.

    Parameter Description
    State/Local (mandatory) Select State to update a state withholding link or Local to create or update a local withholding link.
    State (mandatory) Select the applicable State for which the state or local withholding link is being updated.Note that if "State" is selected for the first parameter, only those states that withhold State Income Tax will be available for selection from the list of values.
    Link (mandatory) Enter the exact link or URL address. This is a free-form text field.
  3. Submit the request.

Running the Statewide Transit Tax Employee Detail Report (STT) Program

The Statewide Transit Tax Employee Detail Report (STT) program enables you to file Statewide Transit Tax (STT-1) returns with Oregon's Department of Revenue (DOR). Run this program to generate the necessary output file that conforms to the DOR's Excel file import specifications. The Excel file import option is available on Oregon DOR's online portal.

Run this program from the Submit Request window.

To run the Statewide Transit Tax Employee Detail Report (STT) program

  1. In the Name field, select Statewide Transit Tax Employee Detail Report (STT).

  2. Enter the following parameters.

    • State: Select the applicable state (currently only Oregon can be selected).

    • Period: Select the applicable reporting quarter and year.

    • Report Output: Select one of the following options:

      • All GREs - output file per GRE: Select to generate output files for all GREs with a separate file created per each GRE.

      • Single GRE: Select to generate an output file for a specific GRE.

    • Government Reporting Entity: If "Single GRE" was selected for the previous "Report Output" parameter, then select the GRE to be reported.

Viewing the Output Files

The Statewide Transit Tax Employee Detail Report (STT) generates the following two output files:

  1. A CSV (comma delimited) file containing the employee and withholding/wage detail.

    The CSV output contains the following data required for the Excel file import:

    • Employee SSN

    • Employee first initial

    • Employee last name

    • Total subject wages for the quarter

    • Statewide transit tax withheld for the quarter

  2. A PDF file containing the audit summary for the GRE.

    The PDF output is a summary audit report that provides the following data to assist customers with filing:

    • Reporting Year and Quarter

    • Employer Name

    • Employer BIN

    • Employer FEIN

    • Employer Address

    • Total Subject Wages for the quarter for all employees

    • Total Statewide Transit Tax Withheld for each month in the quarter

    • Total Statewide Transit Tax Withheld for the quarter for all employees

The naming convention used when generating these two output files is detailed below:

Rollback Processing

In the event that after running the "Statewide Transit Tax Employee Detail Report (STT)", corrections need to be made prior to filing the return with the state of Oregon, the process must be rolled back using the Rollback US SPWL Process. See: Running the Rollback US SPWL Process for more information. Do not use the Rollback US Payroll Process. When submitting the Rollback US SPWL Process, there are two parameters:

Important Notes when Filing with Oregon's DOR:

  1. In order to use the CSV output for the DOR's Excel file import, you will need to first import it into Excel as the DOR Excel file import option only accepts Excel spreadsheets. Oregon DOR says the file does not require a specific naming convention.

  2. You will need a Revenue Online account in order to use the Excel file import option. There is a sign-up option on Oregon DOR's online portal if needed.

  3. After logging in, you click the "Statewide Transit Tax" link. On the Statewide Transit Tax page you click the "File Return" option for the appropriate reporting quarter. On the Statewide Transit Form STT-1 page, click the "Import" button and then select your Excel file to import.

  4. You will need to file separate Excel files per GRE (or per Oregon BIN).

  5. Contact Oregon's Department of Revenue with any questions on how sign up for a Revenue Online account or for further details/questions about how to use their Excel file import. Their contact details are provided on the DOR's online portal home page.

Setting Up Medical and Family Leave Tax Deductions

Setting Up Washington Paid Family Medical Leave (PFML) Tax Deductions

Paid Family and Medical Leave (PFML) is a Washington State program that offers workers the opportunity to receive partial wage replacement while on leave. The PFML premium is calculated based on the employee's gross wages, capped at the Social Security wage limit. In Oracle US Payroll, the PFML tax is known as the State MISC2 Tax.

According to the PFML program:

You can find more information on the state of Washington's Employment Security Department's website: https://esd.wa.gov/paid-family-medical-leave/employers.

Oracle US Payroll delivers the following predefined components to process the State MISC2 Tax.

Predefined Elements

The following elements store wage and tax amounts for the State MISC2 Tax:

Predefined Balances

The following balances support taxability rules for the State MISC2 Tax:

Calculating PMFL Deductions

To calculate PFML deductions, you can use the delivered (default) premium employee (EE) and employer (ER) rates. If there is a requirement to override the default rates, then you can use the rate override fields that are available at both GRE and assignment levels. If there is a requirement to exempt the employee, then you can use the Exempt field that is available at both GRE and assignment levels.

Note: Assignment level values take precedence over GRE level values. If assignment level values are left blank or null, then the GRE level values take effect. If the override fields are left blank at both the GRE and assignment levels, then the default employee and employer rates are applied.

To optionally configure override rates or an exemption option for PFML tax deductions for an employee assignment

  1. Click Tax Info in the employee assignment.

  2. In the State Tax window, in the Washington state tax rules record, click Further State Tax Info.

  3. Specify these fields, if there is a requirement to override the delivered (default) premium employee and employer rates or to set an exemption option to calculate the PFML tax.

    • MISC2 EE Override Rate: This field accepts the employee override rate. Up to six decimal places are accepted.

    • MISC2 ER Override Rate: This field accepts the employer override rate. Up to six decimal places are accepted.

    • MISC2 Exempt: Select any one of the following options.

      • No Exemption: Select this option for both the employee and employer PFML deductions. The application calculates and stores the applicable employee and employer PFML taxable wages.

      • Exempt EE Only: Select this option to exempt the employee portion of PFML, so that the employee PFML taxable wages are zero. The application calculates and stores the applicable employer PFML liability and taxable wages.

      • Exempt ER Only: Select this option to exempt the employer portion of PFML, so that the employer PFML taxable wages are zero. The application deducts the employee portion of PFML, and calculates and stores the taxable wages.

      • Exempt EE and ER: Select this option to exempt both the employee and employer portions of PFML, so that the employee and employer PFML taxable wages are zero.

      Note: Oracle US Payroll maintains the applicable gross, subject, and pre-tax PFML wages, even if the applicable taxable wages are zero when an exemption option is selected at either the GRE or the assignment level, or at both levels. If you select exemption options at both the assignment and GRE levels, then the assignment level setting takes precedence.

To optionally configure override rates or an exemption option for PFML tax deductions at the GRE level

  1. Navigate to the Organization window (Work Structures > Organization > Description).

  2. Select the applicable GRE and click to enable GRE / Legal Entity.

  3. Click Others and select State Tax Rules (2).

  4. Select the WA record or create a WA record.

  5. Specify these fields, if there is a requirement to override the delivered (default) premium employee and employer rates or to set an employee assignment to exempt from the PFL tax.

    • MISC2 EE Override Rate: This field accepts the employee override rate. Up to six decimal places are accepted.

    • MISC2 ER Override Rate: This field accepts employer override rate. Up to six decimal places are accepted.

    • MISC2 Self Adjust Method: Select Self Adjust. The Self Adjust Quarterly and Self Adjust at Max options are not applicable. If required, use the Bypass Collection option to prevent WA PFML from being calculated for the entire GRE.

    • MISC2 Exempt: Select any one of the following options.

      • No Exemption: Select this option for both the employee and employer PFML deductions. The application calculates and stores the applicable employee and employer PFML taxable wages.

      • Exempt EE Only: Select this option to exempt the employee portion of PFML, so that the employee PFML taxable wages are zero. The application calculates and stores the applicable employer PFML liability and taxable wages.

      • Exempt ER Only: Select this option to exempt the employer portion of PFML, so that the employer PFML taxable wages are zero. The application deducts the employee portion of PFML, and calculates and stores the taxable wages.

      • Exempt EE and ER: Select this option to exempt both the employee and employer portions of PFML, so that the employee and employer PFML taxable wages are zero.

      Note: Oracle US Payroll maintains the applicable gross, subject, and pre-tax PFML wages, even if the applicable taxable wages are zero when an exemption option is selected at either the GRE or the assignment level, or at both levels. If you select exemption options at both the assignment and GRE levels, then the assignment level setting takes precedence.

  6. Following are some of the examples about how to use the override rate fields to accommodate different possible business scenarios.

    Note: This example uses the current employee + employer total contribution rate, which is 0.004.

    • Employer elects to pay the employee's portion of the premium (that is, employee is exempt from paying the premium):

      • MISC2 EE Override Rate: Enter 0 (zero).

      • MISC2 ER Override Rate: Enter 0.004.

    • Employer is not required to pay the Employer premium (fewer than 50 employees; employer is exempt from paying the premium):

      • MISC2 EE Override Rate: Leave this field blank or null.

      • MISC2 ER Override Rate: Enter 0 (zero).

    • No withholding premium required from either the employee or employer (both the employee AND the employer are exempt):

      • MISC2 EE Override Rate: Enter 0 (zero).

      • MISC2 ER Override Rate: Enter 0 (zero).

    • Negotiated rate (union employees). For example, both the employee and employer share the 50% of the premium each:

      • MISC2 EE Override Rate: Enter 0.002.

      • MISC2 ER Override Rate: Enter 0.002.

    • When MISC2 EE Override Rate is set to 0(zero - that is. the employee is exempt) and the MISC2 ER Override Rate is left blank at both assignment and GRE level:

      The Employer Medical Leave premium calculates at the default rate of .55 of the .667 Employer Medical Leave portion of the premium (this equates to 0.001467).

      Disclaimer: These rates are based on the rate information that is current at time of publishing this document and may be subject to change.

Running the State Family and Medical Leave Quarterly Employee Detail Report (PFML)

The state of Washington Employment Security Division (ESD) requires Washington employers to report and remit Paid Family and Medical Leave premiums quarterly. For further details about Washington ESD's reporting requirements, go to: https://www.paidleave.wa.gov/reporting

Run the State Family and Medical Leave Quarterly Employee Detail Report (PFML) program to report the output in CSV and PDF formats.

See Running the State Family and Medical Leave Quarterly Employee Detail Report (PFML) for more information.

Prerequisite Steps

Before you run the report, ensure that the following details are available in the application:

  1. To report the Employee Hours Worked correctly in the CSV file, select an appropriate value in the Hours Calculation Method (PFML) field in the State Tax Rules (2) window at the GRE level. See: Identifying a GRE for more information.

  2. To report the Employer BIN correctly in the Audit Summary report (PDF file), enter a correct value in the SIT Company State ID field in the State Tax Rules window at the GRE level. See Entering State Tax Rules for a GRE for more information.

  3. To report the Employer FEIN correctly in the Audit Summary report (PDF file), enter a correct value in the Employer Identification Number field in the Employer Identification window at the GRE level. See GREs: Entering Employer Identification Information, Oracle HRMS Enterprise and Workforce Management Guide (US) for more information.

Viewing the State Family and Medical Leave Quarterly Employee Detail Report (PFML) Output for Washington

The program generates the following output files:

Viewing PFML Balances

Click the Pre Tax Details button in the View Tax Balances window to view the relevant pretax balances. The View Tax Balance Summary page displays the balances relative to the State MISC2 tax.

Archiving MISC2 Values

The Payroll Archive process archives the MISC2 values and reports them in the NACHA, Check Writer (XML), and Deposit Advice (XML) outputs.

Setting Up District of Columbia Paid Family Leave (PFL) Tax Deductions

The District of Columbia (DC) statutory legislation requires all private employers within the District of Columbia (DC) to make quarterly contributions to the Paid Family Leave Benefit. The quarterly contributions are based on the immediate past quarter of wages paid, in a similar fashion to unemployment insurance tax.

For employees eligible for the Universal Paid Family Leave program, in Oracle US Payroll, the DC PFL tax is known as the employer tax (MISC1 ER).

Employers are required to contribute an amount equal to a certain percentage of the wages of each covered employee to the Universal Paid Leave Implementation Fund. Covered employees are those whose work location is in DC or those who work at home and have a primary resident address in DC.

Oracle US Payroll delivers the following predefined components to process the MISC1 ER Tax.

Predefined Elements

The following elements store wage and tax amounts for the MISC1 ER tax:

Predefined Balances

The following balances support taxability rules for the MISC1 ER tax:

Calculating PFL Deductions

To calculate the PFL deductions, you can use the delivered (default) premium employee (EE) and employer (ER) rates. If there is a requirement to override the default rates, then you can use the rate override fields that are available at both GRE and assignment levels. If there is a requirement to exempt the employee, then you can use the Exempt field that is available at both GRE and assignment levels.

Note: Assignment level values take precedence over GRE level values. If assignment level values are left blank or null, then the GRE level values take effect. If the override fields are left blank at both the GRE and assignment levels, then the application uses the default employee and employer rates.

To optionally configure override rates or to exempt an employee from PFL tax deductions at the assignment level

  1. Click Tax Info in the employee assignment.

  2. In the State Tax window, in the DC state tax rules record, click Further State Tax Info.

  3. Specify these fields, if there is a requirement to override the delivered (default) premium employee and employer rates or to set an employee assignment to exempt from the PFL tax.

    • MISC1 ER Override Rate: If you enter a value in this field, then the application uses this value to override the default tax rate.

    • MISC1 ER Override Tax Amount: If you enter a value in this field, then the application uses this value to override the tax amount that is calculated for the ER MISC1 tax.

    • MISC1 ER Additional Tax Amount: If you enter a value in this field, then the application adds this value to the final calculated value for the ER MISC1 tax.

    • MISC1 ER Tax Exempt: Select Yes to exempt the employee from the MISC1 ER tax liability.

To optionally configure override rates or to exempt employees from PFL tax deductions at the GRE level

  1. Navigate to the Organization window (Work Structures > Organization > Description).

  2. Select the applicable GRE and click to enable GRE / Legal Entity.

  3. Click Others and select State Tax Rules (2).

  4. Select the DC record or create a DC record.

  5. Specify these fields, if there is a requirement to override the delivered (default) premium employee and employer rates or to exempt employees in the GRE from the PFL tax.

    Important: The assignment level overrides take precedence over the GRE level overrides.

    Although the Self Adjust at Max option is also available in the list of tax calculation methods at the GRE level, this option is not applicable to the DC MISC1 ER tax and therefore you must not select this option. If selected, then the application uses the Flat Rate default tax calculation method.

    If you enter a value in the MISC1 ER Additional Tax Amount field, then the application ignores any value that is entered in either the MISC1 ER Additional Tax Amount or the MISC1 ER Override Rate field or both.

    • MISC1 Self Adjust Method: Select an applicable tax calculation method from the following:

      • Flat Rate (Default)

      • Self Adjust

      • Self Adjust at Quarter

      • Bypass Calculation: Select this value if exempted from the PFL tax.

    • MISC1 ER Override Rate: If you enter a value in this field, then the application uses this value to override the default tax rate.

    • MISC1 ER Override Tax Amount: If you enter a value in this field, then the application uses this value to override the tax amount that is calculated for the ER MISC1 tax.

    • MISC1 ER Additional Tax Amount: If you enter a value in this field, then the application adds this value to the final calculated value for the ER MISC1 tax.

    • MISC1 ER Tax Exempt: Select Yes to exempt the employee from the MISC1 ER tax liability.

Viewing PFL Balances

Click the Pre Tax Details button in the View Tax Balances window to view the relevant pretax balances. The View Tax Balance Summary page displays the balances relative to the State MISC1 ER tax.

Performing Balance Adjustments

Use the Balance Adjustment window to perform balance adjustments for the MISC1 ER tax.

Archiving MISC1 ER Details

The Payroll Archive and QuickPay Archive processes archive the MISC1 ER wage and tax information.

Reporting MISC1 ER Details

The following reports display the MISC1 ER wage and tax information:

Setting Up Massachusetts Paid Family Medical Leave (PFML) Tax Deductions

The state of Massachusetts enacted a Paid Family and Medical Leave (PFML) program that is funded through a payroll tax that went into effect on October 1, 2019.

The PFML premium (tax) is calculated based on the employee's wages, the definition of which is the same as Unemployment Insurance wages with a wage limit up to or equal to the base wage limit established annually by the Social Security Administration. In Oracle US Payroll, the MA PFML tax is known as the State MISC2 Tax.

Oracle US Payroll delivers the following predefined components to process the State MISC2 Tax.

Predefined Elements

The following elements store wage and tax amounts for the MA State MISC2 Tax:

Predefined Balances

The following balances support taxability rules for the State MISC2 Tax:

Calculating PMFL Deductions

To calculate the PFML deductions, you can use the delivered (default) employee and employer rates. If there is a requirement to override the default rates, then you can use the rate override fields that are available at both GRE and Assignment levels. If there is a requirement to exempt the employee, then you can use the Exempt field that is available at both GRE and assignment levels. The default taxation method is Flat Rate. Vertex and Oracle also support the Self-Adjust method.

Note: Assignment level values take precedence over GRE level values. If assignment level values are left blank or null, then the GRE level values take effect. If the override fields are left blank at both the GRE and assignment levels, then the default employee and employer rates are applied.

To optionally configure override rates or an exemption option for PFML tax deductions for an employee assignment

  1. Click Tax Info in the employee assignment.

  2. In the State Tax window, in the MA state tax rules record, click Further State Tax Info.

  3. Specify these fields, if there is a requirement to override the delivered (default) premium employee and employer rates or to set an exemption option to calculate the PFML tax.

    • MISC2 EE Override Rate: Enter a rate to override the default or delivered MISC2 employee rate. This field accepts a value up to six decimal places.

    • MISC2 ER Override Rate: Enter a rate to override the default or delivered MISC2 employer rate. This field accepts a value up to six decimal places.

    • MISC2 Exempt: Select any one of the following options.

      • No Exemption: Select this option for both the employee and employer PFML deductions. The application calculates and stores the applicable employee and employer PFML taxable wages.

      • Exempt EE Only: Select this option to exempt the employee portion of PFML, so that the employee PFML taxable wages are zero. The application calculates and stores the applicable employer PFML liability and taxable wages.

      • Exempt ER Only: Select this option to exempt the employer portion of PFML, so that the employer PFML taxable wages are zero. The application deducts the employee portion of PFML, and calculates and stores the taxable wages.

      • Exempt EE and ER: Select this option to exempt both the employee and employer portions of PFML, so that the employee and employer PFML taxable wages are zero.

      Note: Oracle US Payroll maintains the applicable gross, subject, and pre-tax PFML wages, even if the applicable taxable wages are zero when an exemption option is selected at either the GRE or the assignment level, or at both levels. If you select exemption options at both the assignment and GRE levels, then the assignment level setting takes precedence.

To optionally configure override rates or an exemption option for PFML tax deductions at the GRE level

  1. Navigate to the Organization window (Work Structures > Organization > Description).

  2. Select the applicable GRE and click to enable GRE / Legal Entity.

  3. Click Others and select State Tax Rules (2).

  4. Select the MA record or create a MA record.

  5. Specify these fields, if there is a requirement to override the delivered (default) premium employee and employer rates or to set an exemption option to calculate the PFML tax.

    • MISC2 EE Override Rate: Enter a rate to override the default or delivered MISC2 employee rate. This field accepts a value up to six decimal places.

    • MISC2 ER Override Rate: Enter a rate to override the default or delivered MISC2 employer rate. This field accepts a value up to six decimal places.

    • MISC2 Exempt: Select any one of the following options.

      • No Exemption: Select this option for both the employee and employer PFML deductions. The application calculates and stores the applicable employee and employer PFML taxable wages.

      • Exempt EE Only: Select this option to exempt the employee portion of PFML, so that the employee PFML taxable wages are zero. The application calculates and stores the applicable employer PFML liability and taxable wages.

      • Exempt ER Only: Select this option to exempt the employer portion of PFML, so that the employer PFML taxable wages are zero. The application deducts the employee portion of PFML, and calculates and stores the taxable wages.

      • Exempt EE and ER: Select this option to exempt both the employee and employer portions of PFML, so that the employee and employer PFML taxable wages are zero.

      Note: Oracle US Payroll maintains the applicable gross, subject, and pre-tax PFML wages, even if the applicable taxable wages are zero when an exemption option is selected at either the GRE or the assignment level, or at both levels. If you select exemption options at both the assignment and GRE levels, then the assignment level setting takes precedence.

    • MISC2 Self Adjust Method: Select Self Adjust. Note that both Vertex and Oracle support only Flat Rate and Self Adjust calculation methods for MISC2 (MA PFML). Although other Self Adjust method options are available in the list of values, the application ignores any value other than Self Adjust. If the field is left blank, then the application uses the default Flat Rate method.

    • The following fields are applicable only to the State Family and Medical Leave Quarterly Employee Details Report for Massachusetts.

      • PFML Report Medical Leave %

      • PFML Report Family Leave %

      When reporting the Paid Family Medical Leave employee quarterly contribution details to the state of Massachusetts, the state requires the values for Percentage of Medical Leave contribution withheld from the employee pay and the Percentage of Family Leave contribution withheld from the employee pay. In Oracle US Payroll, Family and Medical Leave contributions are stored as a single amount, that is, MISC2 Withheld is the combination of Medical and Family Leave. If any employee is exempt and their MISC2 EE Override Rate is set to zero in the Further State Tax Info window or the MISC2 EE Override is set to zero in the State Tax Rules (2) window at the GRE level, then zero is reported for both Percentage of Medical Leave contribution withheld from the employee pay and the Percentage of Family Leave contribution withheld from the employee pay.

      To report different values other than the default, enter the applicable override values in the following fields. In these fields, you can enter only values of zero through nine with up to two decimals.

      • PFML Report Medical Leave %

      • PFML Report Family Leave %

      See Running the State Family and Medical Leave Quarterly Employee Detail Report (PFML) for more information.

Running the State Family and Medical Leave Quarterly Employee Detail Report (PFML)

Run the State Family and Medical Leave Quarterly Employee Detail Report (PFML) program to generate the XML bulk file to file quarterly Paid Family and Medical Leave contribution report with the Massachusetts Department of Revenue (MA DOR).

See Running the State Family and Medical Leave Quarterly Employee Detail Report (PFML) for more information.

Viewing the State Family and Medical Leave Quarterly Employee Detail Report (PFML) Output

The State Family and Medical Leave Quarterly Employee Detail Report (PFML) program generates the following files for Massachusetts:

  1. XML Output File

    This is the XML output file that you submit to the MA DOR:

    The naming convention of the file name is the same as that generated by running the State Periodic Wage Listing report and consists of the following:

    • First six characters of the Business Group Short Name (embedded blanks are ignored)

    • Business Group ID

    • State Code

    • Period in MMYY format

    • One letter Format Type

    Before you submit the file, update the file extension from .mf to .xml.

  2. PDF Output File

    Audit Summary (A01) report in PDF format.

    This report includes information on the following:

    • Selected parameter values

    • Employer information (example, Employer Name, FEIN, Address, and so on)

    • Employer totals (that is, totals for the GRE such as the total number of employees included for the GRE in the report and any reported as exceptions for the GRE)

    • Employer MISC2 (PFML) information for each GRE:

      Taxable Wages for the Quarter, Taxable Wages for the Year, Tax Withheld for the Quarter, ER (Employer) Liability for the Quarter, ER (Employer) Total Contribution Due, Paid Family leave Percentage and Paid Medical leave Percentage

  3. If the program reports negative wages for an employee, then the application excludes the employee from the XML output file and instead reports the employee as an exception in the A02 file.

Viewing PFML Balances

Click the Pre Tax Details button in the View Tax Balances window to view the relevant pretax balances. The View Tax Balance Summary page displays the balances relative to the State MISC2 tax.

Performing Balance Adjustments

Use the Balance Adjustment window to perform tax balance adjustment for the MISC2 tax for Massachusetts (this includes both employee and employer MISC2 amounts). Note that when employee or employer override rates are set to zero, the application does not adjust the MISC2 wages and taxes. Any values entered in the MISC2 fields are ignored.

Archiving MISC2 Details

The Payroll Archive and QuickPay Archive processes archive MISC2 wages and taxes in the US STATE 2 context.

Reporting MISC2 Details

The following reports display the MISC2 wage and tax information:

Setting Up Connecticut Paid Family Medical Leave (PFML) Tax Deductions

The Paid Family and Medical Leave (PFML) program for Connecticut (CT) requires employers to provide their employees with paid leave. The employee contribution is calculated as 0.5% of each employee's subject wages until the employee earns above the Social Security wage base. The CT PFML employee contribution is based on the same taxable wages as State Unemployment Insurance. In Oracle US Payroll, the PFML tax is known as the MISC2 Tax.

Important: The MISC2 taxability rules for Connecticut are based on the predefined SUI taxability rules for the state. If you have customized SUI taxability rules or there are any custom tax categories, then you must apply the same SUI taxability rules and customizations to the MISC2 tax type.

Oracle US Payroll delivers the following predefined components to process the state MISC2 Tax.

Predefined Elements

The following elements store wage and tax amounts for the MISC2 Tax:

Predefined Balances

The following elements store wage and tax amounts for the MISC2 Tax:

Calculating PMFL deductions

To calculate the PMFL deductions, you can use the delivered (default) premium employee (EE) rate. If there is a requirement to override the default rates, then you can use the rate override fields that are available at both GRE and assignment levels. If there is a requirement to exempt the employee, then you can use the Exempt field that is available at both GRE and assignment levels.

Note: Assignment level values take precedence over GRE level values. If assignment level values are left blank or null, then the GRE level values take effect. If the override fields are left blank at both the GRE and assignment levels, then the application uses the default employee rate.

To optionally configure override rates or to exempt an employee from PFML tax deductions at the assignment level

  1. Click Tax Info in the employee assignment.

  2. In the State Tax window, in the CT state tax rules record, click Further State Tax Info.

  3. Specify these fields, if there is a requirement to override the delivered (default) premium employee rate or to set an exemption option to calculate the PFML tax.

    • MISC2 EE Override Rate: This field accepts the employee override rate. Up to six decimal places are accepted.

    • MISC2 Exempt: Select any one of the following options.

      • No Exemption: Select this option for employee PFML deductions. The application calculates and stores the applicable employee PFML taxable wages.

      • Exempt EE: Select this option to exempt the employee portion of PFML, so that the employee PFML taxable wages are zero.

      Note: Oracle US Payroll maintains the applicable gross, subject, and pre-tax PFML wages, even if the applicable taxable wages are zero when an exemption option is selected at either the GRE or the assignment level, or at both levels. If you select exemption options at both the assignment and GRE levels, then the assignment level setting takes precedence.

To optionally configure override rates or an exemption option for PFML tax deductions at the GRE level

  1. Navigate to the Organization window (Work Structures > Organization > Description).

  2. Select the applicable GRE and click to enable GRE / Legal Entity.

  3. Click Others and select State Tax Rules (2).

  4. Select the CT record or create a CT record.

  5. Specify these fields, if there is a requirement to override the delivered (default) premium employee rate or to set an exemption option to calculate the PFML tax.

    • MISC2 EE Override Rate: This field accepts the employee override rate. Up to six decimal places are accepted.

    • MISC2 Exempt: Select any one of the following options.

      • No Exemption: Select this option for employee PFML deductions. The application calculates and stores the applicable employee PFML taxable wages.

      • Exempt EE: Select this option to exempt the employee portion of PFML, so that the employee PFML taxable wages are zero.

    • MISC2 Self Adjust Method: Select Self Adjust or No Self Adjust. Other values are not applicable. If you select other values, then the application ignores these values and uses the default Self Adjust method.

    Note: Oracle US Payroll maintains the applicable gross, subject, and pre-tax PFML wages, even if the applicable taxable wages are zero when an exemption option is selected at either the GRE or the assignment level, or at both levels. If you select exemption options at both the assignment and GRE levels, then the assignment level setting takes precedence.

Viewing PFML Balances

Click the Pre Tax Details button in the View Tax Balances window to view the relevant pretax balances. The View Tax Balance Summary page displays the balances relative to the State MISC2 tax.

Archiving MISC2 Values

The Payroll Archive process archives the MISC2 wages and taxes in the US STATE 2 context. The following reports include Connecticut PFML wage and tax information, as applicable to the respective reports.

Running the State Family and Medical Leave Quarterly Employee Detail Report (PFML) Program

The State Family and Medical Leave Quarterly Employee Detail Report (PFML) program enables you to generate Paid Family and Medical Leave contribution reports that comply with the statutory requirements of applicable states.

Currently, you can generate reports for the following states:

Important: If there is a requirement to rollback and rerun the State Family and Medical Leave Quarterly Employee Detail Report (PFML), then run the Rollback US SPWL Process. See Running the Rollback US SPWL Process for more information.

Run the program from the Submit Request window.

To run the State Family and Medical Leave Quarterly Employee Detail Report (PFML) program

  1. In the Name field, enter State Family and Medical Leave Quarterly Employee Detail Report (PFML).

  2. Specify the following parameters.

  3. State: Select Washington or Massachusetts as appropriate.

  4. Period: Select the quarter for which the report is to be run.

  5. Report Output: Single GRE is the default value.

    • For Washington, select Single GRE or All GRE's – output file per GRE.

    • For Massachusetts, select only All GREs - single output file since this a bulk file report.

  6. Government Reporting Entity: For Washington, if you have selected Single GRE in the Report Output field, then select the GRE for which you want to generate the report.

  7. Format:

    • For Washington, CSV is the default value.

    • For Massachusetts, XML Bulk File is the default value.

  8. Transmitter GRE: For Washington, if you have selected Single GRE in the Report Output field and a GRE in the Government Reporting Entity, then the program uses these values for report generation. The Transmitter GRE field remains grayed out.

  9. Click OK and then submit.

Report Outputs

Reporting Families First Coronavirus Relief Act (FFCRA) and the Coronavirus Aid, Relief, & Economic Security (CARES) Act Payments on Federal Form 941

The FFCRA and CARES legislations outline COVID-19 related employment tax credits and other employment tax relief payments. This topic explains how to set up the 941 Reporting Rules descriptive flexfield (DFF) to report COVID-19 related employment tax credits and other employment tax relief on Federal Form 941.

For detailed setup steps about how to process paid qualified sick and family leave payments to employees based on the FFCRA and CARES legislations, refer to the My Oracle Support Document 2657003.1 - Functional Readme for Patch 31080069:R12.PAY.B/C - COVID-19: DELIVERY OF CHANGES TO EBS PAYROLL TO ACCOMMODATE FAMILIES FIRST CORONAVIRUS ACT / CARES ACT PAYROLL-RELATED REQUIREMENTS

For information about Federal Form 941 updates in Oracle US Payroll, refer to the following 2nd Quarter 2020 Statutory Patch Readmes on My Oracle Support:

To report FFCRA and CARES payments on the Federal Form 941:

  1. Enter or query the GRE in the Organization window.

  2. In the Organization Classifications region, select GRE / Legal Entity.

  3. Click Others, and select 941 Reporting Rules.

  4. Click in the Additional Organization Information field to open the 941 Reporting Rules window.

  5. Enter amounts, if applicable, in the following fields.

  6. In the Qualified Small Business Payroll Tax Credit field, enter the amount for qualified small business payroll tax credit for increasing research activities.

  7. In the Nonrefundable Portion of Leave from Worksheet 1 (Line 11b) field, enter the amount for the nonrefundable portion of the credit for qualified sick and family leave wages (from Worksheet 1 in the 941 Instructions).

  8. In the Nonrefundable Portion of Credit from Worksheet 1 (Line 11c) field, enter the nonrefundable portion of the credit for qualified sick and family leave wages (from Worksheet 1 in the 941 Instructions).

  9. In the Total Deposits for the Quarter field, enter the total deposits for the current quarter, including overpayment applied from a prior quarter and overpayments applied from Form 941-X, 941-X (PR), and 944-X (SP) filed in the current quarter.

  10. In the Deferred Amount of the ER Share (Line 13b) field, enter the deferred amount of the social security tax, which includes both the employer and employee share. Note that this field stores the employer share and the Social Security Deferred Tax balance stores the employee share. The Social Security Deferred Tax balance, which is applicable to the reporting quarter is not a delivered balance. Therefore, to report the employee share amounts, you set up and configure this balance. For details on setting up this balance and other structures to optionally implement employee social security tax deferrals, refer to the My Oracle Support Document 2710162.1 - Oracle EBS US Payroll Functional Whitepaper: Configuration Solution to Implement Employee Social Security Tax Deferral.

  11. In the Refundable Portion of Leave from Worksheet 1 (Line 13c) field, enter the refundable portion of credit for qualified sick and family leave wages (from Worksheet 1 of the 941 instructions).

  12. In the Refundable Portion of Emp Ret Credit - Worksheet1 (Line 13d) field, enter the amount for the refundable portion of employee retention credit (from Worksheet 1 of the 941 instructions).

  13. In the Total Advances Received for Qtr - Form 7200 (Line 13f) field, enter the amount for the total advances received from filing Form(s) 7200 for the quarter.

  14. In the Form 5884 Credit for Qtr field, enter the amount from for line 11 from Form 5884-C credit for the quarter.

  15. In the Emp Ret Credit Qualified Wages (March 13-31) (Line 24) field, enter the qualified wages paid March 13 through March 31, 2020, for the employee retention credit.

  16. In the Qual Health Plan Expenses Alloc to Line 24 Wages (Line 25) field, enter the amount for any health plan expenses allocable to the amount reported in Line 24 (Qualified wages paid March 13 through March 31, 2020, for the employee retention credit).

Taxability Rules

Taxability Rules for Earnings and Deductions Categories

Oracle Payroll delivers with all existing rules for the Federal and state-level taxability. These taxability rules are in place for a number of categories of supplemental and imputed earnings types and for three categories of pre-tax deductions. For Pre-Tax deductions, along with Federal and state levels, Oracle Payroll delivers tax withholding rules for county and city levels. Each release of Oracle Payroll updates these rules.

Tax Withholding Rules for County and City Levels for Pre-Tax Deductions

Oracle Payroll uses the default county or city rule, if the county or city specific tax withholding rules are not defined. These county or city specific tax withholding rules can be Oracle delivered or user-defined.

You can also alter the rules delivered by Oracle using the Taxability Rules window. The following sections explain how the tax withholding rules work at the county or city level for pre-tax deductions.

PAY: Override User Defined Local Taxability Rules Profile Option

This profile option impacts only the local taxability rules added for Pre-Tax Deductions. This profile option provides users an option to configure the local taxability rules in their system: either retain the user-defined data and Oracle delivered data with user-defined data being given precedence or use Oracle delivered data only. If this profile is not set or set as No, then the HRMS Legislative Data (hrglobal.drv) application will upload Oracle delivered data, but will not override the user-defined data. If the profile value is set as Yes, then the HRMS Legislative Data (hrglobal.drv) application clears the local taxability rules related to seeded pre-tax deduction categories only and loads Oracle delivered data. Note that the rules corresponding to custom pre-tax categories are not deleted. Once the data upload is completed, the 'PAY: Override User Defined Local Taxability Rules' profile option is set as No. This is to prevent any subsequent HRGlobal driver applications from clearing data again. It may be possible that you may want to change some data after the initial cleanup. In future, if it is necessary to clear the data and load Oracle data, set the profile "PAY: Override User Defined Local Taxability Rules" to Yes again and run HRMS Legislative Data (hrglobal.drv).

Important: The HRGlobal driver process migrates the Tax Withholding rules related to custom Pre-Tax categories from the State level to Default County, Default City, County and City levels. The Tax Withholding Rules form also migrates the changes made to tax withholding rules from the State level, Default County and Default City levels to subsequent levels as required. This eliminates the requirement to manually update custom Pre-Tax Tax Withholding Rules at the Local level.

The following rules apply when the Tax Withholding rules are migrated by the HRGlobal driver or Tax Withholding rules form:

Assignment Location Rules Overview Example

An employee moves to three different states, A, B, and C in a year. In state A, the employee works in two different counties, D and E. In State B, the employee works in city G (which is located in county F). In State C, the employee works in an unspecified area. The employee's percentage in each of these areas is expressed in the following table:

Work Location State A State B State C
County D 30% 0% 0%
County E 20% 0% 0%
County F 0% 0% 0%
City G 0% 30% 0%
Unspecified 0% 0% 20%
Total in State this year 50% 30% 20%

Note: The state totals add up to 100% for the year.

Examples of State and Local Exemption Rules

Following are sample scenarios that illustrate typical uses of State and local tax exemptions.

Scenario 1: No State or Local Tax Exemptions

This is the system default. Oracle Payroll withholds taxes from all fifty states and subordinate localities unless you specify otherwise.

Scenario 2: Doing Business in Only One State with No Local Tax Exemptions

In the Employer Identification screen, the State Tax Withholding Rule field must be set to States under State Tax Rules. In the State Tax rules screen, information should be entered and maintained only for the state that the company is doing business in.

The system default is for taxes to be withheld for all localities in the state in question. This means that on the State Tax Rules screen, the Exempt State Income Tax field is set to No, and the Local Income Tax Withholding Rule field is set to All Localities.

Scenario 3: Doing Business in Some States with Some Local Tax Exemptions

In the Employer Identification screen, the State Tax Withholding Rule field must be set to States under State Tax Rules. In the State Tax Rules screen, information should be entered and maintained only for the states that the company is doing business in. The Exempt State Income Tax field should be set to No.

In the State Tax Rules screen, the Local Income Tax Withholding Rule field should be set to Only Localities Under Local Tax Rules. In the Local Tax Rules screen, tax rules should be set up only for those localities that employees reside in. The Exempt Local Income Taxes field should be used to determine if you want to withhold taxes for this locality.

Note: If you have a business location in a certain locality, you have to withhold taxes for that locality.

Supplemental Tax Calculation Methods

Oracle Payroll enables you to process your employees' regular and supplemental earnings. Supplemental earnings include additional employee pay such as overtime pay, awards, prizes, bonuses, commissions, and allowances.

Some of the following factors determine the calculation of tax on supplemental earnings:

Oracle US Payroll enables you to define methods to calculate federal and state taxes on supplemental earnings of employees according to your business requirements.

To calculate federal and state taxes on employee supplemental earnings, you can define calculation methods at the following levels:

For information about supplemental earnings, supplemental earnings categories, and supplemental earnings elements, see Survey of the Classifications, Oracle HRMS Compensation and Benefits Management Guide (US)

Defining Methods to Calculate Taxes on Supplemental Earnings

The following sections explain how to define methods to calculate federal and state taxes on supplemental earnings:

Review information in these sections to set up calculation methods according to your business requirements.

Defining a Supplemental Tax Calculation Method for a GRE

You can define tax calculation methods for a GRE at the following levels:

Defining a Supplemental Tax Calculation Method for a Supplemental Earnings Category

Use the Supp. Cat. Tax Calc. Method additional information window to define a supplemental tax calculation method for a supplemental earnings category. This additional information is available at the GRE/Legal Entity level. Generally, the tax calculation method is the same for all the elements that belong to a supplemental earnings category. Use this method to calculate federal or state taxes for all elements that belong to a supplementary category. For more information, see GRE: Defining a Supplemental Tax Calculation Method for a Supplemental Earnings Category.

Defining a Supplemental Tax Calculation Method for an Element

Use the US Tax Calculation Method extra information type (EIT) to define a tax calculation method for an element. Use this method if different calculation methods are required for elements of the same supplemental earnings category. For information, see Defining the US Tax Calculation Method Element Extra Information Type

Defining a Supplemental Tax Calculation Method for an Assignment Element Entry

Use the Further Element Entry Information window to define a supplemental tax calculation method at an employee's assignment element entry level. This window is available only for supplemental earnings elements. For more information, see Defining a Supplemental Tax Calculation Method for an Assignment Element Entry

Reviewing the Calculation Methods Set at Different Levels

Run the Supplemental Calculation Methods Report program to review the supplemental calculation methods that are defined at various levels. For more information, see Running the Supplemental Calculation Methods Report Program

How Calculation Methods Set at Different Levels Work

To calculate federal and state taxes on employee supplemental earnings, you can define calculation methods at the following levels:

  1. GRE: In the order of precedence, this is the highest level.

  2. Supplemental earnings category

  3. Supplemental earnings element

  4. Employee's assignment element entry: : In the order of precedence, this is the lowest level.

The calculation method set at a higher level cascade as defaults to the lower levels. The calculation method set at a lower level override any default from a higher level.

The following table explains how the calculation methods set at different levels work.

Level at which the calculation method is set Description
Calculation method set at the GRE level Oracle Payroll uses the calculation method specified for a GRE to calculate federal and state taxes.
Calculation method set at the supplemental earnings category level Oracle Payroll uses the supplemental category level method for processing supplemental payments. If a particular element is from another category, then the application uses the method specified for a GRE to calculate federal and state taxes.
Calculation method set at the supplemental earnings element level Oracle Payroll uses the calculation method set at the element level to process payments. If a particular element does not have method at the element level, then the application uses the method set at the supplemental category level. If no method is specified at the supplemental category level, then the application uses methods specified at the GRE level to calculate federal and state taxes.
Calculation method set at an employee's assignment element entry level During the supplemental payment processing of any assignment, the supplemental method set at this level for any element will override the method set at all the above levels. The method set at the assignment level will be used in the processing for that element.
Calculation method is set for “All States”. Additionally, calculation methods are set for New York and California. For an employee from New York, the calculation method specified for New York is used to calculate supplemental payments. For an employee from Pennsylvania, the method specified under “All States” is used.
Calculation methods are specified for different states. Oracle Payroll uses the supplemental calculation method specified for each state. If an employee is associated to multiple states and different methods are specified for different states, then the tax is calculated according to the method specified for each state.

How Override Rules Apply to a Supplemental Category and Elements that belong to that Supplemental Category

In the Extra Element Information window, if you specify a calculation method for an element that belongs to a supplemental category, then the method that you set at the element level overrides the method that you set at the GRE level for that supplemental category.

The following example helps you to understand how the override rules apply to a supplemental category and the elements that belong to that supplemental category.

  1. Define two supplemental earnings elements named Recruitment Bonus and Relocation Bonus in the Bonuses supplemental earnings category.

  2. For the Recruitment Bonus element, define a tax calculation method using the US Tax Calculation Method element extra information type (EIT).

  3. In the Organization window, search for the GRE for which you want to set up the tax calculation method for the Bonuses supplemental category.

  4. In the Supp.Cat. Tax Calc. Method window, select Bonuses as the supplemental category.

  5. Specify the appropriate tax level.

  6. In the Calculation Method field, when you select a calculation method for the Bonuses supplemental category, the application displays a message that a tax calculation method already exists for elements in the Bonuses supplemental category. If you want the tax calculation set at a GRE level to be applied during tax calculation, then using the Extra Element Information window, you must remove the tax calculation method set for the Recruitment Bonus element Otherwise, the tax calculation method defined at an element level overrides the calculation method set at a GRE level for a supplemental category.

Rules for Workers Compensation

The system does not come with rules in place regarding the inclusion of supplemental and imputed earnings categories in states' payroll exposure for Workers Compensation, but it does provide a convenient way for you to maintain this information yourself.

Note: Each installation of Oracle Payroll is responsible for entering and maintaining the rules regarding the inclusion of its earnings types in the payroll exposure for Worker's Compensation.

Viewing Active and Inactive Tax Records

To review and maintain employee tax information, use the Federal, State, County, City Tax Rules, and Percentage windows. Entries to these windows are date effective.

By default, the State, County, or City Tax Rules windows display tax records considered active for an assignment on the effective date (that is the date you are tracked to). The Percentage window displays the details related to an assignment's active tax records. Oracle Payroll for US provides the Show Inactive Tax Record check box in the Federal Tax Rules window to help control which tax records are available for display.

Show Inactive Tax Records

The Show Inactive Tax Records check box is available in the Federal Tax Rules window. Selecting this check box displays both active and inactive tax records for an assignment. This check box is not active when you open the State, County, City Tax Rules, or Percentage windows. The check box becomes active after you close these windows.

To differentiate between active and inactive tax records when the Show Inactive Tax Records check box is selected, inactive records are shown in read-only mode. Select the Edit Inactive check box to update inactive tax records.

Criteria to Identify Active Tax Records

When you select the Show Inactive Tax Records check box, the application uses certain criteria to identify them as active records. Tax records are considered active if they are associated with any of the following assignment details:

If a tax record satisfies any of the above criteria, then the tax record is considered active. The tax record is considered active for a complete year, that is from January to December, even if it meets the above criteria only for a part of that year. If a city tax record is active, then the related county and state tax records are also considered active. Similarly, if a county tax record is active, then the related state tax record is considered active. At the same time, if a state tax record is active, then the county or city tax records under it can be active or inactive. Similarly, if a county tax record is active, then the city tax records under it can be active or inactive.

Show Inactive Tax Records Option and Tax Rules Windows

When you select the Show Inactive Tax Records check box in the Federal Tax Rules window, the application retrieves active tax records first, followed by inactive tax records in the following windows:

The Edit Inactive check box is visible in the following windows only if you select Show Inactive Tax Records:

The Edit Inactive check box is disabled for active records and is enabled state for inactive records. To enable users to distinguish between active and inactive tax records, the inactive tax records are by default shown in read-only mode. If it is necessary to update an inactive tax record, then you must select Edit Inactive, which makes the tax record editable.

Percentage Window:

The application displays active tax records by default. If Show Inactive Tax Record is checked in the Federal Tax Rules window, then all records are displayed.

Example: Understanding the Behavior of Tax Rules Windows for Active and Inactive Tax Records

The following example explains the behavior of the Tax Rules windows for active and inactive tax records:

Employee details for this example:

An employee A's record is available in the Oracle system from 01-JAN-2013.

Scenario 1: Behavior of the State Tax Rules window with an effective date of 16-FEB-2013:

By default, tax records effective for the employee on the specified date are shown. To view all records of employee, select the Show Inactive Tax Records check box.

Scenario 2: Behavior of the State Tax Rules window with an effective date of 16-FEB-2014:

In 2014, California and New York state tax records are active for the employee and Colorado tax record is inactive.

Scenario 3: Percentage window behavior with an effective date of 16-FEB-2013:

In 2013, Colorado tax record is active and California, New York state tax records are inactive for the employee.

Scenario 4: Percentage window with an effective date of 16-FEB-2014:

In 2014, California and New York state tax records are active for the employee and Colorado State record is inactive.

Tax Rules Windows

See:

See also: Adjusting Percentage Tax Rules

Taxability Rules

Update Tax Records After Location Address Change

You can update an employee's work address and keep their tax details up to date by using the "Update Tax Records After Location Address Change" process. You can run this as often as required, ensuring that no default tax records are created and unnecessary tax imposed on your employees.

To update tax records after a location address change

  1. In the Submit Requests window, select the Report Name.

  2. Select the updated location from the Parameters window and click OK.

  3. Select Submit.

Adjusting Percentage Tax Rules

Enter percentage time in state, county, or city by selecting the Percentage button on the appropriate Tax Rules window.

Note: Do not enter percentage tax rules less than 100% at the county level for employees working in Indiana. Employees in Indiana can only be taxed for a single county.

You can view active and inactive tax records of an employee. See: Viewing Active and Inactive Tax Records

If you have checked the Working at Home check box on the Standard Conditions tab of the Assignment window, the employee is assumed to be working 100% from their primary address (or tax override address if there is one) for this assignment. You cannot open the Percentage window for an employee who works at home.

Important: Ensure that you have set the correct effective date before entering any tax information.

To adjust the percentage time

  1. Enter the percentage of the employee's total work time spent in this locality. Make sure that the total of all the Time in Locality entries for localities within a state do not exceed the Time in State entry.

Creating Local Taxability Rules

When creating or updating a local taxability rule for county, or city, all default state taxability rules are superceded for that locality. You must re-enter all state taxability rules for that particular locality when you create a local taxability rule.

Oracle Payroll does not validate local taxability rules, nor are they date effective. Local tax rules do not include regular earnings. You can only enter local tax rules for one level (county or city) at a time.

Selecting Not Withheld for a pre-tax deduction will introduce errors in your payroll. Do not select Not Withheld for a pre-tax deduction.

To enter tax rules for categories not presently listed in this window, add the categories to the list using the US_SUPPLEMENTAL_EARNINGS, US_IMPUTED_EARNINGS, or US_PRE_TAX_DEDUCTIONS lookup types.

Use the Taxability Rules window (Total Compensation > Basic > Tax Withholding Rules in the Navigator).

To create a local taxability rule for an earnings type or pre-tax deduction

  1. Select the primary classification.

  2. Select the tax level: county or city.

  3. Select the appropriate state.

  4. Select the locality for the county or city.

    This displays the applicable tax categories.

  5. For each tax category, select the appropriate rule: withheld or not withheld.

    Oracle Payroll interprets the tax category as not subject to tax if a tax category is left unchecked.

  6. Save your changes.

    Important: When you refresh this screen, the Default Rules Edited check box is checked. This indicates that there is a local tax rule in effect and that you need to re-establish state tax rules for this locality.

Setting Up Tax Exemption Rules

You define state exemption rules from the Employer Identification screen and the State Tax Rules screen.

To set up state exemption rules for a GRE

  1. In the Employer Identification screen, use the State Tax Withholding Rule field to select either All States or States under State Tax Rules.

    Note: If you select All States, taxes are withheld for all 50 states. If you select States under State Tax Rules, taxes are withheld only for those states that have rules set up in the State Tax Rules screen.

  2. In the State Tax Rules screen, use the State Code field to select the state that you want to be exempt.

  3. In the Exempt State Income Tax field, select Yes to indicate that you do not want to withhold taxes for this state.

  4. Save your work.

Local Exemption Rules

You define Local exemption rules from the State Tax Rules screen and the Local Tax Rules screen.

To set up Local Exemption Rules for a GRE

  1. In the State Tax Rules screen, use the State Code field to select the state that contains the locality that you want to be exempt.

  2. In the State Tax Rules screen, use the Local Income Tax Withholding Rule field to select either All Localities, or Only Localities Under Local Tax Rules.

    Note: If you select All Localities, taxes are withheld for all existing localities in that State. If you select Only Localities Under Local Tax Rules, taxes are withheld only for those localities that have rules set up in the Local Tax Rules screen. If there are no rules set up, no taxes are withheld. The exemption rules apply only to resident taxes. Oracle Payroll withholds work locality taxes based on the work location regardless of whether those localities are defined in the exemption rules.

    Note: For the state of Ohio only, you can also select Only Withhold Tax at Work Location. This option is available for reciprocity taxes only.

  3. In the Local Tax Rules screen use the Locality field to select the locality that you want to be exempt.

  4. In the Exempt Local Income Taxes field, select Yes to indicate that you do not want to withhold taxes for this locality.

  5. Save your work.

Changing Taxability Rules for an Earnings Type

To change taxability rules for an earnings type

  1. In the Primary Classification region, choose Supplemental Earnings or Imputed Earnings.

  2. In the Level region, choose:

    • Federal to change a federal-level rule

    • State to change a state-level rule

    If you choose State, select the particular state in the State region.

  3. The Tax Category field displays the categories of earnings types in the Supplemental or Imputed Earnings classification. For a category, check the box under a tax heading in the Subject To region if the earnings types in the category are subject to the tax, or uncheck the box if they are not subject to the tax.

    At the Federal level, the tax headings appearing in the Subject To region are:

    FIT Federal Income Tax
    FUTA Federal Unemployment Tax Act
    Medicare (FICA-HI)
    SS Social Security (FICA-OASDI)

    At the state level, the tax headings appearing in the Subject To region are:

    SIT State Income Tax
    SDI State Disability Insurance
    SUI State Unemployment Insurance
    WC Workers Compensation payroll exposure

Changing Taxability Rules for a Pre-Tax Deduction

Use the Taxability Rules window to select the Federal and state taxes to which each category of pre-tax deduction is subject. For local tax rules, see: Creating Local Taxability Rules.

To change taxability rules for a pre-tax deduction

  1. In the Primary Classification region, choose Pre-Tax Deduction.

  2. In the Level region, choose:

    • Federal to maintain Federal-level rules

    • State to maintain state-level rules

    If you choose State, select the particular state in the State region.

  3. The Tax Category field displays the categories, such as Dependent Care 125, Deferred Comp 401k, and Health Care 125. For a category, check the box under a tax heading in the Subject To region if deductions in the category are subject to the tax, or uncheck the box if they are not subject to the tax.

    Note: A Flexible Spending Account (FSA) allows a portion of an employee's pre-tax earnings to be set aside for qualified medical expenses. As FSA deductions are subject to DCIA (Debt Collection Improvement Act), they cannot be created using the delivered Heath Care 125 tax category (which is not). Therefore these types of deductions require the creation of a custom tax category in order to correctly calculate the amount of disposable income in conjunction with certain administrative wage attachments (AWG's).

    At the federal level, the tax headings appearing in the Subject To region are:

    FIT Federal Income Tax
    FUTA Federal Unemployment Tax Act
    Medicare (FICA-HI)
    SS Social Security (FICA-OASDI)

    At the state level, the tax headings appearing in the Subject To region are:

    SIT State Income Tax
    SDI State Disability Insurance
    SUI State Unemployment Insurance

    Note: Customers are responsible for establishing their own earnings and taxability rules for nonqualified deferred compensation plans. For Pennsylvania state income tax, you report and tax non qualified deferred compensation at the time the it is paid out, not when the amount is deferred.

Ending Local Taxability Rules

To end a local taxability rule for an earnings type or pre-tax deduction

  1. Query the taxability rule you want to end.

  2. For each tax category, uncheck the appropriate rule: withheld or not withheld.

  3. Save your changes.

    Important: If there are no tax rules for this locality, when you refresh your screen, the Default Rules Edited check box reverts to being unchecked. This indicates that the default tax rules for the state are in effect.

Entering City Tax Rules

Specify city tax rules from the City Tax Rules window. With the appropriate county displayed in the County Tax Rules window, click City Tax.

Important: Ensure that you have set the correct effective date before entering any tax information.

For information about the Edit Inactive check box, see: Viewing Active and Inactive Tax Records

To enter city tax rules for an employee

  1. Select a city.

    Note: If you have set up a payroll tax override address that applies to this city in the Address, Location Address, or GREs and other data window, the Residence Tax Override in Effect or Work Tax Override in Effect box will be checked.

    If you checked the Working at Home box, the work details are the same as the resident details, and the employee is assumed to be working 100% from their primary address (or tax override address, if there is one) for this assignment. You cannot update this check box here. Change the Working at Home status on the Standard Conditions tab of the Assignment window.

  2. Select a filing status and enter other information from the W-4 that is applicable to this locality.

  3. In the LIT Override region, to override the regular rate used in withholding calculations, enter a percentage in the Rate field. Enter an amount for Oracle Payroll to withhold a fixed amount each period, without performing any local tax calculations.

  4. Check appropriate boxes in the Tax Exemptions block to exempt the employee from these taxes.

  5. Enter the School District code to calculate school district tax for the employee. Currently, this is applicable only to employees resident in Kentucky, Ohio or Pennsylvania. Consult your Vertex, Inc. handbook for further information on school districts and codes.

  6. Check the LIT Exempt from Wage Accumulation box to exempt the employee from the withholding and reporting of city income wages and taxes.

See also: Adjusting Percentage Tax Rules

Entering County Tax Rules

Enter county tax rules from the County Tax Rules window. With the appropriate state displayed in the State Tax Rules window, choose County Tax.

Important: Ensure that you have set the correct effective date before entering any tax information.

For information about the Edit Inactive check box, see: Viewing Active and Inactive Tax Records

To enter county tax rules for an employee

  1. Select a county.

    Note: If you have set up a payroll tax override address that applies to this county in the Address, Location Address, or GREs and other data window, the Residence Tax Override in Effect or Work Tax Override in Effect box is checked.

    If you check the Working at Home box, the work details are the same as the resident details, and the employee is assumed to be working 100% from their primary address (or tax override address, if there is one) for this assignment. You cannot update this check box here. Change the Working at Home status on the Standard Conditions tab of the Assignment window.

  2. Select a filing status and enter other information from the W-4 that is applicable to this locality.

  3. In the LIT Override region, to override the regular rate used in withholding calculations, enter a percentage in the Rate field. Enter an amount for Oracle Payroll to withhold a fixed amount each period, without performing any local tax calculations.

  4. Check appropriate boxes in the Tax Exemptions block to exempt the employee from these taxes.

  5. Enter the School District code to calculate school district tax for the employee. Currently, this is applicable only to employees resident in Kentucky, Ohio or Pennsylvania. Consult your Vertex, Inc. handbook for further information on school districts and codes.

  6. Check the LIT Exempt from Wage Accumulation box to exempt the employee from the withholding and reporting of county income wages and taxes.

See also: Adjusting Percentage Tax Rules

Entering Local Employer (ER) Tax Rules for a GRE

To enter local ER tax rules for a GRE

  1. Enter or query the GRE in the Organization window.

  2. In the Organization Classifications region, place the cursor on the classification Government Reporting Entity, choose Others, and select Local ER Tax Rules.

  3. Click in the Additional Organization Information field to open the Local Tax Rules window.

  4. Specify the following parameters, as needed:

    Locality: Select the name of the locality for tax calculation purposes.

    Calculate Local Tax: Select Yes or No to determine whether the application should calculate local employer taxes or not. You can leave the field blank. A blank value or No indicates that the local employer tax is not calculated. Based on the setting of the Calculate Local Tax field and the locality selected, employer head tax or employer city tax liability for the selected localities is calculated when payroll or QuickPay is run for employees.

  5. Click OK in the Local ER Tax Rules window and close the Additional Organization and Organization windows.

Entering Federal Tax Rules for an Employee

In the Federal Tax Rules window, the Taxation States and Taxation Locality regions display the resident and work state, city, and county. This information derives from the employee's primary residence address and work location address, respectively. You cannot change this information from the Federal Tax Rules window.

Note: If you have set up an address override for tax purposes in the Address, Location Address, or GREs and other data windows, the override state, city, and county for taxation appears and not the actual address.

If you checked the Working at Home check box, the work details are the same as the resident details, and the employee is assumed to be working 100% from their primary address (or tax override address, if there is one) for this assignment. You cannot update this check box here. Change the Working at Home status on the Standard Conditions tab of the Assignment window.

For information about the Show Inactive Tax Records check box, see: Viewing Active and Inactive Tax Records

To enter federal tax rules for an employee

  1. The SUI state defaults from the work state, but under the general rules for place of employment, it can be different from the work state. In this case, you can select another state as the SUI state. If a tax record is not already present for this state, select the state in the State Tax Rules window and save the default record. You can then select this state in the SUI State field.

    Important: When you check the Working at Home check box, the SUI State does not automatically change to the Resident state. Review the SUI State field to ensure it shows the state the employee is working in.

  2. Default information appears for the employee in the W-4 Information region. You can change the filing status and other defaults as necessary.

    • In the Filing Status field, the following options are applicable to the 2020 Federal W-4 form: Employee's Withholding Certificate.

      • Single or married filing separately

      • Married filing jointly (or Qualifying widow(er))

      • Head of household

      Note that filing statuses that are applicable to the pre 2020 Federal W-4 are also still available for selection. Use the Description column to identify the pre 2020 W-4 and 2020 W-4 filing statuses.

      For more information about the Federal W-4: Employee's Withholding Certificate, refer to the IRS website: https://www.irs.gov/pub/irs-pdf/fw4.pdf.

    • If the employee has a valid pre 2020 Federal W-4 form on file then the Allowances field may contain a value greater than zero. If the employee has submitted a new Federal W-4 in 2020, and a payroll or QuickPay is processed with a check date or Date Paid in 2020, then any value in the Allowances field will be ignored since it no longer applies to the federal income tax calculation method being used.

    • In the Additional Tax field, enter the amount of any additional Federal tax withholding the employee requests. Note that the Additional Tax field is called "Extra Withholding" on the 2020 Federal W-4 form.

  3. In the Tax Exemption region, check the boxes corresponding to taxes for which the employee claims exemption on the W-4. You must renew tax exemptions each year.

  4. In the FIT Override region, enter a percentage in the Rate field to override the regular rate used in withholding calculations. To withhold a fixed amount each period with no tax calculations occurring, enter the amount.

  5. The IRS can issue a notice rejecting the claim for more than 10 allowances, and indicating the number of allowances the employee can claim. In the Lock In Date field enter the date from the IRS notice, and reduce the number of allowances in the W-4 Information region.

  6. Check the Use Information Hours box to configure the employee assignment to distribute wages across multiple work jurisdictions. Use this fields as part of the Enhanced Multiple Jurisdiction Taxation configuration.

  7. Check the Statutory Employee box if the employee governs his or her own conditions of work and is not considered an employee under common law rules.

    This might apply to an insurance agent affiliated with, but not working for, an insurance company.

    Statutory employees are exempt from FIT withholding, but you may need to withhold Medicare, Social Security, or FUTA for them.

  8. Check the Cumulative Taxation box if the employee qualifies for cumulative withholding and requests its application to his or her regular earnings and commissions.

    One or two default state tax records appear in the W-4 Information region for a new employee's resident state and work state. You can change the defaults as necessary.

    For an employee who may work in several different states in addition to the state of their work location, enter a State Tax Rules record for each one. This makes it possible for you to use batch element entry (BEE) to enter the employee's actual work locations each pay period from his or her timecard.

  9. Check the FIT Exempt from Wage Accumulation box to exempt the employee from the withholding and reporting of federal income wages and taxes.

    Note: For a Puerto Rico employee, if you have selected Yes in the FIT Exempt from Wage Accumulation (PR) field in the Federal Tax Rules window for a GRE, then the value set at the GRE level overrides the value that you set at the assignment level. If you have selected No or left the FIT Exempt from Wage Accumulation (PR) field blank, then the value that you set at the assignment level for an employee takes precedence. The FIT Exempt from Wage Accumulation (PR only) field is applicable only to the Enhanced Tax Interface with Wage Accumulation functionality. See: Entering Federal Tax Rules for a GRE.

See also: Adjusting Percentage Tax Rules

Entering the Further Federal Tax Info Flexfield

In the Further Federal Tax Info flexfield, specify the following fields:

  1. W11 SS ER Exempt: This information is no longer required.

  2. Prior Employer Medicare Fields: The following fields can be used to ensure proper Medicare wage and tax calculations for corporate acquisitions meeting certain requirements.

    • Prior Employer Medi Gross

    • Prior Employer Medi Supp Gross

    • Prior Employer Medi Tax

    • Prior Employer Medi Supp Tax

    This may be required where wages paid by the predecessor employer need to be treated as if paid by the successor employer for the purpose of determining whether the employee has reached the Additional Medicare Tax withholding threshold ($200,000 in a calendar year). Enter in the applicable amounts in each field so that the proper Medicare withholding tax is calculated (but does not add to year-to-date Medicare wages/withholding). This is important as a separate W-2 will be issued by the predecessor employer that will report the applicable Medicare wages and withholding prior to the acquisition taking place.

  3. Employee W-4 Fields: The following fields apply to the Federal W-4: Employee's Withholding Certificate. This table describes the fields and how they correspond to the steps in the Form W-4 Employee's Withholding Certificate.

    Field Description Optional or Mandatory Corresponding Step on the 2020 Federal W-4 form: Employee's Withholding Certificate
    W-4: Multiple Jobs or Spouse Works Select Yes or No if applicable. Optional Step 2 "Multiple Jobs or Spouse Works"
    W-4: Claim Dependents Enter the amount if applicable. This field accepts dollar amounts with up to two decimals. Optional Claim Dependents Total amount from Step 3
    W-4: Other Income (not from jobs) Enter the amount if applicable. This field accepts dollar amounts with up to two decimals. Optional Other Income (not from jobs) amount (if any) from Step 4(a)
    W-4: Deductions Enter the amount if applicable. This field accepts dollar amounts with up to two decimals. Optional Deductions amount (if any) from Step 4(b)

    Note: The Employee W-4 fields are applicable only when:

    • One of the following federal filing status options is selected:

      • Single or married filing separately

      • Married filing jointly (or Qualifying widow(er))

      • Head of household

    • The Check date (Date Paid) of the payroll process or QuickPay is on or after January 1, 2020

    For more information about the Federal W-4: Employee's Withholding Certificate, refer to the IRS website: https://www.irs.gov/pub/irs-pdf/fw4.pdf.

Entering Federal Tax Rules for a GRE

To enter tax information for a GRE, use the Organization window.

To enter Federal tax rules for a GRE

  1. Enter or query the GRE in the Organization window.

  2. In the Organization Classifications region, place the cursor on the classification Government Reporting Entity, click Others, and then select Federal Tax Rules.

  3. Click in the Additional Organization Information field to open the Federal Tax Rules window.

  4. Specify the following parameters:

    Social Security Self Adjust Method (required) Select a self adjust method for Social Security.
    The method you select determines the calculation of withholding for taxes taken as a percentage of earnings, until an employee's earnings reach an upper earnings limit. The Self Adjust method ensures greater accuracy by basing withholding calculations on year-to-date earnings, instead of earnings this period.
    Medicare Self Adjust Method (required) Select a self adjust method for Medicare.
    The method you select determines the calculation of withholding for taxes taken as a percentage of earnings, until an employee's earnings reach an upper earnings limit. The Self Adjust method ensures greater accuracy by basing withholding calculations on year-to-date earnings, instead of earnings this period.
    FUTA ER Self Adjust Method (required) Select a self adjust method for FUTA ER.
    The method you select determines the calculation of withholding for taxes taken as a percentage of earnings, until an employee's earnings reach an upper earnings limit. The Self Adjust method ensures greater accuracy by basing withholding calculations on year-to-date earnings, instead of earnings this period.
    FUTA Override Rate (optional) Select the FUTA override rate.
    Type of Employment (optional) Select the type of employment to enter for the GRE on Form 941, the Employee Quarterly Federal Tax Return.
    Government Employer (optional) Select Yes or No
    The Government Employer field determines if the employer is a state or local government entity, or a government contractor and you pay one or more of your employees under the same tax rules as a state or local government employee.
    Tax Group (optional) If this GRE belongs to a Tax Group, enter its name.
    The Tax Group associates several GREs so that employees who transfer from one GRE to another within the group receive credit in the new GRE for amounts withheld in the former GRE toward Social Security and FUTA.
    Supplemental Tax Calculation Method (optional) Select the GRE's method for calculating tax liabilities on employees' supplemental earnings. The choices are:
    • Aggregation

    • Cumulative Aggregation

    • Flat Percentage


    Consult the Vertex Calculation Guide for detailed explanations of the different calculation methods.
    FIT Exempt from Wage Accumulation (PR) (optional) This field is enabled only if you have selected Puerto Rico as the tax jurisdiction in the W2 Reporting Rules window for a GRE. See: Identifying a GRE for more information.
    Select Yes to exempt all employees in a GRE from the withholding and reporting of federal income wages and taxes. If you select Yes at the GRE level, then the value set at the GRE level overrides the value that you set in the FIT Exempt from Wage Accumulation field in the Federal Tax Rules window for an employee assignment.
    If you select No or leave this field blank, then the value set at the assignment level takes precedence. See: Entering Federal Tax Rules for an Employee

Entering Local Tax Rules for a GRE

To enter local tax rules for a GRE

  1. Enter or query the GRE in the Organization window.

  2. In the Organization Classifications region, place the cursor on the classification Government Reporting Entity, choose Others, and select Local Tax Rules.

  3. Click in the Additional Organization Information field to open the Local Tax Rules window.

  4. Specify the following parameters, as needed:

    • Locality

      Select the name of the locality. Because this is a long list, it is best to enter part or all of the locality name. Using its table of jurisdiction codes, the system establishes the correct code for the locality, for tax calculation purposes.

    • Company Locality ID

      If the GRE has an ID number for local tax withholding, enter it in the Company Locality ID field.

    • Resident Wage Accumulation

      The value selected in this field determines how to handle the taxing and wage accumulation of resident subject wages.

      The following values are available for Resident Wage Accumulation:

      JurInt Treatment Code Description
      2 Credit the resident tax by the amount of work tax withheld. Always accumulate wages.
      3 Credit the resident tax by the amount of work tax withheld. Always accumulate wages.
      8 Always eliminate the resident tax. Do not accumulate wages.
      99 Calculate the tax for this jurisdiction independent of all other jurisdictions.
      Default Use the default behavior.

      If you have the Exempt Local Income Tax field set to yes, and you enable wage accumulation, the new field will default to Exempt.

      If you have the Exempt Local Income Tax field set to no, and you enable wage accumulation, the new field will default to cal Default, and Vertex will determine the taxation and accumulation.

      Note: The local tax withholding rule under State Tax Rules is modified. The option to select 'Only Withhold Tax at Work Location' is now available for all states.

      The wage accumulation option under Local Tax Rules overrides the local tax withholding rule field under State Tax Rules.

    • Taxation Threshold Hours

      The system uses the Taxation Threshold Hours field in the tax calculation for multi jurisdiction enabled employees. You must enter the threshold hours for each state your enterprise operates in. The threshold hours amount specifies the work hours after which Oracle Payroll begins calculating and withholding taxes. If the field is left blank, the system begins calculating and withholding taxes immediately.

Entering State Tax Rules for an Employee

Enter State Tax Rules in the State Tax Rules window. Navigate to the Federal Tax Rules window, and choose State Tax.

After completing the following procedure, refer to the State Specific Details section to make sure you have entered all required information properly.

Note: Ensure that you have set the correct effective date before entering any tax information.

For information about the Edit Inactive check box, see: Viewing Active and Inactive Tax Records

To enter a new state tax record for an employee

  1. Choose New from the File menu, and select a state in the State field.

    There can be only one record for each state, so states for which records already exist do not appear on the list.

    Note: If you have set up a payroll tax override address that applies to this state in the Address, Location Address, or GREs and other data window, the Residence Tax Override in Effect or Work Tax Override in Effect box is checked.

    If the Working at Home box is selected, the work details are the same as the resident details, and the employee is assumed to be working 100% from their primary address (or tax override address, if there is one) for this assignment. You cannot update this check box here. Change the Working at Home status on the Standard Conditions tab of the Assignment window.

  2. Select a filing status, and enter other information relevant to this state.

    See State Specific Details for instructions.

  3. In the Tax Exemption region, check the boxes corresponding to taxes for which the employee is claiming exemption on the W-4. You must renew exemptions each year.

  4. In the SIT Override region, enter a percentage in the Rate field to override the regular rate used in withholding calculations. To withhold a fixed amount each period, enter the amount.

    Note: The amount you enter here still considers the state rules for reciprocity. The override amount you enter may not be the amount withheld.

    When you enter the override, the tax calculation for all states continues to apply to the state withholding rules.

  5. Check the Non resident Certificate check box if the employee has certificates of nonresidence on file for the state.

  6. Select the Military Spousal Exemption check box if the employee is eligible to claim the Military Spousal Exemption in their Work State Tax Record.

  7. If there are SUI wages taxed in a prior state for the same employer in the same tax year, you enter the difference between the prior states wages and the new states current year limit in the SUI Base Override field on the State Tax Rules window.

    Note: If you make a change to the SUI state on the Federal Tax Rules window, the system automatically updates the SUI Base Override field if a credit is owed to the new state. The system also places a zero in the field if the employee has met the wage limit in the new state.

  8. Enter a date in the Lock In Date field if the state tax authority issues a notice rejecting the claim for more than 10 allowances, and reduces the number of allowances. You must enter the date on the notice and reduce the number of allowances in the W-4 Information region.

  9. Check the SIT Exempt from Wage Accumulation box to exempt the employee from the withholding and reporting of state income wages and taxes.

  10. To enter another work state for the employee:

    1. Choose New Record from the Edit menu, and select another state.

    2. Enter information for all the states in which the employee may work before you save the state tax records.

    3. Make sure that the total of all the Time in State entries for the employee equals 100%.

See also: Adjusting Percentage Tax Rules

Entering the Further State Tax Info Flexfield

In the Further State Tax Info flexfield, specify fields according to a state's legislative requirements.

  1. For Arizona: Select Yes in the Voluntary Arizona SIT Form Filed (AZA4V) field to indicate the employee submitted the form to withhold Arizona state tax.

  2. For New York: Select Yes in the SDI1 Exempt field to prevent the NY Family Leave deduction from occurring. The default setting for this field is blank, which means No.

  3. For Montana: Select the applicable Exemption Reason category if the employee is claiming exemption from state tax withholding in the Montana MW-4 form.

  4. For Oregon:

    • Select Yes in the MISC1 Exempt field to exempt employees from the Oregon statewide transit tax, which is also known as the transportation tax. . If the value is set to Yes, then no Oregon transit tax will be withheld from the employee's paycheck. The default setting for this field is blank, which means No.

    • Select the applicable Exemption Reason category if the employee is claiming exemption from state tax withholding in the Oregon W-4 form.

  5. For Washington, the following fields are applicable to Paid Family Medical Leave (PFML) tax deductions.

    • MISC2 EE Override Rate

    • MISC2 ER Override Rate

    • MISC2 Exempt

    See Setting Up Washington Paid Medical and Family Leave (PFML) Tax Deductions for more information.

  6. For District of Columbia (DC), the following fields are applicable to Paid Family Leave (PFL) tax deductions.

    • MISC1 ER Override Rate

    • MISC1 ER Override Tax Amount

    • MISC1 ER Additional Tax Amount

    • MISC1 ER Tax Exempt

    See Setting Up District of Columbia Paid Family Leave (PFL) Tax Deductions for more information.

  7. For Massachusetts, the following fields are applicable to Paid Family Medical Leave (PFML) tax deductions.

    • MISC2 EE Override Rate

    • MISC2 ER Override Rate

    • MISC2 Exempt

    See Setting Up Massachusetts Paid Family Medical Leave (PFML) Tax Deductions for more information.

  8. For Connecticut, the following fields are applicable to Paid Family Medical Leave (PFML) tax deductions.

    • MISC2 EE Override Rate

    • MISC2 Exempt

    See Setting Up Connecticut Paid Family Medical Leave (PFML) Tax Deductions for more information.

  9. For New Mexico: The Federal W-4 (b) Amt field is specific to FYI-104 Special Tax Withholding situations. If applicable, enter the appropriate amount that is required to calculate the New Mexico state tax withholding for employees who want to reduce their state withholding for expected federal tax credits. Before calculating the state tax, the application uses the amount that you entered, to reduce taxable wages.

State Specific Details

Certain states require that you provide specific information in the State Tax Rules window in regards to filing status, exemptions, or optional calculation methods. The following instructions are provided for those states.

You can change an employee's tax rate for certain states by using an optional calculation method. To use an optional calculation method, you select a two digit code in the Optional Calculation field in the State Tax Rules window.

Arizona

Optional Calculation Methods

Code Calculation Method
01 Use Optional 2.7% Rate
02 Use Optional 3.6% Rate
03 Use Optional 4.2% Rate
04 Use Optional 5.1% Rate
05 Use Optional 0% Rate
06 Use Optional 1.8% Rate
07 Use Optional 1.3% Rate
08 Use Optional 2.7% Rate (No State W4 filed)
09 Use Optional 0.8% Rate

Arizona SIT Form AZA4V

If an employee lives in Arizona, but works outside the state, you must indicate in the Voluntary SIT Form Filed (AZ) flexfield that the employee submitted a form to withhold Arizona state tax. Income tax is only withheld if the field is set to 'Yes'. You specify this information in the Further State Tax Info flexfield.

Note: You must select a context value of AZ to view the Voluntary Arizona SIT Form Filed (AZA4V) field.

Arkansas

Filing Status Information

The Secondary Allowances field holds the number of dependents.

Note: The Optional Calculation field is not applicable.

California

Filing Status Information

The Secondary Allowances field holds additional withholding allowances for estimated deductions.

Connecticut

Exemption Information

Negative values are permitted in the Allowances field to reduce the amount of state tax withheld.

Georgia

Filing Status Information

Effective January 1, 2020, a number of filing statuses no longer apply. You must recode all affected employees using the appropriate filing statuses. Consult your Vertex Payroll Tax Q Calculation Guide handbook for information on the filing status changes.

Refer to the following My Oracle Support documents for further information on the filing status changes:

Allowances permitted according to the withholding certificate are 0 or 1 for all statuses, except Married Filing Jointly with one spouse working. This filing status allows 0, 1, or 2, and the value is set as the primary exemption. If the primary exemption value is greater than allowed on the withholding certificate, no personal exemption amount is applied during the tax calculations. For example, if Single is selected, the primary exemption is 0 or 1. Note also that due to the filing status changes, [primary] Allowance values should also be evaluated for employees whose state filing status is not being disabled/removed. This is because prior to these changes, the filing status itself handled the allowances. After these changes, for payrolls processed with a Date Paid (or check date) in 2020, the Allowances field value will once again be passed to Vertex as a part of the state income tax calculation. For example, currently the filing status of Single has an allowance amount factored into the state tax calculation, but in 2020, if the employee's Allowances field is 0 (zero) in their Georgia state tax rules record, then NO allowance amount will be factored into their state tax calculation.

Indiana

Exemption Information

All dependents and additional exemptions should be totalled and entered into the Secondary Allowances field.

Iowa

Filing Status Information

Only the single and married filing status' should be used. Any other filing status information should be ignored.

Louisiana

Filing Status Information

The Secondary Allowances field holds the number of credits claimed.

Maine

Filing Status Information

The Married with One Income filing status does not appear in the Filing Status field. It should be entered as Married.

Massachusetts

Filing Status Information

If the employee is legally blind, enter a secondary exemption of 1. If both the employee and spouse are legally blind, enter a secondary exemption of 2.

Mississippi

Exemption Information

Total the dollar amounts derived from the filing status, and enter them in the Exemption Amount field.

New Jersey

Filing Status Information

Use an Optional Calculation Method for filing status of: married filing jointly, head of household, or surviving spouse. See the table below for specific details.

Optional Calculation Methods

Code Calculation Method
00 Use tax table B (default). This method is only for employees whose filing status is: married filing jointly, head of household, or surviving spouse.
01 Use tax table A. This method is only for employees whose filing status is: married filing jointly, head of household, or surviving spouse.
02 Use tax table C. This method is only for employees whose filing status is: married filing jointly, head of household, or surviving spouse.
03 Use tax table D. This method is only for employees whose filing status is: married filing jointly, head of household, or surviving spouse.
04 Use tax table E. This method is only for employees whose filing status is: married filing jointly, head of household, or surviving spouse.
05 Use the filing status.

Vermont

Filing Status Information

If the filing status is left blank, it will default to the Federal W-4 filing status.

Entering State Tax Rules for a GRE

Use the State Tax Rules window to enter state tax information for a GRE. There are two state tax rule windows, State Tax Rules and State Tax Rules (2).

Using the State Tax Rules window you enter the following state tax rules for a GRE

  1. Enter or query the GRE in the Organization window.

  2. In the Organization Classifications region, place the cursor on the classification Government Reporting Entity, choose Others, and select State Tax Rules.

  3. Click in the Additional Organization Information field to open the State Tax Rules window.

  4. Specify the following parameters, as needed:

    • State Code

      Select the state code.

    • Resident Wage Accumulation

      The value selected in this field determines how to handle the taxing and wage accumulation of resident subject wages.

      The following values are available for Resident Wage Accumulation:

      JurInt Treatment Code Description
      2 Credit the resident tax by the amount of work tax withheld. Always accumulate wages.
      3 Credit the resident tax by the amount of work tax withheld. Always accumulate wages.
      4 Eliminate the resident tax if the work tax is greater than zero. Always accumulate wages.
      5 Eliminate the resident tax if the work tax is greater than zero. Accumulate wages only if tax is withheld.
      6 Eliminate the resident tax if the work tax imposes a withholding tax on nonresidents. Always accumulate wages.
      7 Eliminate the resident tax if the work tax imposes a withholding tax on nonresidents. Accumulate wages only if tax is withheld
      8 Always eliminate the resident tax. Do not accumulate wages.
      Bypass Exempt from State tax and wage accumulation.
      99 Calculate the tax for this jurisdiction independent of all other jurisdictions.
      Default Use the default behavior.

      If you have the Exempt State Income Tax field set to yes, and you enable wage accumulation, the new field will default to Exempt.

      If you have the Exempt State Income Tax field set to no, and you enable wage accumulation, the new field will default to Default, and Vertex will determine the taxation and accumulation.

    • Local Income Tax Withholding Rule

      Select Only Localities Under Local Tax Rules if you want Oracle Payroll to defer to the local tax rules you have specified in the Local Tax Rules GRE. Selecting All Localities indicates Oracle Payroll is to use the default tax rules.

      For the state of Ohio only, you can also select Only Withhold Tax at Work Location. This option is available for reciprocity taxes only.

    • SUI Company State ID

      Enter the GRE's ID numbers in the state for SUI (State Unemployment Insurance).

    • Quality Jobs Program GRE (LA)

      Louisiana only: If the GRE is participating in the Louisiana Quality Jobs program, enter yes in the appropriate field. This field is only active if you have selected LA (Louisiana) in the State field.

    • Non Profit GRE (CT)

      Connecticut only: If the GRE qualifies as a Non Profit GRE, enter yes into the appropriate field. This field accepts either Yes or No as an entry, and defaults to No if left blank. Only enter Yes if you are entering State Tax Rules for a GRE that is considered a Reimbursable Method Employer (as defined by the Connecticut Department of Labor).

    • SIT Company State ID

      Enter the GRE's ID numbers in the state for SIT (State Income Tax).

    • SUI Self Adjust Method

      Select self adjust methods for unemployment insurance (SUI) withholding.

      The methods you select determine the calculation of withholding for taxes taken as a percentage of earnings, until an employee's earnings reach an upper earnings limit. The default method, Self Adjust, ensures greater accuracy by basing withholding calculations on year-to-date earnings, instead of earnings this period.

    • SDI Self Adjust Method

      Select self adjust methods for disability insurance (SDI) withholding.

      The methods you select determine the calculation of withholding for taxes taken as a percentage of earnings, until an employee's earnings reach an upper earnings limit. The default method, Self Adjust, ensures greater accuracy by basing withholding calculations on year-to-date earnings, instead of earnings this period.

    • SUI ER Experience Rate 1

      Enter the SUI employer experience rate for the GRE in the SUI Experience Rate 1 field.

      If you leave this field blank, the system uses the maximum experience rate allowed for that state.

    • SUI ER Experience Rate 2

      Enter a second SUI employer experience rate for the GRE in the SUI Experience Rate 2 field.

      You may use this field to store a second experience rate in the cases where a state changes the rate mid-year (such as NH, NJ, TN, and VT). Oracle Payroll does not use this information in payroll processing. You may store information in this field, but in order for it to be processed, you must enter it into the SUI Experience Rate 1 field.

    • Filing Status/Allowance Rate

      In the Filing Status/Allowance Rule field, select the rule this state uses to determine the defaults for employee filing status and allowances.

      If this state uses an employee's federal filing status and allowances as the defaults for the state-level filing status and allowances, select Federal Default. Select Single Status/Zero Allowances if this state requires single status and zero allowances as the state-level defaults.

    • WC Carrier Name

      Select the Worker's Compensation insurance carrier for this GRE. Use the Organization window to set up WC carriers as external organizations with the classification Workers Compensation Carrier.

    • Employer's Liability Rate

      Enter this state's Employer's Liability rate. The percentage you type here overrides the default liability rate.

      Enter all rates as positive numbers.

      For example: Enter an Employer's Liability surcharge of 20% as 120 (120% of the base premium). The Employer's Liability always increases the premium amount.

    • Experience Modification Rate

      Enter this state's Experience Modification rate for the Worker's Compensation premium calculation.

      Enter all rates as positive numbers.

      The Experience Modification can either increase or decrease the premium. To enter it correctly, you must understand which it does for this GRE.

    • Premium Discount Rate

      Enter this state's Premium Discount rate. The percentage you type here overrides the default Premium Discount rate.

      Enter all rates as positive numbers.

      For example: Enter a 10% Premium Discount as 90 (90% of the premium total). The Premium Discount always decreases the premium amount.

    • Supplemental Tax Calculation Method

      Specify the method used to calculate supplemental taxes. Valid options are:

      • Default Method

      • Aggregation

      • Flat Rate

      • Tiered Flat Rate

      • Percent of Federal

      • Tiered Flat Rate, Mult Tables

      • Alternate Flat Rate

      • Annualized Previous Aggregation

      • No State Withholding Tax

      Not all supplemental tax calc methods are applicable to every state. Consult the Vertex Calculation Guide for detailed explanations of the different calculation methods.

    • ER SDI Rate

      Enter this state's ER SDI rate. The percentage you type here overrides the default ER SDI rate.

    • Maximum FUTA Credit %

      Enter the maximum FUTA credit percentage. The value you type here overrides the default maximum FUTA credit percentage.

Using the State Tax Rules (2) window you enter the following state tax rules for a GRE

  1. Enter or query the GRE in the Organization window.

  2. In the Organization Classifications region, place the cursor on the classification Government Reporting Entity, choose Others, and select State Tax Rules (2).

  3. Click in the Additional Organization Information field to open the State Tax Rules (2) window.

  4. Specify the following parameters, as needed:

    • State Code

      Select the state code.

    • Taxation Threshold Hours

      The system uses the Taxation Threshold Hours field in the tax calculation for multi jurisdiction enabled employees. You must enter the threshold hours for each state your enterprise operates in. The threshold hours amount specifies the work hours after which Oracle Payroll begins calculating and withholding taxes. If the field is left blank, the system begins calculating and withholding taxes immediately.

    • SUI EE Withheld Rate

      You use the SUI EE Withheld Rate field to override the default SUI EE rate. For example, if your enterprise is self ensured, the employees are exempt from state unemployment tax, but you still need to report the taxable wages. The system uses the default rate if the field is left blank.

Updating Local Taxability Rules

Selecting Not Withheld for a pre-tax deduction will introduce errors in your payroll. Do not select Not Withheld for a pre-tax deduction.

To update a local taxability rule for an earnings type or pre-tax deduction

  1. Query the taxability rule for the locality you want to update.

  2. Make changes to the local tax rule as appropriate.

  3. Save your changes.

Copying Taxability and Wage Attachment Rules

You can copy the rules from an existing tax category using the Copy Taxability and Wage Attachment Rules process, which you run from the Submit Requests window.

To copy taxability and wage attachment rules

  1. Select Copy Taxability and Wage Attachment Rules in the Name field.

  2. Enter the Parameters field to open the Parameters window.

  3. Select a classification.

  4. In the Source Category field, select the category from which you want to copy the rules.

  5. In the Target Category field, select the category to which you want to copy the rules.

  6. If you only want to copy rules from a selected state, select it in the Source State field, and then select the Target State.

  7. Click OK and then Submit.

Calculating Federal and State Taxes on Supplemental Earnings

GRE: Defining a Supplemental Tax Calculation Method for a Supplemental Earnings Category

Use the Supp. Cat. Tax Calc. Method additional information window to define a tax calculation method for a supplemental earnings category. This additional information is available for a GRE/Legal Entity organization classification. Generally, the tax calculation method is the same for all the elements that belong to a supplemental earnings category. Use this method to calculate federal or state taxes for all elements of a supplementary earnings category.

For an overview, see Supplemental Tax Calculation Methods

For information about supplemental earnings, supplemental earnings categories, and supplemental earnings elements, see Survey of the Classifications, Oracle HRMS Compensation and Benefits Management Guide (US)

To define a supplemental tax calculation method for a supplemental earnings category

  1. Navigate to the Organization window.

  2. In the Organization window, search for the GRE for which you want to define the calculation method.

  3. In the Organization Classifications region, place the cursor in the GRE / Legal Entity classification and then click Others.

  4. In the Additional Organization Information window, select Supp.Cat. Tax Calc. Method.

  5. Click in the Additional Organization Information window. The Supp.Cat. Tax Calc. Method window appears.

  6. Select the supplemental category for which you want to calculate taxes. The Supplemental Category field lists the supplemental categories that are defined in the US_SUPPLEMENTAL_EARNINGS lookup type.

  7. In the Tax Level field, select Federal or State, as required. If you select Federal as the tax level, then the Type and State fields are grayed out.

  8. If you select State in the Tax Level field, then the Type field presents the following options:

    • All States: Select this option if the calculation method is applicable to all states.

    • Specific State: Select this option if you want to define a calculation method for a specific state. If you select this option, then select a state code in the State field.

  9. The Calculation Method field displays calculation methods according to the federal or a state level. Select the method to calculate tax liabilities on employees' supplemental earnings. You can select only one calculation method for a supplemental category. For more information about the federal and state calculation methods, see Entering Federal Tax Rules for a GRE and Entering State Tax Rules for a GRE.

  10. Click OK.

  11. Save your work.

Defining the US Tax Calculation Method Element Extra Information Type

Use the US Tax Calculation Method extra information type (EIT) to define a tax calculation method for a supplemental earnings element. This EIT is applicable only to elements belonging to the Supplemental Earnings primary classification.

For an overview, see Supplemental Tax Calculation Methods

For information about supplemental earnings, supplemental earnings categories, and supplemental earnings elements, see Survey of the Classifications, Oracle HRMS Compensation and Benefits Management Guide (US)

To define the US Tax Calculation Method EIT

  1. Navigate to the Element window.

  2. Search for the supplemental earnings element for which you want to define a tax calculation method.

  3. Click Extra Information. The Extra Element Information window appears.

  4. Select US Tax Calculation Method and click in the Details field. The Extra Element Info DDF window appears.

  5. Enter the information as discussed in the following table:

    Field Description
    Tax Level Select Federal or State, as required.
    State Type Selection This field is enabled if you select State in the Tax Level field. Select All States if you want to define the tax calculation method for all states, or select State to define the calculation method for a specific state.
    State This field is enabled if you select Specific State in the State Type Selection field. If you select this option, then select a state code in the State field.
    Calculation Method This field displays calculation methods according to the federal or a state level. Select the calculation method for calculating income tax withholding on the earnings element.

    The calculation method that you define in the EIT overrides what is defined at the GRE level or the default for the state. The supplemental federal income tax calculation can also be overridden at the element level.

    Elements with the US Tax Calculation Method defined must be processed in a supplemental payroll run with no other earnings elements, or with Separate Check set to Yes, or with Tax Separately set to Yes. If an element with a calculation method specified in the EIT is processed in a supplemental run with other earnings elements, then the supplemental calculation method encountered first will be used to process income tax calculation for all earnings processed in the run. The processing priority is based on element processing priority and the ELEMENT_TYPE_ID and the ELEMENT_ENTRY_ID parameters. The calculation method defined in the EIT will be ignored if the element is processed in a regular payroll run without being marked for processing as Separate Check or Tax Separately. For information, see Oracle Payroll Run Types, Oracle HRMS Compensation and Benefits Management Guide (US)

Defining a Supplemental Tax Calculation Method for an Assignment Element Entry

You enter compensation and benefits for employee assignments in the Element Entries window. For an employee, use the Further Element Entry Information window to specify a calculation method to calculate income tax withholding on a specific supplemental earning. The Further Element Entry Information window is available only for supplemental earnings elements.

For information about using the Element Entries window, see Making Manual Element Entries, Oracle HRMS Compensation and Benefits Management Guide

For an overview, see Supplemental Tax Calculation Methods

For information about supplemental earnings, supplemental earnings categories, and supplemental earnings elements, see Survey of the Classifications, Oracle HRMS Compensation and Benefits Management Guide (US)

To define the supplemental tax calculation method for an assignment element entry

  1. Navigate to the People window.

  2. Search for the employee for whom you want to define the supplemental tax calculation method.

  3. Click Assignment.

  4. Click Entries. The Element Entries window appears.

  5. Select a supplemental earnings element and click Entry Values. The Entry Values window opens.

  6. Click in the Further Information Entry field. The Further Element Entry Information window appears. In this window, you can define the calculation method at either the federal level or the state level.

  7. In the Federal Suppl Calc Method field, select a federal supplemental calculation method if you want to define a tax calculation method at the federal level. For more information about the calculation methods at the federal level, see Entering Federal Tax Rules for a GRE.

  8. In the All States Suppl Calc Method field, select a tax calculation method if you want to apply a calculation method to all the states.

  9. Select values in the State and the State Suppl Calc Method fields to define a calculation method for a specific state. For each state, you can specify only one calculation method. For information about entering state tax rules, see Entering Federal Tax Rules for a GRE.

  10. Click Update or Correction in the Choose an Option window.

  11. Save your work.

Running the Supplemental Calculation Methods Report Program

Oracle US Payroll enables you to define calculation methods to calculate federal and state taxes on employees' supplemental earnings. For an overview, see Supplemental Tax Calculation Methods

To calculate federal and state taxes on employee supplemental earnings, you can define calculation methods at the following levels:

Defining a Supplemental Tax Calculation Method for an Element

You should review these calculation methods before you run the Year Begin Process or whenever there are changes to the supplemental calculation methods for supplemental payments. Run the Supplemental Calculation Methods Report program to generate a report about the calculation methods that you have defined at various levels.

Run the Supplemental Calculation Methods Report program from the Submit Request window.

To run the Supplemental Calculation Methods Report program

  1. In the Name field, select Supplemental Calculation Methods Report.

  2. Specify the parameters discussed in the following table.

    Parameter Description
    Government Reporting Entity Select the GRE for which you want to review the calculation methods. If you leave this field blank, then the report includes details for all the GREs present in the business group.
    Supplemental Category Select the supplemental category for which you want to view the calculation method information. If you leave this field blank, then the report includes information related to all supplemental categories.
    Show Element Entry Level Select Yes if you have defined calculation methods at the Element Entry level for employee assignments and want to review that information.
    Element Entry Start Date Enter the start date from which element entries are to be considered for inclusion in the report.
    Element Entry End Date Enter the date until which element entries are to be considered for inclusion in the report.
  3. Submit the request.

Enhanced Multi Jurisdiction Taxation

Enhanced Multi Jurisdiction Taxation Overview

You must be able to tax employees appropriately when they work at different jurisdictions as part of their job. This requirement is most common for consulting and sales people that travel regularly, but you can use the Enhanced Multi Jurisdiction Taxation for any employee. The Enhanced Multi Jurisdiction Taxation functionality is available only if you use the Vertex Enhanced Tax Interface.

With Enhanced Multi Jurisdiction Taxation, you input hours along with a jurisdiction, and the system derives percentages for each jurisdiction and calculates and withholds taxes accordingly.

Create Elements for the Entry of Time to Multiple Jurisditions

You create information time elements to enter information hours for employees. Oracle Payroll uses information time to derive the percentage of earnings distributed over different jurisdictions. Information time does not affect gross pay. The time is fed to the payroll through OTL or batch element entry. A jurisdiction may or may not be entered with the hours. If information time is entered without a jurisdiction, the time is taxed at the assignments work location.

Define the Threshold Basis and Information Time Payroll Period for Each Payroll

For each payroll you must define the threshold hours and the payroll period the system uses to derive information hours.

The Use Information Hours From field specifies the payroll period the payroll calculation uses to determine the amount of information hours for an employee. You select either the Current Pay Period or the Previous Pay Period. If you select current pay period, the system determines the hours entered, threshold balance and scheduled hours based on the effective start and end date of the current payroll period. If you select previous pay period, the system determines the information based on the effective start and end date of the previous payroll period.

The Threshold Basis field specifies when the system resets the hour's threshold for the state and local taxing jurisdictions. You select either Calendar Year or Rolling 12 Months. If you select Calendar Year, the system determines work jurisdiction percentages, tax balances and information time element entries from within the current calendar year. If you select Rolling 12 Months, the system determines the information within a rolling 12 month period.

Enter the Threshold Hours for Each Taxing Jurisdiction

The taxation threshold hours specifies the work hours after which Oracle Payroll begins calculating and withholding taxes. Threshold hours are set at the state, county and city levels. If the threshold hours are left blank, taxation begins with the first hour entered for the jurisdiction.

Specify the Tax Calculation Method for Each Employee

Oracle Payroll uses either W-4 percentages or information time to calculate taxes for an employee. Check the Use Information Hours box to use the Enhanced Multi Jurisdiction Taxation and distribute wages across multiple work jurisdictions. If you select the Use Information Hours, the system disables the Percentage button in the Federal, State, County, and City windows.

By default, the system assigns the work location a percentage of 100. You can override the percentage if an employee works in multiple jurisdictions a certain amount of time on a regular basis.

If you designate an employee as a home worker, you cannot modify the percentages. For a home worker, Oracle Payroll assigns the resident location 100 percent.

Enter Information Time and Positive Pay Hours

You enter information time hours and positive pay hours for use in the tax calculation during a Quickpay or payroll run. Positive pay is earnings the system taxes and pays even if the element is used to store information hours. Positive pay affects gross pay, and positive pay hours are hours in addition to the employees scheduled hours. The tax calculation does not use positive pay hours to derive the percentage of earnings distributed over multiple work locations.

Setting up Enhanced Multi Jurisdiction Taxation

You must be able to tax employees appropriately when they work at different jurisdictions as part of their job. The Enhanced Multi Jurisdiction Taxation functionality is available only if you use the Vertex Enhanced Tax Interface.

With Enhanced Multi Jurisdiction Taxation, you input hours along with a jurisdiction, and the system derives percentages for each jurisdiction and calculates and withholds taxes accordingly.

  1. Create elements to use for the entry of information time. You use information time elements to enter hours the system uses to derive the percentage of wages distributed across various work jurisdictions. See: Defining Information Time Elements, Oracle HRMS Compensation and Benefits Management Guide

  2. Specify the payroll period the payroll calculation uses to determine the amount of information hours for an employee. You select either the current pay period or the previous pay period. See: Further Payroll Information Window

  3. Select a time period for the payroll to reset the hours threshold for the taxing jurisdictions. You select either Calendar Year or Rolling 12 Months. See: Further Payroll Information Window

  4. Set up threshold hours for the state and local taxing jurisdictions you use. The threshold hours amount specifies the work hours after which Oracle Payroll begins calculating and withholding taxes. If the field is left blank, the system begins calculating and withholding taxes immediately. See: Entering State Tax Rules for a GRE

    See: Entering Local Tax Rules for a GRE

  5. Specify the method the payroll process will use to calculate the tax data for each employee. You select the checkbox for Information Time on the employee Federal Tax Rules form to use the information time input during the payroll process. If you do not select the Information Time checkbox, the system defaults to the W-4 percentages. See: Entering Federal Tax Rules for an Employee

  6. Enter information time hours and positive pay hours for use in the tax calculation. You enter hours to individual employees, or to groups of employees using Batch Element Entry. See: Making Manual Element Entries, Oracle HRMS Compensation and Benefits Management Guide

    See: BEE (Batch Element Entry), Oracle HRMS Compensation and Benefits Management Guide

Wage Accumulation

Wage Accumulation using the Enhanced Tax Interface

Oracle Payroll determines tax calculation and wage accumulation based on rules provided by Vertex Quantum.

See: Using the Enhanced plus Wage Accumulation Tax Interface

Note: Disabling wage accumulation after processing payrolls results in inconsistencies in the accumulation of the wages, and may cause balancing issues.

You can control state and local resident wages and taxes by specifying options for the GRE. At the state level, you can set the State Income Tax withholding Rule to Only States Under State Tax Rules or All States. Selecting Only States Under State Tax Rules withholds taxes for those states where you define rules in the State Tax Rules window. Selecting All States withholds taxes for all 50 states.

At the local level, you can set the Local Income Tax Withholding rule to Only Localities Under Local Tax Rules or All Localities. The Only Localities Under Local Tax Rules option defers the local tax rules you have entered in the Local Tax rules GRE window. The All Localities option instructs the application to use the default tax rules. For the state of Ohio only, you can also select Only Withhold Tax at Work Location. This option is available for reciprocity taxes only.

With the enhanced tax interface, the application removes pre-tax reductions from the subject balances and passes the reduced subject balances to Quantum Vertex. The following calculation applies to all types of taxes, for example, state, local, city, and county.

Subject minus Pre-Tax Reductions = Reduced Subject (passed to quantum as employee wages)

In addition, pre-tax reduction balances are also maintained Oracle in the same manner as subject balances.

If you use the Tax Exemption State Income Tax or Tax Exemption Local Income Tax checkboxes on the W-4 tax form, the subject balances accumulate, but no state or local tax is withheld. Conversely, if you set the Exempt from Wage Accumulation to Yes, no state or local subject wages accumulate, and no state or local tax is withheld.

See: Running the Select Tax Interface Program

Using the Enhanced plus Wage Accumulation Tax Interface

Oracle Payroll determines tax calculation and wage accumulation based on rules provided by Vertex Quantum. Oracle Payroll no longer maintains subject wages when you enable wage accumulation. The application passes reduced subject wages to Vertex, and after completing the tax calculations, Vertex returns the newly calculated balance.

Using the enhanced plus wage accumulation tax interface, you have more flexibility, and you can override the standard behavior by setting options at the GRE and employee level that control resident wage accumulation. For example, you can choose to always accumulate wages or only accumulate wages if taxes are withheld for the jurisdiction. The enhanced plus wage accumulation tax interface affects only resident wages that are subject to state and local income tax; not gross wages which continue to accumulate.

Note: Disabling wage accumulation after processing payrolls results in inconsistencies in the accumulation of the wages, and may cause balancing issues.

The “Select Tax Interface” concurrent program changes interface at system level. For specifying business Group level preference, “Year Wage Accumulation Effective” needs to be set under “US Processing Rules”.

See: Running the Select Tax Interface Program

When you use the Enhanced Tax Interface plus wage accumulation, you set options at the GRE and employee levels that control state and local residence wage accumulation and taxes. Resident Wage Accumulation replaces Exempt State Income Tax and Exempt Local Income Tax on the State and Local Tax Rules windows. The values selected in these fields determine how the application handles the state and local resident wages and taxes. The following tables illustrate the options available for Resident Wage Accumulation.

At the state level, you can set one of the following 10 options:

JurInt Treatment Code Description
2 Credit the resident tax by the amount of work tax withheld. Always accumulate wages.
3 Credit the resident tax by the amount of work tax withheld. Accumulate wages only if tax is withheld.
4 Eliminate the resident tax if the work tax is greater then zero. Always accumulate wages.
5 Eliminate the resident tax if the work tax is greater then zero. Accumulate wages only if tax is withheld.
6 Eliminate the resident tax if the work tax imposes a withholding tax on nonresidents. Always accumulate wages.
7 Eliminate the resident tax if the work tax imposes a withholding tax on nonresidents.Accumulate wages only if tax is withheld.
8 Always eliminate the resident tax. Do not accumulate wages
Bypass Exempt from state tax and wage accumulation.
99 Calculate the tax for this jurisdiction independent of all other jurisdictions.
Default Use the default behavior.

If you have the Exempt State Income Tax field set to yes, and you enable wage accumulation, the new field will default to Exempt.

If you have the Exempt State Income Tax field set to no, and you enable wage accumulation, the new field will default to Default, and Vertex will determine the taxation and accumulation.

At the local level, you can set one of the following options:

JurInt Treatment Code Description
2 Credit the resident tax by the amount of work tax withheld. Always accumulate wages.
3 Credit the resident tax by the amount of work tax withheld. Accumulate wages only if tax is withheld.
8 Always eliminate the resident tax. Do not accumulate wages
99 Calculate the tax for this jurisdiction independent of all other jurisdictions.
Default Use the default behavior.

If you have the Exempt Local Income Tax field set to yes, and you enable wage accumulation, the new field will default to Exempt.

If you have the Exempt Local Income Tax field set to no, and you enable wage accumulation, the new field will default to Default, and Vertex will determine the taxation and accumulation.

You set the assignment level information by selecting the Exempt from Wage Accumulation at the federal, state, city, and county levels. You use this field to exempt the employee from withholding and reporting of income wages and taxes.

See: Entering State Tax Rules for a GRE

See: Entering Local Tax Rules for a GRE

See: Entering Federal Tax Rules for an Employee

See: Entering State Tax Rules for an Employee

See: Entering City Tax Rules for an Employee

See: Entering County Tax Rules for an Employee

Resident Wage Accumulation Scenarios

The following are sample scenarios that illustrate resident wage accumulation options.

In each scenario, the first table represents the calculation of work and resident income taxes, and the following tables show the taxes after the application of the Jurisdictional Interaction Treatment.

You calculate the resident tax on total gross, and work tax on reciprocal rules. You then prorate the resident gross and tax based on the distribution of work locations, and apply a Jurisdictional Interaction Treatment code.

Scenario 1

In this scenario, the employee lives in the city of Highland Hills, and work in multiple locations. Using Jurisdictional Interaction Treatment code 2, you credit the resident tax by the amount of work tax withheld, and you always accumulate wage. Using Jurisdictional Interaction Treatment code 3, you credit the resident tax by the amount of work tax withheld, and you accumulate wages only if tax is withheld.

Earnings 5000.00

Resident jurisdiction - Highland Hills

Work jurisdiction - Multiple locations

Tax Calculation
Tax Type/Jurisdiction Rate Gross Tax Comment
Res - Highland Hills 0.0250 5000.00 125.00  
Work - Oakwood 0.0250 1500.00 37.50 Calculate tax
Work - Trotwood 0.0225 2500.00 56.25 Calculate tax
Work - Obetz 0.0200 500.00 10.00 Calculate tax
Work - Highland 0.0250 500.00 12.50 Calculate tax
Jurisdictional Interaction Treatments 2
Work Location Work Gross/Total Work Gross Prorated Resident Gross Prorated Resident Tax Work Tax Reportable Resident Gross Reportable Tax
Work - Oakwood 30% 1500.00 37.50 37.50 1500.00 0.00
Work - Trotwood 50% 2500.00 62.50 56.25 2500.00 6.25
Work - Obetz 10% 500.00 12.50 10.00 500.00 2.50
Work - Highland Hills 10% 500.00 12.50 12.50 500.00 0.00
  100% 5000.00 125.00 116.25 5000.00 8.75
Jurisdictional Interaction Treatments 3
Work Location Work Gross/Total Work Gross Prorated Resident Gross Prorated Resident Tax Work Tax Reportable Resident Gross Reportable Tax
Work - Oakwood 30% 1500.00 37.50 37.50 0.00 0.00
Work - Trotwood 50% 2500.00 62.50 56.25 2500.00 6.25
Work - Obetz 10% 500.00 12.50 10.00 500.00 2.50
Work - Highland Hills 10% 500.00 12.50 12.50 0.00 0.00
  100% 5000.00 125.00 116.25 3000.00 8.75

Scenario 2

In this scenario, the employee lives in Pennsylvania and works in multiple locations. Using Jurisdictional Interaction Treatment code 4, you eliminate the resident tax if the work tax is greater then zero, and you always accumulate wages. Using Jurisdictional Interaction Treatment code 5, you eliminate the resident tax if the work tax is greater then zero, and you accumulate wages only if tax is withheld.

Earnings 5000.00

Resident jurisdiction - Pennsylvania

Work jurisdiction - Multiple locations

Tax Calculation
Tax Type/Jurisdiction Gross Adjusted Gross Tax Comment
Resident - Pennsylvania 5000.00 5000.00 135.50  
Work - Florida 1500.00 None None No state tax
Work - Delaware 2500.00 2500.00 132.98 Calculate tax
Work - New Jersey 500.00 None None NR Certificate filed - do not calculate tax
Work - Pennsylvania 500.00 None None Do not calculate work tax if resident location = work location
Jurisdictional Interaction Treatments 4
Work Location Work Gross/Total Work Gross Prorated Resident Gross Prorated Resident Tax Work Tax Reportable Resident Gross Reportable Tax
Work - Florida 30% 1500.00 46.05 None 1500.00 46.05
Work - Delaware 50% 2500.00 76.75 132.98 2500.00 0.00
Work - New Jersey 10% 500.00 15.35 None 500.00 15.35
Work - Pennsylvania 10% 500.00 15.35 None 500.00 15.35
  100% 5000.00 153.46 132.98 5000.00 76.75
Jurisdictional Interaction Treatments 5
Work Location Work Gross/Total Work Gross Prorated Resident Gross Prorated Resident Tax Work Tax Reportable Resident Gross Reportable Tax
Work - Florida 30% 1500.00 46.05 None 1500.00 46.05
Work - Delaware 50% 2500.00 76.75 132.98 0.00 0.00
Work - New Jersey 10% 500.00 15.35 None 500.00 15.35
Work - Pennsylvania 10% 500.00 15.35 None 500.00 15.35
  100% 5000.00 153.46 132.98 2500.00 76.75

Scenario 3

In this scenario, the employee lives in New Jersey and works in multiple locations. Using Jurisdictional Interaction Treatment code 6, you eliminate the resident tax if the work tax imposes a withholding tax on nonresidents, and you always accumulate wages. Using Jurisdictional Interaction Treatment code 7, you eliminate the resident tax if the work tax imposes a withholding tax on nonresidents, and you accumulate wages only if tax is withheld.

Earnings 5000.00

Resident jurisdiction - New Jersey

Work jurisdiction - Multiple locations

Tax Calculation
Tax Type/Jurisdiction Gross Adjusted Gross Tax Comment
Resident - New Jersey 5000.00 5000.00 305.38  
Work - Florida 1500.00 None None No state tax
Work - New York 2500.00 2500.00 163.43 Calculate tax
Work - New Jersey 500.00 None None Do not calculate work tax if resident location = work location
Work - Pennsylvania 500.00 None None NR Certificate filed - do not calculate tax
Jurisdictional Interaction Treatments 6
Work Location Work Gross/Total Work Gross Prorated Resident Gross Prorated Resident Tax Work Tax Reportable Resident Gross Reportable Tax
Work - Florida 30% 1500.00 91.61 None 1500.00 91.61
Work - New York 50% 2500.00 152.69 163.43 2500.00 0.00
Work - New Jersey 10% 500.00 30.54 None 500.00 30.54
Work - Pennsylvania 10% 500.00 30.54 None 500.00 30.54
  100% 5000.00 305.38 132.98 5000.00 152.69
Jurisdictional Interaction Treatments 7
Work Location Work Gross/Total Work Gross Prorated Resident Gross Prorated Resident Tax Work Tax Reportable Resident Gross Reportable Tax
Work - Florida 30% 1500.00 91.61 None 1500.00 91.61
Work - New York 50% 2500.00 152.69 163.43 0.00 0.00
Work - New Jersey 10% 500.00 30.54 None 500.00 30.54
Work - Pennsylvania 10% 500.00 30.54 None 500.00 30.54
  100% 5000.00 305.38 132.98 2500.00 152.69

Enabling Wage Accumulation

Setting Up Wage Accumulation

By default, Oracle Payroll determines tax calculation and wage accumulation based on the rules provided by Vertex. If you need more flexibility for accumulating wages then Vertex provides, you can use an alternate accumulation method, Enhanced Wage Accumulation using the Enhanced Tax Interface, at the employee or GRE level.

To enable wage accumulation using the Enhanced Tax Interface:

  1. Run the US Payroll concurrent program 'Select Tax Interface'. In the Vertex Interface parameter, select "Enhanced + Wage Accumulation" as the Vertex Interface.

    See: Running the Select Tax Interface Program

  2. Set the Resident Wage Accumulation at the GRE level for both state and local income tax. The values selected in this field determines how to handle the taxing and wage accumulation of the resident subject wages.

    See: Entering State Tax Rules for a GRE

    See: Entering Local Tax Rules for a GRE

  3. Set the state and local income tax withholding rule at the GRE level.

    See: Entering State Tax Rules for a GRE

    See: Entering Local Tax Rules for a GRE

  4. Set the assignment level information by selecting the Exempt from Wage Accumulation, if necessary. You use this field to exempt the employee from withholding and reporting of state and local income wages and tax.

    See: Entering Federal Tax Rules for an Employee

    See: Entering State Tax Rules for an Employee

    See: Entering City Tax Rules for an Employee

    See: Entering County Tax Rules for an Employee

Setting Up Wage Accumulation for Pennsylvania

You must mark employees as Exempt from Wage Accumulation, if the following criteria are met:

To mark an employee as Exempt from Wage Accumulation

  1. Navigate to the City Tax Rules window.

  2. Select the LIT Exempt from Wage Accumulation box to exempt the employee from withholding and reporting city income wages and taxes. See: Entering City Tax Rules

    If an employee lives in Pennsylvania (PA) and works in another state, for example, Missouri, which has local income tax withholding, and the tax is withheld at the work locality, then you must mark the PA resident city as local income tax exempt.

Running the Select Tax Interface Program

Run the Select Tax Interface from the Submit Requests window. The Select Tax Interface request switches the Tax Interface for the complete system. If the system hosts multiple business groups, then all the business groups will start using the selected interface. The application provides a method to control the tax interface used at the business group level. Business group level control is available to decide whether a business group will use the Enhanced Tax Interface with Wage Accumulation enabled. The US Processing Rules window provides the Year Wage Accumulation Effective field, which is applicable only to the Enhanced Wage Accumulation tax interface. For more information, refer to Business Groups: Entering US Processing Rules, Oracle Enterprise and Workforce Management Guide (US)

To run the Select Tax Interface

  1. In the Name field, select the Select Tax Interface report.

  2. In the Parameters field, select the appropriate tax interface for the Vertex Interface parameter.

    Enhanced: Select this interface to calculate tax using US_TAX_VERTEX element.

    Enhanced + Wage Accumulation: Select this interface if you want to use the Enhanced Tax Interface with Wage Accumulation enabled.

  3. Click OK, and then Submit.

    Note: Disabling wage accumulation after processing payrolls results in inconsistencies in the accumulation of the wages, and may cause balancing issues.

Tax Balances

Introduction to Balance Adjustment

In a payroll run, the run result or Pay Value of an element feeds the appropriate balances. The run result usually feeds multiple balances including tax related balances. Balances have time dimensions, including current run, period to date, month to date, quarter to date and year to date.

After the payroll process, the applicable balances for federal, state, and local tax (where appropriate) jurisdictions can be viewed for each employee at both the assignment and person level. The employer tax liabilities can also be viewed at an assignment or person level. All tax balances are viewed within a particular GRE at the levels mentioned above (assignment or person) It is the adjustment of these balances that will be discussed here.

Tax balances are used for periodic employer tax reporting and tax payments as well as quarterly and annual tax reporting.

Purpose

Tax Balance Adjustment Procedure demonstrates how to define tax adjustment elements that are classified as Tax Deductions or Employer Taxes. Utilizing these classifications allows the Oracle system to automatically set up pay values (in most cases the EE or ER tax). This method simplifies the entry for adjusting taxes as well as properly feeding tax balances for all dimensions applicable. For mass balance adjustments you can use Batch Element Entry (BEE) to feed the elements through to Element Entries or the Balance Adjustment APIs. This will greatly decrease the time required to make balance adjustments in volume. This procedure creates adjustment elements that are ready to be costed. Each element adjusts a single tax that allows the ability to cost each tax adjustment separately.

The set up of the tax adjustment elements closely mirrors the delivered Oracle Tax Balance Form ((N) View -> Tax Balances) but skips fields on the Tax Balance Form that cannot be adjusted directly. For example, some of the information on the tax balance screen is derived and no balance is associated, i.e., EXEMPT. Only information associated with the tax balance adjustment is included on the element entry form to minimize confusion in data entry. Additionally, an input value for jurisdiction is added to the State and Local Tax adjustment elements. This allows you to target a specific state or locality for the adjustment.

Note: In this topic the naming convention used for beginning navigation in the system at the Navigator is (N). (B) will be used when the next step requires you to click on a button.

It is recommended that when you process the balance adjustments through BEE or Element Entries, run them as a separate payroll. This will make it cleaner to rollback the balance adjustments as a whole if there is a problem with the entries.

Note: This is not meant to be an all encompassing procedure. Balance adjustments are done for various reasons depending on the needs of the customer. Each case must be reviewed individually to determine the best approach that should be used to adjust the tax balance.

Basic Business Needs

The Tax Balance Adjustment procedure provides you with the means to satisfy the following basic business needs:

Adjust Tax Balance and Adjust Balance Forms

Oracle Payroll provides two balance adjustment forms. Each adjustment form has a purpose; they are not interchangeable. A brief summary of their main purposes and differences follows:

Adjust Tax Balances Form Used to record third party payments such as sick pay, stock options, imputed income, and so on (such as, when the third party does not issue a separate W-2).
Uses existing elements, eliminating the need to set up any special adjustment elements.
The Medicare field is available in the Employer tab. When performing tax balance adjustments, you must enter value in the Medicare fields in both the Employee and the Employer tabs separately. This is to accommodate the fact that the amount to adjust for Medicare Employee and Employer may not be the same for those employees whose income is subject to the Additional Medicare Tax provision of the Affordable Care Act.
Adjust Balance Form Allows the adjustment of balances for any existing element.
Allows the adjustment of any balance using a specific adjustment element which should be set up at the time the adjustment is needed.

Note: If you are using the Adjust Balance form and have set the PAY: Use Direct Balances for US Federal Taxes profile option to Yes, then you must complete an additional setup for changes to reflect in the View Tax Balances form. This additional setup is not required if you have set the profile option value to No or use the Adjust Tax Balances form for balance adjustments. See: Using Direct Balances for Federal Taxes

Reasons For Balance Adjustments

There are several reasons to adjust tax balances. Some possibilities are:

The Balance Adjustments procedure is not to be confused with the Balance Initialization process that Oracle delivers to load balances into the payroll system from an outside source.

Note: When loading Balances for nonrecurring elements, you must add the element to the employee's Element Entries form in order to see the YTD balances on the Employee SOE. To do this:

  1. Navigate to the employee's Element Entries.

  2. DateTrack to the employee's hire date.

  3. Give the nonrecurring elements to the employee (no input values are required).

  4. Save the changes.

Contact for Vertex's PayrollTax(tm) Calculation and Quantum for Payroll Tax System

United States federal, state and local tax data for use with Oracle Payroll is provided by Vertex Inc. Vertex related software is provided by Oracle in Oracle Payroll. Such tax data and software are licensed under a separate license between you and Vertex. Such software is warranted by Vertex, not Oracle.

Note: Oracle Payroll is delivered with sample Vertex tax data. The sample Vertex tax data is not current and is provided for demonstration purposes only.

To initiate delivery of current tax data and monthly updates directly to you from Vertex, either complete the form below and fax it to 610/640-5892, or mail it to:

Vertex Corporation Sales Coordinator

1041 Old Cassatt Road

Berwyn, PA 19312

Company Name
Your Name
Your Signature
Your Title
Contact Name
Address
Phone Number

Geocodes

Geocode Overview

A geocode is a three part numeric record representing a state, county and local. An additional two part record identifies a state and school district. You use geocode data to troubleshoot and correct data issues, make adjustments and input time for Enhanced Multi Jurisdiction Taxation. The Jurisdiction Information Tables (JIT) contain geocode and jurisdiction data, for example, zip codes, federal, state and local limits and rates.

For US Payroll, geocodes (or Jurisdiction Code) represent the state, city, county and school district appearing on the employee record. For Canadian payroll, you must enter the Canada Post province abbreviation as the jurisdiction input value. As Canada does not have local level taxes (such as the city), you must uniquely identify the specific geocode by the province abbreviation.

You must apply both the Vertex monthly updates and the Oracle Quarterly Statutory Update to keep the JIT/Geocode data current and correct. The Oracle Statutory updates are released as quarterly payroll patches. You can get the Vertex monthly update by downloading the file from the Vertex website or from a CD sent by Vertex.

If you want to immediately begin using the new JIT/Geocode information delivered in the monthly updates, you can manually enter the data in the Cities.

Annually, you must run the Geocode Upgrade Manager concurrent program to synchronize the Vertex and Oracle geocode data.

Understanding Geocode Formats

The state/ province geocode is a three part record in the format of XX-XXX-XXXX. The first 2 digits are the state/province jurisdiction code, the next 3 digits are the county code and the last 4 digits are the city code. When adjusting a state or province level record, enter the numeric code; enter zeros for the county and city codes. For example: When adjusting SUI for the state of Pennsylvania, the jurisdiction input value is 39-000-0000. When adjusting the city of Allentown in the state of Pennsylvania, the jurisdiction input value is 39-077-0040.

When a School District is involved, there are an additional five digits which need to be appended to the state geocode (XX-XXXXX) when making adjustments. If an employee is taxed at a school district level, the school district geocode is in addition to the state/province geocode. The school district code appears on the employee's tax information form either at the county or city level. For example: When adjusting School District for Easton in the state of Pennsylvania, the jurisdiction input value would be 39-48330.

Finding a Geocode

There are four methods you can look up the geocode:

You check and use geocodes in routine payroll administration to troubleshoot data issues, input time for Enhanced Multi Jurisdiction Taxation, make balance adjustments, and to correct data corruption. You use the jurisdiction name, for example, Allentown Pennsylvania, to find the numeric geocode.

The method you use to find a geocode depends on you level of access to Oracle Payroll, and the method you find most convenient.

Use Jurisdiction and Geocodes as Soon as They are Available

If you want to immediately begin using the new JIT/geocode information delivered in the monthly updates, you can manually enter the data in the Cities window before receiving and applying the Oracle Quarterly Statutory Update.

The application of the Oracle Quarterly Statutory Update does not impact the user defined data. Oracle Payroll maintains this data with no additional intervention by the payroll clerk.

If you want to begin using the new JIT/geocode information before applying the Oracle Quarterly Statutory Update, you can manually insert:

See: Adding a City to the Database, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management

See: Adding New Tax Information for an Existing Geocode

Upgrading Geocodes

Periodically Vertex makes changes to geocode data, for example, change a geocode for a city, or move a secondary city from one primary city to another. On an annual basis Oracle releases an upgrade procedure as a part of an hrglobal driver. The Geocode Upgrade Manager concurrent program replaces the hrglobal upgrade procedure. You must run the Geocode Upgrade Manager annually, to modify data in the payroll application and synchronize the Vertex and Oracle geocode data.

The Geocode Upgrade Manager is a concurrent program that writes the output of the upgrade process to two log files, and checks for errors in the upgrade process. You can run the Geocode Upgrade Manager in either Debug or Upgrade mode. Debug mode produces the output reports indicating what data you need to upgrade. Upgrade mode automatically upgrades the data, and produces output reports showing the changes.

After you run the Geocode Upgrade Program, a report is generated listing the assignments that require review. There are many reasons assignments appear on the report, for example, an employee with a work location that is a secondary city in one jurisdiction and now becomes a secondary city in another jurisdiction. An assignment also appears on the report if the record has data corruption, such as missing tax records, incorrectly end dated tax records, effective dated tax records that are out of sync with the Vertex element, a gap in effective dates and missing element entries.

You must review the assignment data and make the necessary correction before resubmit the upgrade process. You can manually review the data, or use the delivered per.sql scripts to diagnose the issue. You correct the issue by making a change to the data, or using deltax.sql and recreating the tax records. Once you correct the data, you resubmit the Geocode Upgrade Manager.

Automated User Creation of JIT-Geocode Data

Geocodes are the geographical codes supplied by Vertex, Inc. The geocode (jurisdiction code) determines the taxing jurisdiction the application updates on the employee record. Vertex releases monthly updates containing address (geocode) and tax (JIT) changes.

Oracle releases quarterly statutory updates of the geocodes data. You must apply both the Oracle statutory update and the Vertex monthly update to correctly accumulate wages and withhold taxes for new or changed jurisdictions. If you want to begin using the geocode and JIT data before receiving Oracle's quarterly statutory update, you can manually enter the information in the US Cities window:

Users can perform the following:

See: Adding a City for Addresses, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management

See: Adding New Tax Information for an Existing Geocode

Using Direct Balances for Federal Taxes

Profile Options for Direct Balances for Federal Taxes

Following are the details of how Balances are retrieved in the Tax Balances form, based on the profiles options set.

Tax Name: FIT
Tax Balance Balances Used with Profile as Yes (Direct Balances approach) Balances Used with Profile as No/Blank (Derived Balances approach)
Gross FIT Gross Gross Earnings - Alien Expat Earnings
Subj Whable FIT Subj Whable Regular Earnings + Supplemental Earnings for FIT Subject to Tax
Subj Not WHable FIT Subj NWhable Supplemental Earnings for NWFIT Subject to Tax
Subject Subj Whable + Subj Not WHable Subj Whable + Subj Not WHable
Exempt Gross - Subject Gross - Subject
Pre Tax FIT Pre Tax Redns Pre Tax Deductions - Pre Tax Deductions for FIT Subject to Tax - FIT Non W2 Pre Tax Dedns
Reduced Subj WHable Subj Whable - Pre Tax Subj Whable - Pre Tax
Withheld FIT Withheld FIT Withheld
Pre Tax Details    
Deferred Comp 401k FIT 401 Redns Def Comp 401K - Def Comp 401K for FIT Subject to Tax - FIT Non W2 Def Comp 401
Deferred Comp 403b FIT 403 Redns Def Comp 403B - Def Comp 403B for FIT Subject to Tax - FIT Non W2 Def Comp 403
Deferred Comp 457 FIT 457 Redns Def Comp 457 - Def Comp 457 for FIT Subject to Tax - FIT Non W2 Def Comp 457
Dependent Care FIT Dep Care Redns Dependent Care - Dependent Care for FIT Subject to Tax - FIT Non W2 Dependent Care
Section 125 FIT 125 Redns Section 125 - Section 125 for FIT Subject to Tax - FIT Non W2 Def Comp 457
Other PreTax FIT Other Pretax Redns Other PreTax - Other Pretax for FIT Subject to Tax - FIT Non W2 Other Pretax
Tax Name: FUTA
Tax Balance Balances Used with Profile as Yes (Direct Balances approach) Balances Used with Profile as No/Blank (Derived Balances approach)
Gross FUTA Gross ross Earnings - Alien Expat Earnings
Subj Whable FUTA Subj Whable Regular Earnings + Supplemental Earnings for FUTA Subject to Tax
Subject Subj Whable Subj Whable
Exempt Gross - Subject Gross - Subject
Pre Tax FUTA Pre Tax Redns Pre Tax Deductions - Pre Tax Deductions for FUTA Subject to Tax
Reduced Subj WHable Subj Whable - Pre Tax Subj Whable - Pre Tax
Taxable FUTA Taxable FUTA Taxable
Excess Reduced Subj WHable - Taxable Reduced Subj WHable - Taxable
Liability FUTA Liability FUTA Liability
Tax Credit FUTA CREDIT FUTA CREDIT
Pre Tax Details    
Deferred Comp 401k FUTA 401 Redns Def Comp 401K - Def Comp 401K for FUTA Subject to Tax
Deferred Comp 403b FUTA 403 Redns Def Comp 403B - Def Comp 403B for FUTA Subject to Tax
Deferred Comp 457 FUTA 457 Redns Def Comp 457 -- Def Comp 457 for FUTA Subject to Tax
Dependent Care FUTA Dep Care Redns Dependent Care - Dependent Care for FUTA Subject to Tax
Section 125 FUTA 125 Redns Section 125 - Section 125 for FUTA Subject to Tax
Other PreTax FUTA Other Pretax Redns Other PreTax - Other Pretax for FUTA Subject to Tax
Tax Name: Medicare EE / Medicare ER / SS EE / SS ER
Tax Balance Balances Used with Profile as Yes (Direct Balances approach) Balances Used with Profile as No/Blank (Derived Balances approach)
Gross Medicare EE Gross Gross Earnings Alien Expat Earnings
Subj Whable Medicare EE Subj Whable Regular Earnings + Supplemental Earnings for Medicare Subject to Tax
Subject Subject Whable Subject Whable
Exempt Gross - Subject Gross - Subject
Pre Tax Medicare EE Pre Tax Redns Pre Tax Deductions - Pre Tax Deductions for Medicare Subject to Tax
Reduced Subj WHable Subj Whable - Pre Tax Subj Whable - Pre Tax
Taxable Medicare EE Taxable Medicare EE Taxable
Excess Reduced Subj WHable - Taxable Reduced Subj WHable - Taxable
Withheld /Liability Medicare EE Withheld / Medicare ER Liability Medicare EE Withheld / Medicare ER Liability
Pre Tax Details    
Deferred Comp 401k Medicare EE 401 Redns Def Comp 401K - Def Comp 401K for Medicare Subject to Tax
Deferred Comp 403b Medicare EE 403 Redns Def Comp 403B - Def Comp 403B for Medicare Subject to Tax
Deferred Comp 457 Medicare EE 457 Redns Def Comp 457 - Def Comp 457 for Medicare Subject to Tax
Dependent Care Medicare EE Dep Care Redns Dependent Care - Dependent Care for Medicare Subject to Tax
Section 125 Medicare EE 125 Redns Section 125 - Section 125 for Medicare Subject to Tax
Other PreTax Medicare EE Other Pretax Redns Other PreTax - Other Pretax for Medicare Subject to Tax

Balance Adjustments to Earnings Elements Using the Adjust Balance Form

With the PAY: Use Direct Balances for US Federal Taxes profile option to set Yes, if you use the Adjust Balance form to adjust balances for Earning elements, then an additional setup is required for the View Tax Balances form to reflect the balance adjustment changes. If the profile option is set to No, then the View Tax Balances form reflects the required changes and the additional setup is not required.

The following explanation uses the setup required for a Regular Earnings element.

The main element that you use in the payroll processing can no longer be used for balance adjustment. For example, Main Earnings is the regular earnings element used in payroll processing.

Setup Steps

  1. Create a new Earnings element similar in all aspects to the Main Earnings element using the Earnings form (Total Compensation > Basic > Earnings). For example, create Adjust Earnings element, similar to Main Earnings. You must use this element to perform any balance adjustments from the Adjust Balance Form.

  2. Add Balance Feeds corresponding to the Pay Value input value of Adjust Earnings element to the following balances. As Regular Earnings are subject to all taxes, add the feeds to balances related to all the taxes at the federal level.

    Input Value Balance Name Add or Subtract
    Pay Value FIT Gross Add
    Pay Value SS EE Gross Add
    Pay Value SS ER Gross Add
    Pay Value Medicare EE Gross Add
    Pay Value Medicare ER Gross Add
    Pay Value FUTA Gross Add
    Pay Value EIC Gross Add
    Pay Value FIT Subj Whable Add
    Pay Value SS EE Subj Whable Add
    Pay Value SS ER Subj Whable Add
    Pay Value Medicare EE Subj Whable Add
    Pay Value Medicare ER Subj Whable Add
    Pay Value FUTA Subj Whable Add
    Pay Value EIC Subj Whable Add

    Query the element in the Element Description form. (Total Compensation > Basic > Element Description). Click Balance Feeds. Add the new records for each of the balance feeds as given in the table.

    In case, Supplemental Earnings or Imputed Earnings are to be adjusted, create a similar setup that is created for Regular Earnings. Create the adjust elements and add balance feeds to all the tax balances that they are subject to. You can find this information from the Tax Withholding Rules form (Total Compensation > Basic > Tax Withholding Rules). If any category of earnings is Subject to FIT and Not Withholdable, then you must feed the corresponding FIT Subj NWhable balance instead of FIT Subj Whable.

Balance Adjustments to Pretax Elements using the Adjust Balance Form

With the PAY: Use Direct Balances for US Federal Taxes profile option to set Yes, if you use the Adjust Balance form to adjust balances for Pretax elements, then an additional setup is required for the View Tax Balances form to reflect the balance adjustment changes. If the profile option is set to No, then the View Tax Balances form reflects the required changes and the additional setup is not required. With the profile option set as No, the system uses the derived balances approach to determine the values displayed on the View Tax Balances form. Since the Derived Balances approach refers to balances like Pre Tax Deductions and Pre Tax Deductions for FIT, the Tax Balances Form displays changes once balance adjustment is done.

With the profile option set as Yes, the system uses the direct balances approach to determine the values. The Pre Tax Deductions shown on the View Tax Balances form comes from the FIT Specific Balance FIT Pre Tax Redns. Since the Balance Adjustment done from the Adjust Balance form does not have any impact on the FIT Pre Tax Redns Balance, the changes are not reflected in the Tax Balances form with the profile option set as Yes.

The following explanation assumes that a main element, for example Main 457 is already set up for pretax processing, and options of ER, Catchup, Roth and AT are also selected while creating this deduction. In this case, the following elements are available with Special Input and Special Features elements:

i. Main 457

ii. Main 457 ER

iii. Main 457 Catchup

iv. Main 457 Roth

v. Main 457 Roth ER

vi. Main 457 AT

vii. Main 457 AT ER

Setup Steps

  1. Create a Pre-Tax element, same in all aspects to the existing Main 457 element using the Deductions form.

    Total Compensation > Basic > Deductions

    For example, enter the name as Adjust 457 to create the Deduction element and select the options of ER, Catchup, Roth and AT.

    When you create the deduction element Adjust 457, the following elements along with other Special Input and Special Features elements are created:

    i. Adjust 457

    i. Adjust 457

    iii. Adjust 457 Catchup

    iv. Adjust 457 Roth

    v. Adjust 457 Roth ER

    vi. Adjust 457 AT

    vii. Adjust 457 AT ER

  2. Create the element links for all those elements which are to be used for balance adjustment.

  3. Query the elements created for adjustment in the Element Description form and remove the Primary Balance corresponding to them.

    Total Compensation > Basic > Element Description

    Query the Adjust 457 element. Click in the Further Element Information Flexfield, remove the value in the Primary Balance field and save the changes as Correction.

    Clear the primary balances for other related adjustment elements: Adjust 457 ER, Adjust 457 Catchup, Adjust 457 Roth, Adjust 457 Roth ER, Adjust 457 AT, and Adjust 457 AT ER.

  4. Add the Input Value Pay Value of Adjust 457 as feed to the main element related balance Main 457 as Add.

    Similarly, create balance feeds for the following input values of Adjustment elements to the corresponding balances of Main Element.

    Element Name Input Value Main Deduction Balance Add or Subtract
    Adjust 457 ER Pay Value Main 457 ER Add
    Adjust 457 Catchup Pay Value Main 457 Add
    Adjust 457 Roth Pay Value Main 457 Roth Add
    Adjust 457 Roth ER Pay Value Main 457 Roth ER Add
    Adjust 457 AT Pay Value Main 457 AT Add
    Adjust 457 AT ER Pay Value | Main 457 AT ER Add
  5. For the 457 Pre-Tax Category, review the Taxability Rules form to find out all those taxes that consider 457 as Pre-Tax at Federal level.

    Total Compensation > Basic > Tax Withholding Rules

    Select Primary Classification as Pre-Tax Deductions.

  6. Create Balance Feeds to FIT Pre Tax Redns, FIT 457 Redns, EIC Pre Tax Redns and EIC 457 Redns as given in the following table:

    Element Name Input Value Seeded Balance Add or Subtract
    Adjust 457 Pay Value FIT Pre Tax Redns Add
    Adjust 457 Pay Value FIT 457 Redns Add
    Adjust 457 Pay Value EIC Pre Tax Redns Add
    Adjust 457 Pay Value EIC 457 Redns Add
    Adjust 457 Catchup Pay Value FIT Pre Tax Redns Add
    Adjust 457 Catchup Pay Value FIT 457 Redns Add
    Adjust 457 Catchup Pay Value EIC Pre Tax Redns Add
    Adjust 457 Catchup Pay Value EIC 457 Redns Add
  7. Run the Generate Run Balances concurrent program for all those balances that became invalid due to the Balance Feeds creation.

Once the setup is done as specified, balance adjustment can be done using the newly created adjustment elements.

Tax Balances Form

In order to adjust tax balances correctly, you must have an understanding of the View Tax Balance form and the tax-related terminology. This helps determine which balances you need to update to achieve accurate results for periodic tax reporting.

The Tax Balances form shows the tax balances that are used for periodic tax reporting. The sum of Subj Not Whable and Reduced Subj Whable on the FIT form is the amount that will be reported as Wages, tips, other compensation in Box 1 of the W-2 form. The sum of Subj Not Whable and Reduced Subj Whable on the SIT form is the amount shown as State wages, tips, etc. in Box 16 of the appropriate W-2 form. The Taxable from the Social Security and Medicare Tax Balance forms are reported as Box 3 Social Security wages and Box 5 Medicare wages and tips respectively on the W-2 form.

The Tax Balance form is a date tracked form. The tax balances are the balances as of the effective date. If the session date is 14-JAN-1998 and a payroll was run with a check date of 15-JAN-1998, the balances for the 15-JAN-1998 would not be included in the balances displayed.

If tax balances are accessed through View -> Payroll Processes, View -> Assignment Processes or via the QuickPay -> View Results form; they are always current as of the check date of the process.

The balances shown on the Tax Balance Form are as follows:

Gross Total earnings, calculated from all earnings elements.
Exempt Balance derived from Gross earnings minus Subject to Tax Earnings.
Subject All Earnings that are taxable and for which taxes are calculated during payroll processing. Most Regular, Supplemental, and Imputed Earnings are Subject to Tax. You must enter this balance when processing the State and Local Balance Adjustment elements.
Subj Not Whable All Earnings that are taxable but for which taxes are not calculated or withheld during payroll processing. GTL Imputed Income is an example of a taxable earning for which taxes are not withheld. You must enter this balance when processing the State and Local level balance adjustment elements.

Note: Subject and Subj Not Whable are determined by the Tax Withholding Rules ((N) Total Compensation -> Basic -> Tax Withholding Rules). All earnings defined with a classification of "Regular Earnings" in Oracle are always subject to and withholdable for federal and state taxes. However, earnings defined with the classification of "Supplemental Earnings" or "Imputed Earnings", and certain deductions defined with a classification of "Pre-Tax", may be subject to different types of taxes and tax withholding at the federal and state levels. These are determined by the category assigned to each earning or deduction and the Taxability Rules.

Pre Tax The total amount of 401k, 403b, 457, Dependent Care, and Section 125 that reduces the taxable earnings. You must enter this balance when processing State and Local level Balance Adjustment elements (if the jurisdiction allows the reduction). This balance is fed by the elements that update the detail balances discussed below.
Deferred Comp 401k The amount of 401k that reduces the taxable earnings. You must enter this balance when processing State and Local level balance adjustment elements (if the jurisdiction allows the reduction).
Deferred Comp 403b The amount of 403b that reduces the taxable earnings. You must enter this balance when processing State and Local level balance adjustment elements (if the jurisdiction allows the reduction).
Deferred Comp 457 The amount of 457 that reduces the taxable earnings. You must enter this balance when processing State and Local level balance adjustment elements (if the jurisdiction allows the reduction).
Dependent Care The amount of Dependent Care deductions which reduces the taxable earnings. You must enter this balance when processing State and Local level Balance Adjustment elements (if the jurisdiction allows the reduction).
Section 125 The amount of Pretax Insurance that reduces the taxable earnings. Dependent care deductions are not included in this total because it is covered separately under section 129 of the IRS code. You must enter this balance when processing State and Local level balance adjustment elements (if the jurisdiction allows the reduction).
Reduced Subj WHable Balance derived from Subject Withholdable Earnings minus the sum of Pre Tax reduction that consists of PreTax 401k, PreTax 403b, PreTax 457, PreTax 125, and Dependent Care.
Taxable The amount of taxable earnings for Medicare, Social Security, and FUTA up to the limit. When viewing state and local taxes subject to an upper limit (such as SDI and SUI), this amount represents the amounts paid up to the limit. When using the Balance adjustment screen, you must adjust this balance for all the taxes mentioned above but keep the upper limit in mind.
When adjusting this field, be careful not to adjust the amount over the government regulated limit.
Excess Balance derived from Reduced Subj Whable minus Taxable. If the taxable balance is not equal to the government regulated limit, the Excess balance should be zero. Excess should always be zero for Medicare. If there is an amount in Excess, and the limit has not been reached, this is an indication that you need to adjust the Balances.
Withheld The amount of tax which will be reported on the W-2 for each tax.
Liability The amount of employer owed tax for Medicare, FUTA, Social Security, SUI, or SDI.

Note: For Massachusetts, the Health Insurance Tax is accumulated in under SDI liability.

Workers Compensation Withheld or liability amount. This amount is based on the calculation method that is set up such as the percent of subject earnings, flat amount per pay period or hourly rate. Note that workers compensation subject balance does not affect the calculation of withheld or liability amount.

Tax Balances Summary

The Tax Balances Summary window allows you to view employee taxable balances (or employer liability balances) by employee- or assignment-level balances in four time dimensions simultaneously. This date-effective view allows you to research problems that arise with an employee's pay and pinpoint when a problem may have occurred.

You can view balances in the following four time dimensions, or in combinations thereof, as of the date of the last payroll action:

Note: The Tax Balances Summary window only reports as of the date of the last Payroll action for that assignment or person. Any balances accumulated after the last payroll action are not included in the report.

Each balance criteria you select impacts which balances will be accumulated. For example, if you do not select School District, then balances for this criteria will not be accumulated nor displayed in the Balance region. If any of the balance dimension checkboxes are not checked, then the corresponding column in the Balance region will not have balances accumulated and will not display.

You can access the Tax Balances Summary window from the Main Menu, from the Assignment Process window, or from the Quick Pay window.

Tax Balances

In accordance with the tax-related information entered in the Oracle HRMS database, the payroll run can build tax balances for each of the following tax types (EE = employee tax, ER = employer tax):

Federal taxes

Federal Income Tax (FIT) - EE

Federal Unemployment Tax Act (FUTA) - ER

Social Security (SS) - EE and ER

Medicare - EE and ER

Earned Income Credit (EIC) - EE

Use Direct Balances for Federal Taxes

The PAY: Use Direct Balances for US Federal Taxes profile option determines the balance retrieval procedure. See: Using Direct Balances for Federal Taxes

State taxes

State Income Tax (SIT) - EE

State Unemployment Insurance (SUI) - ER, EE in some states

State Disability Insurance (SDI) - EE, ER in some states

Local taxes

City Tax - EE

County Tax - EE

Head Tax - ER

School District Tax - EE

For these taxes, the balances in the following table can be created for each employee assignment processed in the payroll run.

Balance Definition
Gross Earnings All earnings (relevant for the particular jurisdiction, or for EIC)
Exempt Earnings Gross earnings - Gross earnings subject to tax
Gross Earnings Subject to Tax All earnings subject to this tax
Gross Earnings Subject to Tax and not Withholdable All earnings subject to tax not requiring withholding
Gross Earnings Subject to Tax and Withholdable Gross earnings subject to tax - Gross earnings subject to tax and not withholdable
401(k), 125, and Dependent Care Reductions Any amounts applicable as pre-tax reductions to the Gross earnings subject to tax and withholdable
Reduced Subject to Tax and Withholdable Earnings Gross earnings subject to tax and withholdable - 401(k), 125 and Dependent Care reductions
Employee Withheld Amount withheld for the employee
Reduced Subject EIC Gross earnings (under EIC taxability rules) subject to tax and withholdable - 401(k), 125, and Dependent Care reductions
EIC Advance EIC credit for the employee
Employer Liability Liability of the GRE for Social Security, Medicare, FUTA, SUI, SDI, and Head Tax for this employee

Note: When no rules exist for a particular tax type (such as when a state has no income tax or no employee liability for SUI or SDI, or when no city or county tax exists), the system builds no balances for the tax.

Note: For Massachusetts, the Health Insurance Tax is accumulated under SDI liability.

Taxes with Upper Earnings Limits

As well as the above balances, the system creates two additional balances for those taxes with upper earnings limits (a maximum amount of earnings above which the tax is not levied). These two balances appear in the following table. Currently, upper earnings limits exist for the Social Security and FUTA Federal taxes and the SUI and SDI state taxes.

Balance Definition
Taxable earnings Reduced Subject to Tax and Withholdable Earnings, adjusted to take upper limit into account
Excess earnings Reduced Subject to Tax and Withholdable Earnings that exceed the upper limit

The Taxable Earnings balance accumulates the Reduced Subject to Tax and Withholdable earnings balances for an employee each payroll run, until it reaches the upper limit. After this, the Taxable Earnings balance for a run is zero (and its year-to-date balance remains fixed at the upper limit), since the employee's earnings are no longer taxable for this tax.

Balance Calculations and Adjustments

The calculation routines provided by Vertex, Inc. use balances that Oracle Payroll produces to calculate the following balances:

On occasion, you must make manual adjustments for employees to Employee Withheld balances, to Gross Earnings Subject to Tax balances, or to both balances. To do this you use the Adjust Tax Balances window.

Tax Balancing Guide

The tax balancing guide illustrates Oracle report information by field, and outlines how the fields on various reports map to one another. The guide aids in completing the weekly, quarterly and annual payroll reconciliation.

Periodic Reporting

For the following reports, enter the same beginning and ending check dates for the period you wish to reconcile:

Federal and State Tax Remittance Report/Local Tax Remittance Report Payroll Register US Gross to Net Summary
EE Federal Income Tax FIT EE FIT Withheld
EE Social Security SS EE SS Withheld
EE Medicare Medicare EE Medicare Withheld
EE Advanced EIC Paid EIC (Federal Tax Credits) EIC Advanced (Federal)
  STEIC (per state) EIC Advanced for State
EE State Income Tax per state SIT (per state) EE SIT Withheld (per state)
EE City Tax (per local) City (per city) EE City Withheld (per city)
EE SUI (per state) SUI (per state) EE SUI Withheld (per state)
EE County Tax (per county) County Tax (per county) EE County Withheld (per county)
EE Head Tax (by state) HT (by state) EE HT Withheld (by state)
ER FUTA FUTA ER FUTA Liability
ER Social Security SS ER SS Liability
ER Medicare Medicare ER Medicare Liability
ER SUI (per state) SUI (per state) ER SUI Liability (per state)
ER SDI (per state) SDI (per state) ER SDI Liability (per state)

Quarterly Reporting

For the following reports, enter the same beginning and ending check dates for the quarter you wish to reconcile:

For the following reports, enter the quarter you wish to reconcile:

For employers doing business in Pennsylvania, see:

Note: For correct quarterly balancing, you must run the Federal and State Tax Remittance Report and Local Tax Remittance Report using start and end dates that are the same as the quarter you use to run the State Quarterly Wage Listing and Quarterly Tax Return Worksheet (Form 941).

Federal and State Tax Remittance Report/Local Tax Remittance Report US Gross to Net Summary State Quarterly Wage Listing Form 941
EE Federal Income Tax Wages     Line 2
EE Federal Income Tax EE FIT Withheld   Line 3
EE Social Security Wages     Line 5a (col 1) + 5b (col 2)
EE Social Security Tax EE SS Withheld   Line 5a (col 2) + 5b (col 2) Divide by 2 for the EE portion only
EE Medicare Wages     Line 5c (col 1)
EE Medicare Tax EE Medicare Withheld   Line 5c (col 2) Divide by 2 for the EE portion only
EE Advance EIC Paid EIC Advanced (Federal)   Line 9
EE State Income Tax Wages per state   SIT Gross Wages for QTR  
EE State Income Tax (per state) EE SIT Withheld (per state) SIT Withheld for QTR  
EE SDI Tax (per state) EE SDI Withheld (per state)    
EE City Tax (per city) EE City Withheld    
EE SUI Tax (per state) EE SUI Withheld (per state) for applicable states SUI ER Liability for QTR (for applicable states)  
EE County Tax (per county) EE County Withheld (per county)    
EE Head Tax (per state) EE HT Withheld (per state)    
ER FUTA Tax ER FUTA Liability    
ER Social Security Tax ER SS Liability    
ER Medicare Tax ER Medicare Liability    
ER SUI Wages (per state)   SUI Taxable Reported by QTR  
ER SUI Tax (per state) ER SUI Liability (per state) SUI ER Liability by QTR  
ER SDI Tax (per state) ER SDI Liability (per state)    

Yearly Reporting

For the following reports, enter the same beginning and ending check dates for the year you wish to reconcile:

Enter the last check date of the year in the As Of date field

For the following reports, enter the tax year for the year you wish to reconcile:

Note: For correct yearly balancing, you must run the Federal and State Tax Remittance Report and Local Tax Remittance Report using start and end dates that are the same as the tax year you use to run the GRE Totals Report, W-2 Register Report, Annual FUTA Tax Return, and Federal W-2 Magnetic Media Report.

Federal and State Tax Remittance Report/Local Tax Remittance Report GRE Totals (YTD only) W-2 Register (GRE Totals page) Form 940 Federal W-2 Magnetic Media (EFW2 Magnetic File Totals)
EE Federal Income Tax Wages Fed Wages, Tips and Other Comp Box 1 Wages   Wages, Tips and Other Comp
EE Federal Income Tax FIT Withheld Box 2 FIT Withheld   Federal Income Tax Withheld
EE Social Security Wages SS Taxable Box 3 SS Wages   Social Security Wages
EE Social Security Tax SS Withheld Box 4 SS Withheld   Social Security Tax Withheld
EE Medicare Wages Medicare Taxable Box 5 Med Wages   Medicare Wages and Tips
EE Medicare Tax Medicare Withheld Box 6 Med Withheld   Medicare Tax Withheld
EE Advanced EIC Paid   Box 9 EIC   Advanced Earned Income Credit
EE State Income Tax Wages (per state) State Wages, Tips and Other Comp (per state) Box 16 SIT Wages (per state)    
EE State Income Tax (per state) SIT Withheld (per state) Box 17 SIT W/H (per state)    
EE SDI Wages (per state)   Box 18 SDI Wages (per state) where applicable    
EE SDI Tax (per state)   Some states display in Box 19 and others display in Box 14 showing tax only    
EE City Tax Wages (per local)   Box 18 Local Wages (per local)    
EE City Tax (per local)   Box 19 Local Tax W/H (per local)    
EE County Tax Wages (per county)   Box 18 County Wages (per local)    
EE County Tax (per county)   Box 19 County Tax W/H (per local)    
ER FUTA Wages     Part I: 5 Total Taxable Wages  
ER FUTA Tax     Part II: 1 Gross FUTA Tax  
ER SUI Wages (per state)     Part II: 3 (Col C) Taxable Payroll  
ER SUI Tax (per state)     Part II: 3 (i) Contributions  
    Box 12D (401k)   Contributions to 401(k)

Setting Up the Tax Balance Adjustment Elements

For tax balance adjustments, you must set up the applicable elements.

Setting up applicable tax adjustment elements

  1. Date track to 01-JAN-1951 or any date prior to the date an adjustment is effective but not before 1951.

  2. Navigate to the Element Description window.

  3. Refer to the following sections to add all appropriate elements:

    See: Balance Adjustment for State Tax Levies

    See: Paid Family and Medical Leave (PFML) Deductions

Setting up CITY ER TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name CITY ER TAX ADJUSTMENT
    Reporting Name CITY ER ADJ
    Description Element to adjust city employer taxes.
    Primary Classification Employer Liability
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify Overhead in the Liability field

  5. Save your work.

  6. Click Input Values.

  7. Enter the Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Pay Value Money 2 No Yes
    Gross Money 3 No Yes
    Subject Whable Money 4 No Yes
    Subject NWhable Money 5 No Yes
    Deferred Comp 401K Money 6 No Yes
    Deferred Comp 403B Money 7 No Yes
    Deferred Comp 457 Money 8 No Yes
    Section 125 Money 9 No Yes
    Dependent Care Money 10 No Yes
    Other Pretax Money 11 No Yes
  8. Save your work.

  9. To Add Balance Feeds for this element, click Balance Feeds. The Balance Feeds window opens.

  10. Add details as given in the table:

    Value Name Balance Name Units Add or Subtract
    Pay Value City Liability Money Add
    Pay Value Head Tax Liability Money Add
    Gross City ER Gross Money Add
    Subj Whable City ER WK Reduced Subject Money Add
    Subj NWhable City ER Subj NWhable Money Add
    Deferred Comp 401K City ER Pre Tax Redns Money Add
    Deferred Comp 401K City ER WK Reduced Subject Money Subtract
    Deferred Comp 401K City ER 401 Redns Money Add
    Section 125 City ER Pre Tax Redns Money Add
    Section 125 City ER WK Reduced Subject Money Subtract
    Section 125 City ER 125 Redns Money Add
    Deferred Comp 403B City ER Pre Tax Redns Money Add
    Deferred Comp 403B City ER WK Reduced Subject Money Subtract
    Deferred Comp 403B City ER 403 Redns Money Add
    Deferred Comp 457 City ER Pre Tax Redns Money Add
    Deferred Comp 457 City ER WK Reduced Subject Money Subtract
    Deferred Comp 457 City ER 457 Redns Money Add
    Dependent Care City ER Pre Tax Redns Money Add
    Dependent Care City ER WK Reduced Subject Money Subtract
    Dependent Care City ER Dep Care Redns Money Add
    Other Pretax City ER Pre Tax Redns Money Add
    Other Pretax City ER WK Reduced Subject Money Subtract
    Other Pretax City ER Other Pretax Redns Money Add
  11. Navigate to the Link window, and link the CITY ER TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up CITY MISC EE TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name CITY MISC EE TAX ADJUSTMENT
    Reporting Name CITY EE MISC ADJ
    Description Element to adjust city misc taxes and wages through input values.
    Primary Classification Tax Deductions
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify Overhead in the Liability field

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 11. This input value adjusts the tax liability for City Misc EE.

  8. Enter the Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Gross Money 2 No Yes
    Subject Whable Money 3 No Yes
    PreTax 401K 4 Money 4 No Yes
    PreTax 403B Money 5 No Yes
    PreTax 457 Money 6 No Yes
    Dependent Care Money 7 No Yes
    Section 125 Money 8 No Yes
    Other Pretax Money 9 No Yes
    Taxable Money 10 No Yes
    Pay Value Money 11 No Yes
  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the City Misc% balance.

    This returns the following balances:

    • City Misc EE 125 Redns

    • City Misc EE 401 Redns

    • City Misc EE 403 Redns

    • City Misc EE 457 Redns

    • City Misc EE Dep Care Redns

    • City Misc EE Gross

    • City Misc EE Other Pretax Redns

    • City Misc EE Pre Tax Redns

    • City Misc EE Subj Whable

    • City Misc EE Taxable

    • City Misc EE Withheld

  13. Skip the City Arrears balance.

  14. Select City Misc EE 125 Redns, and click Feeds.

  15. Query for the CITY MISC EE TAX ADJUSTMENT element.

  16. Select Section 125 as the Input Value, and click Add.

  17. Returning to the Balance window, select City Misc EE 401 Redns and click Feeds.

  18. Query for the CITY MISC EE TAX ADJUSTMENT element.

  19. Select PreTax 401K as the Input Value, and click Add.

  20. Returning to the Balance window, select City Misc EE 403 Redns and click Feeds.

  21. Query for the CITY MISC EE TAX ADJUSTMENT element.

  22. Select PreTax 403B as the Input Value, and click Add.

  23. Returning to the Balance window, select City Misc EE 457 Redns and click Feeds.

  24. Query for the CITY MISC EE TAX ADJUSTMENT element.

  25. Select PreTax 457 as the Input Value, and click Add.

  26. . Returning to the Balance window, select City Misc EE Dep Care Redns and click Feeds.

  27. Query for the CITY MISC EE TAX ADJUSTMENT element.

  28. Select Dependant Care as the Input Value, and click Add.

  29. Returning to the Balance window, select City Misc EE Gross and click Feeds.

  30. Query for the CITY MISC EE TAX ADJUSTMENT element.

  31. Select Gross as the Input Value, and click Add.

  32. Returning to the Balance window, select City Misc EE Other Pretax Redns and click Feeds.

  33. Query for the CITY MISC EE TAX ADJUSTMENT element.

  34. Select Other Pretax as the Input Value, and click Add.

  35. Returning to the Balance window, select City Misc EE Pre Tax Redns and click Feeds.

  36. Query for the CITY MISC EE TAX ADJUSTMENT element.

  37. Select the following Input Values, and click Add:

    • Section 125

    • PreTax 401K

    • PreTax 403B

    • PreTax 457

    • Dependant Care

    • Other Pretax

  38. Returning to the Balance window, select City Misc EE Subj Whable and click Feeds.

  39. Query for the CITY MISC EE TAX ADJUSTMENT element.

  40. Select Subject Whable as the Input Value, and click Add.

  41. Returning to the Balance window, select City Misc EE Taxable and click Feeds.

  42. Query for the CITY MISC EE TAX ADJUSTMENT element.

  43. Select Taxable as the Input Value, and click Add.

  44. Returning to the Balance window, select City Misc EE Withheld and click Feeds.

  45. Query for the CITY MISC EE TAX ADJUSTMENT element.

  46. Select Pay Value as the Input Value, and click Add.

  47. Navigate to the Link window, and link the CITY MISC EE TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up CITY MISC ER TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name CITY MISC ER TAX ADJUSTMENT
    Reporting Name CITY MISC ER TAX ADJUSTMENT
    Description Element to adjust the city misc taxes and wages through input values.
    Primary Classification Tax Deductions
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify Overhead in the Liability field

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 11. This input value adjusts the tax liability for City Misc ER.

  8. Enter the Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Gross Money 2 No Yes
    Subject Whable Money 3 No Yes
    PreTax 401K 4 Money 4 No Yes
    PreTax 403B Money 5 No Yes
    PreTax 457 Money 6 No Yes
    Dependent Care Money 7 No Yes
    Section 125 Money 8 No Yes
    Other Pretax Money 9 No Yes
    Taxable Money 10 No Yes
    Pay Value Money 11 No Yes
  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the City Misc% balance.

    This returns the following balances:

    • City Misc ER 125 Redns

    • City Misc ER 401 Redns

    • City Misc ER 403 Redns

    • City Misc ER 457 Redns

    • City Misc ER Dep Care Redns

    • City Misc ER Gross

    • City Misc ER Other Pretax Redns

    • City Misc ER Pre Tax Redns

    • City Misc ER Subj Whable

    • City Misc ER Taxable

    • City Misc ER Withheld

  13. Skip the City Arrears balance.

  14. Select City Misc ER 125 Redns, and click Feeds.

  15. Query for the CITY MISC ER TAX ADJUSTMENT element.

  16. Select Section 125 as the Input Value, and click Add.

  17. Returning to the Balance window, select City Misc ER 401 Redns and click Feeds.

  18. Query for the CITY MISC ER TAX ADJUSTMENT element.

  19. Select PreTax 401K as the Input Value, and click Add.

  20. Returning to the Balance window, select City Misc ER 403 Redns and click Feeds.

  21. Query for the CITY MISC ER TAX ADJUSTMENT element.

  22. Select PreTax 403B as the Input Value, and click Add.

  23. Returning to the Balance window, select City Misc ER 457 Redns and click Feeds.

  24. Query for the CITY MISC ER TAX ADJUSTMENT element.

  25. Select PreTax 457 as the Input Value, and click Add.

  26. . Returning to the Balance window, select City Misc ER Dep Care Redns and click Feeds.

  27. Query for the CITY MISC ER TAX ADJUSTMENT element.

  28. Select Dependant Care as the Input Value, and click Add.

  29. Returning to the Balance window, select City Misc ER Gross and click Feeds.

  30. Query for the CITY MISC ER TAX ADJUSTMENT element.

  31. Select Gross as the Input Value, and click Add.

  32. Returning to the Balance window, select City Misc ER Other Pretax Redns and click Feeds.

  33. Query for the CITY MISC ER TAX ADJUSTMENT element.

  34. Select Other Pretax as the Input Value, and click Add.

  35. Returning to the Balance window, select City Misc ER Pre Tax Redns and click Feeds.

  36. Query for the CITY MISC ER TAX ADJUSTMENT element.

  37. Select the following Input Values, and click Add:

    • Section 125

    • PreTax 401K

    • PreTax 403B

    • PreTax 457

    • Dependant Care

    • Other Pretax

  38. Returning to the Balance window, select City Misc ER Subj Whable and click Feeds.

  39. Query for the CITY MISC ER TAX ADJUSTMENT element.

  40. Select Subject Whable as the Input Value, and click Add.

  41. Returning to the Balance window, select City Misc ER Taxable and click Feeds.

  42. Query for the CITY MISC ER TAX ADJUSTMENT element.

  43. Select Taxable as the Input Value, and click Add.

  44. Returning to the Balance window, select City Misc ER Withheld and click Feeds.

  45. Query for the CITY MISC ER TAX ADJUSTMENT element.

  46. Select Pay Value as the Input Value, and click Add.

  47. Navigate to the Link window, and link the CITY MISC ER TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up CITY TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name CITY TAX ADJUSTMENT
    Reporting Name CITY ADJ
    Description Element to adjust city taxes and wages through input values.
    Primary Classification Tax Deductions
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify Local for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

    Note: You need to adjust two additional balances to correctly impact the wages and taxes on the local magnetic media output. The balances are City RS Reduced Subject and City RS Withheld. You can either include these balances as part of your adjustment element, or you can adjust the balances directly using the Adjust Balance window. If you choose not to update the balances directly, you will have to add input values to the adjustment element and feed the balances as indicated below.

  7. Change the Sequence of Pay Value to 11.

    This input value adjusts the tax liability for City.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Gross Money 2 No Yes
    Subject Whable Money 3 No Yes
    Subject Not Whable Money 4 No Yes
    PreTax 401K Money 5 No Yes
    PreTax 403B Money 6 No Yes
    PreTax 457 Money 7 No Yes
    Dependent Care Money 8 No Yes
    Section 125 Money 9 No Yes
    Other Pretax Money 10 No Yes
    Pay Value Money 11 No Yes
    City RS Reduced Subj Money 12 No Yes
    City RS Withheld Money 13 No Yes

    Note: You must input the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it.

  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the City% balance.

    This returns the following balances:

    • City 125 Redns

    • City 401 Redns

    • City 403 Redns

    • City 457 Redns

    • City Dep Care Redns

    • City Gross

    • City Other Pretax Redns

    • City Pre Tax Redns

    • City RS Reduced Subject

    • City RS Withheld

    • City Subj NWhable

    • City Subj Whable

    • City Withheld

    Skip the City Arrears balance.

  13. Select City 125 Redns, and click Feeds.

  14. Query for the CITY TAX ADJUSTMENT element.

  15. Select Section 125 as the Input Value, and click Add.

  16. Returning to the Balance window, select City 401 Redns and click Feeds.

  17. Query for the CITY TAX ADJUSTMENT element.

  18. Select PreTax 401K as the Input Value, and click Add.

  19. Returning to the Balance window, select City 403 Redns and click Feeds.

  20. Query for the CITY TAX ADJUSTMENT element.

  21. Select PreTax 403B as the Input Value, and click Add.

  22. Returning to the Balance window, select City 457 Redns and click Feeds.

  23. Query for the CITY TAX ADJUSTMENT element.

  24. Select PreTax 457 as the Input Value, and click Add.

  25. Returning to the Balance window, select City Dep Care Redns and click Feeds.

  26. Query for the CITY TAX ADJUSTMENT element.

  27. Select Dependant Care as the Input Value, and click Add.

  28. Returning to the Balance window, select City Gross and click Feeds.

  29. Query for the CITY TAX ADJUSTMENT element.

  30. Select Gross as the Input Value, and click Add.

  31. Returning to the Balance window, select City Other Pretax Redns and click Feeds.

  32. Query for the CITY TAX ADJUSTMENT element.

  33. Select Other Pretax as the Input Value, and click Add.

  34. Returning to the Balance window, select City Pre Tax Redns and click Feeds.

  35. Query for the CITY TAX ADJUSTMENT element.

  36. Select the following Input Values, and click Add:

    • Section 125

    • PreTax 401K

    • PreTax 403B

    • PreTax 457

    • Dependant Care

    • Other Pretax

  37. Returning to the Balance window, select City RS Reduced Subject.

  38. Query for the CITY TAX ADJUSTMENT element.

  39. Select City RS Reduced Subj as the Input Value, and click Add.

  40. Returning to the Balance window, select City RS Withheld.

  41. Query for the CITY TAX ADJUSTMENT element.

  42. Select City RS Withheld as the Input Value, and click Add.

  43. Returning to the Balance window, select City Subj NWhable and click Feeds.

  44. Query for the CITY TAX ADJUSTMENT element.

  45. Select Subject Not Whable as the Input Value, and click Add.

  46. Returning to the Balance window, select City Subj Whable and click Feeds.

  47. Query for the CITY TAX ADJUSTMENT element.

  48. Select Subject Whable as the Input Value, and click Add.

  49. Returning to the Balance window, select City Withheld and click Feeds.

  50. Query for the CITY TAX ADJUSTMENT element.

  51. Select Pay Value as the Input Value, and click Add.

  52. Navigate to the Link window, and link the CITY TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up COUNTY TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name COUNTY TAX ADJUSTMENT
    Reporting Name CNTY ADJ
    Description Element to adjust county taxes and wages - feeds balance directly.
    Primary Classification Tax Deductions
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify Local for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 11.

    This input value adjusts the tax liability for County.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Gross Money 2 No Yes
    Subject Whable Money 3 No Yes
    Subject Not Whable Money 4 No Yes
    PreTax 401K Money 5 No Yes
    PreTax 403B Money 6 No Yes
    PreTax 457 Money 7 No Yes
    Dependent Care Money 8 No Yes
    Section 125 Money 9 No Yes
    Other Pretax Money 10 No Yes
    Pay Value Money 11 No Yes

    Note: You must input the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it.

  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the County% balance.

    This returns the following balances:

    • County 125 Redns

    • County 401 Redns

    • County 403 Redns

    • County 457 Redns

    • County Dep Care Redns

    • County Gross

    • County Other Pretax Redns

    • County Pre Tax Redns

    • County Subj NWhable

    • County Subj Whable

    • County Withheld

    Skip the County Arrears balance.

  13. Select County 125 Redns, and click Feeds.

  14. Query for the COUNTY TAX ADJUSTMENT element.

  15. Select Section 125 as the Input Value, and click Add.

  16. Returning to the Balance window, select County 401 Redns and click Feeds.

  17. Query for the COUNTY TAX ADJUSTMENT element.

  18. Select PreTax 401K as the Input Value, and click Add.

  19. Returning to the Balance window, select County 403 Redns and click Feeds.

  20. Query for the COUNTY TAX ADJUSTMENT element.

  21. Select PreTax 403B as the Input Value, and click Add.

  22. Returning to the Balance window, select County 457 Redns and click Feeds.

  23. Query for the COUNTY TAX ADJUSTMENT element.

  24. Select PreTax 457 as the Input Value, and click Add.

  25. Returning to the Balance window, select County Dep Care Redns and click Feeds.

  26. Query for the COUNTY TAX ADJUSTMENT element.

  27. Select Dependant Care as the Input Value, and click Add.

  28. Returning to the Balance window, select County Gross and click Feeds.

  29. Query for the COUNTY TAX ADJUSTMENT element.

  30. Select Gross as the Input Value, and click Add.

  31. Returning to the Balance window, select County Other Pretax Redns and click Feeds.

  32. Query for the COUNTY TAX ADJUSTMENT element.

  33. Select Other Pretax as the Input Value, and click Add.

  34. Returning to the Balance window, select County Pre Tax Redns and click Feeds.

  35. Query for the COUNTY TAX ADJUSTMENT element.

  36. Select the following Input Values, and click Add:

    • Section 125

    • PreTax 401K

    • PreTax 403B

    • PreTax 457

    • Dependant Care

    • Other Pretax

  37. Returning to the Balance window, select County Subj NWhable and click Feeds.

  38. Query for the COUNTY TAX ADJUSTMENT element.

  39. Select Subject Not Whable as the Input Value, and click Add.

  40. Returning to the Balance window, select County Subj Whable and click Feeds.

  41. Query for the COUNTY TAX ADJUSTMENT element.

  42. Select Subject Whable as the Input Value, and click Add.

  43. Returning to the Balance window, select County Withheld and click Feeds.

  44. Query for the COUNTY TAX ADJUSTMENT element.

  45. Select Pay Value as the Input Value, and click Add.

  46. Navigate to the Link window, and link the COUNTY TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up FIT TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name FIT TAX ADJUSTMENT
    Reporting Name FIT ADJ
    Description Element to adjust balances for Federal tax that feeds the tax withheld balance directly.
    Primary Classification Tax Deductions
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify Federal for the jurisdiction.

  5. Save your work.

    The Pay Value Input Value is created automatically. This input value adjusts the tax withheld for the Federal Income Tax.

  6. Add Balance Feeds for this element.

  7. Navigate to the Balance window.

  8. Query for the FIT Withheld balance, and click Feeds.

  9. Query for the FIT TAX ADJUSTMENT element.

    Note: The standard FIT element is not associated with balances such as Gross, Taxable, and so on. Therefore, you can only adjust withholding. If you need to make adjustments to Taxable Wages for FIT, you must adjust the original elements that impact Gross and Subject wages.

  10. Select Pay Value as the Input Value, and click Add.

  11. Navigate to the Link window, and link the FIT TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up FUTA TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name FUTA TAX ADJUSTMENT
    Reporting Name FUTA ADJ
    Description Element to correct Employer FUTA tax and wages - feeds balance directly.
    Primary Classification Employer Taxes
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify Federal for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 4.

    This input value adjusts the tax liability for FUTA.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 No Yes
    Taxable Money 2 No Yes
    FUTA Credit Money 3 No Yes
    Pay Value Money 4 No Yes

    Note: You must input the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it.

  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the FUTA% balance.

    This returns the FUTA CREDIT, FUTA Liability, and FUTA Taxable balances.

  13. Select FUTA CREDIT and click Feeds.

  14. Query for the FUTA TAX ADJUSTMENT element.

  15. Select FUTA Credit as the Input Value, and click Add.

  16. Returning to the Balance window, select FUTA Liability, and click Feeds.

  17. Query for the FUTA TAX ADJUSTMENT element.

  18. Select Pay Value as the Input Value, and click Add.

  19. Returning to the Balance window, select FUTA Taxable and click Feeds.

  20. Query for the FUTA TAX ADJUSTMENT element.

  21. Select Taxable as the Input Value, and click Add.

  22. Navigate to the Link window, and link the FUTA TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up HEAD TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name HEAD TAX ADJUSTMENT
    Reporting Name HEAD TAX ADJ
    Description Element to adjust Head taxes.
    Primary Classification Tax Deductions
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify Local for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 2.

    This input value adjusts the tax withheld for Head Tax.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Pay Value Money 2 No Yes

    Note: You must input the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it.

  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the Head% balance.

    This returns the Head Tax Withheld and Head Tax Withheld In State balances.

  13. Select Head Tax Withheld, and click Feeds.

  14. Query for the HEAD TAX ADJUSTMENT element.

  15. Select Pay Value as the Input Value, and click Add.

  16. Returning to the Balance window, select Head Tax Withheld In State and click Feeds.

  17. Query for the HEAD TAX ADJUSTMENT element.

  18. Select Pay Value as the Input Value, and click Add.

  19. Navigate to the Link window, and link the HEAD TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up HEAD ER TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name HEAD ER TAX ADJUSTMENT
    Reporting Name HEAD ER TAX ADJ
    Description Element to adjust Head ER taxes
    Primary Classification Employer Liability
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify Local for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Enter the Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 No Yes
    Pay Value Money 2 No Yes
  8. Save your work.

  9. To Add Balance Feeds for this element, click Balance Feeds. The Balance Feeds window opens.

  10. Add details as given in the table:

    Value Name Balance Name Units Add or Subtract
    Pay Value Head Tax Liability Money Add
  11. Navigate to the Link window, and link the HEAD ER TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up MED EE TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name MED EE TAX ADJUSTMENT
    Reporting Name MED EE ADJ
    Description Element to adjust EE taxes and wages
    Primary Classification Tax Deductions
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify Federal for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 2.

    This input value adjusts the tax liability for Medicare.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Taxable Money 1 No Yes
    Pay Value Money 2 No Yes
  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the Medicare EE% balance.

    This returns the Medicare EE Taxable and Medicare EE Withheld balances. Skip the Medicare EE Arrears balance.

  13. Select Medicare EE Taxable, and click Feeds.

  14. Query for the MED EE TAX ADJUSTMENT element.

  15. Select Taxable as the Input Value, and click Add.

  16. Returning to the Balance window, select Medicare EE Withheld and click Feeds.

  17. Query for the MED EE TAX ADJUSTMENT element.

  18. Select Pay Value as the Input Value, and click Add.

  19. Navigate to the Link window, and link the MED EE TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up MED ER TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name MED ER TAX ADJUSTMENT
    Reporting Name MED ER ADJ
    Description Element to adjust ER taxes and wages.
    Primary Classification Employer Taxes
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify Federal for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 2.

    This input value adjusts the tax liability for Medicare.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Taxable Money 1 No Yes
    Pay Value Money 2 No Yes
  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the Medicare ER% balance.

    This returns the Medicare ER Liability and Medicare ER Taxable balances.

  13. Select Medicare ER Liability, and click Feeds.

  14. Query for the MED ER TAX ADJUSTMENT element.

  15. Select Pay Value as the Input Value, and click Add.

  16. Returning to the Balance window, select Medicare ER Taxable and click Feeds.

  17. Query for the MED ER TAX ADJUSTMENT element.

  18. Select Taxable as the Input Value, and click Add.

  19. Navigate to the Link window, and link the MED ER TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up MEDICARE_EE_OVER_LIMIT_EE_ADJ

  1. Specify the following parameters:

    Parameter Value
    Name MEDICARE_EE_OVER_LIMIT_EE_ADJ
    Reporting Name MEDICARE_EE_OVER_LIMIT_EE_ADJ
    Description Medicare Employee element for Employee Wages in excess of Limit
    Primary Classification Tax Deductions
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify Federal for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Pay Value Money 1 No Yes
    Taxable Money 2 No Yes
  8. Save your work.

  9. Add Balance Feeds for this element.

  10. Navigate to the Balance window.

  11. Query the "Medicare EE Taxable Over Limit" balance to add feeds. This is the only balance related to Medicare Over Limit, which must be added to perform balance adjustments.

  12. Click Feeds.

  13. Query the MEDICARE_EE_OVER_LIMIT_EE_ADJ element.

  14. Select Taxable as the Input Value, and click Add.

  15. Save your work.

  16. Navigate to the Link window, and link the MEDICARE_EE_OVER_LIMIT_EE_ADJ element to all payrolls or create an applicable link for your specific organizational needs.

Setting up SCHOOL DIST TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name SCHOOL DIST TAX ADJUSTMENT
    Reporting Name SCHOOL ADJ
    Description Element to adjust School District taxes.
    Primary Classification Tax Deductions
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify Local for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 11.

    This input value adjusts the tax liability for School.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Gross Money 2 No Yes
    Subject Whable Money 3 No Yes
    Subject Not Whable Money 4 No Yes
    PreTax 401K Money 5 No Yes
    PreTax 403B Money 6 No Yes
    PreTax 457 Money 7 No Yes
    Dependent Care Money 8 No Yes
    Section 125 Money 9 No Yes
    Other Pretax Money 10 No Yes
    Pay Value Money 11 No Yes

    Note: You must input the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it.

  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the School% balance.

    This returns the following balances:

    • School 125 Redns

    • School 401 Redns

    • School 403 Redns

    • School 457 Redns

    • School Dep Care Redns

    • School Gross

    • School Other Pretax Redns

    • School Pre Tax Redns

    • School Subj NWhable

    • School Subj Whable

    • School Withheld

    Skip the School Arrears balance.

  13. Select School 125 Redns, and click Feeds.

  14. Query for the SCHOOL TAX ADJUSTMENT element.

  15. Select Section 125 as the Input Value, and click Add.

  16. Returning to the Balance window, select School 401 Redns and click Feeds.

  17. Query for the SCHOOL TAX ADJUSTMENT element.

  18. Select PreTax 401K as the Input Value, and click Add.

  19. Returning to the Balance window, select School 403 Redns and click Feeds.

  20. Query for the SCHOOL TAX ADJUSTMENT element.

  21. Select PreTax 403B as the Input Value, and click Add.

  22. Returning to the Balance window, select School 457 Redns and click Feeds.

  23. Query for the SCHOOL TAX ADJUSTMENT element.

  24. Select PreTax 457 as the Input Value, and click Add.

  25. Returning to the Balance window, select School Dep Care Redns and click Feeds.

  26. Query for the SCHOOL TAX ADJUSTMENT element.

  27. Select Dependant Care as the Input Value, and click Add.

  28. Returning to the Balance window, select School Gross and click Feeds.

  29. Query for the SCHOOL TAX ADJUSTMENT element.

  30. Select Gross as the Input Value, and click Add.

  31. Returning to the Balance window, select School Other Pretax Redns and click Feeds.

  32. Query for the SCHOOL TAX ADJUSTMENT element.

  33. Select Other Pretax as the Input Value, and click Add.

  34. Returning to the Balance window, select School Pre Tax Redns and click Feeds.

  35. Query for the SCHOOL TAX ADJUSTMENT element.

  36. Select the following Input Values, and click Add:

    • Section 125

    • PreTax 401K

    • PreTax 403B

    • PreTax 457

    • Dependant Care

  37. Returning to the Balance window, select School Subj NWhable and click Feeds.

  38. Query for the SCHOOL TAX ADJUSTMENT element.

  39. Select Subject Not Whable as the Input Value, and click Add.

  40. Returning to the Balance window, select School Subj Whable and click Feeds.

  41. Query for the SCHOOL TAX ADJUSTMENT element.

  42. Select Subject Whable as the Input Value, and click Add.

  43. Returning to the Balance window, select School Withheld and click Feeds.

  44. Query for the SCHOOL TAX ADJUSTMENT element.

  45. Select Pay Value as the Input Value, and click Add.

  46. Navigate to the Link window, and link the SCHOOL TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up SDI EE TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name SDI EE TAX ADJUSTMENT
    Reporting Name SDI ADJ
    Description Element to adjust EE tax, wage, and applicable W2 balances.
    Primary Classification Tax Deductions
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify State for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 11.

    This input value adjusts the tax liability for SDI.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Gross Money 2 No Yes
    Subject Whable Money 3 No Yes
    PreTax 401K Money 4 No Yes
    PreTax 403B Money 5 No Yes
    PreTax 457 Money 6 No Yes
    Dependent Care Money 7 No Yes
    Section 125 Money 8 No Yes
    Other Pretax Money 9 No Yes
    Taxable Money 10 No Yes
    Pay Value Money 11 No Yes

    Note: You must input the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it..

  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the SDI EE% balance.

    This returns the following balances:

    • SDI EE 125 Redns

    • SDI EE 401 Redns

    • SDI EE 403 Redns

    • SDI EE 457 Redns

    • SDI EE Dep Care Redns

    • SDI EE Gross

    • SDI EE Other Pretax Redns

    • SDI EE Pre Tax Redns

    • SDI EE Subj Whable

    • SDI EE Taxable

    • SDI EE Withheld

    Skip the SDI EE Arrears balance.

  13. Select SDI EE 125 Redns, and click Feeds.

  14. Query for the SDI EE TAX ADJUSTMENT element.

  15. Select Section 125 as the Input Value, and click Add.

  16. Returning to the Balance window, select SDI EE 401 Redns and click Feeds.

  17. Query for the SDI EE TAX ADJUSTMENT element.

  18. Select PreTax 401K as the Input Value, and click Add.

  19. Returning to the Balance window, select SDI EE 403 Redns and click Feeds.

  20. Query for the SDI EE TAX ADJUSTMENT element.

  21. Select PreTax 403B as the Input Value, and click Add.

  22. Returning to the Balance window, select SDI EE 457 Redns and click Feeds.

  23. Query for the SDI EE TAX ADJUSTMENT element.

  24. Select PreTax 457 as the Input Value, and click Add.

  25. Returning to the Balance window, select SDI EE Dep Care Redns and click Feeds.

  26. Query for the SDI EE TAX ADJUSTMENT element.

  27. Select Dependant Care as the Input Value, and click Add.

  28. Returning to the Balance window, select SDI EE Gross and click Feeds.

  29. Query for the SDI EE TAX ADJUSTMENT element.

  30. Select Gross as the Input Value, and click Add.

  31. Returning to the Balance window, select SDI EE Other Pretax Redns and click Feeds.

  32. Query for the SDI EE TAX ADJUSTMENT element.

  33. Select Other Pretax as the Input Value, and click Add.

  34. Returning to the Balance window, select SDI EE Pre Tax Redns and click Feeds.

  35. Query for the SDI EE TAX ADJUSTMENT element.

  36. Select the following Input Values, and click Add:

    • Section 125

    • PreTax 401K

    • PreTax 403B

    • PreTax 457

    • Dependant Care

  37. Returning to the Balance window, select SDI EE Subj Whable and click Feeds.

  38. Query for the SDI EE TAX ADJUSTMENT element.

  39. Select Subject Whable as the Input Value, and click Add.

  40. Returning to the Balance window, select SDI EE Taxable and click Feeds.

  41. Query for the SDI EE TAX ADJUSTMENT element.

  42. Select Taxable as the Input Value, and click Add.

  43. Returning to the Balance window, select SDI EE Withheld and click Feeds.

  44. Query for the SDI EE TAX ADJUSTMENT element.

  45. Select Pay Value as the Input Value, and click Add.

  46. Navigate to the Link window, and link the SDI EE TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up SDI1 EE TAX ADJUSTMENT

Note: SDI1 is "New Jersey Family Leave Insurance Private Plan (FLI PP)". This adjustment element setup is a requirement for the New Jersey state only.

  1. Specify the following parameters:

    Parameter Value
    Name SDI1 EE TAX ADJUSTMENT
    Reporting Name SDI1 EE ADJ
    Description Element to adjust EE tax, wage, and applicable W2 balances.
    Primary Classification Tax Deductions
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify State for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 11.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Taxable Money 2 No Yes
    Pay Value Money 3 No Yes
  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query the SDI1 EE Taxable balance.

  13. Click Feeds.

  14. Query the SDI1 EE TAX ADJUSTMENT element.

  15. Select Taxable as the input value and select Add.

  16. Query the SDI1 EE Withheld balance.

  17. Click Feeds.

  18. Query the SDI1 EE TAX ADJUSTMENT element.

  19. Select Pay Value as the input value and select Add.

  20. Save your work.

  21. Navigate to the Link window, and link the SDI EE TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up SDI ER TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name SDI ER TAX ADJUSTMENT
    Reporting Name SDI ER ADJ
    Description Element to adjust ER tax, wages, and applicable W2 balances.
    Primary Classification Employer Taxes
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify State for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 11.

    This input value adjusts the tax liability for SDI.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Gross Money 2 No Yes
    Subject Whable Money 3 No Yes
    PreTax 401K Money 4 No Yes
    PreTax 403B Money 5 No Yes
    PreTax 457 Money 6 No Yes
    Dependent Care Money 7 No Yes
    Section 125 Money 8 No Yes
    Other Pretax Money 9 No Yes
    Taxable Money 10 No Yes
    Pay Value Money 11 No Yes

    Note: You must input the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it.

  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the SDI ER% balance.

    This returns the following balances:

    • SDI ER 125 Redns

    • SDI ER 401 Redns

    • SDI ER 403 Redns

    • SDI ER 457 Redns

    • SDI ER Dep Care Redns

    • SDI ER Gross

    • SDI ER Liability

    • SDI ER Other Pretax Redns

    • SDI ER Pre Tax Redns

    • SDI ER Subj Whable

    • SDI ER Taxable

  13. Select SDI ER 125 Redns, and click Feeds.

  14. Query for the SDI ER TAX ADJUSTMENT element.

  15. Select Section 125 as the Input Value, and click Add.

  16. Returning to the Balance window, select SDI ER 401 Redns and click Feeds.

  17. Query for the SDI ER TAX ADJUSTMENT element.

  18. Select PreTax 401K as the Input Value, and click Add.

  19. Returning to the Balance window, select SDI ER 403 Redns and click Feeds.

  20. Query for the SDI ER TAX ADJUSTMENT element.

  21. Select PreTax 403B as the Input Value, and click Add.

  22. Returning to the Balance window, select SDI ER 457 Redns and click Feeds.

  23. Query for the SDI ER TAX ADJUSTMENT element.

  24. Select PreTax 457 as the Input Value, and click Add.

  25. Returning to the Balance window, select SDI ER Dep Care Redns and click Feeds.

  26. Query for the SDI ER TAX ADJUSTMENT element.

  27. Select Dependant Care as the Input Value, and click Add.

  28. Returning to the Balance window, select SDI ER Gross and click Feeds.

  29. Query for the SDI ER TAX ADJUSTMENT element.

  30. Select Gross as the Input Value, and click Add.

  31. Returning to the Balance window, select SDI ER Liability and click Feeds.

  32. Query for the SDI ER TAX ADJUSTMENT element.

  33. Select Pay Value as the Input Value, and click Add.

  34. Returning to the Balance window, select SDI ER Other Pretax Redns and click Feeds.

  35. Query for the SDI ER TAX ADJUSTMENT element.

  36. Select Other Pretax as the Input Value, and click Add.

  37. Returning to the Balance window, select SDI ER Pre Tax Redns and click Feeds.

  38. Query for the SDI ER TAX ADJUSTMENT element.

  39. Select the following Input Values, and click Add:

    • Section 125

    • PreTax 401K

    • PreTax 403B

    • PreTax 457

    • Dependant Care

  40. Returning to the Balance window, select SDI ER Subj Whable and click Feeds.

  41. Query for the SDI ER TAX ADJUSTMENT element.

  42. Select Subject Whable as the Input Value, and click Add.

  43. Returning to the Balance window, select SDI ER Taxable and click Feeds.

  44. Query for the SDI ER TAX ADJUSTMENT element.

  45. Select Taxable as the Input Value, and click Add.

  46. Navigate to the Link window (Total Compensation | Basic | Link), and link the SDI ER TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up SIT TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name SIT TAX ADJUSTMENT
    Reporting Name SIT ADJ
    Description Element to adjust EE and tax, wage, and applicable W2 balances.
    Primary Classification Tax Deductions
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify State for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 11.

    This input value adjusts the tax liability for State Income Tax.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Gross Money 2 No Yes
    Subject Whable Money 3 No Yes
    Subject Not Whable Money 4 No Yes
    PreTax 401K Money 5 No Yes
    PreTax 403B Money 6 No Yes
    PreTax 457 Money 7 No Yes
    Dependent Care Money 8 No Yes
    Section 125 Money 9 No Yes
    Other Pretax Money 10 No Yes
    Pay Value Money 11 No Yes

    Note: You must input the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it.

  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the SIT% balance.

    This returns the following balances:

    • SIT 125 Redns

    • SIT 401 Redns

    • SIT 403 Redns

    • SIT 457 Redns

    • SIT Dep Care Redns

    • SIT Gross

    • SIT Other Pretax Redns

    • SIT Pre Tax Redns

    • SIT Subj NWhable

    • SIT Subj Whable

    • SIT Withheld

    Skip the SIT Arrears and SIT Supp Withheld balances.

  13. Select SIT 125 Redns, and click Feeds.

  14. Query for the SIT TAX ADJUSTMENT element.

  15. Select Section 125 as the Input Value, and click Add.

  16. Returning to the Balance window, select SIT 401 Redns and click Feeds.

  17. Query for the SIT TAX ADJUSTMENT element.

  18. Select PreTax 401K as the Input Value, and click Add.

  19. Returning to the Balance window, select SIT 403 Redns and click Feeds.

  20. Query for the SIT TAX ADJUSTMENT element.

  21. Select PreTax 403B as the Input Value, and click Add.

  22. Returning to the Balance window, select SIT 457 Redns and click Feeds.

  23. Query for the SIT TAX ADJUSTMENT element.

  24. Select PreTax 457 as the Input Value, and click Add.

  25. Returning to the Balance window, select SIT Dep Care Redns and click Feeds.

  26. Query for the SIT TAX ADJUSTMENT element.

  27. Select Dependant Care as the Input Value, and click Add.

  28. Returning to the Balance window, select SIT Gross and click Feeds.

  29. Query for the SIT TAX ADJUSTMENT element.

  30. Select Gross as the Input Value, and click Add.

  31. Returning to the Balance window, select SIT Other Pretax Redns and click Feeds.

  32. Query for the SIT TAX ADJUSTMENT element.

  33. Select Other Pretax as the Input Value, and click Add.

  34. Returning to the Balance window, select SIT Pre Tax Redns and click Feeds.

  35. Query for the SIT TAX ADJUSTMENT element.

  36. Select the following Input Values, and click Add:

    • Section 125

    • PreTax 401K

    • PreTax 403B

    • PreTax 457

    • Dependent Care

    • Other Pretax

  37. Returning to the Balance window, select SIT Subj NWhable and click Feeds.

  38. Query for the SIT TAX ADJUSTMENT element.

  39. Select Subject Not Whable as the Input Value, and click Add.

  40. Returning to the Balance window, select SIT Subj Whable and click Feeds.

  41. Query for the SIT TAX ADJUSTMENT element.

  42. Select Subject Whable as the Input Value, and click Add.

  43. Returning to the Balance window, select SIT Withheld and click Feeds.

  44. Query for the SIT TAX ADJUSTMENT element.

  45. Select Pay Value as the Input Value, and click Add.

  46. Navigate to the Link window, and link the SIT TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up SS EE TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name SS EE TAX ADJUSTMENT
    Reporting Name SS EE ADJ
    Description Element to adjust EE tax W/H balances
    Primary Classification Tax Deductions
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify Federal for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 2.

    This input value adjusts the tax liability for Social Security.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Taxable Money 1 No Yes
    Pay Value Money 2 No Yes
  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the SS EE% balance.

    This returns the SS EE Taxable and SS EE Withheld balances. Skip the SS EE Arrears balance.

  13. Select SS EE Taxable, and click Feeds.

  14. Query for the SS EE TAX ADJUSTMENT element.

  15. Select Taxable as the Input Value, and click Add.

  16. Returning to the Balance window, select SS EE Withheld and click Feeds.

  17. Query for the SS EE TAX ADJUSTMENT element.

  18. Select Pay Value as the Input Value, and click Add.

  19. Navigate to the Link window, and link the SS EE TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up SS ER TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name SS ER TAX ADJUSTMENT
    Reporting Name SS ER ADJ
    Description Element to adjust ER tax liability balances.
    Primary Classification Employer Taxes
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify Federal for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 2.

    This input value adjusts the tax liability for Social Security.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Taxable Money 1 No Yes
    Pay Value Money 2 No Yes
  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the SS ER% balance.

    This returns the SS ER Liability and SS ER Taxable balances.

  13. Select SS ER Liability, and click Feeds.

  14. Query for the SS ER TAX ADJUSTMENT element.

  15. Select Pay Value as the Input Value, and click Add.

  16. Returning to the Balance window, select SS ER Taxable and click Feeds.

  17. Query for the SS ER TAX ADJUSTMENT element.

  18. Select Taxable as the Input Value, and click Add.

  19. Navigate to the Link window, and link the SS ER TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up SUI EE TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name SUI EE TAX ADJUSTMENT
    Reporting Name SUI EE ADJ
    Description Element to adjust EE SUI tax and wages - feeds balance directly.
    Primary Classification Tax Deductions
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify State for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 11.

    This input value adjusts the tax withheld for SUI.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Gross Money 2 No Yes
    Subject Whable Money 3 No Yes
    PreTax 401K Money 4 No Yes
    PreTax 403B Money 5 No Yes
    PreTax 457 Money 6 No Yes
    Dependent Care Money 7 No Yes
    Section 125 Money 8 No Yes
    Other Pretax Money 9 No Yes
    Taxable Money 10 No Yes
    Pay Value Money 11 No Yes

    Note: You must input the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it.

  9. Save your work.

    When creating the following balance adjustment elements for the state and local levels, you may or may not choose to implement 403B and 457 Input Values and their subsequent balance feeds. If you do not plan to use 403B or 457 functionality, then these Input Values are not required.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the SUI EE% balance.

    This returns the following balances:

    • SUI EE 125 Redns

    • SUI EE 401 Redns

    • SUI EE 403 Redns

    • SUI EE 457 Redns

    • SUI EE Dep Care Redns

    • SUI EE Gross

    • SUI EE Other Pretax Redns

    • SUI EE Pre Tax Redns

    • SUI EE Subj Whable

    • SUI EE Taxable

    • SUI EE Withheld

  13. Select SUI EE 125 Redns, and click Feeds.

  14. Query for the SUI EE TAX ADJUSTMENT element.

  15. Select Section 125 as the Input Value, and click Add.

  16. Returning to the Balance window, select SUI EE 401 Redns and click Feeds.

  17. Query for the SUI EE TAX ADJUSTMENT element.

  18. Select PreTax 401K as the Input Value, and click Add.

  19. Returning to the Balance window, select SUI EE 403 Redns and click Feeds.

  20. Query for the SUI EE TAX ADJUSTMENT element.

  21. Select PreTax 403B as the Input Value, and click Add.

  22. Returning to the Balance window, select SUI EE 457 Redns and click Feeds.

  23. Query for the SUI EE TAX ADJUSTMENT element.

  24. Select PreTax 457 as the Input Value, and click Add.

  25. Returning to the Balance window, select SUI EE Dep Care Redns and click Feeds.

  26. Query for the SUI EE TAX ADJUSTMENT element.

  27. Select Dependant Care as the Input Value, and click Add.

  28. Returning to the Balance window, select SUI EE Gross and click Feeds.

  29. Query for the SUI EE TAX ADJUSTMENT element.

  30. Select Gross as the Input Value, and click Add.

  31. Returning to the Balance window, select SUI EE Other Pretax Redns and click Feeds.

  32. Query for the SUI EE TAX ADJUSTMENT element.

  33. Select Other Pretax Redns as the Input Value, and click Add.

  34. Returning to the Balance window, select SUI EE Pre Tax Redns and click Feeds.

  35. Query for the SUI EE TAX ADJUSTMENT element.

  36. Select the following Input Values, and click Add:

    • Section 125

    • PreTax 401K

    • PreTax 403B

    • PreTax 457

    • Dependant Care

  37. Returning to the Balance window, select SUI EE Subj Whable and click Feeds.

  38. Query for the SUI EE TAX ADJUSTMENT element.

  39. Select Subject Whable as the Input Value, and click Add.

  40. Returning to the Balance window, select SUI EE Taxable and click Feeds.

  41. Query for the SUI EE TAX ADJUSTMENT element.

  42. Select Taxable as the Input Value, and click Add.

  43. Returning to the Balance window, select SUI EE Withheld and click Feeds.

  44. Query for the SUI EE TAX ADJUSTMENT element.

  45. Select Pay Value as the Input Value, and click Add.

  46. Navigate to the Link window, and link the SUI EE TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up SUI ER TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name SUI ER TAX ADJUSTMENT
    Reporting Name SUI ER ADJ
    Description Element to adjust ER SUI tax and wages - feeds balance directly.
    Primary Classification Employer Taxes
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify State for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 11.

    This input value adjusts the tax liability for SUI.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Gross Money 2 No Yes
    Subject Whable Money 3 No Yes
    PreTax 401K Money 4 No Yes
    PreTax 403B Money 5 No Yes
    PreTax 457 Money 6 No Yes
    Dependent Care Money 7 No Yes
    Section 125 Money 8 No Yes
    Other Pretax Money 9 No Yes
    Taxable Money 10 No Yes
    Pay Value Money 11 No Yes

    Note: You must input the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it.

  9. Save your work.

    When creating the following balance adjustment elements for the state and local levels, you may or may not choose to implement 403B and 457 Input Values and their subsequent balance feeds. If you do not plan to use 403B or 457 functionality, then these Input Values are not required.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the SUI ER% balance.

    This returns the following balances:

    • SUI ER 125 Redns

    • SUI ER 401 Redns

    • SUI ER 403 Redns

    • SUI ER 457 Redns

    • SUI ER Dep Care Redns

    • SUI ER Gross

    • SUI ER Liability

    • SUI ER Other Pretax Redns

    • SUI ER Pre Tax Redns

    • SUI ER Subj Whable

    • SUI ER Taxable

    Skip the SUI ER Arrears balance.

  13. Select SUI ER 125 Redns, and click Feeds.

  14. Query for the SUI ER TAX ADJUSTMENT element.

  15. Select Section 125 as the Input Value, and click Add.

  16. Returning to the Balance window, select SUI ER 401 Redns and click Feeds.

  17. Query for the SUI ER TAX ADJUSTMENT element.

  18. Select PreTax 401K as the Input Value, and click Add.

  19. Returning to the Balance window, select SUI ER 403 Redns and click Feeds.

  20. Query for the SUI ER TAX ADJUSTMENT element.

  21. Select PreTax 403B as the Input Value, and click Add.

  22. Returning to the Balance window, select SUI ER 457 Redns and click Feeds.

  23. Query for the SUI ER TAX ADJUSTMENT element.

  24. Select PreTax 457 as the Input Value, and click Add.

  25. Returning to the Balance window, select SUI ER Dep Care Redns and click Feeds.

  26. Query for the SUI ER TAX ADJUSTMENT element.

  27. Select Dependant Care as the Input Value, and click Add.

  28. Returning to the Balance window, select SUI ER Gross and click Feeds.

  29. Query for the SUI ER TAX ADJUSTMENT element.

  30. Select Gross as the Input Value, and click Add.

  31. Returning to the Balance window, select SUI ER Liability and click Feeds.

  32. Query for the SUI ER TAX ADJUSTMENT element.

  33. Select Pay Value as the Input Value, and click Add.

  34. Returning to the Balance window, select SUI ER Other Pretax Redns and click Feeds.

  35. Query for the SUI ER TAX ADJUSTMENT element.

  36. Select Other Pretax Redns as the Input Value, and click Add.

  37. Returning to the Balance window, select SUI ER Pre Tax Redns and click Feeds.

  38. Query for the SUI ER TAX ADJUSTMENT element.

  39. Select the following Input Values, and click Add:

    • Section 125

    • PreTax 401K

    • PreTax 403B

    • PreTax 457

    • Dependant Care

  40. Returning to the Balance window, select SUI ER Subj Whable and click Feeds.

  41. Query for the SUI ER TAX ADJUSTMENT element.

  42. Select Subject Whable as the Input Value, and click Add.

  43. Returning to the Balance window, select SUI ER Taxable and click Feeds.

  44. Query for the SUI ER TAX ADJUSTMENT element.

  45. Select Taxable as the Input Value, and click Add.

  46. Navigate to the Link window, and link the SUI ER TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up WORKERS COMP ER ADJ

  1. Specify the following parameters:

    Parameter Value
    Name WORKERS COMP ER ADJ
    Reporting Name WC ER ADJ
    Description Element to adjust Workers Compensation Exposure, Hours, and employer premium 1.
    Primary Classification Employer Taxes
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify State for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 4.

    This input value adjusts the tax liability for Workers Compensation Premium 1.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    WC Exposure Money 2 No Yes
    WC Hours Hours 3 No Yes
    Pay Value Money 4 No Yes

    Note: You must input the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it.

  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the WC% balance.

    This returns the WC Exposure and WCable Hours balances.

  13. Select WC Exposure, and click Feeds.

  14. Query for the WORKERS COMP ER ADJ element.

  15. Select WC Exposure as the Input Value, and click Add.

  16. Returning to the Balance window, select WCable Hours and click Feeds.

  17. Query for the WORKERS COMP ER ADJ element.

  18. Select WC Hours as the Input Value, and click Add.

  19. Returning to the Balance window, query for the Workers Compensation balance.

  20. Select Workers Compensation, and click Feeds.

  21. Query for the WORKERS COMP ER ADJ element.

  22. Select Pay Value as the Input Value, and click Add.

  23. Navigate to the Link window, and link the WORKERS COMP ER ADJ element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up WORKERS COMP2 ER ADJ

  1. Specify the following parameters:

    Parameter Value
    Name WORKERS COMP2 ER ADJ
    Reporting Name WC2 ER ADJ
    Description Element to adjust Workers Compensation employer premium 2.
    Primary Classification Employer Taxes
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify State for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 2.

    This input value adjusts the tax liability for Workers Compensation Premium 2.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Pay Value Money 2 No Yes

    Note: You must input the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it..

  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the Workers Compensation 2 ER balance.

  13. Select this balance, and click Feeds.

  14. Query for the WORKERS COMP2 ER ADJ element.

  15. Select Pay Value as the Input Value, and click Add.

  16. Navigate to the Link window, and link the WORKERS COMP2 ER ADJ element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up WORKERS COMP3 ER ADJ

  1. Specify the following parameters:

    Parameter Value
    Name WORKERS COMP3 ER ADJ
    Reporting Name WC3 ER ADJ
    Description Element to adjust Workers Compensation employer premium 3.
    Primary Classification Employer Taxes
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify State for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 2.

    This input value adjusts the tax liability for Workers Compensation Premium 3.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Pay Value Money 2 No Yes

    Note: You must input the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it.

  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the Workers Compensation 3 ER balance.

  13. Select this balance, and click Feeds.

  14. Query for the WORKERS COMP3 ER ADJ element.

  15. Select Pay Value as the Input Value, and click Add.

  16. Navigate to the Link window, and link the WORKERS COMP3 ER ADJ element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up WORKERS COMP EE ADJ

  1. Specify the following parameters:

    Parameter Value
    Name WORKERS COMP EE ADJ
    Reporting Name WC EE ADJ
    Description Element to adjust Workers Compensation employee withheld 1.
    Primary Classification Tax Deduction
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify State for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 2.

    This input value adjusts the tax liability for Workers Compensation Employee Withheld 1.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Pay Value Money 2 No Yes

    Note: You must input the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it.

  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the Workers Comp Withheld balance.

  13. Select this balance, and click Feeds.

  14. Query for the WORKERS COMP EE ADJ element.

  15. Select Pay Value as the Input Value, and click Add.

  16. Navigate to the Link window, and link the WORKERS COMP EE ADJ element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up WORKERS COMP2 EE ADJ

  1. Specify the following parameters:

    Parameter Value
    Name WORKERS COMP2 EE ADJ
    Reporting Name WC2 EE ADJ
    Description Element to adjust Workers Compensation employee withheld 2.
    Primary Classification Tax Deduction
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify State for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 2.

    This input value adjusts the tax liability for Workers Compensation Employee Withheld 2.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Pay Value Money 2 No Yes

    Note: You must input the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it.

  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the Workers Comp2 Withheld balance.

  13. Select this balance, and click Feeds.

  14. Query for the WORKERS COMP2 EE ADJ element.

  15. Select Pay Value as the Input Value, and click Add.

  16. Navigate to the Link window, and link the WORKERS COMP2 EE ADJ element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Creating Balance Adjustments for State Tax Levies

For details on how to set up information for state tax levy processing, see: Processing State Tax Levies, Oracle HRMS Compensation and Benefits Management Guide (US)

The following are the general steps to create balance adjustment for state tax levies:

  1. Create a state tax levy involuntary deduction element.

  2. Link the state tax levy involuntary deduction element to all payrolls or create an applicable link for your specific organizational needs.

  3. Navigate to the People window. Search for the required employee. Click Assignment. Then, click Others and select Adjust Balance.

  4. In the Adjust Balance window, Entries region, select the element that you created.

  5. Provide the Pay Value and Attachment Number.

  6. Save your work.

  7. Run Quick Pay and view the state tax levy element entry in the Statement of Earnings (SOE).

Paid Family and Medical Leave (PFML) Deductions

The following sections explain how to set up:

Setting up STATE MISC1 EE TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name STATE MISC1 EE TAX ADJUSTMENT
    Reporting Name STATE MISC1 EE ADJ
    Description Element to adjust EE State Misc1 tax and wages - feeds balance directly.
    Primary Classification Tax Deductions
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify State for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 5. This input value adjusts the tax withheld for State Misc1.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Gross Money 2 No Yes
    Subject Whable Money 3 No Yes
    Subject Not Whable Money 4 No Yes
    Pay Value Money 5 No Yes

    Note: You must enter the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it.

  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the State Misc1% balance. This returns the following balances:

    State Misc1 Tax Gross

    State Misc1 Tax Subj NWhable

    State Misc1 Tax Subj Whable

    State Misc1 Tax Withheld

  13. Select State Misc1 Tax Gross and click Feeds.

  14. Query for the STATE MISC1 EE TAX ADJUSTMENT element.

  15. Select Gross as Input Value and click Add.

  16. Returning to the Balance window, select State Misc1 Tax Subj NWhable and click Feeds.

  17. Query for the STATE MISC1 EE TAX ADJUSTMENT element.

  18. Select Subject Not Whable as Input Value and click Add.

  19. Returning to the Balance window, select State Misc1 Tax Subj Whable and click Feeds.

  20. Query for the STATE MISC1 EE TAX ADJUSTMENT element.

  21. Select Subject Whable as Input Value and click Add.

  22. Returning to the Balance window, select State Misc1 Tax Withheld and click Feeds.

  23. Query for the STATE MISC1 EE TAX ADJUSTMENT element.

  24. Select Pay Value as Input Value and click Add.

  25. Navigate to the Link window, and link the STATE MISC1 EE TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up STATE MISC1 ER TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name STATE MISC1 ER TAX ADJUSTMENT
    Reporting Name STATE MISC1 ER ADJ
    Description Element to adjust ER State Misc1 tax and wages - feeds balance directly.
    Primary Classification Employer Taxes
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify State for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 11. This input value adjusts the tax liability for State Misc1.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Gross Money 2 No Yes
    Subject Whable Money 3 No Yes
    PreTax 401K Money 4 No Yes
    PreTax 403B Money 5 No Yes
    PreTax 457 Money 6 No Yes
    Dependent Care Money 7 No Yes
    Section 125 Money 8 No Yes
    Other Pretax Money 9 No Yes
    Taxable Money 10 No Yes
    Pay Value Money 11 No Yes

    Note: You must enter the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it.

  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the State Misc1 ER% balance. This returns the following balances:

    State Misc1 ER 125 Redns

    State Misc1 ER 401 Redns

    State Misc1 ER 403 Redns

    State Misc1 ER 457 Redns

    State Misc1 ER Dep Care Redns

    State Misc1 ER Gross

    State Misc1 ER Liability

    State Misc1 ER Other Pretax Redns

    State Misc1 ER Pre Tax Redns

    State Misc1 ER Subj Whable

    State Misc1 ER Taxable

  13. Select State Misc1 ER 125 Redns and click Feeds.

  14. Query for the STATE MISC1 ER TAX ADJUSTMENT element.

  15. Select Section 125 as Input Value and click Add.

  16. Returning to the Balance window, select State Misc1 ER 401 Redns and click Feeds.

  17. Query for the STATE MISC1 ER TAX ADJUSTMENT element.

  18. Select PreTax 401K as Input Value and click Add.

  19. Returning to the Balance window, select State Misc1 ER 403 Redns and click Feeds.

  20. Query for the STATE MISC1 ER TAX ADJUSTMENT element.

  21. Select PreTax 403B as Input Value and click Add.

  22. Returning to the Balance window, select State Misc1 ER 457 Redns and click Feeds.

  23. Query for the STATE MISC1 ER TAX ADJUSTMENT element.

  24. Select PreTax 457 as Input Value and click Add.

  25. Returning to the Balance window, select State Misc1 ER Dep Care Redns and click Feeds.

  26. Query for the STATE MISC1 ER TAX ADJUSTMENT element.

  27. Select Dependent Care as Input Value and click Add.

  28. Returning to the Balance window, select State Misc1 ER Gross and click Feeds.

  29. Query for the STATE MISC1 ER TAX ADJUSTMENT element.

  30. Select Gross as Input Value and click Add.

  31. Returning to the Balance window, select State Misc1 ER Liability and click Feeds.

  32. Query for the STATE MISC1 ER TAX ADJUSTMENT element.

  33. Select Pay Value as Input Value and click Add.

  34. Returning to the Balance window, select State Misc1 ER Other Pretax Redns and click Feeds.

  35. Query for the STATE MISC1 ER TAX ADJUSTMENT element.

  36. Select Other Pretax as Input Value and click Add.

  37. Returning to the Balance window, select State Misc1 ER Pretax Redns and click Feeds.

  38. Query for the STATE MISC1 ER TAX ADJUSTMENT element.

  39. Select the following Input Values, and click Add:

    Section 125

    Other Pretax

    PreTax 401K

    PreTax 403B

    PreTax 457

    Dependant Care

  40. Returning to the Balance window, select State Misc1 ER Subj Whable and click Feeds.

  41. Query for the STATE MISC1 ER TAX ADJUSTMENT element.

  42. Select Subject Whable as Input Value and click Add.

  43. Returning to the Balance window, select State Misc1 ER Taxable and click Feeds.

  44. Query for the STATE MISC1 ER TAX ADJUSTMENT element.

  45. Select Taxable as Input Value and click Add.

  46. Navigate to the Link window, and link the STATE MISC1 ER TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up STATE MISC2 EE TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name STATE MISC2 EE TAX ADJUSTMENT
    Reporting Name STATE MISC2 EE ADJ
    Description Element to adjust EE State Misc2 tax and wages - feeds balance directly.
    Primary Classification Tax Deductions
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify State for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 11. This input value adjusts the tax withheld for State Misc2.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Gross Money 2 No Yes
    Subject Whable Money 3 No Yes
    PreTax 401K Money 4 No Yes
    PreTax 403B Money 5 No Yes
    PreTax 457 Money 6 No Yes
    Dependent Care Money 7 No Yes
    Section 125 Money 8 No Yes
    Other Pretax Money 9 No Yes
    Taxable Money 10 No Yes
    Pay Value Money 11 No Yes

    Note: You must enter the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it.

  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the State Misc2 EE% balance. This returns the following balances:

    State Misc2 EE 125 Redns

    State Misc2 EE 401 Redns

    State Misc2 EE 403 Redns

    State Misc2 EE 457 Redns

    State Misc2 EE Dep Care Redns

    State Misc2 EE Gross

    State Misc2 EE Other Pretax Redns

    State Misc2 EE Pre Tax Redns

    State Misc2 EE Subj Whable

    State Misc2 EE Taxable

    State Misc2 EE Withheld

  13. Select State Misc2 EE 125 Redns and click Feeds.

  14. Query for the STATE MISC2 EE TAX ADJUSTMENT element.

  15. Select Section 125 as Input Value and click Add.

  16. Returning to the Balance window, select State Misc2 EE 401 Redns and click Feeds.

  17. Query for the STATE MISC2 EE TAX ADJUSTMENT element.

  18. Select PreTax 401K as Input Value and click Add.

  19. Returning to the Balance window, select State Misc2 EE 403 Redns and click Feeds.

  20. Query for the STATE MISC2 EE TAX ADJUSTMENT element.

  21. Select PreTax 403B as Input Value and click Add.

  22. Returning to the Balance window, select State Misc2 EE 457 Redns and click Feeds.

  23. Query for the STATE MISC2 EE TAX ADJUSTMENT element.

  24. Select PreTax 457 as Input Value and click Add.

  25. Returning to the Balance window, select State Misc2 EE Dep Care Redns and click Feeds.

  26. Query for the STATE MISC2 EE TAX ADJUSTMENT element.

  27. Select Dependent Care as Input Value and click Add.

  28. Returning to the Balance window, select State Misc2 EE Gross and click Feeds.

  29. Query for the STATE MISC2 EE TAX ADJUSTMENT element.

  30. Select Gross as Input Value and click Add.

  31. Returning to the Balance window, select State Misc2 EE Other Pretax Redns and click Feeds.

  32. Query for the STATE MISC2 EE TAX ADJUSTMENT element.

  33. Select Other Pretax as Input Value and click Add.

  34. Returning to the Balance window, select State Misc2 EE Pretax Redns and click Feeds.

  35. Query for the STATE MISC2 EE TAX ADJUSTMENT element.

  36. Select the following Input Values, and click Add:

    Section 125

    Other Pretax

    PreTax 401K

    PreTax 403B

    PreTax 457

    Dependant Care

  37. Returning to the Balance window, select State Misc2 EE Subj Whable and click Feeds.

  38. Query for the STATE MISC2 EE TAX ADJUSTMENT element.

  39. Select Subject Whable as Input Value and click Add.

  40. Returning to the Balance window, select State Misc2 EE Taxable and click Feeds.

  41. Query for the STATE MISC2 EE TAX ADJUSTMENT element.

  42. Select Taxable as Input Value and click Add.

  43. Returning to the Balance window, select State Misc2 EE Withheld and click Feeds.

  44. Query for the STATE MISC2 EE TAX ADJUSTMENT element.

  45. Select Pay Value as Input Value and click Add.

  46. Navigate to the Link window, and link the STATE MISC2 EE TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Setting up STATE MISC2 ER TAX ADJUSTMENT

  1. Specify the following parameters:

    Parameter Value
    Name STATE MISC2 ER TAX ADJUSTMENT
    Reporting Name STATE MISC2 ER ADJ
    Description Element to adjust ER State Misc2 tax and wages - feeds balance directly.
    Primary Classification Employer Taxes
    Type Nonrecurring
    Termination Rule Final Close
  2. Enable Multiple Entries Allowed.

  3. Enable Process In Run.

  4. Select Further Information and specify State for the jurisdiction.

  5. Save your work.

  6. Click Input Values.

  7. Change the Sequence of Pay Value to 11. This input value adjusts the tax liability for State Misc2.

  8. Enter the remaining Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Gross Money 2 No Yes
    Subject Whable Money 3 No Yes
    PreTax 401K Money 4 No Yes
    PreTax 403B Money 5 No Yes
    PreTax 457 Money 6 No Yes
    Dependent Care Money 7 No Yes
    Section 125 Money 8 No Yes
    Other Pretax Money 9 No Yes
    Taxable Money 10 No Yes
    Pay Value Money 11 No Yes

    Note: You must enter the name of the Jurisdiction Input Value exactly as shown (mixed case) or else the system will not recognize it.

  9. Save your work.

  10. Add Balance Feeds for this element.

  11. Navigate to the Balance window.

  12. Query for the State Misc2 ER% balance. This returns the following balances:

    State Misc2 ER 125 Redns

    State Misc2 ER 401 Redns

    State Misc2 ER 403 Redns

    State Misc2 ER 457 Redns

    State Misc2 ER Dep Care Redns

    State Misc2 ER Gross

    State Misc2 ER Liability

    State Misc2 ER Other Pretax Redns

    State Misc2 ER Pre Tax Redns

    State Misc2 ER Subj Whable

    State Misc2 ER Taxable

  13. Select State Misc2 ER 125 Redns and click Feeds.

  14. Query for the STATE MISC2 ER TAX ADJUSTMENT element.

  15. Select Section 125 as Input Value and click Add.

  16. Returning to the Balance window, select State Misc2 ER 401 Redns and click Feeds.

  17. Query for the STATE MISC2 ER TAX ADJUSTMENT element.

  18. Select PreTax 401K as Input Value and click Add.

  19. Returning to the Balance window, select State Misc2 ER 403 Redns and click Feeds.

  20. Query for the STATE MISC2 ER TAX ADJUSTMENT element.

  21. Select PreTax 403B as Input Value and click Add.

  22. Returning to the Balance window, select State Misc2 ER 457 Redns and click Feeds.

  23. Query for the STATE MISC2 ER TAX ADJUSTMENT element.

  24. Select PreTax 457 as Input Value and click Add.

  25. Returning to the Balance window, select State Misc2 ER Dep Care Redns and click Feeds.

  26. Query for the STATE MISC2 ER TAX ADJUSTMENT element.

  27. Select Dependent Care as Input Value and click Add.

  28. Returning to the Balance window, select State Misc2 ER Gross and click Feeds.

  29. Query for the STATE MISC2 ER TAX ADJUSTMENT element.

  30. Select Gross as Input Value and click Add.

  31. Returning to the Balance window, select State Misc2 ER Liability and click Feeds.

  32. Query for the STATE MISC2 ER TAX ADJUSTMENT element.

  33. Select Pay Value as Input Value and click Add.

  34. Returning to the Balance window, select State Misc2 ER Other Pretax Redns and click Feeds.

  35. Query for the STATE MISC2 ER TAX ADJUSTMENT element.

  36. Select Other Pretax as Input Value and click Add.

  37. Returning to the Balance window, select State Misc2 ER Pretax Redns and click Feeds.

  38. Query for the STATE MISC2 ER TAX ADJUSTMENT element.

  39. Select the following Input Values, and click Add:

    Section 125

    Other Pretax

    PreTax 401K

    PreTax 403B

    PreTax 457

    Dependant Care

  40. Returning to the Balance window, select State Misc2 ER Subj Whable and click Feeds.

  41. Query for the STATE MISC2 ER TAX ADJUSTMENT element.

  42. Select Subject Whable as Input Value and click Add.

  43. Returning to the Balance window, select State Misc2 ER Taxable and click Feeds.

  44. Query for the STATE MISC2 ER TAX ADJUSTMENT element.

  45. Select Taxable as Input Value and click Add.

  46. Navigate to the Link window, and link the STATE MISC2 ER TAX ADJUSTMENT element to all payrolls or create an applicable link for your specific organizational needs.

    Note: In order to cost these adjustments the same as the normal payroll taxing element, set up costing for these elements to match the tax elements.

Balance Adjustment Elements for the PA Act 32 PSD Balances

This topic provides information about balance adjustment elements for the Pennsylvania Act 32 PSD balances.

Note: For the Tax Balance Adjustment process to work, the Resident and Work Jurisdictions must be entered, including the school district codes, on the city tax information (local tax rules) form for the assignment.

If a balance adjustment is made to adjust an existing City Subject (RS or WK), City Withheld (RS or WK) OR a School Withheld (RS) balance in a Pennsylvania locality, then a corresponding entry must also be made into the new PSD balances as follows:

Examples

The following section provides an example on setting up balance adjustment elements for the Pennsylvania Act 32 PSD balances.

Tax Information

CITY Withheld (Spring Garden Twp) 5.77

SCHOOL Withheld (YORK SUBURBAN-67940) 5.77

Other Details

City_RS 39-133-5082

City_SC_RS 39-67940

City_PSD_SUBJECT_RS 39-671501-220102

Subj Whable 1153.85

City_PSD_RS 39-671501-220102 5.77

City_PSD_SC_RS 39-671501-220102 5.77

If an employee either lives or works out of state. The Out of State PSD code is 880000.

Perform the balance adjustments for:

For more information, refer to the Setting Up the Tax Balance Adjustment Elements

topic.

Example 1

  1. Date track to 01-JAN-1951 or any date prior to the date an adjustment is effective but not before 1951.

  2. Navigate to the Element Description form.

  3. Specify the following parameters:

    Parameter Value
    Name Resident PSD Bal Adj
    Reporting Name RES_PSD_BAL_ADJ
    Primary Classification Information
    Type Nonrecurring
    Termination Rule Final Close
  4. Enable Multiple Entries Allowed.

  5. Enable Process In Run.

  6. Save your work.

  7. Click Input Values.

  8. Enter the Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Subject Whable Money 2 No Yes
    Subject Not Whable Money 3 No Yes
    City Withheld Money 4 No Yes
    School Withheld Money 5 No Yes
  9. Save the element as an open link. Costing is not required for this element.

  10. Save your work.

  11. Add Balance Feeds for this element.

  12. Navigate to the Balance window.

  13. Query the City PSD Subj NWhable balance.

  14. Click Feeds.

  15. Query for the Resident PSD Bal Adj element.

  16. Enter the following values:

    • Classification: Information

    • Input Value name: Subj Not Whable

    • Add or Subtract: Add

  17. Save your work.

  18. Return to the Balance window.

  19. Query the City PSD Subj Whable balance.

  20. Click Feeds.

  21. Query for the Resident PSD Bal Adj element.

  22. Enter the following values:

    • Classification: Information

    • Input Value name: Subj Whable

    • Add or Subtract: Add

  23. Save your work.

  24. Return to the Balance window.

  25. Query the City PSD Withheld balance.

  26. Click Feeds.

  27. Query for the Resident PSD Bal Adj element.

  28. Enter the following values:

    • Classification: Information

    • Input Value name: City Withheld

    • Add or Subtract: Add

  29. Save your work.

  30. Return to the Balance window.

  31. Query the City RS PSD Subj NWhable balance.

  32. Click Feeds.

  33. Query for the Resident PSD Bal Adj element.

  34. Enter the following values:

    • Classification: Information

    • Input Value name: Subj Not Whable

    • Add or Subtract: Add

  35. Save your work.

  36. Return to the Balance window.

  37. Query the City RS PSD Subj Whable balance.

  38. Click Feeds.

  39. Query for the Resident PSD Bal Adj element.

  40. Enter the following values:

    • Classification: Information

    • Input Value name: Subj Whable

    • Add or Subtract: Add

  41. Save your work.

  42. Return to the Balance window.

  43. Query the City RS PSD Withheld balance.

  44. Click Feeds.

  45. Query for the Resident PSD Bal Adj element.

  46. Enter the following values:

    • Classification: Information

    • Input Value name: City Withheld

    • Add or Subtract: Add

  47. Save your work.

  48. Return to the Balance window.

  49. Query the PSD Subj NWhable balance.

  50. Click Feeds.

  51. Query for the Resident PSD Bal Adj element.

  52. Enter the following values:

    • Classification: Information

    • Input Value name: Subj Not Whable

    • Add or Subtract: Add

  53. Save your work.

  54. Return to the Balance window.

  55. Query the PSD Subj Whable balance.

  56. Click Feeds.

  57. Query for the Resident PSD Bal Adj element.

  58. Enter the following values:

    • Classification: Information

    • Input Value name: Subj Whable

    • Add or Subtract: Add

  59. Save your work.

  60. Return to the Balance window.

  61. Query the PSD Withheld balance.

  62. Click Feeds.

  63. Query for the Resident PSD Bal Adj element.

  64. Enter the following values:

    • Classification: Information

    • Input Value name: City Withheld

    • Add or Subtract: Add

  65. Query for the Resident PSD Bal Adj element.

  66. Enter the following values:

    • Classification: Information

    • Input Value name: School Withheld

    • Add or Subtract: Add

  67. Save your work.

  68. Return to the Balance window.

  69. Query the School PSD Withheld balance.

  70. Click Feeds.

  71. Query for the Resident PSD Bal Adj element.

  72. Enter the following values:

    • Classification: Information

    • Input Value name: Subj Whable

    • Add or Subtract: Add

  73. Save your work.

  74. Return to the Balance window.

  75. Query the School PSD Withheld balance.

  76. Click Feeds.

  77. Query for the Resident PSD Bal Adj element.

  78. Enter the following values:

    • Classification: Information

    • Input Value name: School Withheld

    • Add or Subtract: Add

  79. Save your work.

  80. Return to the Balance window.

  81. Query the School RS PSD Withheld balance.

  82. Click Feeds.

  83. Query for the Resident PSD Bal Adj element.

  84. Enter the following values:

    • Classification: Information

    • Input Value name: School Withheld

    • Add or Subtract: Add

  85. Save your work.

    Note: You can ignore the School WK PSD Withheld balance.

Example2

  1. Date track to 01-JAN-1951 or any date prior to the date an adjustment is effective but not before 1951.

  2. Navigate to the Element Description form.

  3. Specify the following parameters:

    Parameter Value
    Name Work PSD Bal Adj
    Reporting Name WRK_PSD_BAL_ADJ
    Primary Classification Information
    Type Nonrecurring
    Termination Rule Final Close
  4. Enable Multiple Entries Allowed.

  5. Enable Process In Run.

  6. Save your work.

  7. Click Input Values.

  8. Enter the Input Values as indicated:

    Name Units Sequence Required User Enterable
    Jurisdiction Character 1 Yes Yes
    Subject Whable Money 2 No Yes
    Subject Not Whable Money 3 No Yes
    City Withheld Money 4 No Yes
  9. Save the element as an open link. Costing is not required for this element.

  10. Save your work.

  11. Add Balance Feeds for this element.

  12. Navigate to the Balance window.

  13. Query the City PSD Subj NWhable balance.

  14. Click Feeds.

  15. Query for the RWork PSD Bal Adj element.

  16. Enter the following values:

    • Classification: Information

    • Input Value name: Subj Not Whable

    • Add or Subtract: Add

  17. Save your work.

  18. Return to the Balance window.

  19. Query the City PSD Subj Whable balance.

  20. Click Feeds.

  21. Query for the Work PSD Bal Adj element.

  22. Enter the following values:

    • Classification: Information

    • Input Value name: Subj Whable

    • Add or Subtract: Add

  23. Save your work.

  24. Return to the Balance window.

  25. Query the City PSD Withheld balance.

  26. Click Feeds.

  27. Query for the Work PSD Bal Adj element.

  28. Enter the following values:

    • Classification: Information

    • Input Value name: City Withheld

    • Add or Subtract: Add

  29. Save your work.

  30. Return to the Balance window.

  31. Query the City WK PSD Subj NWhable balance.

  32. Click Feeds.

  33. Query for the Work PSD Bal Adj element.

  34. Enter the following values:

    • Classification: Information

    • Input Value name: Subj Not Whable

    • Add or Subtract: Add

  35. Save your work.

  36. Return to the Balance window.

  37. Query the City WK PSD Subj Whable balance.

  38. Click Feeds.

  39. Query for the Work PSD Bal Adj element.

  40. Enter the following values:

    • Classification: Information

    • Input Value name: Subj Whable

    • Add or Subtract: Add

  41. Save your work.

  42. Return to the Balance window.

  43. Query the City WK PSD Withheld balance.

  44. Click Feeds.

  45. Query for the Work PSD Bal Adj element.

  46. Enter the following values:

    • Classification: Information

    • Input Value name: City Withheld

    • Add or Subtract: Add

  47. Save your work.

  48. Return to the Balance window.

  49. Query the PSD Subj NWhable balance.

  50. Click Feeds.

  51. Query for the Work PSD Bal Adj element.

  52. Enter the following values:

    • Classification: Information

    • Input Value name: Subj Not Whable

    • Add or Subtract: Add

  53. Save your work.

  54. Return to the Balance window.

  55. Query the PSD Subj Whable balance.

  56. Click Feeds.

  57. Query for the Work PSD Bal Adj element.

  58. Enter the following values:

    • Classification: Information

    • Input Value name: Subj Whable

    • Add or Subtract: Add

  59. Save your work.

  60. Return to the Balance window.

  61. Query the PSD Withheld balance.

  62. Click Feeds.

  63. Query for the Work PSD Bal Adj element.

  64. Enter the following values:

    • Classification: Information

    • Input Value name: City Withheld

    • Add or Subtract: Add

    Note: You can ignore the School WK PSD Withheld balance.

Performing Balance Adjustments

Perform the following steps to complete tax balance adjustments.

  1. Define Balance Adjustment elements in the system.

  2. Set up employees in the Oracle HRMS system.

  3. Review tax balances before tax balance adjustment.

  4. Add the Tax Balance Adjustment element(s) through the element entry form if a refund or adjustment of withholdings or liabilities is required.

  5. Add the Tax Balance Adjustment using the Adjust Balance form if the adjustment is not being processed with the payroll.

  6. Review tax balances after tax balances adjustments.

Adjusting Employee Withheld Balances Only

To adjust employee withheld balances only

  1. In the Assignment window, query the employee assignment for which you are entering adjustments to Employee Withheld balances.

  2. Open the Adjust Tax Balances window.

    The window displays the city, state, zip code, and county of the employee's default work location and the default consolidation set for the payroll of the employee's assignment. You can change these defaults if necessary.

  3. For each tax appearing in the Taxes Withheld region, enter the amount of the adjustment.

  4. If you want to cost the balance adjustment, check the Costed check box and select the Costing field.

  5. Use the Cost Allocation key flexfield to enter costing details.

  6. When you complete these entries, save your work.

    The system then updates Employee Withheld balances for the taxes with the amounts entered in the Taxes Withheld region.

Viewing Tax Balances

After running payrolls, you can review online the applicable balances for Federal, state, and local taxes at the level of an individual employee assignment and at the person level for employees with two or more separate assignments. Balances at the person level represent the totals of the balances of each assignment the person has.

You can also review employer tax liabilities.

See: Tax Balances

To view tax balances, use the View Tax Balances window.

To review tax balances

  1. Set your session date to the date at which you want to review tax balances.

    This window displays the current year's tax balances for the dimensions period to date, month to date, quarter to date, and year to date.

  2. Select the GRE responsible for withholding or paying the tax whose balances you are reviewing.

  3. Select the tax whose balances you are reviewing.

    The ER and EE buttons show whether this is tax on employers or employees. If this is a tax for which both employees and employers are liable, choose ER to review balances for the employer liability or choose EE to review balances for employee withholding.

    At the Federal level, both employers and employees make payments for Social Security and Medicare. In some states, both employers and employees are liable for SUI or SDI.

  4. Choose Assignment to see assignment-level balances.

    Choose Person to see person-level balances for employees with more than one assignment.

  5. If the tax selected is at the state level, select the state. The list of states includes all those for which tax records exist for the employee.

    See: Tax Information for an Employee Assignment

  6. If the tax selected is at the local level, select the state and locality.

    Depending on the tax selected, the list of localities includes all counties, cities, or cities and counties within the state for which tax records exist for the employee.

    If the tax selected is a school district tax, the school district designation automatically appears.

  7. To obtain the tax balances, choose Get Balances.

    Balances listed in the Tax Balances region that are not applicable for the selected tax are greyed out. For employee taxes this region displays balances withheld; for employer taxes it displays the employer liability.

Viewing a Tax Balances Summary

To view tax balances from the Main Menu

  1. Select Tax Balances from the main menu.

  2. In the Assignments window, query the assignment that you want to view tax balances for.

  3. Select the assignment and click Balance Summary.

  4. In the Tax Balances Summary window, enter or query the GRE.

  5. Select the appropriate radio button to view taxable balances for the employee (EE) or liability balances for the employer (ER).

  6. Select the appropriate radio button to view balances for the Assignment or the Person.

    Assignment-level balances show only those balances for one employee assignment. Person-level balances depict all balances of the employee's multiple assignments. Selecting the Person disables period to date balance viewing for this reason.

  7. Click on the time dimension(s) you want to view.

  8. Enter the State, County, City, and School District, if applicable.

  9. Click Balances.

    The last payroll action for this assignment or person appears in the Action Type field. The date of this action appears in the action date field. The balance names appear in the Balance field, with the corresponding amounts in the appropriate column(s).

    After displaying balances, if you change any criteria, the Balance region will clear in anticipation of the next view request.

To view tax balances from the Assignment Process window

  1. Select the assignment and click Balances.

  2. Select Tax Balance Summary from the list that appears.

    The appropriate information for the selected assignment defaults into the Criteria region of the Tax Balance Summary window.

  3. Click Balances.

    The last payroll action for this assignment appears in the Action Type field. The date of this action appears in the action date field. The balance names appear in the Balance field, with the corresponding amounts in the appropriate column(s).

    After displaying balances, if you change any criteria, the Balance region clears in anticipation of the next view request.

To view tax balances from the Quick Pay window

  1. Click View Results.

  2. Select Balances Selection from the list that appears.

  3. Select Tax Balances Summary from the next list that appears.

    The appropriate information for the selected person defaults in.

  4. Click Balances.

    The last payroll action for this person appears in the Action Type field. The date of the action appears in the Action Date field. The balance names appear in the Balance field, with the corresponding amounts in the appropriate column(s).

    After displaying balances, if you change any criteria, the Balance region clears in anticipation of the next view request.

Adding New Tax Information for an Existing Geocode

If you want to immediately begin using the new JIT/geocode information delivered in the Vertex monthly updates, you can manually enter the data in the Cities window before receiving and applying the Oracle Quarterly Statutory Update. If you do not intend on using the data before applying the Oracle Quarterly Statutory Update, you do not need to complete this procedure.

To add a new county, school district or head tax for an existing geocode

  1. Query the state in the State Name field, the county in the County Name field and city in the City Name field.

  2. Click View/Update Tax Information to activate the County Tax and City Tax tabs.

  3. Click the County Tax tab to navigate to the County Tax window.

  4. Enter the effective date of the information in the As Of date and click the checkbox under county and/or head tax.

  5. Click the School District tab to navigate to the School District Tax window.

  6. Enter the School District Name and School District Code.

  7. Save your work.

To add a new city, school district or head tax for an existing geocode

  1. Query the state in the State Name field, the county in the County Name field and city in the City Name field.

  2. If there is a single zip or post code for the city, enter the zip code in the Zip Start field and leave the Zip End field blank.

  3. If there is a range of zip codes for the city, enter the first code of the range in the Zip Start field and the last code in the range in the Zip End field.

  4. Click View/Update Tax Information to activate the County Tax and City Tax tabs.

  5. Click the City Tax tab to navigate to the City Tax window.

  6. Enter the effective date of the information in the As Of date and click the checkbox under city and/or head tax.

  7. Enter the School District Name and School District Code.

  8. Save your work.

Workers Compensation

Workers Compensation in Oracle Payroll

For Oracle Payroll users, the payroll run calculates employer WC liability for each employee. At Oracle HRMS installations that do not include Oracle Payroll, it may still be necessary to maintain WC-related information in the HRMS database, for transfer to other systems.

Oracle HRMS allows you to maintain Workers Compensation information for each of your GREs, and for the jobs within them.

At installations including Oracle Payroll, the payroll run calculates the employer/employee liability for Workers Compensation.

Special State Provisions

You can modify the standard functionality of Oracle HRMS to accommodate special state provisions. Your WC insurance carriers can inform you about the rules currently in effect in particular states, and about changes to these rules as they occur.

Payroll Exposure

Overtime Pay and Executive Weekly Maximum

You set a state's rules concerning the inclusion of overtime in payroll exposure and any limit on the inclusion of earnings in payroll exposure, using the Workers Compensation window.

Elements in the Premium Overtime category hold the premium portion of overtime pay. The earnings category of Premium creates a feed to the Overtime Reduction for WC balance. If you use Oracle Payroll Worker's Compensation functionality and you select a category of Premium when you create your overtime element, the premium reduces the Worker's Compensation wages.

Note: This category of payroll exposure only applies when at least one of the calculation methods is Percentage of Subject Earnings.

See: Entering WC Job Codes, Payroll Exposure Rules and Surcharges

Supplemental and Imputed Earnings Types

The inclusion in the payroll exposure of supplemental and imputed earnings also varies from state to state. You maintain information on commonly-occurring state rules regarding the inclusion of various earnings types in the Workers Compensation payroll exposure.

Unique State Rules

Individual states have additional rules they apply to the determination of WC payroll exposure. If you have GREs in these states, you can make modifications to Oracle HRMS to account for such rules. Your WC insurance carrier in a state can supply information about that state's particular rules and regulations.

Related Topics

Setup Steps for Workers Compensation Calculations

Associating WC Codes with Rates

WC Code Overrides

After your setup of WC-related information is complete, you can select and remove WC override codes for individual employee assignments.

Related Topics

Entering a WC Override Code

Default Worker's Compensation Code Mapping

Many states have only one Workers Compensation rate, and for employers in those states with a large amount of job codes, this leads to excessive manual data entry in the Workers Compensation Codes screen. Oracle Payroll allows you to run a process to map all of the available jobs to a single Workers Compensation code.

Use the Default Workers Compensation Code Mapping when you have employees in a state with only one workers compensation code or very few workers compensation codes. You can manually change those employees who are not part of the default.

See Creating Default Workers Compensation Code Mapping

WC Elements and Formulas in Oracle Payroll

Oracle Payroll includes several WC elements:

You can review these elements and formula at any time using the Element window and the Formula window.

The Worker's Compensation elements are created as open links during the installation of Oracle Payroll. For WC reporting, you can retrieve information from the WC elements and report on it in the ways that best suit your enterprise.

Important: You must create Worker's Compensation element links as open links.

The WC Premium Calculation

The WC calculation included in Oracle Payroll does the following:

Related Topics

Setup Steps for Workers Compensation Calculations

Calculating Employer and Employee Contributions

Oracle Payroll supports both employee and employer contributions to Worker's Compensation Insurance.

Decisions Regarding WC Elements and Formulas in Oracle Payroll

User Additions and Modifications

Oracle Payroll's various WC elements and WC formula may be sufficient for your enterprise. However, you may require additional elements and new formulas or formula modifications if your enterprise has:

To develop additional WC elements and formulas, you can borrow features of those already in the system.

Worker's Compensation Assessment Fee

The following three states have a Worker's Compensation Assessment Fee:

You must complete the set up of Worker's Compensation to withhold this employee tax deduction. If you do not use the Worker's Compensation functionality you still need to assign a WC code to all the jobs for the employees in that state. You can assign the same WC code (i.e. 8810) to all the jobs. The application withholds the assessment fee from all employees in that state.

Creating Default Workers Compensation Code Mapping

Oracle Payroll assumes that no jobs are currently mapped to any codes for the state of interest; this prevents the accidental overriding of previously entered job codes.

The system also requires you to enter a code with its corresponding rate into the Workers Compensation Rates screen prior to running the process; this maintains the same validation as the corresponding form.

You request a default Workers Compensation code mapping from the Submit Requests screen.

To create a default Workers Compensation code mapping

  1. Select Set default workers compensation job code from the list in the Name field.

  2. Select the appropriate state in the State field.

  3. Select the appropriate code number in the Workers Compensation Job Code field.

  4. Select OK, then select Submit.

Setup Steps for Workers Compensation Calculations

To set up WC data for a state in which GREs are located

  1. Set up each of your WC insurance carriers in the state as an external organization with the classification Workers Compensation Carrier. For a monopolistic state, there is only one carrier.

    See: Creating an Organization, Oracle HRMS Enterprise and Workforce Management Guide

  2. For each carrier in the state, associate the state work classification codes with the carrier's default rates and any special rates applicable at particular locations.

    See: Associating WC Codes with Rates

  3. For each GRE in the state, identify the WC carrier and enter the Experience Modification rate. If applicable, also enter the Employer's Liability and Premium Discount rates.

    Enter all rates as positive numbers, never as negative numbers.

    Enter an Employer's Liability surcharge of 20% as 120 (120% of the base premium). Enter a 10% Premium Discount as 10.

    Note: The Employer's Liability rate always increases the premium amount; the Premium Discount rate always decreases it. The Experience Modification rate can either increase or decrease the premium. To enter it correctly, check what it is intended to do for this GRE.

    See: Entering Federal Tax Rules for GREsand Entering State Tax Rules for a GRE

  4. Define calculation methods, rates for each job code, and period if applicable.

    See Calculating Employer and Employee Contributions

  5. Ensure that you have set up each work location in the state for which a WC carrier uses rates other than its default rates.

    See: Setting Up Site Locations, Oracle HRMS Enterprise and Workforce Management Guide

  6. Associate your jobs with the state work classification codes. At this time, also enter:

    • Executive Weekly Maximum if one exists for this state

    • State's rules regarding inclusion of overtime earnings and overtime hours in the payroll exposure

    • Any standard surcharges in use in this state

    See: Entering WC Job Codes, Payroll Exposure Rules and Surcharges

  7. If you are using Oracle Payroll to calculate WC liability, for each state in which you are liable for WC payments, check the categories in the classifications Supplemental Earnings and Imputed Earnings that represent earnings included in employees' payroll exposure.

Exempting Employees from Workers Compensation

To exempt employees from workers compensation withholding at the assignment level

  1. Enter the employee tax information form.

  2. Check the WC Exempt check box in the state area.

    This exempts the assignment in the state currently displayed in the state area.

    Note: The Worker's Compensation state is the same as the SUI state; changing the workers compensation state changes the SUI state.

Associating WC Codes with Rates

For a given state and each Workers Compensation insurance carrier you use in the state, associate the state's WC codes with a carrier's default rates. The default rates are those that apply when no location is specified. If the carrier applies special rates to one or more work locations within the state, enter these rates by carrier and location.

To associate codes with rates, use the WC Codes and Rates window.

Prerequisites

To enter WC work classification codes and rates

  1. Query the state and carrier for which you are entering codes and rates. To enter rates for a particular location, also query the location. If you leave the Location field blank, the rates you enter are the default rates for this carrier and state.

  2. Enter each code and its associated rate in the Code and Rate fields. When finished, save your work.

Entering WC Codes, Payroll Exposure Rules, and Surcharges

Make these entries for a state using the Workers Compensation window.

Prerequisite

To enter WC codes, payroll exposure rules and surcharges:

  1. Query the state in the Name window.

  2. If an Executive Weekly Maximum exists for this state, enter it.

  3. In the Codes for Jobs region, select your jobs and their codes.

  4. In the Calculation Region, select this state's rules for the inclusion of overtime earnings in employees' payroll exposure. To include earnings for overtime paid at premium rates check the Premium Time box, and to include overtime paid at straight time rates, check the Straight Time box.

    If your enterprise uses terms other than Premium Time and Straight Time to designate types of overtime pay, you can change to your terms using the Lookup window. The Lookup type is US_WC_OVERTIME_CATEGORY.

  5. In the Surcharges region, enter any standard surcharges this state applies to the WC calculation. For each surcharge:

    1. Enter its name, which must be unique for the state.

    2. Select its formula position (the point at which it applies to the WC premium calculation). Three possible selections exist:

      • After Experience Modification - Charge 1 (applied immediately after the Experience Modification Rate)

      • After Experience Modification - Charge 2 (applied immediately after Charge 1. This selection is available only after entry of a surcharge with the formula position After Experience Modification - Charge 1).

      • After Premium Discount - Charge 1 (applied immediately after the Premium Discount Rate).

    3. Enter the rate for the surcharge as a positive number for a rebate or a negative number for an additional charge.

      Enter -10 to apply a rebate of 10% to the premium, or 10 to apply an additional charge of 10%.

    4. In the Accumulate field, select Yes or No.

      Select Yes for the rebate or additional charge to be calculated and immediately applied to the running total of the premium.

      Select No for the rebate or additional charge to be calculated, held separately and only added to the premium calculation when it is complete.

  6. Save your work.

Entering a WC Override Code

You may be required to enter a WC code for an employee that overrides the default code associated with his or her job. This situation can arise when, for example, workers in a relatively high-risk job classification begin work at a job site, and the risk of injury for any worker at the site is judged to increase.

Enter WC code overrides in the window GREs and Other Data.

Prerequisites

To enter a WC override code

  1. In the WC Override Code field, select the override code.

    Note: If no list of codes is available, check that all the prerequisites for override code selection are in place.

DCIA Garnishment

DCIA Garnishment

The Debt Collection Improvement Act of 1996 (DCIA) authorizes the garnishment of the wages of delinquent debtors by Federal agencies. This is known as Administrative Wage Garnishment (AWG).

AWG differs from court-ordered wage garnishment in that the collecting agencies do not need to obtain a court judgement to initiate garnishment. Instead:

In the case that garnishment is necessary, at the request of the Federal agency, the employer can withhold up to 15% of the debtor's disposable income and transmit those moneys to the agency. This is limited to 25% of disposable income when combined with other involuntary deductions. You calculate disposable income for DCIA garnishments as gross minus deductions required by law, and deductions for health insurance

Implementing DCIA Garnishments

To define the elements eligible for garnishment

You must define which earnings elements are eligible for DCIA wage garnishment.

  1. Navigate to the Earning Rules window (Total Compensation | Wage Attachment | Earning Rules).

  2. In the DCIA column, select the check boxes for the elements you want to make eligible.

  3. Save your work.

To apply a DCIA wage deduction to an employee

  1. Open the Deductions window (Total Compensation | Basic | Deductions).

  2. Specify an appropriate Name, Reporting Name, and Description.

  3. Select "Involuntary Deduction" as the Classification.

  4. Select the element's category as "Debt Collection Improvement Act".

  5. Specify any other needed parameters, and save your work.

  6. Attach this element to the appropriate employees at the assignment level.

Planning Your End of Period Processing

End of Year Processing

For the purposes of reporting taxes and wages to the federal and state/local governments, Oracle Payroll takes a snapshot in time of all of the employee balances in a given year and GRE, and archives the balances for paper and magnetic reporting. This process allows you to reissue government mandated reports or duplicate W-2 forms on an as needed basis.

End of year processing entails the following activities:

  1. Running the pre-archival reports.

  2. Fixing balance problems.

  3. Running the State Periodic Wage Listing (Enhanced) process. Note that this is in reference to fourth quarter filing as technically it is a not a year end but a quarter end activity.

    Important: Use the State Periodic Wage Listing (Enhanced) process to generate the magnetic output files needed for submitting state unemployment reports to the applicable state agencies as per each state's requirements. The State Periodic Wage Listing (Enhanced) (SPWL) process generates State Quarterly and Monthly Wage listing reports. This process uses the Oracle XML Publisher technology to generate the reports and there is only one concurrent program to run both the quarterly and monthly processes. See: Running the State Periodic Wage Listing (Enhanced) Process

  4. Running the Year End Pre-Process.

  5. Running the post-archival reports.

  6. Fixing any remaining balance problems and retrying or rerunning the Year End Pre-Process.

  7. Generating government mandated reports.

  8. Generating magnetic media for electronic submission.

You must complete each end of year processing phase in the correct order. For organizations with Multiple GREs, complete each phase for all GREs in your organization before proceeding to the next phase.

Note: You must run any necessary year begin processes between running the last payroll of the year and the first payroll of the next year.

State Formats for Report Submission

This topic provides information for determining state requirements for report submissions, for example for submitting state quarterly, 1099, and W-2 reports.

You use the following URL to find accepted media types and file specifications for each state. The URL provides a directory of official state, county and city government websites.

http://www.statelocalgov.net/index.cfm

Year End Return Due Dates

State and Federal jurisdictions have the following due dates for W-2 magnetic media and paper submission:

Federal Returns

Federal Return Paper Date Due Electronic Date Due
Paper W-2s due to employees Jan. 31 (postmarked by) Same
Federal W-2 magnetic media United States and Puerto Rico
United States and Puerto Rico
Jan. 31 Jan. 31
Paper 1099-Rs due to retirees Jan. 31 Same
1099-R magnetic media Feb. 28 Mar 31

Note: Annual W-2 Reconciliation Return

By the last day of February, employers must file Form WR, Annual Withholding Reconciliation Report, for the preceding tax year. The form is used to reconcile amounts withheld from employees with taxes remitted. Employers are not required to submit copies of Forms W-2 with Form WR.

State Returns

This list includes the names of all state returns. The State W-2 Magnetic Media process produces appropriate information for each return if W-2 information is required. All due dates listed below are for Electronic Filing, unless otherwise noted.

State Return Name and Date Due
Alabama A-3 due Jan 31
Alaska N/A
Arizona A-1R due Jan. 31
Arkansas AR-3MAR (monthly filers) due Jan. 31
AR-3AR (annual filers) due Jan. 31
California DE-9 (no W-2 Forms required) due Jan. 31
No additional CA year end processing required, just SQWL
Colorado DR-1093 due Jan 31
Connecticut CT-W3 due Jan 31
Delaware W-3 not required when filing online.
W-2 due Jan 31
District of Columbia FR-900B due Jan. 31
Florida N/A
Georgia G-1003 transmitted with W-2 (paper or magnetic media), due Jan. 31
Hawaii HW-3 due Jan. 31
Idaho 967 due Jan. 31
Illinois For calendar year 2017 and forward, copies of W-2s must be submitted to the Illinois Department of Revenue no later than January 31 of the year following the year of the withholding.
Indiana WH-3 due Jan. 31
Iowa Annual Withholding Agent VSP Report
W-2 due Jan. 31
Kansas KW-3 due Jan. 31
Kentucky K-3 due Jan. 31
Louisiana L-3 due Jan. 31
Maine W-3-ME due Jan. 31
Maryland MW508 due Jan. 31
Massachusetts File electronically with DOR W-2 by Jan. 31
Michigan 447 due Jan. 31
Minnesota W-2 due Jan. 31
Mississippi Electronically with W-2, due Jan. 31
Missouri MO-W-3 due Jan. 31
Montana MW-3 due Jan. 31
Nebraska W-3N due Jan. 31
Nevada N/A
New Hampshire N/A
New Jersey NJ-W-3M due Jan. 31
New Mexico RPD-41072 due Jan. 31 with W-2 forms
New York Does not require employer to submit copies of Form W-2
New York's annual wage and withholding information reported on Section C of NYS-45 portion of final quarterly return for year
North Carolina NC-3 with W-2 forms due Jan. 31
North Dakota F-307 due Jan. 31
Ohio IT-941 without W-2 forms due Jan. 31
IT-3 with W-2 forms due Jan. 31
Oklahoma W-2 due Jan. 31
Oregon Form WR due Jan. 31
Pennsylvania REV-1667 due Jan. 31
Puerto Rico Jan. 31
Rhode Island RI-W3 due Jan. 31
South Carolina WH-1606 due Jan. 31
South Dakota N/A
Tennessee N/A
Texas N/A
Utah TC 941-R due Jan. 31
Vermont WH-434 due Jan. 31
Virginia VA-6 due Jan 31
Washington N/A
West Virginia I.T.-103 due Jan. 31
Wisconsin WT-7 due Jan. 31
File electronically with DOR W-2 Jan 31
Wyoming N/A

Year Begin Processing

Year Begin Processing

Oracle Payroll provides the Year Begin Process for you to clear the previous year's legislative configurations and prepare for the next year. Run this process after you run the last payroll of the year and before you run the first payroll of the next year.

Note: You cannot rollback The Year Begin process.

The "Year Begin Process" performs the following operations:

Clear Wisconsin EIC Clears the Wisconsin EIC filing status and EIC Qualifying Children information for the specified year.
Indiana overrides Clears the Indiana Override Address for the specified year.
Indiana EIC Removes the Indiana EIC filing status for the specified year.
SUI wages base overrides For any state that has a SUI wage base override, this removes the override for the specified year.
Head tax exemptions For any state that has an annual limit for a Head Tax, this clears any exemptions applied to employees for the specified year.
Federal EIC filing status Removes the Federal EIC filing status for the specified year.

If you have employees that transfer to a different work state during the tax year, it is mandatory you run the Year Begin Process to clear the SUI Base Override field. The SUI Base Override field is automatically populated when there is a change to the employees work state.

The Location report shows employees who had a work location taxation override in Taxation Location (IN) at the assignment level under Statutory Information in the prior tax year.

Note: If there are no employees who fit this criterion, the report output will be blank.

The Address report lists employees who had a Taxation Address override (Employee Address form) for the prior tax year.

For information on running the Year Begin Process, see: Running the Year Begin Process

Pre-Archival Reports

Run the following reports prior to running the fourth quarter State Periodic Wage Listing' (SPWL) or the Year End Pre-Process. Pre-Archival reports are organized into three categories: Diagnostic, Balancing, and Reconciliation. Depending upon the returns of these reports, you may have to make adjustments to various balances.

Important: Use the State Periodic Wage Listing (Enhanced) process to generate the magnetic output files needed for submitting state unemployment reports to the applicable state agencies as per each state's requirements. The State Periodic Wage Listing (Enhanced) (SPWL) process generates State Quarterly and Monthly Wage listing reports. This process uses the Oracle XML Publisher technology to generate the reports and there is only one concurrent program to run both the quarterly and monthly processes. See: Running the State Periodic Wage Listing (Enhanced) Process

Diagnostic Reports

Before running Year End Processing, use the following reports to identify data issues.

Unacceptable Tax Balance Report Identifies potentially incorrect withheld amounts for FIT, SIT, LIT, Social Security, Medicare, FUTA, SUI, and SDI taxes and identifies other potential balance problems.
Invalid Address Report Lists people with invalid primary addresses.
Over Limit Report Identifies employees who have had one or more of the following:
  • Taxes withheld in excess of the legal limit

  • Wages in excess of the wage limit

  • Salary deferrals in excess of the annual limit

A02 File generated by the State Periodic Wage Listing (Enhanced) Lists all exception employee details (i.e. those that are excluded from reporting in the MF file due to reasons such as negative wage amounts, etc). File extension is '.a02'.

Oracle provides additional diagnostic tools to gather information and perform a check of the data required to successfully run year end processes. The diagnostics are available to all customers who have access to My Oracle Support. The infrastructure is part of the standard E-Business Suite version 11.5.9 and higher. To use the diagnostics, install an additional patch available from My Oracle Support containing the actual diagnostic tests. The tests relevant for year end include:

Balancing Reports

Check employee balances before you submit your reports to federal, state, and local authorities. Before running the Year End Pre-Process, run the following balance reports:

GRE Totals Report Helps you to balance W-2s. It lists totals for selected or all GREs.
Tax Remittance Reports Shows federal, state, and local tax balances summarized for a particular range of check dates.

Reconciliation Reports

Use the following reports to further pinpoint balance problems for individual employees.

Employee Run Results Report Identifies balance problems for individual employees.
Payroll Activity Report Shows employee and group-level payroll details for pay runs, quick pays, balance adjustments, balance initializations, voided payments, and reversals. Use this report to identify employees with selected transactions in a given time frame. For example, you could get all employees who had balance adjustments effective between October 1 and December 31.
Discoverer Business Areas/Folders

Note: Customers are responsible for creating their own workbooks. Oracle Applications only certifies workbooks for the desktop version of Discoverer.

Assists in diagnosing and balancing issues. Relevant business areas/folders include:
  • Business Area(s):

    • HRMS > Administration > Oracle Payroll (US)

  • Folder(s):

    • Employee W2 Federal Details

    • Employee W2 State Details

    • Employee W2 Locality Details

    • Employee W2 Box 12 Details

    • Employee W2 Box 14 Details

Clear SUI Wage Base Overrides Process

This process checks that proper SUI tax records exist. It does this by:

  1. End-dating the current state tax records of all employees with SUI Base override amounts with the end date of December 31 of the previous year

  2. Creating a new state tax record without the SUI Base override amount

Resolving Unacceptable Balances

Use the Unacceptable Tax Balance and Payroll Exception reports in tandem to troubleshoot your payrolls for unacceptable balances.

The Payroll Exception Report, see: Payroll Exception report is a global feature that you can use to compare and report on any balance value or exception in a payroll run. Use it to identify employees who live in states with no SIT (such as Texas) but have SIT balances. The Payroll Exception report request set has additional Exception Group and Exception Reports to assist you in reviewing the required changes and validating the results, since many of these balances are not visible using standard reporting.

The Unacceptable Tax Balance, see: Unacceptable Tax Balance report identifies employees with potential incorrect withheld amounts for various taxes.

Unacceptable Tax Balance Report

The Unacceptable Tax Balance report identifies employees with potential incorrect withheld amounts for the following taxes:

This report identifies Quarter to Date or Year to Date balances that are different than the calculated taxes as of a specific date. When the process finds a balance error, it adds the offending balance name and value to the report beneath the employee's name, along with a message identifying the problem. The following warning messages can appear on the report:

Tax Type Possible Warning Messages
FIT FIT gross earnings < FIT reduced subject whable
FIT FIT reduced subject whable = 0 and FIT withheld > 0
FIT FIT subject whable <= 0 and FIT withheld > 0
FIT FIT subject whable < FIT reduced subject whable
FIT FIT gross earnings not = Medicare taxable + Section 125 pretax + Dependent care +401k pretax
FUTA FIT gross earnings < FUTA taxable
Medicare FIT gross earnings < Medicare EE taxable
Medicare Medicare EE withheld not equal to Medicare ER liability
Medicare FIT gross earnings not equal to Medicare taxable + Section 125 pretax + Dependent care +401k pretax
Social Security FIT gross earnings < SS EE taxable
Social Security SS EE withheld not equal to Social Security ER liability
SIT SIT subject whable <= 0 and SIT withheld > 0
SIT FIT subject whable <= 0 and SIT withheld > 0
SIT SIT subject whable < SIT reduced subject whable
SIT FIT subject < SIT subject
SIT Ensure SIT Withheld = 0 when State has no SIT withheld rule
SUI SUI EE/ER subject whable <=0 and SUI EE/ER witheld > 0
SUI FIT gross earnings < SUI ER taxable
SUI FIT subject whable <= 0 and SDI EE/ER withheld > 0
SDI FIT gross earnings < SDI EE taxable
SDI SDI EE subject whable = 0 and SDI EE withheld > 0
SDI FIT subject whable <= 0 and SDI EE/ER withheld > 0
LIT LIT subject = 0 and LIT withheld > 0
LIT FIT subject whable <= 0 and LIT withheld > 0
LIT LIT subject whable < LIT reduced sbject whable

The following error messages highlight issues with incorrect balance loads or balance adjustments:

Reporting FIT Exempt from Wage Accumulation

The Unacceptable Tax Balance program reports the Federal Income Tax (FIT) wages as zero, if you have selected the FIT Exempt from Wage Accumulation check box for an employee at the assignment level or selected Yes in the FIT Exempt from Wage Accumulation (PR) field in the Federal Tax Rules window for a Puerto Rico employee. As the Unacceptable Tax Balance report uses FIT wages as the base to validate other wages, the report skips for such employees and reports that manual reconciliation is required.

Unacceptable Tax Balance Report Sort Options

You organize the Unacceptable Tax Balance Report according to user-defined criteria or sort options. Oracle Payroll does not require you to use sort options to generate your Unacceptable Tax Balance Report, but they are the best way to configure the report to your specific needs. You can sort the report by any three of the following options:

Note: You cannot choose to sort by Social Security Number and then Employee Name. If you select Social Security Number as a sort option, Employee Name does not appear in the List of Values for the remaining sort options.

The sort options are hierarchical in nature. Making a selection to the Sort Option One field enables Sort Option Two. Making a selection to the Sort Option Two field enables Sort Option Three.

If you do not select any sort options, the report uses Organization and Employee Name as the default.

Example of Sort Options

The following is an example of how to use sort options to customize the Unacceptable Tax Balance Report.

If you want to create an Unacceptable Tax Balance Report sorted by Organization, Location, and Employee Name:

  1. Enter Organization into the Sort Option One field.

  2. Enter Location into the Sort Option Two field.

  3. Enter Employee Name into the Sort Option Three field.

Using these Sort Options, Oracle Payroll generates the report listing each employee by location within each organization for the selected GRE or business group.

Note: The application nests the sort options. Using the previous example, if you change Sort Option Two from Location to Employee Name, the change automatically clears Sort Option Three.

Sort Options and Report Layout

When printed, the Unacceptable Tax Balance Report inserts a page break between each selected sort option, with the exception of Employee Name or Social Security Number.

For Example, if you choose Organization, Location, and Employee Name as sort options, the report contains a page break every time the Organization or the Location changes. The report does not have page breaks between the individual employees.

Unacceptable Tax Balance Report Parameters

The following parameters exist for the Unacceptable Tax Balance Report:

As of Date (required) Last date you want the report to include. The Unacceptable Tax Balance Report will check balances between January 1 and the As of Date, or the start of the quarter and the As of Date. The balance dimension you select will control the starting date of the report.
Balance Dimension Dimension you want to report on:
  • (quarter-to-date): The report includes balances accumulated from the start of the quarter to the As of Date.

  • (year-to-date): The report includes balances accumulated from January 1 to the As of Date.


If you leave this field blank, the report uses YTD as the Balance Dimension.
GRE(required) GRE you want included in the Unacceptable Tax Balance Report.
Selection Criteria Type To restrict the report to a specific organization or location, select the appropriate value. If you select Organization, the Organization field becomes active. If you select Location, the Location field becomes active. If you leave this field blank, the report includes all organizations and locations.
Organization If you have selected Organization in the Selection Criteria field, choose an organization from the List of Values.
Location If you have selected Location in the Selection Criteria field, choose a location from the List of Values.
Tax Type Limits the report to a specific type of tax or leave this field blank to include all Tax Types (FIT, SIT, LIT, Social Security, Medicare, FUTA, SUI, and SDI) in the report.
Tax Type State This field is disabled unless you select a state-level tax (SUI, SDI, or SIT) in the Tax Type field.
Select a value to limit this report to a specific state, or leave the field blank to include all states applicable to the selected Tax Type in the report.
Balance Verification SDI EE Rate To override the system-defined Employee SDI rate, enter a new rate into the field; otherwise, leave the field blank. This field accepts values between 0 and 100.
Do not use this field unless you have selected a state in the Tax Type State field.
Balance Verification SDI ER Rate To overrides the system defined Employer SDI rate, enter a new rate into the field, otherwise leave the field blank. This field accepts values between 0 and 100.
Do not use this field unless you have selected a state in the Tax Type State field.
Sort Options There are three fields for sort options. See the Sort Options section for more information on how to properly use these parameters.
If you do not select any sort options, the report uses Organization and Employee Name as the default.

Unacceptable Tax Balance Report Output

The parameters selected control the printing of the Unacceptable Tax Balance Report. The first page of the report displays the Report Parameters. The report prints in landscape fashion and is designed to fit on 8.5" x 11" paper.

Employee Self Service W-4 Checking

Through Oracle Payroll and Oracle Self Service, you can check the changes employees make to their W-4.

Tax Form Audit report This report checks the changes employees make through Self Service.
Tax Form Exceptions report This report checks for employees who selected 10 or more exemptions.

Running the Year Begin Process

Run the Year Begin Process from the Submit Requests window.

To run the Year Begin Process

  1. In the Name field, select Year Begin Process from the List of Values.

  2. Click in the Parameters field if the Parameters window does not automatically appear.

  3. Enter the upcoming year in the Parameters window.

  4. Select 'Yes' for the appropriate year begin operations you wish to perform.

  5. Click OK, and then Submit.

Running the Unacceptable Tax Balance Report

Run the Unacceptable Tax Balance Report from the Submit Requests window.

To run the Unacceptable Tax Balance Report

  1. In the Type field, select Request.

  2. In the Name field, select Unacceptable Tax Balance from the List of Values.

  3. Click in the Parameters field if the Parameters window does not automatically appear.

  4. Select the parameters for the report. See: Unacceptable Tax Balance Report Parameters section

  5. Click OK to close the Parameters window.

  6. In the Print Options region, select the number of copies you want to print.

  7. In the Printer field, select a printer or accept the default.

  8. In the Run Options region, select any run options and click Submit.

    Navigate to the View Requests window to view the Report.

Running the Tax Form Audit Report

You can run the Tax Form Audit report at the state, federal, or state and federal jurisdiction levels. It searches the pay_stat_trans_audit table for any W-4 changes made between the specified date ranges.

This report returns details of changes made through the Self Service module only.

To run the Tax Form Audit report

  1. Select Tax Form Audit Report in the Name field.

  2. Click in the Parameters field if the Parameters window does not automatically appear.

  3. Specify start and end dates for the report.

  4. Choose a jurisdiction level.

  5. Click OK, and then Submit.

Running the Tax Form Exceptions Report

You can run the Tax Form Exceptions report at the state, federal, or state and federal jurisdiction levels. It searches the pay_stat_trans_audit table for any employees who have claimed 10 or more exemptions during the specified date ranges and returns details of each employee. It returns details of changes made through the Self Service module only.

To run the Tax Form Exceptions report

  1. Select Tax Form Exceptions Report in the Name field.

  2. Click in the Parameters field if the Parameters window does not automatically appear.

  3. Specify start and end dates for the report.

  4. Choose a jurisdiction level.

  5. Click OK, and then Submit.

Running the Invalid Address Information Report (US)

This report lists people with invalid primary addresses (for example, addresses that are non-contiguous, non-GEO code acceptable, or that do not fully cover a person's employment).

If you installed the non-mandatory North American Reporting Patch, version 1, this report can also check residence address length to ensure it complies with Form W-2's format requirements.

Note: You can also use the "HR: US Address line length" profile option name to set a limit to the length of addresses you enter in Oracle HR.

Run this report in the Submit Request window.

To run the Invalid Address report

  1. Select the report name in the Name field.

    The Parameters window opens.

  2. Enter the range of dates (start and end dates) within which to the display people with invalid addresses.

  3. Select an individual GRE, or leave this field blank to include all GREs in the results.

  4. If you want to check for address length, select Length from the Additional Verification field and specify a character length in the Line Length field.

  5. Click OK, then Submit.

Over Limit Reporting

Over Limit Report

The Over Limit Report identifies employees who have taxes withheld in excess of the legal limit. This report checks the following balances for compliance:

Run the Over Limit Report as of a specific date either for a single organization or location within a GRE or business group, or for all of the organizations or locations in a GRE or business group. You report on a single type of balance or include all of the balances in the report.

Note: Once you identify the corrections needed, adjust the necessary employee balances to comply with the legal limit.

Over Limit Report Sort Options

You organize the Over Limit report according to user-defined criteria or sort options. Oracle Payroll does not require you use sort options to generate the Over Limit Report, but they are the best way to configure the report to your specific needs. You can sort the report by any three of the following options:

Note: You cannot choose to sort by Social Security Number and then Employee Name. If you select Social Security Number as a sort option, Employee Name does not appear in the List of Values for the remaining sort options.

The sort options are hierarchical. Making a selection to the Sort Option One field enables Sort Option Two. Making a selection to the Sort Option Two field enables Sort Option Three.

Example of Sort Options

The following is an example of how to use sort options to customize the Over Limit Report.

If you want to create an Over Limit Report sorted by Organization, Location, and Employee Name:

  1. Enter Organization into the Sort Option One field.

  2. Enter Location into the Sort Option Two field.

  3. Enter Employee Name into the Sort Option Three field.

Using these Sort Options, Oracle Payroll generates the report listing each employee by location within each organization for the selected GRE or business group.

Note: The sort options are nested. Using the previous example, if you change Sort Option Two from Location to Employee Name, the change clears Sort Option Three.

Sort Options and Report Layout

When printed, the Over Limit Report inserts a page break between each selected sort option, with the exception of Employee Name and Social Security Number.

Over Limit Report Parameters

The following parameters exist for the Over Limit Report:

As of Date (required) Enter the last date you want the report to include. The Over Limit report checks for balances over the limit between January 1 and the As of Date. You run the Over Limit Report only for the year selected in the As of Date parameter.
The report performance is optimal if you select a date in the current pay period.
Government Reporting Entity Select the GRE to include in the Over Limit Report.
If you leave this field blank, the report includes all valid GREs in the business group.
Selection Criteria To restrict this report to a specific organization or location, select the appropriate value. If you leave this field blank, all organizations and locations are included in the report.
Organization Name If you selected Organization in the Selection Criteria field, choose an organization from the list.
Location Name If you selected Location in the Selection Criteria field, choose a location from the list.
Tax Type Select from the list of limit types to report on a single type of balance. If you leave this field blank, all of the balances are included in the report.
Sort Options If you do not select any sort options, the report uses Employee Name as the default.

Over Limit Report Output

You print the Over Limit Report using the selected parameters in landscape format to fit on 8.5" x 11" paper. If you made choices in the Selection Criteria field or the Sort Options fields, this information appears in the heading of the report.

The Over Limit Report shows only those employees with balances that are over the limit and need correction. If you run the report, and no employees have balances over the limit, then the report returns the message, "No employee found". If the Over Limit Report contains information on a GRE that is a part of a tax group, then the name of the tax group also appears on the report, and the reported balances for the tax group are limited to Social Security and FUTA.

Running the Over Limit Report

Run the Over Limit Report from the Submit Request window.

To run the Over Limit Report

  1. In the Name field, select Over Limit Report from the list.

  2. Click in the Parameters field if the Parameters window does not automatically appear.

  3. Select the parameters for the report. See: Over Limit Report.

  4. Click OK to close the Parameters window.

  5. In the Print To field in the Submit Request window, select a printer or accept the default.

  6. Click the Options button to enter print and run options for the report.

  7. Click Submit.

    Navigate to the View Requests window to view the Over Limit Report.

Month and Quarter End Processing

Electronic Media State Quarterly or Monthly Wage Listings

For each state to which you submit quarterly wage listings using Oracle Payroll, you must identify a GRE with employees in that state as a transmitter of the wage listing file.

In addition, for those states that do not accept quarterly wage listings in EFW2 format, you must specify the following:

Note: Many states' layout for diskette differ from those for tape. Oracle Payroll's seeded format follows the tape format.

Refer to State Formats for Report Submission to determine the supported reporting formats for your state(s).

State Periodic Wage Listing (Enhanced) Process

Use the State Periodic Wage Listing (Enhanced) process to generate the magnetic output files needed for submitting state unemployment reports to the applicable state agencies as per each state's requirements. The State Periodic Wage Listing (Enhanced) (SPWL) process generates State Quarterly and Monthly Wage listing reports. This process uses the Oracle XML Publisher technology to generate the reports and there is only one concurrent program to run both the quarterly and monthly processes. See: Running the State Periodic Wage Listing (Enhanced) Process

The following processes are related to the State Periodic Wage Listing (Enhanced) process:

State Periodic Wage Listing (Enhanced) Magnetic Media Output Files

When the State Periodic Wage Listing (Enhanced) process is run, the process generates .a02 and .a03 files for all states to help identify employees who are reported and not reported.

The State Periodic Wage Listing (Enhanced) process produces the following output files:

.mf Flat file you send to the appropriate state tax agency.
This output file can be folded at the end of the applicable record length so that appropriate line feeds/carriage returns are added to the magnetic file (mf) output without any manual intervention being required. The 'fold' command is available in the SPWL process is available for all the states. The value selected for the 'Fold' parameter in the State Periodic Wage Listing (Enhanced) process determines whether the output file will be folded. If the value selected is Yes, then the output file will be folded. If No is selected, then the output file will not be folded.
.a01 Totals for Tax withheld and Wages reported per Government Reporting Entity (GRE). This file is a PDF file.
.a02 Exception file.
You open this CSV file in a spreadsheet. If the process detects errors, they appear only in this file. This file contains the RS (State Record) information that errored. A successful process with no errors results in an empty .a02 file.
.a03 Audit file.
You open this CSV file in a spreadsheet. If the file is large you can split it into smaller files. This file contains the complete RS (State Record) information
.tsv Tab separated text file.
This file is generated only if the report is run for the Pennsylvania (PA) state.

Multiple Worksite Reporting

The Multiple Worksite Report (MWR) collects information showing the distribution of the employment and wages of business establishments by industry and geographic area.

File the MWR on a quarterly basis if:

Note: Your define your primary location as the one with the greatest number of employees.

The MWR is a Federal level report. The Federal BLS receives the report you submit and then distributes the compiled information to the individual US states, District of Columbia, and the Territories of Puerto Rico and the US Virgin Islands. The states disaggregate the data below the county level for more extensive and detailed analysis of business and economic conditions within their borders, including local and regional employment totals. The states use the data to ensure an equitable distribution of Federal funds through grant programs that use county economic indicators as a basis for allocations. No other sources are available to obtain this information.

By following this model, Oracle's Multiple Worksite Report for SPWL Process provides you with the means to report to only a single source rather than having to run multiple MWRs and filing them with their individual states. See: Multiple Worksite Report for SPWL Process

Maintaining Data for SPWL Processes

Entering S Record Data for Employees

Most states require some basic data on the Employee Wage (S) records of the state wage listings. Additionally, Alaska, California, and Missouri have state-specific requirements.

Use the State Periodic Wage Listing (Enhanced) process to generate the magnetic output files needed for submitting state unemployment reports to the applicable state agencies as per each state's requirements. The State Periodic Wage Listing (Enhanced) (SPWL) process generates State Quarterly and Monthly Wage listing reports. This process uses the Oracle XML Publisher technology to generate the reports and there is only one concurrent program to run both the quarterly and monthly processes. See: Running the State Periodic Wage Listing (Enhanced) Process

To enter data for S records of state quarterly wage listings, query the employee in the Person window, go to the Assignment window, and access the Statutory Information tabbed region.

To enter data for a GRE's S records

  1. In the Assignment window, select the Statutory Information tabbed region.

  2. Click inside the field to open the GREs and Other Data window.

  3. Scroll down this window to the field Reporting Establishment.

  4. Specify the fields required for SQWL generation.

    See: Entering Additional Assignment Details (Assignment Window), Oracle HRMS Workforce Sourcing and Deployment Management Guide

To enter California-specific SPWL data

  1. In the Assignment window, click Others.

  2. Select Extra Information.

  3. Select State Wage Plan Codes extra information type.

  4. Click Details.

  5. Enter the Start Date.

  6. Select State Code CA from the list.

  7. Enter your State Employer Account Number.

  8. Select the correct wage plan for the employee in the tax type field:

    A SUI only
    J SDI without UI
    L Voluntary DI
    P No Voluntary or State UI or DI
    R SUI with religious exemption for DI
    S SUI and SDI
    U Voluntary DI and SUI

    Note: If there are employees with multiple assignments with multiple wage plan codes associated with those assignments, then they will be reported in all applicable mf/XML output files. It is important to note that Person level Wages will be reported in each one of these output files. Further, in such cases, a warning message will be displayed in the audit detail report (a03) stating: 'Warning: This person has potentially overstated wages due to having Multiple Assignments with different wage plan codes'.

To enter District of Columbia (DC)-specific SPWL data

  1. In the People window, click Others.

  2. Select Extra Information.

  3. Select SQWL/SPWL Reporting Information.

  4. Select the appropriate value in the 'Owner/Officer Relationship (DC) field to report the Owner/Officer relationship to the District of Columbia's Department of Employment Services (DC DOES). The following values are available. The Default is "0" for all employees.

    1. 0 - Worker/Employee

    2. 1 - Owner or Officer

    3. 2 - Spouse of Owner or Officer

    4. 3 - Parent/Grandparent or Owner or Officer

    5. 4 - Child of Owner or Officer

    6. 5 - Sibling of Owner of Officer

    7. 6 - Board Member

To enter Maryland (MD)-specific SPWL data

  1. In the People window, click Others.

  2. Select Extra Information.

  3. Select SQWL/SPWL Reporting Information.

  4. Select the appropriate value in the Owner/Officer Relationship (MD) field to report the Owner/Officer relationship to the Maryland Department of Labor, Licensing and Regulations (DLLR) and to comply with the Unemployment Insurance (UI) system's CSV reporting format for the state SPWL report. The following values are available.

    • Employee

    • Owner/Officer

Additional Steps to Report California Retiree Payments to the State of California

There are additional settings that need to be configured at the GRE level if there is a need to comply with properly reporting California Retiree payments to the State of California either to:

  1. In the Organization window, query the GRE for which to enter SQWL record data (if it does not already appear there).

  2. With Government Reporting Entity selected in the Organization Classifications region of the Organization window, choose Others,

  3. The following need to be populated for California (CA):

    1. Select "State Tax Rules", then select California and populate the applicable fields as required.

    2. Also select "State Employer Account# Info" and in Additional Organization Information, click on a new line to open the flexfield, then populate the fields accordingly after selecting "CA" in the LOV for State Code.

      Note that the retiree / employee must have state income tax (PIT) withheld > 0 (zero) during the reporting period in order to be included in the State Quarterly or Periodic Wage Listing report.

Entering N Record Data for the State of Georgia

The State of Georgia's Department of Labor (GDOL) has discontinued the 80 BYTE format for quarterly UI filing. The GDOL requires customers to use the NASWA Y2K Unemployment Insurance Format (ICESA). GDOL's Electronic Media Tax Record Format (N Record) is included with the NASWA (ICESA) file. You enter the N record data for a GRE using SQWL Employer Rules (4).

To enter N record data for GA

  1. In the Organization window, query the GRE for which to enter SQWL record data (if it does not already appear there).

  2. With Government Reporting Entity selected in the Organization Classifications region of the Organization window, choose Others and select SQWL Employer Rules (4).

  3. Click in the Additional Organization Information field to open the SQWL Employer Rules (4) window.

  4. Enter a value in the Remittance (GA) field. The value entered in this field corresponds to the Remittance field, position 63 to 71, in the N (Employer) record.

Entering Job Definition for the SPWL Report for Louisiana

The Louisiana Workforce Commission requires the following RS record information from employers when filing their quarterly wage and tax report:

To enter job definition for Louisiana SPWL report

  1. In the Job window, query the job for which to enter the job definition data for the SPWL report.

  2. Click the Further Information field. The Further Job Information window appears.

  3. In the SOC Code/Job Title field, enter the applicable SOC code so that the relevant SOC Code is reported for each employee in the Louisiana SPWL report.

  4. Save the record.

    After you run the SPWL report for Louisiana, verify that the applicable SOC code is reported for employees in the SPWL report. See: Running the State Periodic Wage Listing (Enhanced) Process

Entering Out of State Wage Indicator for the SPWL Report

There are certain state-specific data required to be entered at the GRE level to support proper reporting of Out of State Wages in the quarterly wage listings.

To set the Out of State Wage Indicator for Ohio (OH)

  1. In the Organization window, query the GRE for which to enter SPWL record data (if it does not already appear there).

  2. With Government Reporting Entity selected in the Organization Classifications region of the Organization window, choose Others and select SQWL Employer Rules (4).

  3. Click in the Additional Organization Information field to open the SQWL Employer Rules (4) window.

  4. Select Yes or No in the Out of State Wages (OH) field. The default is 'No'. You can change this field as required to accommodate the out of state wages reporting requirement.

    Note: As you may need to set the Out of State Wages indicator every quarter, the Out of State Wages (OH) indicator set at GRE(s)? parameter is available for the Ohio SPWL concurrent programs to serve as a reminder and defaults to Yes. This is a reminder that the Out of State Wage indicator must be set each quarter, and prior to submitting the Ohio SPWL report.

To set the Out of State Wage Indicator for Louisiana (LA)

  1. In the Organization window, query the GRE for which to enter SPWL record data (if it does not already appear there).

  2. With Government Reporting Entity selected in the Organization Classifications region of the Organization window, choose Others and select SQWL Employer Rules (4).

  3. Click in the Additional Organization Information field to open the SQWL Employer Rules (4) window.

  4. Use the Multi-State Employer (LA) field to report to the Louisiana Workforce Commission (LWC) if any of your employees report wages to Louisiana and to other states. This field will populate the RE Record, Position 254 of the EFW2 magnetic file (mf). The Multi-State Employer (LA) field will accept Yes and No values only. The default value is No. LWC requires a Y to be reported in RE record, position 254, if your employees report wages to Louisiana and to other states. Otherwise, it should be set to N (or left blank).

Setting Up Data to Generate Arizona SPWL Reports in the AZURE File Format

You can generate State Periodic Wage Listing (SPWL) reports in the Arizona UI Tax Reporting for Employers System (AZURE) XML file format. For information about the file specifications, refer to the Arizona Department of Economic Security (ADES) website: https://des.az.gov/sites/default/files/media/azure_user_requirements_2016.pdf

Complete the following steps to generate SPWL reports in the AZURE XML file format.

To add the AREP code and the transmitter number:

  1. In the Organization window, query the GRE for which to enter SPWL record data (if it does not already appear there).

  2. With GRE / Legal Entity selected in the Organization Classifications region, choose Others and select SQWL St Trans Rules (1).

  3. Click in the Additional Organization Information field to open the SQWL St Trans Rules (1) window.

  4. In the AREP Code (AZ) field, enter the applicable AREP Code. This supports field #3 in Appendix B (XML INPUT FILE LAYOUTS) of the AZURE User Requirements and Specifications document.

  5. In the the Transmitter Number (AZ) field, enter the applicable transmitter number. This supports field #4 in Appendix B (XML INPUT FILE LAYOUTS) of the AZURE User Requirements and Specifications document.

To add the unemployment insurance (UI) information for the tax office:

In the SQWL Employer Rules (3) window, the following fields are optional. If they are applicable to your organization, then you must populate them for each applicable GRE.

  1. In the Organization window, query the GRE for which to enter SPWL record data (if it does not already appear there).

  2. With GRE / Legal Entity selected in the Organization Classifications region, choose Others and select SQWL Employer Rules (3).

  3. Click in the Additional Organization Information field to open the SQWL Employer Rules (3) window.

  4. In the UI Interest field, enter the UI interest due amount. This supports Field 32 in Appendix B (XML INPUT FILE LAYOUTS) of AZURE User Requirements and Specifications document.

  5. In the UI Penalty field, enter the UI penalty due amount. This supports Field #33 in Appendix B (XML INPUT FILE LAYOUTS) of the AZURE User Requirements and Specifications document.

  6. In the UI Credit Previous Period field, enter the UI credit amount from the previous period. This field stores the subtract credit balance and supports Field #36 in Appendix B (XML INPUT FILE LAYOUTS) of the AZURE User Requirements and Specifications document.

To add the preparer contact:

The preparer contact information is mandatory for each GRE that is reported to the state. The preparer contact information is populated based on the EFW2 Contact that you select in the SQWL Gen. Trans. Rules DFF at the GRE level.

To confirm that the EFW2 contact is populated for each applicable GRE:

  1. In the Organization window, query the GRE for which to enter SQWL record data (if it does not already appear there).

  2. With GRE / Legal Entity selected in the Organization Classifications region of the Organization window, choose Others and select SQWL Gen. Trans. Rules.

  3. Confirm that the EFW2 Contact Name field is populated. If it is blank, then select the applicable EFW2 contact name. Repeat this step for each GRE that you must report to the state.

To generate SPWL reports in the AZURE file format:

To enable you to generate SPWL reports in the AZURE file format, when you run the State Periodic Wage Listing (Enhanced) (SPWL) concurrent process for AZ, the Format parameter defaults to the State Specific Format value. This value produces the AZURE XML file layout. See Running the State Periodic Wage Listing (Enhanced) Process for more information.

State Periodic Wage Listing (Enhanced) Process

Running the State Periodic Wage Listing (Enhanced) Process

The State Periodic Wage Listing (Enhanced) (SPWL) process generates State Quarterly and Monthly Wage listing reports. This process uses the Oracle XML Publisher technology to generate the reports and there is only one concurrent program to run both the quarterly and monthly processes.

To be able to run the State Periodic Wage Listing (Enhanced) process for a GRE, the following criteria must be met:

If you are running the SPWL report for Louisiana, then ensure that you enter the job definition data. See: Entering Job Definition for the SPWL Report for Louisiana

Run this process from this Submit Request window.

To run the State Periodic Wage Listing (Enhanced) process

  1. In the Name field, select State Periodic Wage Listing (Enhanced).

  2. Click in the Parameters field if the Parameters window does not open automatically.

  3. Specify the following parameters:

    1. State: This parameter captures the state code for which the process needs to be submitted. Select the applicable state (or Puerto Rico) for which you need to run the process.

    2. Period: This parameter captures the period for which the report needs to be processed and reported. This parameter is dependent on the state selected. If the state requires only quarterly reports, then only quarter periods can be selected. If the state requires both monthly and quarterly reports (such as Illinois), then the list of values contains the applicable monthly and quarterly periods. If a state were to require only monthly reports, then only month periods can be selected.

    3. Report Output: This parameter captures how the output files need to be generated and contains the following three values:

      (a) All GREs - single output file

      (b) Single GRE

      (c) All GREs - output file per GRE

      This parameter determines the number of times the concurrent program 'State Periodic Wage Listing (Internal)' is spawned. For each GRE processed, the concurrent program is spawned once.

      • For CA, the state option (a) will not appear in the list of values and instead the default option is (c) - All GREs - output file per GRE.

      • For AZ, option (c) is not available.

      • For MD, the program generates the SPWL report in the CSV format. The following options are available:

        • Option (a): Generates a single file for all GREs/employer EINs

        • Option (b): Generates a single file per GRE/Employer EIN

    4. Government Reporting Entity: This parameter captures the name of the GRE for which the process needs to be generated. This parameter is dependent on the Report Output parameter, so is enabled only if the Report Output parameter value 'Single GRE' is selected. Any GRE for which the report is already processed for the selected state and period will not be displayed in the list of values.

    5. Format: This parameter captures the format of the report and is dependent on the state and period values selected. The list of values will display the format supported by the state. It displays no values if the report has already been processed for the selected state and period.

      • For TN, if you select the ICESA(Bulk) option to generate a report for multiple GREs, then you must ensure that fields related to the T (Total) record are entered in the SQWL Employer Rules 4 window. See: To enter T Record Data for Tennessee for the SPWL or SQWL ICESA (Bulk) File Format section in the Entering State Data for E and T Records topic.

      • For AZ, the parameter defaults to the State Specific Format value. This value produces the report in the AZURE XML file layout. As a prerequisite step, you must set up data to generate SPWL reports in the AZURE XML file format. See Setting Up Data to Generate Arizona SPWL Reports in the AZURE File Format for information.

    6. Transmitter GRE: This parameter captures the Transmitter GRE and lists all the GREs that have been marked as SQWL Transmitter = Yes in 'SQWL Gen. Transmitter Rules' at the GRE level.

    7. Create Audit Report: This parameter determines whether the exception and employee detail audit reports (A02 or A03) are to be generated. If 'Yes' is selected, then these audit reports will be generated; if set to 'No', they will not be generated.

    8. Establishment Hierarchy: This parameter captures the Establishment Hierarchy Name and lists the names of all active establishment hierarchies. Note that this parameter is applicable only to Iowa and Minnesota. (The Establishment Hierarchy determines the applicable Reporting Unit Number needing to be reported for these states).

    9. Hierarchy Version: This parameter lists the version numbers of the Establishment Hierarchy based on the selected Establishment Hierarchy.

    10. Out of State Wages (OH) indicator set at GRE(s): This parameter is applicable only to the state of Ohio and requires additional setup at the GRE level. This parameter was added to confirm that the required setup at GRE level is complete.

      To set the Out of State Wage Indicator for Ohio and Louisiana, see: Entering Out of State Wage Indicator for SPWL or SQWL Reports

    11. Fold Output: This parameter determines if the different records in the magnetic file (MF) output require a new line or carriage return character. If 'Yes', then a new line character is added after every record in the MF file. If 'No', then all the records in magnetic file are generated in the one continuous line.

  4. Click OK and then Submit.

Program Output

This concurrent program internally spawns two concurrent programs:

Depending upon the 'Print Files' parameter setting in Pay Action Parameters, an additional concurrent program "Magnetic XML Report Merger" may be displayed. If Print Files is set to "Y", then this concurrent program is displayed for each of the files generated by the process. If Print Files is set to 'N', then this concurrent program is not displayed.

The following files are generated for each concurrent program State Periodic Wage Listing (Enhanced) submission:

When the State Periodic Wage Listing (Enhanced) process is run, the process generates .a02 and .a03 files for all states to help identify employees who are reported and not reported. There is no need to run the 'State Quarterly/Monthly Error Report' separately to identify employee information, which is not reported.

The A01 (Audit Summary) output file generated by the concurrent program is in PDF format. Data reported in the A02 and A03 output files are dependent on the state reported and therefore will not be the same for all states. The file names generated by this process are the same as the SQWL process. Currently both processes can be run in parallel which means that if both processes are run for the same state and period, then the files generated by running the first process will be overwritten by running the second process. For example: If the State Quarterly Wage Listing (SQWL) report is run first for the state of California for Q3 2014 and then later the State Periodic Wage Listing (SPWL) report is run for the same state for Q3 2014, then the files generated by running the SQWL process will be overwritten by the output files generated when running the SPWL process.

The report types of the SPWL payroll actions are "SPWL_PARENT" and "SPWL_ARCH". One "SPWL_PARENT" action is created for each concurrent request submitted. For each GRE's data that is processed, one payroll action is generated with a report type of "SPWL_ARCH". In View Payroll actions these payroll actions are visible.

Viewing Archived Data

To view data archived with the State Periodic Wage Listing (Enhanced) process:

  1. Select Assignment Process Result from the View menu.

  2. Select State Periodic Wage Listing (Enhanced), and click Run Result.

  3. The View Archived Values window opens to show data archived for an employee, including:

    • Database item name

    • Value archived against an assignment action

    • Any associated context (such as Jurisdiction Code for State Income Tax)

    This information is read-only.

    State related archived data can be viewed in the .xml report output, which is in the XML format.

Rolling Back SPWL Data

For rolling back the payroll actions generated by this process, run the "Rollback US SPWL Process" concurrent program. See: Running the Rollback US SPWL Process

Changing a State Periodic Wage Listing (Enhanced) Report

If you have already run the State Periodic Wage Listing (Enhanced) report and now need to update it with changes or corrections, you can update specific sections of the report without recreating it entirely. Using the Payroll Process window, you can mark individual assignments or groups of employees for retry and then run the Retry Payroll process. Oracle Payroll only reprocesses the data that you have marked for retry. The updated report is in the same format as the original and replaces the original report.

See: Running the State Periodic Wage Listing (Enhanced) Process

Run this process from the Payroll Processes window.

To run the Retry Payroll process

  1. Enter values for the Payroll, Period From, and Period To fields.

    Note: To retry an entire Payroll process, select the Retry option next to the process name. You can select more than one process for retry, but you must rerun the processes one at a time.

    Use the Query command to create a selectable list of processes without specifying a payroll.

    1. Click in the Date field and select Enter from the Query menu.

    2. Enter your query.

      For example: Type the name of the state followed by %SPWL% into the Name field to list all of the processes for the selected state.

    3. Select Run from the Query menu to list all processes.

  2. Click Find.

  3. Select the Payroll process to produce one single output file with the data for all GREs without any GRE level breakup.

  4. Click Assignment Process.

  5. Select the Retry option next to each assignment that you want to update in the new State Periodic Wage Listing Report.

    Note: If you selected the entire Payroll process in Step 2, you do not need to select individual assignments. All assignments in this run are included in the new report.

  6. Save your work.

  7. Navigate to the Submit Requests window.

  8. In the name field, enter or select Retry Payroll Process.

  9. In the Parameters window, select the magnetic report that you want to rerun in the Payroll Process field.

  10. Click OK and then Submit.

    The application replaces the previous State Periodic Wage Listing (Enhanced) report with the updated one.

Multiple Worksite Reporting for the SPWL Process

The Multiple Worksite Report for SPWL process generates the MWR report based on the data archived by the State Periodic Wage Listing (Enhanced) process. The Multiple Worksite Report for SPWL process collects information showing the distribution of the employment and wages of business establishments by industry and geographic area.

File the MWR on a quarterly basis if:

Note: Your define your primary location as the one with the greatest number of employees.

The MWR is a Federal level report. The Federal BLS receives the report you submit and then distributes the compiled information to the individual US states, District of Columbia, and the Territories of Puerto Rico and the US Virgin Islands. The states disaggregate the data below the county level for more extensive and detailed analysis of business and economic conditions within their borders, including local and regional employment totals. The states use the data to ensure an equitable distribution of Federal funds through grant programs that use county economic indicators as a basis for allocations. No other sources are available to obtain this information.

By following this model, Oracle's Multiple Worksite Report for SPWL process provides you with the means to report to only a single source rather than having to run multiple MWRs and filing them with their individual states.

Complete the following steps before you run the Multiple Worksite Report for SPWL process:

  1. Entering Multiple Worksite Report for SPWL Process Parent Entity Data

  2. Setting Up and Running the Multiple Worksite Report for SPWL Process

Entering Multiple Worksite Report for SPWL Process Parent Entity Data

The Multiple Worksite report for SPWL uses the information found in the parent entity data field on the organization. This information is used when generating the Multiple Worksite report for SPWL.

To enter Multiple Worksite report for SPWL parent entity data

  1. Enter the legal name. Report the legal name if it is different from the trade name entered against the establishment in the Location window.

    ABC Enterprises could have a subsidiary division called Bay Restaurant. ABC Enterprises would be considered as the legal name and Bay Restaurant would be a trade name.

  2. Save your work.

Setting Up and Running the Multiple Worksite Report for SPWL Process

Follow these steps to set up and run the Multiple Worksite Report for SPWL Process report.

To set up and run the Multiple Worksite for SPWL report

  1. Set up an organization with the classification of parent entity to represent your parent company.

    See: Creating an Organization, Oracle HRMS Enterprise and Workforce Management Guide

  2. Enter data into the MWR Parent Entity Data additional information type for the organization you have classified as a parent entity.

    See: Entering Multiple Worksite Report Parent Entity Data, Oracle HRMS Enterprise and Workforce Management Guide

  3. Define work site information in the MWR Specific Data location extra information type. Do this for each of the locations that is a work site that you want to include in the report.

    See: Location Extra Information Types, Oracle HRMS Enterprise and Workforce Management Guide

  4. Define your establishment hierarchy. You must represent each of the work site locations you want to include in the report.

    See: Creating an Establishment Hierarchy, Oracle HRMS Enterprise and Workforce Management Guide

  5. Submit the Multiple Worksite report for the SPWL process.

    See: Submitting the Multiple Worksite Report for the SPWL Process

Submitting the Multiple Worksite Report for the SPWL Process

You must successfully complete the State Periodic Wage Listing (Enhanced) report for all GREs in your Business Group before you run this report.

To submit the Multiple Worksite Report for the SPWL Process

Run the Multiple Worksite Report for the SPWL Process from the Submit Request window.

  1. Select Multiple Worksite Report for the SPWL Process from the List of Values.

  2. In the Parameters window, select the Quarter from the list of values. This parameter captures the Quarter for which the report needs to be processed and reported.

  3. In the Establishment field, select the establishment hierarchy that you have set up for Multiple Worksite reporting. This parameter captures the Hierarchy for which establishments needs to be reported in Multiple Worksite Report. The list of values contains defined hierarchies.

  4. Select the Hierarchy Version that you want to use.

  5. Select Yes or No in the Fold Output parameter field. If you select Yes, then the output flat files (.mf) are folded as per the necessary specifications. The appropriate line feeds or carriage returns are added to the magnetic file (mf) output without any manual intervention being required. If 'No' (default option) is selected, then the process will not fold the output file and all the records in the magnetic file are generated in one continuous line.

  6. Submit the report.

The Multiple Worksite Report for the SPWL Process generates the following output file:

.mf file:

Rolling Back the Multiple Worksite Report for the SPWL Process Data

If you have already run the Multiple Worksite Report for the SPWL process for a magnetic tape report for a state and then must make changes to the data that was processed, do the following:

  1. Roll back the process.

  2. Make all necessary changes to employee data.

  3. Rerun the process.

Roll back a process from the Submit Request window.

To roll back a process for a Multiple Worksite for the SPWL Process report

  1. In the Name field, select Rollback Magnetic Report.

  2. Click in the Parameters field if the Parameters box does not open automatically.

  3. In the Magnetic Report field, select the name of the process (state, period, and effective date) to roll back.

  4. Choose OK, then Submit.

    Note: The rollback process does not have any effect on the two files produced by the Magnetic Report process. However, when you rerun the process following a rollback, this new process produces two files that overwrite the existing files.

Resubmitting the Multiple Worksite Report for the SPWL Process

Magnetic media can be damaged or lost when shipped. The Resubmit Magnetic Report utility recreates the magnetic report that was lost or damaged and prepares it for resubmittal.

The new report includes minor changes to employer information, such as an incorrect address. Major changes to employee data affect the integrity of the report and are not included. You resubmit paper corrections for the major changes and follow the requirements of the appropriate taxing authority..

To resubmit a Multiple Worksite for the SPWL report

  1. Select Resubmit Magnetic Report from the Submit Request window.

  2. Select the report you want to resubmit from the list of values in the Magnetic Report field of the Parameters window.

  3. Select Submit.

Running the Rollback US SPWL Process

The Rollback US SPWL process rolls back all the GRE-specific quarterly or monthly child processes for each GRE, when you select the parent State Periodic Wage Listing (Enhanced) Process to roll back. The process provides the flexibility to roll back individual SQWL or SMWL child processes. For example, when you select the child SQWL process to roll back, and it is the only child process remaining from the original run, then the parent SQWL process will also be rolled back.

As an example, you have three GREs: GRE1, GRE2, and GRE3 and submitted the Process State Periodic Wage Listing (Enhanced) Process selecting Report Output as “All GRE's - output file per GRE”. In this case three child processes will run, one for each GRE. Also there will be one request submitted for the Parent process which triggered the child processes. Therefore, in total, there will be four processes submitted.

Parent Request -1001

Child 1 -1002 -> For GRE1

Child 2 – 1003 -> For GRE2

Child 3 -1004 -> For GRE3

When the Rollback US SPWL is submitted (for the request id 1001) it will first roll back each individual child process one by one. The program picks up the process in the order specified above, and then once the request to roll back the last child process 1004 is submitted, the parent process 1001 will also get rolled back. You have the option to roll back the individual child processes. Consider the above example, where you first roll back the run for GRE3 (Child3-1004). After that, if you submit the rollback process for the Parent Request (1001), then the remaining two processes 1002 and 1003 will also be rolled back along with the parent process. If all the individual processes are rolled back, then when the last child process is rolled back, the parent process will also be rolled back.

Run this process from this Submit Request window.

To run the Rollback US SPWL Process

  1. In the Name field, select Rollback US SPWL Process.

  2. Click in the Parameters field if the Parameters window does not open automatically. The Process Year and SPWL Process parameters are mandatory.

  3. Select the process year for which to roll back data. This parameter will only list years for which SPWL processes have been run.

  4. Select from the list of available SPWL processes, the process that needs to be rolled back. The SPWL process creates one parent payroll action and child payroll actions for each 'State Periodic Wage Listing (Internal)' concurrent request. The list of values for this parameter will list both the parent and the child payroll actions. Selecting the parent payroll action for rollback means the associated child payroll action(s) will be rolled back along with parent payroll action. If the child payroll action is selected, then only the child payroll action is only rolled back. The parent payroll action will be rolled back only when there are no associated child processes available to be rolled back.

  5. Click OK and then Submit.

Viewing the Rollback US SPWL Process Report

The report type for the Rollback US SPWL process is "SPWL_GRE" and you can identify the parent SPWL process with this report type using the View > Payroll Process Results window.

You cannot delete the parent SPWL process as long as there are child processes present. The delete button is enabled for the parent process only when there are no child processes present. The delete button is always enabled for the child processes.

The following table explains the scenario:

Consider the example:

Parent process: 1001

Child processes: 1002 (GRE1), 1003 (GRE2),1004 (GRE3)

Remaining processes Focus item Delete button status Action taken
1001,1002,1003,1004 1001 Not enabled  
1001,1002,1003,1004 1002 Enabled Delete record
1001,1003,1004 1003 Enabled Delete Record
1001,1004 1001 Not enabled  
1001,1004 1004 Enabled Delete Record
1001 1001 Enabled Delete Record
No more records remaining      

Running the State Quarterly Employee SUI Wages Report

The State Quarterly Employee SUI Wages Report enables employers to report on the State Unemployment Insurance (SUI) taxable wages earned out of state by employees during a particular quarter. This report generates a list of employees along with their SUI Taxable Wages for each state where they earned or were paid wages. Employers can use this report to furnish the necessary data to the appropriate state unemployment agency in order to claim credit for SUI paid to another state when an employee moves states during the reporting period. For example, employer A operates in the state of New Mexico and has two employees who earned wages in California in the third quarter, but then moved to New Mexico later in the quarter and earned wages in that state. As the employer paid SUI taxes for these employees to the state of California, the employer plans to claim a credit for those taxes when filing their Quarterly Unemployment report with the state of New Mexico. New Mexico requires justification of that credit claim in the form of a listing of such employees and their wages earned or paid out of state and other data.

The report also indicates if there is any SUI wage credit already received for the employee in the payroll calculation if the 'Automate SUI Wage Credit' feature is set up. If 'Automate SUI Wage Credit' field is set to Yes at the GRE Level, then the payroll calculation gives credit for SUI in the current state based on SUI paid in previous states for the year.

This report is based on the employees reported in the the State Periodic Wage Listing (Enhanced) process. The report output includes details of each employee reported in the SQWL and the SUI wage details for each state in which the employee was paid.

Important: It is recommended that customers run the State Quarterly Employee SUI Wages Report only after completing the State Periodic Wage Listing (Enhanced) reports for all applicable states for the quarter as this step ensures that a complete list of employees to be included in the report is generated. You can run the State Quarterly Employee SUI Wages Report multiple times for a given quarter. If the State Quarterly Employee SUI Wages Report is run before completing theor the State Periodic Wage Listing (Enhanced) process for all applicable states, then the report fetches the data based on the employees already reported. The State Quarterly Employee SUI Wages Report only reports on employees included in the State Periodic Wage Listing (Enhanced) Process report. Therefore, if it is determined that an employee is to be included in the report, then the SUI wages for all states in which the employee was paid will be included regardless of whether the SPWL report has been run for all those states, and all applicable SUI wages are reported in the output. See: Running the State Periodic Wage Listing (Enhanced) Process

If there are no State Periodic Wage Listing reports run for a given quarter, then the State Quarterly Employee SUI Wages Report will have no employees to be reported.

You can run the report from the Submit Request window.

To run the State Quarterly Employee SUI Wages Report

  1. In the Name field, select the report name. Then enter the Parameters field to open the Parameters window.

  2. Select the quarter for which you want to run the report. This is a mandatory parameter. The quarter that you select must be the same one that was selected for the State Periodic Wage Listing (Enhanced) Process.

  3. Select the government reporting entity for which you want to run the report. This optional parameter lists all GREs in the current Business Group for which employees are reported in the SPWL reports for the selected quarter.

    • If this parameter is left blank, then employees from all GREs are reported in the output.

    • If a specific GRE is selected, then only employees associated with that GRE are included in the report.

Report Output

The State Quarterly Employee SUI Wages Report generates an output file in the CSV format. Following is a list of columns included in the report output CSV file:

Number Column Name Details
1 Business Group Name  
2 Tax Unit Name Name of the employee's GRE
3 EIN Employer Identification Number
4 Reporting Quarter Examples: Q12013, Q22013, etc
5 Employee Number  
6 Employee Name  
7 Employee's Social Security Number  
8 State Code State abbreviation
9 SUI Taxable Wages Quarter to Date  
10 SUI Taxable Wages Year to Date  
11 SUI Auto Credit Quarter to Date Any SUI credit amount already given for the quarter for this employee if 'Automate SUI Wage Credit' is set to Yes.
12 SUI Auto Credit Year to Date Any SUI credit amount already given for the year for this employee if 'Automate SUI Wage Credit' is set to Yes.

If no employees are found for the selected quarter and GRE, then the output file contains the message: "There are no employees with wages to be reported. Check that the State Quarterly Wage Listing report has been run."

Important Notes:

  1. There are some states which do not give credit for SUI wages or taxes paid elsewhere. If the employee moves to any of these states from other states, no SUI Credit will be reported regardless of the GRE level setting for "Automate SUI Wage Credit". The applicable states are Louisiana, Massachusetts, and Minnesota.

  2. If an employee has a SUI Wage Base override specified in their state tax rules record, then that amount is used to calculate the SUI Taxable wages for that employee and any wages above that limit will be moved into Excess. Also in this case, there will be no SUI Credit provided for the employee regardless of the GRE Level "Automate SUI Wage Credit" setting.

  3. For each state, there is a SUI wage base limit stored in the State Jurisdiction Information Table (JIT). However, this limit can be overridden at the GRE level. The SUI wage base is used in the calculation of SUI credit. If a "SUI Wage Base" override is found in the State Tax Rules at the GRE level for the given state, then that amount will be used in the SUI credit calculation, otherwise the SUI wage base amount stored in the JIT table for that state will be used.

  4. For employees in a GRE with Automate SUI Wage Credit set to No (or blank), no SUI credit is given. The details for the employee are shown for the applicable states. For employees with multiple assignments, consolidated wages for each state from all the assignments will be shown in the report.

    For example, Employee 1 has two assignments: Assignment 1 and Assignment 2. Assignment 1 has wages in NY and PA, and Assignment 2 has wages in NY and CA. The report will show Employee 1 with wages for CA, NY and PA, and the NY wage amount will include the total wages from both assignments.

  5. If an employee works in multiple GREs, the values for each GRE will be shown separately. For example, if Employee2 works in GRE1 and GRE2, the report will show Employee2 wages under GRE1 and GRE2 separately, even if it is for the same state.

  6. If an employee works in only one state throughout the year, there will be no SUI Credit for that employee.

  7. If an employee works in one state and then moves to another state, there can be a SUI Credit from the first state. Following is a detailed explanation about how the SUI Credit will be calculated and reported for the employee.

    Employee3 worked in California and was paid $5000.00 for which the employer paid SUI taxes.

    Employee3 then moves to Connecticut. The SUI Wage Base is $7000 for California and $15,000 for Connecticut. Since SUI has already been paid for the $5000 of wages the employee earned while working in California, the employer can claim credit for that $5000 in Connecticut. This means the employer should only pay SUI taxes for the next $10,000 paid to the employee working in Connecticut. If the employee makes only $10,000 or less in Connecticut, then there may be no SUI credit given since their Connecticut wages did not exceed the SUI wage limit. For calculating the credit, the wages from other states in the current year are considered.

Federal Quarterly Reporting

Quarterly Federal Tax Returns

All employers must file a quarterly report if they withhold federal income tax from employee compensation and are subject to withholding and payment of social security and/or Medicare taxes

Form 941, Employer's Quarterly Federal Tax Return, provides the IRS with a report of each employer's total taxable wages paid and payroll tax liability. You reconcile Form 941 with the employer's record of tax deposits and wage and tax information provided to employees on their W-2 forms.

Oracle Payroll provides wage and tax information in PDF format that follow the IRS guidelines. Before you submit the output directly to the IRS, you must use Adobe Acrobat to include the following if applicable:

See: Reporting Quarterly Federal Tax Returns

Reporting Quarterly Federal Tax Returns

All employers must file a quarterly report if they withhold Federal income tax from employee compensation and are subject to withholding and payment of social security and/or Medicare taxes.

Form 941, Employer's Quarterly Federal Tax Return, provides the IRS with a report of each employer's total taxable wages paid and payroll tax liability, which is then reconciled with the employer's record of tax deposits and wage and tax information provided to employees on their W-2 forms.

You run the Quarterly Tax Return Worksheet (Form 941) from the Submit Request window.

To run the Quarterly Tax Return Worksheet (Form 941)

  1. In the name field, enter or query Quarterly Tax Return Worksheet (Form 941).

    The Parameters dialog box displays.

  2. In the Government Reporting Entity field, enter the GRE.

  3. In the Tax Year field, enter the tax year.

  4. In the Quarter Date field, select the quarter end date from the list.

  5. Click OK.

  6. Submit the request.

  7. To check on the progress of the processing:

    • Use the Concurrent Requests window.

    • From the Help menu, select View My Requests.

GRE Totals Reporting

GRE Totals Reporting

The GRE Totals report helps you balance the employee W-2s. The report lists totals for selected or all GREs. You run the report in conjunction with the control report (6559) produced with the Federal W2 Magnetic Media report (.a01).

You use the RT and RF records of the magnetic media to balance to the GRE Totals Report. You can also balance the Year to Date values from the Tax Remittance report and the W-2 Register report to the GRE Totals.

Report Output

For each GRE, the following W-2 box totals display:

For each state within the GRE, the following W-2 box totals display:

Running the GRE Totals Report

Run this report in the Submit Request window.

To run the GRE Totals report

  1. In the Name field, select GRE Totals Report.

    The Parameters window opens.

  2. Select an individual GRE, or leave this field blank to include all GREs in the results.

  3. In the As of Date field, enter the date from which the data on the report will begin to accumulate.

    The data on the report includes the data from all processes with check dates equal to or greater then the As of Date.

  4. Click OK to close the Parameters window.

  5. In the Print To field in the Submit Request window, select a printer or accept the default.

  6. Click Options to enter print and run options for the report.

  7. Click Submit.

Federal and State Tax Remittance Reports

Federal and State Tax Remittance Report

The Federal and State Tax Remittance report shows the taxable wages and taxes withheld to assist you in remitting the correct amount of employment and income taxes. You remit the employment and income taxes quarterly, monthly, semi-weekly or within 24 hours of the check date.

Federal and State Tax Remittance Reporting

This report shows the federal and state balances summarized for a particular range of check dates. For instance, if you report wages and taxes quarterly, you choose a check starting and ending date that covers the quarter.

Oracle Payroll provides the following options for generating this report:

Starting Check Date (required) Any date that a payment was made to an employee.
Ending Check Date (required) Any date that a payment was made to an employee.
GRE (optional) All valid GREs.

Note: Leave this field blank to include all GREs in this report.

Federal (required)
  • If yes, the report includes both federal and state balances. The default report heading reads, Federal/State Tax Remittance Report.

  • If no, the report includes only state level balances. The report heading reads State Tax Remittance Report.

State (optional) All valid US states, including the District of Columbia.
Dimensions (required)
  • Check Date Range Only (default)

  • Check Date Range and Month to Date

  • Check Date Range and Quarter to Date

  • Check Date Range and Year to Date

Running a Federal and State Tax Remittance Report

Run the Federal and State Tax Remittance Report from the Submit Request window.

To create a Federal and State Tax Remittance Report

  1. In the Name field, select Federal and State Tax Remittance Report Manager.

  2. Click on the parameters field if the Parameters window does not automatically open.

  3. In the Starting Check Date and Ending Check Date fields, enter the check date range.

  4. Enter a GRE, if applicable.

    Note: Leave this field blank to include all GREs in this report.

  5. Enter the value for the type of remittance report you want to generate.

  6. Select a state, if applicable.

  7. Enter the reporting dimension.

  8. Click Submit.

Local Tax Remittance Reporting and Employee Run Results Reporting

Local Tax Remittance Reporting

The Local Tax Remittance report shows the local tax balances summarized for a particular range of check dates. For example, if you report wages and taxes monthly, choose a check starting and ending date that covers each month.

You can choose the following options for generating this report:

Starting Check Date (required) Select any date that a payment was made to an employee.
Ending Check Date (required) Select any date that a payment was made to an employee.
GRE (optional) All valid GREs. Leave this field blank to include all GREs in this report.
State (optional) All valid US states, including the District of Columbia. Leave this field blank to include all states in this report.
Locality Type (optional)
  • City: All valid cities in a particular state (or all states if you left the state field blank).

  • County: All valid counties in a particular state (or all states if you left the state field blank).

  • School District

Leave the Locality Type field blank to include all locality types in the report. Leave City, County, or School District blank to include all localities of that type in the report.
If a local tax is repealed before the report's end date, the report does not detect the tax.
Sort Option One, Two, and Three (Optional) User-defined criteria determines the organization of the local tax remittance reports. Use the following three variables to sort the reports:
  • Locality

  • Locality Type

  • State


The Sort Options are hierarchical in nature.
Dimensions (required)
  • Check Date Range Only (default)

  • Check Date Range and Month to Date

  • Check Date Range and Quarter to Date

  • Check Date Range and Year to Date

Running a Local Tax Remittance Report

Run the Local Tax Remittance Report from the Submit Request window.

To create a Local Tax Remittance Report

  1. In the Name field, select Local Tax Remittance Report Manager.

  2. Click on the parameters field if the Parameters window does not automatically open.

  3. In the Starting Check Date and Ending Check Date fields, enter the check date range.

  4. Enter a GRE, if applicable. Leave this field blank to include all GREs in this report.

  5. Select a state, if applicable.

  6. Enter the locality type. Leave this field blank to include all Cities, Counties, and School Districts in this report.

    Note: Selecting from the list enables the corresponding field.

  7. If you entered a value in the Locality Type field, in the corresponding field, enter a locality.

    Note: If a local tax is repealed before this report's end date, this report does not detect the tax.

  8. Enter your optional sort options into the Sort Option One, Two, and Three fields.

    Note: If you leave the Sort Option fields blank, the report is sorted by State, Locality, and Locality Type.

  9. Enter the reporting dimension.

  10. Click OK to close the Parameters window.

  11. Click Options, and select Run and Print Options.

  12. Click Submit.

Running the Employee Periodic Detail Report

Many jurisdictions require employee-level detail to be reported periodically to taxing authorities to comply with periodic tax filing requirements. Employee Periodic Details Report provides a detailed listing of employees who had federal, state or local taxes withheld and the wages corresponding to those taxes. Customers can use this report to do quarterly and annual reconciliation.

Payroll Archive is the basis for the output of this report, where the data displayed in the Employee Period Details Report is obtained from the Payroll Archive process. Before you run the Employee Periodic Detail Report, you must have run the Payroll Archive process.

Employee Periodic Detail Report captures the results from Payroll Archive and creates a single record per employee, per GRE, per jurisdiction creating output file displaying data in columns. Output file record columns can be comma delimited (CSV) or in HTML format. Output file can be opened by the user in a spreadsheet to calculate or arrange the data as preferred.

Best Practice to Report on Correct Balance Adjustments across all Reports

As a best practice, for balance adjustments to be reported correctly in all reports (Payroll Archive, Prepayment Process, and Employee Period Detail), the Balance adjustment must be marked for Prepayment and the Start Date and End Date parameters for the Prepayment process should be the same date of the balance adjustment (or in a date range of the pay period the balance adjustment occurred in). The Payroll Archive process uses the Prepayments process as the driving transaction to be picked up. Balance Adjustments must be marked to be processed through the Prepayments process. If a Balance Adjustment is not marked to be processed via Prepayments, it will update balances in the system, but will never be picked up for Prepayments and will not be picked up during the report run. Therefore a balance adjustment not marked to be processed by Prepayments will not be archived and will not be picked up in the Employee Periodic Details report.

You can verify the balance adjustment and prepayments using the following steps:

  1. Navigate to the People window.

  2. Search for an employee.

  3. Click Assignment.

  4. Click Others and select Tax Balance Adjust or Adjust Balances.

  5. Perform balance adjustment as required.

  6. Select the Prepay check box.

  7. Run the PrePayment process for that date or a date range that includes this adjustment date.

  8. Run the Payroll Archive Process and then run the Employee Periodic Details Report.

Important Note:

The default behavior of the Employee Period Detail report when reporting 'Imputed Earnings' is that these earnings are reported at the Federal level and not at the State level. The report displays values differently at the federal and state levels.

Run the report from the Submit Request window.

To run the Employee Period Detail Report

  1. Select Employee Periodic Detail Report in the Name field.

  2. Specify the following parameters:

    Parameter Description
    Beginning Date Paid and Ending Date Paid Enter the beginning and ending date paid period for which you want to run the report. These dates must fall within the period for which you have run the Payroll Archive process.
    Jurisdiction Level Select the jurisdiction for which you want to run the report. The following options are available:
    • City

    • County

    • Federal

    • School District

    • State

    Detail Level Select the mode to run the report:
    • By Run: The report displays resident or work option as it is specific for the payroll run.

    • Summary within Selected Period: The report displays summary of wages and taxes for that period.

    Organization and Location Select the organization and location values if you have selected By Run in the previous Detail Level field. You can also leave the organization and location field blank to report on employees in all organizations and locations.
    The Organization and Location fields are not user enterable if the 'Summary within Selected Period' value is selected in the Detail Level field.
    State If you have selected City, County, School District, or State as the jurisdiction level, then select the State for which you want to run the report. You can also leave the field blank to report on employees in all states.
    County If you have selected City, County, or School District as the jurisdiction level, then select the county for which you want to run the report. You can also leave the field blank to report on employees in all counties.
    City If you have selected City or School District as the jurisdiction level, then select the City for which you want to run the report. You can also leave the field blank to report on employees in all cities.
    School District If you have selected City or School District as the jurisdiction level, then select the City for which you want to run the report. You can also leave the field blank to report on employees in all cities.
    School District To retrieve, school district level values, select the Jurisdiction Level as "School District" and then select the State and other details. Once State is selected, the School District field gets enabled.
    Payroll, Consolidation Set, GRE, Assignment Set You can select specific values or leave these fields blank to report on all values.
    Output file type Select the output for the report: Output file record columns can be comma delimited (CSV) or in HTML format.

    Additional Information:

    See: Employee Periodic Details Report Does Not Balance To Any Other Payroll Reports, My Oracle Support Document 1235786.1

Employee Run Results Report

The Employee Run Results Report supplies detailed balance information for a specific employee over a defined period of time. You can use this report to pinpoint a problem discovered by another diagnostic report.

Use this report to display employee run results on one or all of the following categories:

Run this report from the Submit Request window.

To run the Employee Run Results report

  1. In the Name field, select Employee Run Results Report from the list.

  2. Click in the Parameters field if the Parameters window does not appear automatically.

  3. In the Parameters window, enter the appropriate values into the Start Date and End Date fields.

  4. In the Person field, select the person for the report.

  5. If the person has multiple assignment numbers, select an assignment number.

    Note: You must select an Employee Name, Assignment Number, or Assignment Set to run this report. This report does not support dynamic assignment sets.

  6. Enter or select a GRE in the Government Reporting Entity field.

  7. To report on a specific classification, select it in Classification field. If you leave this field blank, the report displays information for all classifications.

  8. Click OK, then Submit.

PSD Reporting

Entering Information for the PSD Periodic Wage Listing Report Process

The PSD Periodic Wage Listing Report concurrent process generates reports to help you comply with the yearly, monthly or quarterly local wage and tax reporting obligations per Pennsylvania Act 32. See: Running the PSD Periodic Wage Listing Report Process

If required by your business, you can optionally submit the PSD Periodic Wage Listing report using more than one transmitter GRE within the same business group. To enable submission of this report using more than one transmitter GRE requires some additional setup and configuration steps to be performed. For more information, see: Setting Up Multiple Transmitter GREs for the PSD Periodic Wage Listing Report.

Entering information to run the PSD Periodic Wage Listing Report process

  1. Define the PSD Reporting Rules for the transmitter and other GREs that include all the employer PSD codes for which you need to run the process.

    1. Navigate to the Organization window.

    2. In the Organization Classifications region, select GRE/Legal Entity.

    3. Click Others and select PSD Reporting Rules. The PSD Reporting Rules window appears.

    4. Select the employer's political sub division (PSD) code.

    5. Enter the employer tax account number. This field is optional but may be required depending on the reporting requirements of the particular tax collection district where you need to file.

      Important: For the PSD Periodic Wage Listing Report to include the employer account number on the magnetic file (.mf) output for employees who are residents of Pennsylvania and who are either 'Work At Home' or work out of state, complete the following:

      • To report Work At Home employees in the magnetic file (MF) along with the applicable PA employer account number, enter their Resident PSD along with the valid PA account number in PSD Reporting Rules.

      • To report employees that are residents of the state but work out of state in the magnetic file (MF) along with the applicable PA employer account number, enter code '880000' in PSD Reporting Rules along with the valid PA account number.

  2. Enter the employee level resident school district code.

    Important: You must complete this step prior to running payrolls for the employee as it is required to report the correct PSD code in the employee's run results,

    1. Navigate to the People window.

    2. Search for an employee.

    3. Click Assignment.

    4. Navigate to the City Tax Rules window (Federal Tax Rules > State Tax Rules > County Tax Rules > City Tax Rules).

    5. Enter the School District code for the employee. This is required to both determine the correct tax to withhold as well as the correct resident PSD code.

      Important Note: it may also be necessary to enter the applicable school district code in the employee's work city tax rules record. This is needed when the work city is associated with multiple school districts so the system is able to determine the correct work PSD code.

      For information on City Tax Rules window, see: Entering City Tax Rules for an Employee

Setting Up Multiple Transmitter GREs for the PSD Periodic Wage Listing Report

Oracle US Payroll enables you to set up multiple transmitter GREs (Government Reporting Entity) within the same business group to submit the PSD Periodic Wage Listing report using more than one transmitter GRE. The PSD Periodic Wage Listing Report concurrent process generates reports to help you comply with the yearly, monthly or quarterly local wage and tax reporting obligations per Pennsylvania Act 32. See: Running the PSD Periodic Wage Listing Report Process

Perform the following setup and configuration steps to enable the option to submit the PSD Periodic Wage Listing report using multiple transmitter GREs within the same business group:

  1. Map each GRE in the current business group to a transmitter GRE for PSD reporting.

  2. Configure the HR: Enable Multiple Transmitter Reporting for PSD profile option.

1. Map Each GRE in the Current Business Group to a Transmitter GRE for PSD Reporting

Each GRE in the current business group must be mapped to a transmitter GRE for PSD reporting so the GRE is reported correctly as part of that transmitter GRE when the PSD Periodic Wage Listing report is run. To map the transmitter GRE, select the applicable transmitter GRE in the PSD Transmitter GRE field in the W2 Reporting Rules 1 window at the GRE level.

Complete the following steps to map the transmitter GRE:

  1. Navigate to the Organization window.

  2. Query the appropriate GRE organization that is to be "mapped" to the transmitter GRE.

  3. In the Organization Classifications region, select GRE/Legal Entity and click Others.

  4. Select W2 Reporting Rules 1 and populate the PSD Transmitter GRE field by selecting the applicable transmitter GRE with which this GRE must be reported when submitting the PSD Periodic Wage Listing report.

  5. Repeat these steps for each GRE in the business group that needs to be reported with a transmitter GRE for the purposes of PSD reporting.

    Important: Note that you must also map the Transmitter GRE to itself.

Example of mapping each GRE to a transmitter GRE

In this example, GRE A and GRE B report as employers under GRE 1 (transmitter GRE for GRE A and GRE B). GRE C and GRE D report as employers under GRE 2 (transmitter GRE for GRE C and GRE D).

To map each GRE to the transmitter GRE, complete the following steps:

  1. Navigate to the Organization window and query GRE A.

  2. In the Organization Classifications region, select GRE/Legal Entity and click Others.

  3. Select W2 Reporting Rules 1 and select GRE 1 (transmitter GRE) in the PSD Transmitter GRE field.

  4. Close the W2 Reporting Rules 1 window, and query GRE B.

  5. In the Organization Classifications region, select GRE/Legal Entity and click Others.

  6. Select W2 Reporting Rules 1 and then select GRE 1 (transmitter GRE) in the PSD Transmitter GRE field.

  7. Save your work.

  8. Close the W2 Reporting Rules 1 window and query GRE 1 (transmitter GRE).

  9. In the Organization Classifications region, select GRE/Legal Entity and click Others.

  10. Select W2 Reporting Rules 1 and then select GRE 1 (transmitter GRE) in the PSD Transmitter GRE field as the transmitter GRE must also be mapped to itself.

  11. Save your work.

  12. Close the W2 Reporting Rules 1 window and query GRE C.

  13. In the Organization Classifications region, select GRE/Legal Entity and click Others.

  14. Select W2 Reporting Rules 1 and then select GRE 2 in the PSD Transmitter GRE field.

  15. Save your work.

  16. Close the W2 Reporting Rules 1 window and query GRE D.

  17. In the Organization Classifications region, select GRE/Legal Entity and click Others.

  18. Select W2 Reporting Rules 1 and then select GRE 2 in the PSD Transmitter GRE field.

  19. Save your work.

  20. Close the W2 Reporting Rules 1 window and query GRE 2 (Transmitter GRE).

  21. In the Organization Classifications region, select GRE/Legal Entity and click Others.

  22. Select W2 Reporting Rules 1 and then select GRE 2 (Transmitter GRE) in the PSD Transmitter GRE field as this transmitter GRE must also be mapped to itself.

  23. Save your work.

2. Configure the HR: Enable Multiple Transmitter Reporting for PSD Profile Option

The HR:Enable Multiple Transmitter Reporting for PSD profile option determines whether multiple transmitters can be used when submitting the PSD Periodic Wage Listing report. Set the HR:Enable Multiple Transmitter Reporting for PSD profile option to Yes at Site level to enable multiple transmitter GREs for PSD reporting. Set the profile option value to No or leave the value blank if you do not want to use this functionality. The default value of this profile option is blank.

To set the HR:Enable Multiple Transmitter Reporting for PSD profile option:

  1. Navigate to the System Profile Values window.

  2. Query the HR:Enable Multiple Transmitter Reporting for PSD profile option

  3. Set the profile option to Yes at Site level and save your work.

    Note: You may need to bounce Apache or web services to activate the system profile option setting at Site level.

After performing these steps, when you run the the PSD Periodic Wage Listing report only the GREs that you mapped to the PSD Transmitter GRE will be reported along with the PSD Transmitter GRE that you selected in the Transmitter GRE report parameter in the report's magnetic file (.mf) output.

Based on the example:

  1. If you select GRE 1 as the Transmitter GRE and submit the PSD Periodic Wage Listing report, then the report output displays GRE 1 as the submitter (RA record) and GRE A and GRE B (and potentially GRE 1) as employers under that transmitter in the RE records (employer records) along with the applicable employee records.

  2. If you select GRE 2 as the Transmitter GRE and submit the PSD Periodic Wage Listing report, then the report displays GRE 2 as the submitter (RA record) and GRE C and GRE D (and potentially GRE 2) as employers under that transmitter in the RE records (employer records) along with the applicable employee records.

Running the PSD Periodic Wage Listing Report Process

You can use the PSD Periodic Wage Listing Report to produce the necessary output to comply with Pennsylvania Act 32 earned income wage and tax reporting obligations The same report enables enterprises to comply with the PA Act 32 year end (or W-2 reconciliation) reporting requirements.

Important notes:

You can run this program on yearly, quarterly, or monthly basis for the employer GREs within a business group that have the PSD Reporting Rules defined. An important difference exists when running the report with the 'Yearly" option. As the data for the year end reporting should be consistent with other year end reports, the data must be based on the Year End archiver (Year End Preprocessor or YEPP). Therefore, when the PSD Periodic Wage Listing report is run to report Year End data, it will be based on the Year End archived data. This is different from running the PSD Periodic Wage Listing report to produce monthly or quarterly output whereby the data is archived as a part of the report itself (the archiver is run when the report is submitted).

Run the PSD Periodic Wage Listing Report program from the Submit Request window.

Note: In the event that an employer PSD code is missing for an employee's work location, you can enter it in the PSD Reporting Rules for the applicable GRE. Mark the assignment for retry from the 'Assignment Process Results' page. Then, run the Single Request 'Retry US Payroll Process. This process can be run for updating the output files with employee-level changes such as updates to personal data and / or balance adjustments.

Prerequisites

To run the PSD Periodic Wage Listing Report program

  1. Select PSD Periodic Wage Listing Report name. The Parameters window opens.

  2. Select the year for which to run the report. The list of year values displays the Year for the US Local Magnetic Media.

  3. Select Monthly, Quarterly, or Yearly according to how you need to report wages and withholding. Note: If you are a "combined filer", then you should not select "Quarterly.

  4. Select the month for which to run the report. This field is enabled based on the period type selected in previous step. If you selected Monthly in the previous step, then select the month for which to run the report.

  5. Select the quarter for which to run the report. This field is enabled based on the period type selected in previous step. If you selected 'Quarterly' in the step 3, then select the quarter for which to run the report.

  6. Select the state. The default value is PA (Pennsylvania).

  7. Select the code of the tax collection district to which the tax is remitted. This field is optional. This parameter provides a listing of all Tax Collection District (TCD) Codes in the state of Pennsylvania, sorted in numeric order. The default selection is blank. Note: The TCD Code is the first two digits of the PSD Code. Leaving this parameter blank will ensure all applicable Tax Collection Districts (TCDs) are included in the report output. A single or specific TCD Code may be selected if you are filing with a single TCD, the tax collector with which you are filing requires a separate output file per TCD or you are filing separately with several different TCDs (who are represented by different tax collectors).

  8. Select the name of the GRE that functions as the transmitter.

  9. Select the applicable template group from the list of all available template groups when running the report to produce the output in the desired format.

  10. Once the program is submitted it will archive the personal data and balance values of all the employees in the GREs for whom PA local earned income taxes were deducted. It can also be rolled back and employees retried as required.

Output Files

The XML output is merged with the predefined or custom templates (based on the template group selected) to generate the following five output files. Note that these reports are only pertinent to Pennsylvania Act 32 reporting.

The following points must be noted:

For complete details on running the PSD Periodic Wage Listing Report, refer to the My Oracle Support Document 1491825.1 - PSD Periodic Wage Listing Report for Pennsylvania Act 32 Electronic Filers. For complete details on how to customize the templates to optionally report employees with negative wages and/or withholding in the magnetic file (mf) or comma delimited file (CSV) output, refer to Appendix B 'How to Customize MF and CSV Templates to Include Employees with Negative Local Wages and/or Withholding Amounts' in the My Oracle Support Document 1491825.1.

This process will archive the modified data and update the output with the new data. This process can be run for updating the output files with employee-level changes such as updates to personal data and / or balance adjustments."

Running the PSD Code Upgrade Process

Run the PSD Code Upgrade Process to allow PSD codes that are stored as part of the applicable Oracle Payroll run results data to remain in sync with PSD code updates or corrections delivered by Vertex monthly data updates. This process applies only to those customers who need to comply with Pennsylvania Act 32 requirements.

The PSD Code Upgrade Process will identify and perform the updates necessary to correct the data in each of these tables:

TABLE COLUMN(S)
PAY_US_ASG_REPORTING JURISDICTION_CODE
PAY_ELEMENT_ENTRY_VALUES_F SCREEN_ENTRY_VALUE
PAY_RUN_RESULTS JURISDICTION_CODE
PAY_RUN_RESULT_VALUES RESULT_VALUE
PAY_ACTION_INFORMATION JURISDICTION_CODE

The process provides the Mode parameter, which is mandatory. The process must be first run in Generate mode and then in Upgrade mode.

Features of the PSD Code Upgrade Process

Running the PSD Code Upgrade Process

  1. In Pay Action Parameters window, specify the desired number of threads to run the process multi-threaded. The PSD Code Upgrade Process is a multi threaded process as it handles potentially high volume of data to process and update. It is highly recommended that the process is executed with multiple threads in order to optimize performance.

  2. Navigate to the Submit Request window.

  3. Select the PSD Code Upgrade Process in the Name field.

  4. Run the PSD Code Upgrade Process in Generate Mode.

  5. What happens when the process is run in the Generate Mode:

    1. The process checks for any PSD code changes necessitating an upgrade of the data. If there are no PSD code changes, the process will terminate without making any changes.

    2. If there are PSD code changes, the process will create an entry in the PAY_PATCH_STATUS table indicating the PSD Upgrade Data Generate Process is being run. The entry will refer to a <GENERATE_ID>. This <GENERATE_ID> will be used later in the processing.

    3. The process then creates a temporary element set 'US_JSD_ELEMENTS_<GENERATE_ID>, which holds all those elements that have Jurisdiction as an Input Value. This will be used later in the processing and is removed at the end of the process.

    4. For each of the assignments associated with the jurisdictions that had a PSD code change, the system will then determine if the PSD code needs to be updated and if so, a corresponding change is inserted into the PAY_US_GEO_UPDATE table. Records will be inserted into PAY_US_GEO_UPDATE for each of the tables verified.

    5. The process will print to the output file any changes that are determined for the assignments. The summary section at the end of the file indicates the number of assignments that are to be upgraded and run balance invalidated as required.

    6. The last step is to remove the temporary element set created earlier in Step 3.

  6. Verify the output file for the identified changes.

  7. Resolve any unexpected or incorrect updates in the output file and run the process again in Generate Mode until all such issues are taken care of.

  8. Once the data listed in the output file is acceptable, run the PSD Code Upgrade Process in Upgrade Mode.

  9. What happens when the process is run in the Upgrade Mode:

    1. The process creates an entry in the PAY_PATCH_STATUS table referring to the PSD Code Upgrade Process (e.g. <UPGRADE_ID>). This <UPGRADE_ID> is used later in the processing.

    2. For all the relevant records in PAY_US_GEO_UPDATE table, the <GENERATE_ID> is replaced with the <UPGRADE_ID>, (i.e. PAY_US_GEO_UPDATE table entries of <GENERATE_ID> are updated with <UPGRADE_ID>).

    3. For each applicable assignment, the above listed tables are updated with the applicable new PSD code details.

    4. The process then prints to the output file any assignments that were updated and the tables that were updated for each of those assignments. Assignments that ended in error will also be listed in the output. A summary section will be displayed at the end of the output file which indicates the total number of assignments selected for upgrade when run in Generate mode, the number of assignments updated successfully by the Upgrade process, and number of assignments that ended in error.

    5. The process then updates the status of the PAY_PATCH_STATUS entry to indicate the successful completion of the process when run in Upgrade Mode (i.e if there are no assignments in error). If there are any assignments in error, the status will be updated to 'Error'.

    6. The process then invalidates the run balances related to the PSD balances' defined balances. (Again, this happens only for those Business Groups associated with the assignments that were updated with the PSD code changes.)

    7. On successful update of all the assignments, records will be inserted into the PAY_US_GEO_UPDATE table indicating the completion of the Upgrade process for the current set of PSD code changes. This will ensure that no further update is necessary for the current changes in any future runs of the PSD Code Upgrade Process.

  10. Verify the data in the Output file for the changes made and status of the assignments that were processed.

  11. If any assignments are in error, identify the reason for error using the process log files.

  12. Once any errors have been identified and resolved, rerun the PSD Code Upgrade Process once again in Upgrade Mode to ensure that all the assignments are processed successfully.

Interpreting the Output Files

Output files are created each time the PSD Code Upgrade Process is run. They indicate the mode in which the process was executed along with execution time as well as the information listed below:

For information on the sample output files, refer to the Document 1447771.1, Oracle US Payroll: New 'PSD Code Upgrade Process' - Release 12.1 on My Oracle Support.

Run Balance Data stored in the PAY_RUN_BALANCES table also holds the PSD code data. Since PSD code data in PAY_RUN_RESULTS and PAY_RUN_RESULT_VALUES are updated by the PSD Code Upgrade Process, it is also necessary to invalidate the applicable run balances. When the PSD Code Upgrade Process is run in Upgrade Mode, it will invalidate the applicable run balances for PSD related balances' defined balances. Note: This happens only for the business groups associated with the assignments that are updated. After running the PSD Code Upgrade Process, it will also be necessary to run the Generate Run Balances concurrent program for the invalid run balances in order to regenerate them. Note that as the PSD Code Upgrade Process will only handle the applicable delivered run balances, any user defined or custom balances created for storing PSD result values will also need to be regenerated.

Determining how to Handle Employees with Invalid PSD Codes in Year End Reports

Pennsylvania employees with invalid PSD codes are reported in the W2 Exception Register report and an Employee W2 is not created for such employees.

The W2 Exception Register reports the following employees as an exception and these employees do not receive a W-2 for 2013 or later:

However, in certain cases, correcting the employee's invalid PSD codes might prove to be very difficult such as when an employee is terminated and claimed Pennsylvania as their state of residence but failed to submit the Residence Certification Form prior to termination. In such a scenario, correcting or adding the proper school district code to correct the PSD code may not be possible.

Oracle US Payroll enables you to determine whether employees with invalid PSD codes are to be reported in the W2 Exception Register or will receive a W-2 with a potentially invalid or incorrect TCD code in Box 20. The setting for the HR:Allow invalid PSD codes on W-2(Y/N) profile option will determine whether or not the employee is reported in the Employee W-2 PDF, W2 Register reports or the W2 Exception Register.

Before you run the Employee W-2 PDF, W2 Register reports or the W2 Exception Register report, review the setting of the HR:Allow invalid PSD codes on W-2(Y/N) profile option.

Setting the HR:Allow invalid PSD codes on W-2(Y/N) Profile Option

You can set the HR:Allow invalid PSD codes on W-2(Y/N) profile option to either 'Y' or 'N' or leave the profile option value blank.

The following settings for this profile option will determine whether the employee is reported in the Employee W-2 PDF and W2 Register reports or the W-2 Exception Register report:

  1. The profile option is set to 'N' or left blank: Any Pennsylvania employee with an invalid PSD code that meets one of the three scenarios will be reported in the W2 Exception Register and no Employee W-2 PDF will be generated. Note that this is the default behavior.

  2. 2. The profile option is set to 'Y': This value overrides the default behavior and employees with invalid PSD codes that meet the conditions listed above will receive an Employee W-2 PDF and will also be reported in the Employee W2 Register instead of the W2 Exception Register. (Reminder: In this case, the employee's W-2 may contain invalid or incorrect PSD code in Box 20.)

Important: To override the default behavior, you must set the profile option "HR:Allow invalid PSD codes on W-2(Y/N)" to Yes before running the Year End Pre-Process or you must re-archive the profile option value by running the 'Year End Pre-Process Re-Archive (ER info only)' with the selection criteria as 'Invalid PSD Codes W2 Profile'. The archived profile option value will then be considered while processing the Employee W-2 Register or Employee W-2 PDF reports.

Payroll Register Reporting

Payroll Register Report

Payroll Register Reporting is used to show employee and group level payroll details such as:

The Payroll Register report consists of two separate reports grouped together in a Request Set. The two separate reports are the Payroll Register report, and the Payroll Register Totals report.

Parameters

The following parameters exist for the Payroll Register reports:

Sort Options

Payroll Register reports can be organized according to user-defined criteria, or sort options. Oracle Payroll does not require that you use sort options to generate your report, but they are the best way to customize the reports to your specific needs. You can sort reports by any or all of the following options:

Note: GRE should only be selected as a sort option if you have included all GRE's in the parameters for a Payroll Register request set.

The sort options are hierarchical in nature. The Sort Option Two field is enabled only after a selection has been made in the Sort Option One field. The Sort Option Three field is enabled only after a selection has been made in the Sort Option Two field.

Example of Sort Options

Following is an example of how to use sort options to customize the Payroll Register reports.

If you want to create reports sorted by GRE, Organization, and Location, you enter GRE into the Sort Option One field, Organization into the Sort Option Two field, and Location into the Sort Option Three field. Using the selected Sort Options, Oracle Payroll generates the reports listing payroll register data for each Location alphabetically by Organization within each GRE for the selected payroll or consolidation set.

Note: The sort options are nested. Using the previous example, if you change Sort Option Two from Organization to Location, Sort Option Three is automatically cleared.

Running the Payroll Register Request Set

The Payroll Register Report and Payroll Register Totals Report are two separate reports generated by a single Report Set. Both reports. These reports are printed in landscape fashion and are designed to fit on 8.5" x 11" paper. The Payroll register Report and Payroll Register Totals report do not contain page numbers.

For performance reasons the two reports are designed to take advantage of a multi-threaded environment, and contain sequence numbers you can view in the Requests window.

With some printer configurations, a heading may appear twice on the Payroll Register report and the application lists the data for the selected report data below the second heading.

Payroll Report Performance

The Payroll Register reports can contain large amounts of information. For maximum system performance, these reports are designed to take advantage of a multi-threaded environment. To obtain the maximum performance from the Payroll Register reporting process, configure the Payroll Action Parameters for Parallel Processing.

See: Payroll Action Parameters: Oracle HRMS US Implementation Guide

If you are running the Payroll Register request set for a large organization, you may experience performance concerns when including quarter-to-date balances in the Reporting Dimensions parameter. You may also experience performance issues if you change the Full Report parameter from No to Yes.

You run the Payroll Register Request Set from the Submit Requests window.

To run the Payroll Register request set

  1. In the Type field, select Set. In the Name field select Payroll Register Report from the List of Values.

  2. In the Request Set Programs region, click in the Parameters field and select the parameters for the report. See the Payroll Register Parameters section below for more information.

  3. Click OK to close the Parameters window.

  4. In the Request Set Programs region, select the number of copies you want to print of the Payroll Register and Payroll Register Totals reports.

    Caution: The Payroll Register Report can require substantial printing resources for large organizations.

  5. In the Printer field, select a printer or accept the default.

  6. In the Run Options region, select any run options and click Submit.

Payroll Activity Reporting

Payroll Activity Report

The Payroll Activity report shows employee and group level payroll details such as:

The Payroll Activity report consists of two separate reports grouped together in a Request Set. The two separate reports are:

Payroll Activity report Shows payroll activity details at the employee level.

Note: Depending on the selected parameters, the Payroll Activity report can be large and may take considerable time to run and print.

Payroll Activity Totals report Shows the current totals for the selected sort options: Organizations, Locations, and GREs. This report does not include employee, quarter-to-date, and year-to-date balances.

Sort Options

You organize Payroll Activity reports according to user-defined criteria or sort options. Oracle Payroll does not require that you use sort options to generate your report, but they are the best way to configure the reports to your specific needs. You sort reports by any or all of the following options:

Note: Select GRE as a sort option only if you have included all GREs in the parameters for a Payroll Activity request set.

The sort options are hierarchical in nature. Making a selection to the Sort Option One field enables Sort Option Two. Making a selection to the Sort Option Two field enables Sort Option Three.

Payroll Activity Report Output

The Payroll Activity Report and Payroll Activity Totals Report are two separate reports that you submit in a single Report Set. You print both reports using the selected parameters in landscaper format that fit on 8.5" x 11" paper. The Payroll Activity Report does not contain page numbers. The Payroll Activity Totals report includes page numbers.

For performance reasons (see below), the two reports take advantage of a multi-threaded environment and contain sequence numbers that you can view from the Requests window.

Note: A heading may appear twice on the Payroll Activity report. In cases where this happens, all of the selected report data appears beneath the second instance of the heading.

Performance and the Payroll Activity Reports

The Payroll Activity reports can contain large amounts of information. For maximum system performance, these reports take advantage of a multi-threaded environment. For the best performance from the Payroll Activity reporting process, make sure your system administrator has the Payroll Action Parameters configured for Parallel Processing.

See: Payroll Action Parameters, Oracle HRMS Implementation Guide

If you are running the Payroll Activity request set for a large organization, you may experience slower performance if you include quarter-to-date balances in the Reporting Dimensions parameter. You may also experience slower performance if you change the Full Report parameter from No to Yes.

Report Scenarios

Use the Payroll Activity report to list:

Running the Payroll Activity Request Set

Run the Payroll Activity Request Set from the Submit Request Set window.

To run the Payroll Activity request set

  1. In Request Set field, select Payroll Activity Report.

  2. In the Request Set Programs region, click in the Parameters field if the Parameters window does not automatically appear.

  3. Select the parameters for the report.

  4. Click OK to close the Parameters window.

  5. In the Request Set Programs region, select the number of copies you want to print of the Payroll Activity and Payroll Activity Totals reports.

    The Payroll Activity Report can require substantial printing resources for large organizations.

  6. Click Options, and select Run and Print Options.

  7. Click OK, and click Submit.

Payroll Activity Parameters

The following parameters exist for the Payroll Activity reports:

Beginning Date Paid (required) Select the beginning payment date for the payroll runs/quick pays, or the effective date of the payroll reversals or balance adjustments that you include in the report.
In very large organizations, there may be a slight delay in accessing the list for Beginning Date Paid.
Ending Date Paid (required) Select the ending payment date for the payroll runs/quick pays, or the effective date of the payroll reversals or balance adjustments that you include in the report.
In very large organizations, there may be a slight delay in accessing the list for Ending Date Paid.
Payroll (optional) Select from the list to run this report for a specific payroll.
Consolidation Set (optional) Select from the list to run this report for a consolidation set. If you select a payroll in the Payroll field that is associated with a consolidation set, this field automatically populates.
Government Reporting Entity (optional) Select from the list to limit the report to a single GRE. If this field remains blank, the report contains information for all valid GREs in the business unit.
Organization (optional) Select from the list to limit the report to a single Organization. If this field remain blank, the report contains information for all valid Organizations.
Location (optional) Select from the list to limit the report to a single Location. If this field, remains blank the report contains information for all valid Locations.
Employee Name (optional) Select from the list to limit the report to a single employee. If this field remains blank, the report contains information for all valid employees.
Process Type (required) Select from the list to limit the report to a single payroll process type or, in some cases, to a pair of process types. Select All to report on all process types. The available process types are Balance Adjustments, Balance Initializations, Payroll Runs, Quick Pays, and Reversals. If you Select All, voided payments are also included in the report.
Suppress Current Zero Records (required) The default entry for this field is Yes. If you enter No in this field, the report shows employee records for individuals that have zeros entered in current elements but may have quarter-to-date or year-to-date balances.
Null records always appear in the Payroll Activity report.
Full Report (required) The default entry for this field is No. With No selected, the report shows balances for Hours, Earnings, and Deductions. If you select Yes, the report also includes balances for Taxable Wages and Employer Tax Liabilities.
Reporting Dimensions (required) The default entry for this field is Run. Run balances always show on the Payroll Activity report. In addition to Run balances, the report detail can also display quarter-to-date, year-to-date, or quarter-to-date and year-to-date balances.
You may encounter slow performance while running the Payroll Activity report if you selected a quarter-to-date Reporting Dimension.
The Payroll Activity Totals report ignores the Reporting Dimensions parameter. Only Run values display on the Payroll Activity Totals report.
Sort Options (optional) Use the three fields to sort your report results.
Employee Page Break (required) The default entry for this field is No. If you select Yes, the Payroll Activity report includes a page break after each employee contained in the report. The Payroll Activity Totals report ignores the Employee Page Break parameter.

Year End Preprocessing

Year End Pre-Process

The Year End Pre-Process is the Oracle Payroll utility that archives employee and employer data for a specific year and GRE. Once archived, this data is available for end of year reporting. The system archives the data from the Year End Pre-Process so you can regenerate year end reports.

What does the Year End Pre-Process Archive?

The Year End Pre-Process archives any employee records with non-zero values for any of the following balances for the selected year:

Running the Year End Pre-Process creates a log file that lists the numbers of assignments that were skipped, in error, and processed successfully.

Note: You do not need to run a payroll run to have the year end process produce output, such as a Federal 1099R magnetic file, if you have generated a non-zero value for the balance by running a process that creates a balance (reversal, balance adjustment, Quick pay, or balance initialization).

Viewing Archived Data

Use the View Archive window to view any employee or assignment data archived by the Year End Pre-Process. However, you cannot query for employer-level data that you have archived or stored against the payroll action. This window also displays any associated context code (such as Jurisdiction Code for State Income Tax).

This information is read-only. You cannot modify or update the data from this window. For instructions on how to run, retry, view, and rollback this information, see: Managing the Year End Pre-Process.

Adjusting and Retrying Records

If an employee's record has changes after you run the Year End Pre-Process, you can retry the Year End Pre-Process for that employee. It is not necessary to rerun the entire process. In instances where large numbers of employees' balances change after the Year End Pre Process is run, it may be easier to rollback the Year End Pre-Process and re-run to include the balance updates.

You mark individual assignments for retry in the Employee Assignment Process window. You can also retry a payroll process for an assignment set but not for a dynamic assignment set.

You re-archive employer data by marking the payroll action for retry in the Payroll Process Results window and then retrying the process by selecting Retry US Payroll Process from the Submit Requests window. If no employees are assigned to a GRE, the Year End Pre-Process archives only employee data. In this case, you cannot re-archive employee data through the Retry US Payroll Process. You must roll back and then rerun the Year End Pre-Process.

Out of Balance Conditions in State and Federal W-2 Reports

An out of balance condition exists when the archived content differs from the corresponding live payroll balances. By comparing your Year End pre-archive balancing reports (such as GRE Totals or federal, state, or local tax remittance reports) against your post-archive balancing reports (such as the W-2 Register/1099-R Register or the W-2 Magnetic Media Employee Detail file), you can determine if these discrepancies are in the pre-archive or post-archive balances.

Such conditions may occur when:

Once you have determined if out-of-balance conditions exist, run the Year End Archive Reconciliation report to identify the source of the discrepancy. This report:

Managing the Year End Pre-Process

Year End Pre-Processing involves the following operations:

Prerequisites

To Run the Year End Pre-Process

Run this process from the Submit Request window:

  1. In the Request Name field, select Year End Pre-Process.

  2. Click in the Parameters field if the parameters window does not automatically open.

  3. Specify the Year End Pre-Process that you want to run by selecting the Year and Government Reporting Entity.

  4. Click OK, then Submit.

  5. On completion of the process, check the logfile for counts of successful, skipped, and assignments in error.

    Note: Do not run the Payroll Process and Year End Pre Process concurrently. Running the processes concurrently can result in table locking and performance issues.

To View the Archived Data

  1. Select Assignment Process Result from the View menu.

  2. Select the appropriate assignment.

  3. Select "Federal-YREND-XXXXX" (where XXXXX is your GRE name).

  4. Click View Results.

    The View Archived Values window opens. This window displays data archived for an employee, including:

    • Database item name

    • Values archived against an assignment action

    • Any associated context (such as Jurisdiction Code for State Income Tax)

    This information is read-only.

    Note: The check box on this window indicates if the Year End Pre-Process was locked by a magnetic media process (such as Federal W-2 Magnetic Media) and cannot be rolled back or marked for retry.

Troubleshooting Archived Data

During the archival process, the Year End Pre-Process reports on the number of assignments successfully archived, skipped, or in error. To view the archived error information:

  1. Open the Requests window.

  2. Select your request, and click View Log.

    This displays the Year End Pre-Process's logfile, including counts of successful, skipped, and assignments in error.

  3. Open the Payroll Processes window.

  4. Query your archived Year End Pre-Process:

    • Specify "%YREND% as the name.

    • Specify the year end dates.

    • Specify "Magnetic Report" as the action type.

  5. Click Find.

    Oracle Payroll returns a list of all archives matching your search criteria.

To Retry the Year End Pre-Process

Retrying the Year End Pre-Process re-archives any employee assignments that you marked for retry.

If you generated any of the following reports, you must first roll back the process prior to retrying the Year End Pre-Process:

Mark assignments for retry in the Employee Assignment Process window. You can also run this process for an assignment set but not for a dynamic assignment set. If there are no employees in the GRE, you cannot perform a retry.

  1. In the Name field, select Retry US Payroll Process.

  2. Click in the Parameters field if the parameters window does not automatically open.

  3. In the Process Year field, enter the appropriate year.

  4. In the Process Type field, select Magnetic Report.

  5. In the Payroll Process field, select the appropriate Year End Pre-Process.

  6. Click OK, then Submit.

To roll back the Year End Pre-Process

When you roll back the Year End Pre-Process, you are removing all archived data on year end balances from the system.

If you generated any of the following reports, you must roll back the process prior to rolling back the Year End Pre-Process:

You can roll back the Year End Pre-process using the Rollback US SPWL process. See: Running the Rollback US SPWL Process

Identifying Missing Employees to Add to the Year End Preprocess

To add employees who were hired and processed after you run the Year End Preprocess, run the Year End Archive Missing Assignments Report. This report identifies employees who were not picked up by the Year End Preprocess but are now eligible for processing. This report adds the missing employees to an assignment set.

After you have identified any omitted employee assignments, run the Add Assignment Actions to Year End Preprocess process to add them to the Year End Preprocess (YEPP).

Note: When running these processes as a secure user, you are only able to view the employee details that you have access to through your security profile.

To run the Year End Archive Missing Assignments Report

  1. Select the Reporting Year from the list of values.

  2. Select the GRE or PRE Archived by Year End Preprocess.

  3. Enter an assignment set that represents your missing employees.

  4. Select the Output File Type. You choose between Comma Delimited and HTML formats.

    The report displays the year, GRE, or PRE, employee name, Social Insurance Number, and assignment number of the employees who were not previously archived by the preprocess.

    The next step is to run the Add Assignment Actions to Year End Preprocess, which picks up the assignments from the assignment set.

To run the Add Assignment Actions to Year End Preprocess

This process picks up the assignments marked for retry and archives them in the YEPP.

  1. In the Request Name field, select Add Assignment Actions to Year End Preprocess.

  2. Click in the Parameters field if the Parameters window does not automatically appear.

  3. Select the Reporting Year from the list of values.

  4. Specify the GRE or PRE whose YEPP archive you want to amend.

  5. Specify the assignment set created when you ran the Year End Archive Missing Assignments Report report.

  6. Choose the output file type. You can choose between comma separated values (CSV) and HTML formats.

    When you run the Retry Payroll Process for the Year End Preprocess, it archives the data for the new assignments.

  7. Click Save and then Submit.

  8. Run the Retry Payroll Process to archive the data for the new assignments.

Verifying Employee Federal, State, and Local Balances

The Year End Archive Reconciliation report compares the employee federal, state, and local level balances archived by the Year End Pre-Process against the corresponding live payroll balances. The report displays employees that have discrepancies.

To verify your employee federal and state balances

  1. Run the Year End Pre Archive balancing reports (such as the GRE Totals or Federal/State and Local Tax Remittance reports).

  2. Run the Year End Pre-Process.

  3. Run the Year End Post Archive balancing reports (such as the W-2 Register/1099-R Register or the Federal/State W-2 Magnetic Media .a03 Employee Detail report).

  4. Compare your pre-archive reports against your post-archive reports.

  5. If any discrepancies exist, run the Year End Archive Reconciliation report to identify the causes.

To run the Year End Archive Reconciliation report

Run this report from the Submit Requests window.

  1. In the Request Name field, select Year End Archive Reconciliation report. If the Parameters window does not open automatically, click in the Parameters field.

  2. In the Parameters window, enter the tax year for the report in the Year field.

  3. Select the GRE you want to check. Your selection determines whether you are checking W-2 or 1099-R reports.

  4. Specify if you are federal, state, local, other taxes, or W2 Box 14.

    • Local tax level selection: When submitting the Year End Archive Reconciliation report and selecting a tax level of 'Local', you will be required to first select the applicable state. After selecting the state, you can select a locality from a list of localities within that state. Note that if tax type of 'Local' is selected, the Locality parameter is also mandatory. You must also then select the Box Name from the following options:

      • Local income tax [value reported in W-2 Box 19]

      • Local wages tips etc [value reported in W-2 Box 18]

      In the report output file, the selected locality will be displayed in the footer of the output.

    • Others tax level selection: When submitting the Year End Archive Reconciliation report and selecting a tax type of 'Others'; you will be required to first select the applicable state. After selecting the state, you can then select whether to compare 'SDI' (applicable only to certain states) or 'Boone' values (the latter is only applicable to the state of Kentucky).

    • W2 Box 14 selection: Use this selection to report any differences for user-defined W-2 Box 14 balances. Selecting this option allows you to select any existing user-level W-2 Box 14 balance in the 'Box name' parameter, and employees with differences (between the archived and "live" values) will be included in the report output.

  5. If you are running this report at the state level, select a state.

  6. Select the W-2/1099-R wage or tax type you want to check.

  7. Select a report output format.

  8. Click OK, then Submit.

    Oracle Payroll generates an output file with the name <User_name>.<request_id>, where <User.name> is your user name and <request_id> is this report's request ID. This file is placed in the OUT directory.

To resolve out-of-balance conditions

If the Year End Archive Reconciliation report identifies any employees with out-of-balance discrepancies:

  1. Mark the Year End Pre-Process for retry for those employees you have corrected.

  2. Re-run the Year End Archive Reconciliation report to confirm that you have corrected the errors.

Post Archive Reporting

Post-Archive Reports

Run the following reports after running the Year End Pre-Process.

W-2 Register Shows the amounts reported in each box of the Form W-2 for all employees in a particular GRE as of the chosen effective date by W-2 box number (1 through 20).

Note: The Puerto Rico W-2 Register is part of the W2 Puerto Rico Request Set.

W2 Exception Register Identifies employees who have negative box 1 totals on the form W-2 or have zero box 1 totals but have other negative W-2 box totals. Identifies employees who have negative box 1 totals on the form W-2 or have zero box 1 totals but have other negative W-2 box totals. This report also identifies Pennsylvania employees with invalid Political Subdivision Codes (PSD Codes).

Note: Oracle US Payroll enables you to determine whether employees with invalid PSD codes are to be reported in the W2 Exception Register or receive a W-2 with a potentially invalid or incorrect TCD code in Box 20. The setting for the HR:Allow invalid PSD codes on W-2(Y/N) profile option determines whether or not an employee is reported in the Employee W-2 PDF, W2 Register reports or the W2 Exception Register. Before you run the W2 Register report, review the setting of the HR:Allow invalid PSD codes on W-2(Y/N) profile option.


For more information, see:
1099-R Register Lists the amounts reported in each box of the Form 1099-R for all employees in a particular GRE for a given year.
1099-R Exception Register Identifies employees who have negative box 1 totals on the Form 1099-R or have a zero box 1 total on the Form 1099-R but have other negative 1099-R box totals.
Year End Negative Balances Identifies employees in a GRE who have negative balances on the form W-2.
Year End Archive Missing Assignments Report Identifies missing assignments from the Year End Pre-Process Archive for a GRE. This report produces an assignment set containing all assignments missing from the Year End Pre-Process.
Add Assignment Actions to the Year End Pre-Process Adds assignments to the Year End Pre-Process after a run. The process also marks the eligible assignments for retry when you run the Retry US Payroll Process concurrent program.
Discoverer Workbooks

Note: Oracle Applications only certifies workbooks for the desktop version of Discoverer.

Assists in diagnosing and balancing issues. Relevant workbooks include:
  • Employee W2 Federal Details

  • Employee W2 State Details

  • Employee W2 Locality Details

  • Employee W2 Box 12 Details

  • Employee W2 Box 14 Details

Depending upon the output on these reports, you may have to make adjustments to various balances.

Year End Negative Balances Report

The Year End Negative Balances Report identifies individual employees in a GRE with negative balances on the Form W-2. Run this report after you complete the Year End Pre-Process for the GRE in question and before you begin the magnetic or paper W-2 or 1099-R creation process.

This report prints all employees with negative balances of the following types:

Year End Negative Balances Report Sort Options

Organize the Year End Negative Balances Report according to user-defined criteria or sort options. Oracle Payroll does not require that you use sort options to generate your Year End Negative Balances Report, but they are the best way to configure the report to your specific needs. You sort the report by any three of the following options:

Following is an example of how to use sort options to configure the Year End Negative Balances Report.

If you want to create a report sorted by Organization, Location, and Employee Name:

  1. Enter Organization into the Sort Option One field.

  2. Enter Location into the Sort Option Two field.

  3. Enter Employee Name into the Sort Option Three field.

Using these Sort Options, Oracle Payroll generates the report listing each employee name by location within each organization for the selected GRE.

Note: The sort options are nested. If you change Sort Option Two from Location to Employee Name, Sort Option Three automatically clears.

Sort Options and Report Layout

When printed, the Year End Negative Balances Report inserts a page break between each selected sort option, with the exception of Employee Name or Social Security Number.

For Example, if you choose Organization, Location, and Employee Name as sort options, the report contains a page break every time the Organization or the Location changes. The report does not have page breaks between the individual employees.

Year End Negative Balances Report Parameters

The following parameters exist for the Year End Negative Balances Report:

Reporting Year (required) Enter the four-digit calendar year.
Government Reporting Entity (required) Select the GRE.
Sort Options (optional) Use the three fields to sort your report results.
If you do not select any sort options, the report uses Employee Name as the default.

Year End Negative Balances Report Output

The Year End Negative Balances Report prints according to the parameters that you select, in landscape format on 8.5" x 11" paper. The parameters are included at the beginning of the report. The report is printed in landscape fashion and is designed to fit on 8.5" x 11" paper.

The values for boxes 1 through 6 of form W-2 appear for each employee on the report. The values for all other W-2 boxes will appear on the report only if they are non-zero values.

Year End Archive Missing Assignments Report

The Year End Archive Missing Assignments report identifies missing assignments from the Year End Pre-Process Archive for a GRE. Run this report after you run the Year End Pre-Process for the GRE in question. This process produces an assignment set containing all assignments missing from the archive. You can use this set later in the Add Assignment Actions To The Year End Pre-Process process.

An employee's assignments could be missing from the archive for different reasons. One example is if you performed a balance adjustment for an employee who was missing their initial balance upload. The original Year End Pre-Process does not include the employee but, due to the balance adjustment, must be included in the archive. The report also identifies employees who were hired and paid (within the year being processed) after the Year End Pre-Process was run.

Year End Archive Missing Assignments Report Parameters

The following parameters exist for the Year End Archive Missing Assignments Report:

Year Year for the Year End Pre-Process.
GRE GRE you archived by the Year End Pre-Process on.

Note: Only GREs you have archived in the selected year are available.

Assignment Set Name for your Assignment Set. The Add Assignment Actions To The Year End Pre-Process can use this set as source data to include these employees in the archive.

Note: When you create the Assignment Set do not include spaces in the Assignment Set name. This report does not support dynamic assignment sets.

Output File Format Select one of the following formats: Comma Delimited (CSV) or HTML. HTML is the default value.

You must run the Year End Pre-Process before you submit this process. The report displays the results in the following groupings:

Adding Assignment Actions To The Year End Pre-Process

The Add Assignment Actions To The Year End Pre-Process adds assignments to the Year End Pre-Process archive. The process also marks the eligible assignments for retry so that they process when you run the Retry US Payroll Process for the Year End Pre-Process.

The Year End Pre-Process or the Add Assignment Actions To The Year End Pre-Process archives an employee if any of the following balances have a non-zero value for a dimension of Year to Date:

Add Assignment Actions To The Year End Pre-Process Process Parameters

The following parameters exist for the Add Assignment Actions To The Year End Pre-Process:

Year Select the year.
GRE Archived by the Year End Pre-Process Enter the GRE.
Assignment Set You can enter any assignment set, but to ensure that you process all missing assignments, use the assignment set created by the Year End Archive Missing Assignments Report.

Note: This report does not support dynamic assignment sets.

Output File Format Select Comma Delimited (.CSV) or HTML. HTML is the default value.

Running the Year End Negative Balances Report

Run the Year End Negative Balances Report from the Submit Request window.

To run the Year End Negative Balances Report

  1. In the Name field, select Year End Negative Balances. Click in the Parameters field if the Parameters window does not automatically appear.

  2. Select the parameters for the report. See:Year End Negative Balances Report Parameters section

  3. Click OK to close the Parameters window.

  4. In the Print To field in the Submit Request window, select a printer or accept the default.

  5. Click Options to enter print and run options for the report.

  6. Click Submit.

    Navigate to the View Requests window to view the report.

Running the Year End Archive Missing Assignments Report

Run the Year End Archive Missing Assignments Report from the Submit Request window.

To Run the Year End Archive Missing Assignments Report

  1. In the Name field, select Year End Archive Missing Assignments Report. Click in the Parameters field if the Parameters window does not automatically appear.

  2. Select the parameters for the report. See the Year End Archive Missing Assignments Report Parameters section for more information.

  3. Click OK to close the Parameters window.

  4. Click Submit.

Navigate to the View Requests window to view the report.

Running the Add Assignment Actions To The Year End Pre-Process Process

Run the Add Assignment Actions To The Year End Pre-Process Process from the Submit Request window.

To run the Add Assignment Actions To The Year End Pre-Process Process

  1. In the Name field, select Add Assignment Actions To The Year End Pre-Process. Click in the Parameters field if the Parameters window does not automatically appear.

  2. Select the parameters for the report. See:Add Assignment Actions To The Year End Pre-Process Parameters section

  3. Click OK to close the Parameters window.

  4. Click Submit.

1099-R Processing

Reporting Retirement Income Distributions

If you distribute retirement income during the tax year, you must use Form 1099-R to report the distributions and any amount withheld for FIT/SIT/LIT. If you have more than 249 retirees, you must file Forms 1099-R on magnetic media unless you were granted a waiver. Beginning in tax year 2006, the IRS will no longer accept 3 1/2 inch diskettes for filing information returns. Effective with the 2006 1099R filing, the IRS is asking for the first year of a designated ROTH so they can determine if the ROTH meets the 5 year participation rule. If the 5 year participation rule is met, you distribute the earnings tax free.

You must report any distributions from all types of retirement plans and report both periodic and lump-sum payments.

Report distributions from any of the following on Form 1099-R:

You must successfully run the Year End Pre-Process for each GRE in your enterprise prior to running a Federal or State magnetic 1099-R report.

You can generate corrected 1099-R Information Return-PDF Reports before or after the 1099-R data is submitted to the IRS. See: Generate Corrected 1099-R Information Return-PDF Reports.

Viewing 1099-R Information Return and Corrected 1099-R Online

Employees can view their 1099-R form and corrected 1099-R form online using the Employee 1099-R function of the Employee Self-Service responsibility. They can also download their 1099-R and corrected 1099-R forms in Adobe Acrobat PDF format from the Form 1099-R Information Return page. See Viewing 1099-R Information Return, Oracle SSHR Deploy Self-Service Capability Guide for more information.

Prerequisite Step: To enable employees to view their 1099-R and corrected 1099-R forms online, you must run the following concurrent programs:

  1. 1099R Information Return – PDF

  2. Corrected 1099R Information Return - PDF

Form 1099-R Box Information

The following table depicts the various boxes and fields on form 1099-R and indicates where Oracle Payroll draws the appropriate balances to complete the form:

Box Title Information Contained
1 Gross distribution GROSS EARNINGS
2a Taxable amount REGULAR EARNINGS + SUPPLEMENTAL EARNINGS FOR FIT SUBJECT TO TAX + SUPPLEMENTAL EARNINGS FOR NWFIT SUBJECT TO TAX + PRE TAX DEDUCTIONS FOR FIT SUBJECT TO TAX - PRE TAX DEDUCTIONS - FIT NON W2 PRE TAX DEDNS

Important: For an alternative calculation method, see: Setup Steps to Calculate the 1099-R BOX 2a Taxable Amount using the Simplified Method Worksheet Calculation

2b Taxable amount not determined Defined by Taxable amount unknown in the PAY_US_PENSION_REPORTING EIT at the Assignment level
2b Total distribution Defined by the value in Total distributions in the PAY_US_PENSION_REPORTING EIT at the Assignment level
3 Capital gain (included in box 2a) CAPITAL GAIN
4 Federal income tax withheld FIT WITHHELD
5 Employee contributions /Designated Roth contributions or insurance premiums EE CONTRIBUTIONS OR PREMIUMS
6 Net unrealized appreciation in employer's securities UNREALIZED NET ER SEC APPREC
7 Distribution code(s) Defined by the value in 1099-R Distribution code in the PAY US Pension Reporting EIT at the Person level
8 Other OTHER EE ANNUITY CONTRACT AMT
9a Your percentage of total distribution Defined by the Employee distribution percentage in the PAY_US_PENSION_REPORTING EIT at the Assignment level
9b Total employee contributions TOTAL EE CONTRIBUTIONS
10 Amount allocable to IRR within 5 years BOX 10 1099R IRR AMOUNT (The amount of the distribution allocable to an IRR made within the 5-year period beginning with the first day of the year in which the rollover was made.)
11 1st year of desig Roth contrib. Defined by the value in 1st Yr of desig Roth contrib in the PAY US Pension Reporting EIT at the Person level: (The first year of the 5-taxable-year period. This is the year in which the designated Roth account was first established by the recipient.)
12 FATCA filing requirement The FATCA filing requirement check box to the right of Box 11 “1st year of desig. Roth contrib.” in Form 1099-R is determined by the value in the “FATCA filing” field in the PAY_US_PENSION_REPORTING EIT at the Assignment level (People window > Others button > Extra Information). If Yes is selected, then the FATCA filing requirement check box on Form 1099-R will be checked with an “X”. If No is selected, then the FATCA filing requirement check box will remain unchecked on Form 1099-R. The default value is No. The value set in the FATCA filing field is archived when the Year End Pre-process is run and the FATCA filing field is reported in the 1099 PDF and 1099R Information Return – PDF. Additionally, if the “FATCA filing” field in the PAY_US_PENSION_REPORTING EIT is set to Yes, then B Record, Position 556 will be populated with “1” in the Federal 1099R magnetic media output file (.mf). Otherwise, it will be blank filled.
13 Date of payment  
14 State tax withheld SIT WITHHELD
15 State/Payer's state no. State_id from ORG_INFORMATION of hr_organization_information
16 State distribution  
17 Local tax withheld Tax type (SDI, city, county, school) WITHHELD
18 Name of locality  
19 Local distribution  

Setup Steps to Calculate the 1099-R BOX 2a Taxable Amount using the Simplified Method Worksheet Calculation

For some retirees or pensioners, Box 2a Taxable Amount of Form 1099-R must use a calculation outside of what is provided in Oracle Payroll. According to the Form 1040 Instructions (and also as documented in IRS Publication 575), Box 2a should be calculated using the “Simplified Method worksheet”. This means the Total EE Contributions from 1099-R Box 9 in addition to the number of months for which this year's payments were made need to be taken into consideration when performing the calculation.

Complete the following steps to calculate the Box 2a information using the Simplified Method worksheet:

Defining the Organization Context (DFF) at the GRE Level

  1. In the Organization window, query the GRE for which to enter the 1099-R data.

  2. With Government Reporting Entity selected in the Organization Classifications region of the Organization window, choose Others and select '1099R Magnetic Report Rules 1'.

  3. Click in the Additional Organization Information field to open the '1099R Magnetic Report Rules 1' window.

  4. Select Yes or No in the Simplified Method for Box2a field. If Yes is selected, then Box 2a is calculated using the simplified method worksheet. If this value is left blank or set to No, then Box 2a is calculated using the default behavior as listed in the Form 1099-R Box Information table.

Defining the Person Level Extra Information Type (EIT)

  1. In the People window, click Others and select Extra Information.

  2. Select the 1099R Simplified Method Details extra information type. This EIT contains the following fields which must be populated in order to properly calculate Box 2a:

    • Annuity Start Date

    • Number of Lives in Annuity: 1 should be entered if there is only a primary annuitant.

    • Age of Primary Annuitant: This field must be populated.

    • Combined Age of Annuitants: The value entered in the Age of Primary Annuitant defaults to this field. If the plan is based on more than one life, then the field 'Combined Age of Annuitants' must also be populated accordingly.

    • Number of Payment Months: The default value for the field 'Number of Payment Months' is 12. It can be modified only if the value should be less than 12. This field is the number of months in the reporting year that payments were made. This value would only be less than 12 in the event this is the first year the plan is effective and the start date is after the first month of the year.

Feeding the Balance for Box 2a, if applicable

The Tax Free Amount Since 1986 for 1099R balance can be populated manually if applicable.

  1. Navigate to Total Compensation.

  2. Click Balance to open the Balance window.

  3. Search for the Tax Free Amount Since 1986 for 1099R balance.

  4. Create the appropriate balance feed.

The user table “SIMPLIFIED_METHOD_1099R_NO_OF_PAYMENTS_TBL” stores the expected number of payments to the plan annuitant(s) according to IRS rules. The values stored are based on the annuitant's age (or the combined age of annuitants if there is more than one). The value of Box 2a is determined based (in part) on both the values entered in the 1099R Simplified Method Details person extra information type along with the applicable user table value.

Form 1099-R Distribution Codes

Oracle Payroll supports all 1099-R distribution codes, but just one code per employee reported per Government Reporting Entity(GRE). If you have multiple distribution codes, you have to create two separate assignments in two different GRE's. Oracle does not support the printing of multiple codes per 1099-R for a single employee.

Code Distribution
1 Early distribution, no known exception. Use Code 1 only if the employee/taxpayer has not reached age 591/2, 8, D, L, or P, and if none of the exceptions under distribution Codes 2, 3, or 4 apply when the distribution is made. Use Code 1 even if the distribution is made for medical, first-time homebuyer, or qualified higher education expenses, under section 72(t).
2 Early distribution, exception applies (under age 59 1/2).
Form 5329 is not required.
3 Disability.
Form 5329 is not required.
4 Death.
Form 5329 is not required.
5 Prohibited transaction.
6 Section 1035 exchange (a tax-free exchange of life insurance, annuity, or endowment contracts).
7 Normal distribution.
8 Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2004.
9 Cost of current life insurance protection (premiums paid by a trustee or custodian for current insurance protection, taxable to you currently).
A May be eligible for 10-year tax option. See Form 4972.
B Designated Roth account distribution. This code is only used for a distribution that is not a qualified distribution. You must generate a separate 1099-R to report a distribution from a designated Roth account.
C Reportable death benefits under section 6050Y. This code could be used along with Code D - Annuity payments from nonqualified annuities and distributions from life insurance contracts that may be subject to tax under section 14.
D Excess contributions, plus earnings/excess deferrals taxable in 2003.
E Excess annual additions under section 415 and certain excess amounts under section 403(b) plans. Report on Form 1040/1040A on the line for taxable pension or annuity income.
Form 5329 is not required.
F Charitable gift, annuity.
G Direct rollover to a qualified plan, a tax-sheltered annuity, a governmental 457(b) plan, or an IRA. May also include a transfer from a conduit IRA to a qualified plan.
Form 5329 is not required.
J Early distribution from a Roth IRA, no known exception (in most cases, under age 59 1/2). Report on Forms 1040 and 8606, and see Form 5329.
L Loans treated as distributions.
M Qualified plan loan offset distribution due to severance from employment or termination of the plan.
N Recharacterized IRA contribution made for 2005 and recharacterized in 2005. Report on 2005 Form 1040/1040A and Form 8606, if applicable.
P Excess contributions plus earnings/excess deferrals taxable in 2004.
Q Qualified distribution from a Roth IRA. You are age 59 1/2 or over and meet the 5-year holding period for a Roth IRA. See the Form 1040/1040A instructions.
Form 5329 is not required.
R Recharacterized IRA contribution made for 2004 and recharacterized in 2005. Report on 2004 Form 1040/1040A and Form 8606, in applicable.
S Early distribution from a SIMPLE IRA in first 2 years, no known exception (under age 59 1/2). May be subject to an additional 25% tax. See Form 5329.
T Roth IRA distribution, exception applies. Use Code T for a distribution from a Roth IRA if you do not know if the 5-year holding period has been met but:
  • The participant has reached age 59 1/2, or

  • The participant died, or

  • The participant is disabled


If any other code applies (such as 8 or P, use Code J.

Defining 1099-R Reporting Rules

Access the 1099-R Magnetic Reporting Rules from the Organization window. You can display them by selecting the Organization Classification of Government Reporting Entity and clicking Others. From the Additional Organization Information window, you select 1099-R Magnetic Reporting Rules. You must define the rules for each retirement GRE.

Required Parameters

The reporting rules require the following parameters:

1099-R Transmitter
Transmitter Control Code
Bureau
Combined Filing
Recording Mode
Parity
Label
Density
Contact Name
Contact Phone No.
Contact E-mail Address
Produced using Oracle

Vendor Specific Parameters

You must enter the contact information for the vendor that produces the magnetic file you are submitting. If you select Yes in the produced Using Oracle field, then the following fields provide seeded vendor information:

Vendor Name
Vendor Address
Vendor City
Vendor State
Vendor Zip
Vendor Contact Name
Vendor Phone Number

Populating the Date of Payment Box on the 1099-R Form

If you are reporting the date of payment for reportable death benefits under section 6050Y, then complete the following steps to include the date in the 1099-R form:

  1. Navigate to the People window.

  2. Query for a qualifying employee and click Assignment.

  3. Click Others and select Extra Information.

  4. In the Extra Information window, select PAY_US_PENSION_REPORTING.

  5. Update the Date of Payment field as required.

Reporting C and M Distribution Codes on 1099-R Form

Complete the following steps if any retiree requires either the C or M distribution code reported on their 1099-R form. See Form 1099-R Distribution Codes for more information.

  1. Navigate to the People window.

  2. Query for a qualifying employee.

  3. Click Others and select Extra Information.

  4. In the Extra Information window, select PAY_US_PENSION_REPORTING.

  5. In the Distribution Code field, select the C or M code as required.

Reporting 1099-R Information to the Iowa Department of Revenue (DOR)

If you are reporting the 1099-R information to the Iowa DOR, then complete the following steps to include the Business eFile Number (BEN) in the K record of the 1099-R Form:

  1. Enter or query the GRE in the Organization window.

  2. In the Organization Classifications region, select Government Reporting Entity.

  3. Click Others, and select W2 Employer Rules 2.

  4. Click in the Additional Organization Information field to open the W2 Employer Rules 2 window.

  5. Enter the employer's business efile number assigned by the Iowa DOR in the BEN (IA) field.

Reporting IT-103 Reconciliation in the C Record of 1099-R for West Virginia

If you are reporting IT-103 Reconciliation in the C Record of 1099-R for West Virginia, then complete the following steps:

  1. Enter or query the GRE in the Organization window.

  2. In the Organization Classifications region, select Government Reporting Entity.

  3. Click Others, and select 1099R Mag. Rep. Rules 1.

  4. Click in the Additional Organization Information field to open the 1099R Mag. Rep. Rules 1 window.

  5. Optionally populate the following fields:

    • First QTR Tax Due (WV)

    • Second QTR Tax Due (WV)

    • Third QTR Tax Due (WV)

    • Fourth QTR Tax Due (WV)

The values in these fields will be reported in the C record of the output (mf) file when you run the State 1099R Magnetic Media report for West Virginia.

Other Reporting Concerns

1099R Output

The Federal and State 1099R Magnetic Report generates two output files:

Note: If you use Microsoft Windows NT to generate the magnetic media, you must shorten the first part of the filenames so they contain no more than 8 characters.

You can view the post archival reports from the application. After the magnetic media process completes successfully, navigate to Payroll Process Results to view the output files

Reporting more than one B (State) Record for Employees in the Federal 1099R Magnetic Media File

If there is more than one B (State) Record for an employee corresponding to different locations, that is, the employee lived, or worked, or both in more than one state during the reporting period, then the total amounts reported in the K records for each state will match the corresponding B records amounts, where applicable. To avoid any potential mismatch between the B and K records, the application archives the prorated Federal 1099-R amounts based on each state. These archived values are reported as required in the Federal 1099R Magnetic Media output so that the total amounts reported in the K records for each state will match the corresponding B records amounts, where applicable.

Defining the HR:1099R: Prorate B Record Amounts Profile Option: This profile option determines whether to prorate B Record Federal amounts if there are multiple B records for an employee in the Federal 1099R Magnetic Media output.

Report Errors and Resolution

If you run a Magnetic 1099R report, and it does not complete successfully, the View Requests window indicates that an error has occurred. To read the error message, you must open the log file specified in the View Requests window.

Errors most often occur because:

To resolve an error, you must roll back the magnetic report and fix the error. Once you resolve the error, you can rerun the magnetic report.

Masking Social Security Number (SSN) or Taxpayer Identification Number (TIN) on Payee Copies (Copy B and C) of Printed and Online 1099-R Forms

To optionally mask the social security number (SSN) or the taxpayer identification number (TIN) on payee copies (Copy B and C) of 1099-R forms, configure the HR:Mask National Identifier in Year End Forms (Yes/No). Set this profile option value to Yes to mask all but the last 4 digits of the recipient's SSN. The default value is No. The format of the masked SSN is "XXX-XX-1234."

The SSN is masked in the following documents:

If the profile option is not set to Yes before running the Year End Pre-Process (YEPP), then the process Year End Pre-Process Re-Archive (ER info only) must be run to re-archive the profile option setting so that the YEPP does not have to be rolled back and rerun. Select "Federal" for the Selection Criterion parameter when submitting the Year End Pre-Process Re-Archive (ER info only) process to re-archive the profile option value. See Managing the Year End Pre-Process and Year End Pre-Process Re-Archive (ER info only) for more information.

Printing Unsecured 1099-R Information Return PDF Reports

The 1099-R Information Return - PDF concurrent program generates secured PDF output when run with “RUN_XDO” and “PRINT_FILES” pay action parameters set to No. Set the value of the “HR:Password Protect PDF Output” profile option to No to generate PDF output that is it not secured when the program is run with the pay action parameters “RUN_XDO” and “PRINT_FILES” set to No. If this profile option is not configured or set to Yes, then system will follow the default behavior which is to generate secured PDF output when the report is run in with the pay action parameters “RUN_XDO” and “PRINT_FILES” set to No.

Paper 1099-R Requirements

Employers use the Form 1099-R to report individuals' annual pension distribution information to employees, retirees, the IRS, state, and local governments.

Note: Oracle Payroll supports all 1099-R distribution codes, but just one code per employee reported. Oracle does not support the printing of multiple codes for a single employee.

You can print a single 1099-R or a range of 1099-Rs that you define, and sort options give you further flexibility in 1099-R distribution. Oracle Payroll supports paper 1099-R PDF output for printing in accordance with Evergreen #5179 blank perforated paper (envelope #9999-1). Perforations are required between forms on all copies except Copy A to make separating the forms easier.

You must print Copy A of form 1099-R in Flint J-6983 red OCR dropout ink or an exact match. The four-digit form identifying number must be in nonreflective carbon-based black ink in OCR A font. You cannot send Copy A of the pdf output to the IRS unless you use the correct ink. However, you can still use the pdf output to furnish paper copies to the payees.

Note: You must complete the Year End Pre-Process for your enterprise before you can run the Paper 1099-R report.

Oracle Payroll also supports the following forms which are available from RR Donnelley (formerly Moore) for 1099-Rs:

Generate Corrected 1099-R Information Return-PDF Reports

Generate Corrected 1099-R Information Return-PDF Reports before Submission to the IRS

The following process explains how to generate corrected Forms 1099-R for recipients, in the case where the 1099-R data is changed after it was originally archived and the 1099-R was already issued to the person, but before the data is submitted to the IRS.

1099-Rs (Information Returns) need to be checked as Corrected if there is any change to the data after the retiree received their 1099-R. The application should only generate Corrected 1099-Rs when the data is changed, but not when you add a new employee to the archive. When you add employees to the archive after the date set in profile option 'HR: Original 1099-R on or before (MM/DD)', you must use 'Add Assignment Actions To The Year End Pre-Process'. When you run the Retry US Payroll Process, retiree assignments added using the 'Add Assignment Actions To The Year End Pre-Process' will not be marked as Corrected.

The application uses the value of the HR: Original 1099-R on or before (MM/DD) profile option to check the Corrected check box if the year end archive process is completed or a report is generated after the date or month for the reporting year derived from the process. When the value of the profile option is set to a month and day, the value will be used to compare to the date the data is archived. The Year End Preprocessor (YEPP) archives the date for an assignment action as the A_ARCHIVE_DATE. If the A_ARCHIVE_DATE is found to be greater than the profile option date when the 1099-R PDF is run, then the 1099-R is printed with the 'Corrected' check box checked.

The following section is an example of how to issue 1099-R's with the Corrected check box checked:

  1. Set the profile option 'HR: Original 1099-R on or before (MM/DD)' to a day and month (for example: 02/01). The application dynamically adds the year as one year after the year for which the 1099-Rs are being generated. In this case, the 1099-Rs are being issued for 2010, so the profile date is 02/01/2011. This is the date after which any 1099-Rs will be re-issued and therefore require 'Corrected' to be checked.

  2. On Dec 31, 2010 or any date in January 2011, you run the Year End Preprocessor as normal. This will archive the assignment action dates (A_ARCHIVE_DATE) and will also archive the profile option date.

  3. Prior to January 31st, 2011, you run the 1099-R PDF report. This will generate all 1099-R's with the Corrected box unchecked.

  4. On February 15th, 2011 a retiree reports an incorrect value on their 1099-R and balance adjustments are made for 2010 to correct their data.

  5. The retiree's data is re-archived. Then, the 1099-R PDF process is rerun for this person (A_ARCHIVE_DATE gets set to 02/15/2011 which is later than the profile option date of 02/01/2011), and now their 1099-R is printed with the Corrected checkbox checked as required.

See: Running the 1099R Information Return PDF

Generate Corrected 1099-R Information Return-PDF Reports after Submission to the IRS

If corrections need to be made and the Form 1099-R has already been provided to the recipient for the reporting year, and the data has already been submitted to the IRS, then a corrected Form 1099-R must be provided to the recipient while maintaining the data archived from the original information return.

Oracle Payroll provides the following concurrent processes to generate the corrected 1099-Information Return PDF reports after submission to the IRS:

Run the Corrected Federal 1099R Magnetic Report

The corrected 1099-R return data needs to be submitted to the IRS, if corrected Forms 1099-R have been provided to recipients after the original 1099-R return data has already been submitted to the IRS. Run the Corrected Federal 1099R Magnetic Report program to process the corrected 1099-R data and generate the required magnetic media output in order to submit to the IRS. See: Running the Corrected Federal 1099R Magnetic Report

Sort Options for Paper 1099-Rs

You can select sort criteria (or sort options) for Paper 1099-R distribution purposes. The sort options available for the 1099-R Information Return are:

Field Name Description
Employee Name (last, middle, first) As of archive date.
This is the default sort option.
Social Security Number As of archive date.
If you select Social Security Number as a sort option, you may not select Employee Name as a subordinate sort option.
Zip Code Use the current Zip Code from the employee's primary address.

Note: Selecting a value in the Selection Criterion field enables the corresponding field.

Report Parameters for Paper 1099-Rs

You select 1099-Rs by the following criteria:

When generating paper 1099-Rs, you have additional selection criteria. You can choose one of the following to further restrict your paper 1099-R report:

Field Name Description
Organization From employee's primary assignment as of the effective date.
Location From employee's primary assignment as of the effective date.
Employee Name (last, middle, first) As of 12/31 of year selected.
Social Security Number As of 12/31 of year selected.
State If you select a state in this field, 1099-Rs print for all employees that have taxable wages in that state. If an employee has taxable wages in an additional state, all 1099-Rs for that employee are printed.

1099-R Register Reporting

You can preview 1099-Rs using the 1099R Register Report before printing. Through the 1099R Register report, you can view the amounts reported in each box of the Form 1099-R for all employees in a particular GRE for a given year. You can also view the amounts for a particular assignment set. This report includes all balances reported on the 1099R Information Return. The 1099R Register report shows totals by 1099-R box number (1 through 15). Using sort options, you can customize this report to further display withholding totals for employees, organizations, and locations.

You use the 1099R Register report to verify your 1099-R box totals prior to running your 1099-Rs.

1099-R Register Sort Options

You organize 1099R Register reports according to user-defined criteria or sort options. Oracle Payroll does not require that you use sort options to generate your 1099R Register report, but they are the best way to customize the report to your specific needs. You sort reports by any three of the following options:

Note: You can choose to sort by Social Security Number or by Employee Name, but not both. If you select Social Security Number as a sort option, Employee Name does not appear in the List of Values for the remaining sort options. If you select Employee Name as a sort option, Social Security Number does not appear in the List of Values for the remaining sort options.

The following is an example of how to use sort options to customize the 1099R Register report.

To create a 1099R Register report sorted by Organization, Location, and Employee Name:

  1. Enter Organization into the Sort Option One field.

  2. Enter Location into the Sort Option Two field.

  3. Enter Employee Name into the Sort Option Three field.

Using the selected Sort Options, Oracle Payroll generates the report listing the 1099-R box totals for each employee alphabetically by location within each organization for the selected GRE.

Note: The sort options are nested. If you change Sort Option Two from Location to Employee Name, Sort Option Three automatically clears.

Sort Options and Report Layout

When printed, the 1099R Register report inserts a page break between each selected sort option, with the exception of Employee Name or Social Security Number.

For Example, if you choose Organization, Location, and Employee Name as sort options, the report contains a page break every time the Organization or the Location changes. The report does not have page breaks between the individual employees.

The report then lists the following information:

1099-R Register Parameters

The following parameters exist for the 1099R Register:

Reporting Year (required) Four digit calendar year.
Government Reporting Entity (required) GRE
Only GREs that you have archived using the Year End Pre-Process for the specified Reporting Year appear in this list. GREs for retirees do not appear in the list.
Totals Only (required) Yes displays only the box totals for all selected employees in the report; the report does not include individual employees. No displays box totals in the report for selected individual employees, as well as the totals.
Assignment Set (optional) An assignment set limits the report to only those employees included in it.

Note: This report does not support dynamic assignment sets.

Sort Options (optional) Use the three fields for sort options to support your report results. You cannot select Sort Options if you have set the Totals Only parameter to Yes.
If you do not select any sort options, the report uses Employee Name as the default.

1099-R Register Output

The 1099R Register prints according to the parameters that you select, in landscape format to fit on 8.5" x 11" paper.

1099R Exception Register

The 1099R Exception Register identifies employees who have negative box 1 totals on the Form 1099-R, or have a zero box 1 total on the Form 1099-R but have other negative 1099-R box totals. This report lists all balances reported on the 1099R Information Return.

Run the 1099R Exception Register for a single GRE or an assignment set (but not a dynamic assignment set). If you run this report for an assignment set, only those employees in the selected GRE appear on the report. You can configure the 1099R Exception Register to display the 1099-R box totals for all selected employees in the report, or you can display 1099-R box details for individual employees in the report, as well as the report totals.

The 1099R magnetic report or paper 1099R does not include employees identified by the 1099R Exception Register. You have to manually generate 1099-Rs for these employees and amend the magnetic files.

Note: You must run the Year End Pre-Process for the GRE before you can run the 1099R Exception Register report.

1099R Exception Register Sort Options

Organize the 1099R Exception Register according to user-defined criteria or sort options. Oracle Payroll does not require that you use sort options to generate your 1099R Exception Register, but they are the best way to customize the report to your specific needs. You sort the report by any three of the following options:

Note: You cannot choose to sort by Social Security Number and then Employee Name. If you select Social Security Number as a sort option, Employee Name does not appear in the List of Values for the remaining sort options.

The following is an example of how to use sort options to customize the 1099R Exception Register.

To create a 1099R Exception Register sorted by Organization, Location, and Employee Name:

  1. Enter Organization into the Sort Option One field.

  2. Enter Location into the Sort Option Two field.

  3. Enter Employee Name into the Sort Option Three field.

Using these Sort Options, Oracle Payroll generates the report listing each employee by location within each organization for the selected GRE.

Note: The sort options are nested. Using the previous example, if you change Sort Option Two from Location to Employee Name, Sort Option Three automatically clears.

Sort Options and Report Layout

When printed, the 1099R Exception Register inserts a page break between each selected sort option, with the exception of Employee Name or Social Security Number.

If you choose Organization, Location, and Employee Name as sort options, the report contains a page break every time the Organization or the Location changes. The report does not have page breaks between the individual employees.

1099R Exception Register Parameters

The following parameters exist for the 1099R Exception Register:

Reporting Year (required) Enter the four digit calendar year.
Government Reporting Entity (required) Select the GRE.
Only GREs that you have archived using the Year End Pre-Process for the specified Reporting Year appear in the list. GREs for retirees do not appear in the list.
Totals Only (required) Select Yes to show only the W-2 box totals for all selected employees in the report ; individual employees are not included in the report. Select No to show 1099-R box totals in the report for selected individual employees, as well as the totals for these employees.
Assignment Set (optional) Select an assignment set to generate an exception report for only those employees.

Note: This report does not support dynamic assignment sets.

Sort Options (optional) Use the three fields for sort options to sort your report results. You cannot select Sort Options if you have set the Totals Only parameter to Yes.
If you do not select any sort options, the report uses Employee Name as the default.

1099R Exception Register Output

You print the 1099R Exception Register using the selected parameters in landscape format to fit on 8.5" x 11" paper.

The values for boxes 1 through 6 of form 1099-R always appear on the report. The values for all other 1099-R boxes appear on the report only if they are non-zero values. This report format is the same as the 1099R Register report.

The report then lists the following information:

Reporting Multiple Distribution Codes for a Retiree

Oracle Payroll supports the reporting of multiple distribution codes on Form 1099-R.

Your employees must have one assignment for each of their distribution codes, and you must assign one of your 1099-R GREs to each assignment. Therefore, you must define a sufficient number of 1099-R GREs in the Organization window to accommodate the maximum number of distribution codes any one of your employees can have.

Note: Some distribution codes cannot be used with any other distribution code. Before you assign multiple distribution codes to an employee, you must verify they can be used together on Form 1099-R. You can find this information on the instructions for Form 1099-R at http://www.irs.gov/.

To set up an employee with multiple distribution codes

Perform these steps for each distribution code you want to report on Form 1099-R.

  1. Navigate to the People Extra Information window.

  2. Select Pay US Pension Reporting, and click inside the Details field.

  3. Select a 1099-R GRE in the GRE field.

    If you are specifying multiple distribution codes for this employee, each distribution code must use a different GRE.

  4. Specify the distribution code you want to report on Form 1099-R.

  5. Repeat as needed for each distribution code you want to report.

Running the Federal 1099R Magnetic Report

Run the Federal 1099R Magnetic report from the Submit Requests window.

Note: You must successfully run the Year End Pre-Processor for each Retiree GRE in your enterprise prior to running the Federal 1099R Magnetic report. If the Year-End Pre-Processor is not run for each Retiree GRE, you will receive a warning message. This warning must be checked and corrected. If the Year End Pre-Processor has not been run for a GRE containing retirees who have retirement distributions for the current reporting year, the magnetic report will be incomplete.

To resolve a potential mismatch in B and K record state and federal amount totals, you may set the 'HR:1099R: Match B Rec Totals with K Rec' profile option. By setting this profile option to 'Yes', the amounts displayed in the K record will match with the corresponding total amounts of the B records for the applicable state. For more information, see: Defining 1099-R Reporting Rules.

To run the Federal 1099R Magnetic report

When preparing to run this report, you may need to consider those employees who have changed their primary residence within the past year:

  1. In the Name field, select Federal 1099R Magnetic report from the list. If the Parameters window does not open, click in the Parameters field.

  2. In the Parameters window, enter the tax year for the report in the Year field.

  3. In the Transmitter field, select the name of the GRE that functions as the transmitter of this 1099-R report.

  4. Select Yes or No in the All Payers field.

    The All Payers field indicates whether to include all retirement GREs defined with the same TCC as the chosen transmitter in the magnetic report.

  5. Indicate in the Final Filing field if this report is the final electronic file you are submitting.

  6. If you are generating a file for testing purposes only, select Yes in the Test Tape field.

  7. Select the appropriate file type in the File Type field.

    Use the File Type field to specify if the output file should be an Original or Replacement File. If you select Replacement File, use the Replacement File AlphaChar field to give a letter designation to the file.

  8. Click OK and then Submit.

    When the report is complete, the application generates the files for the magnetic media. You view the processing status of the report from the View Requests window.

  9. Select Yes or No in the Fold Output parameter field. If you select Yes, then the output flat files (.mf) are folded as per the necessary specifications. The appropriate line feeds or carriage returns are added to the magnetic file (mf) output without any manual intervention being required. If 'No' (default option) is selected, then the process will not fold the output file and all the records in magnetic file are generated in one continuous line.

Running a State 1099R Magnetic Report

The State 1099R Magnetic report request parameters are similar to the Federal parameters, except they contain a state parameter.

Employers reporting their 1099-R data to the Pennsylvania Department of Revenue can submit the 1099-R report using the Comma Delimited file format (CSV format).

Note: You must successfully run the Year End Pre-Process for each GRE that does business in that State prior to running a State 1099R Magnetic report. If the Year-End Pre-Processor is not run for each Retiree GRE, you will receive a warning message. This warning must be checked and corrected. If the Year End Pre-Processor has not been run for a GRE containing retirees who have retirement distributions for the current reporting year, the magnetic report will be incomplete.

Run the State 1099R Magnetic report from the Submit Requests window.

To run a State 1099R Magnetic report

When preparing to run this report, you may need to consider those employees who have changed their primary residence within the past year:

  1. In the Name field, select State 1099R Magnetic Report from the list. If the Parameters window does not open, click in the Parameters field.

  2. In the Parameters window, select the appropriate state from the list.

  3. In the Year field, enter the tax year for the report.

  4. In the Transmitter field, select the name of the GRE that functions as the transmitter of this 1099-R report.

  5. If you are generating a file for testing purposes only, select Yes in the Test Tape field.

  6. Select the appropriate file type in the File Type field.

    Use the File Type field to specify if the output file should be an Original or Replacement File. If you select Replacement File, then use the Replacement File AlphaChar field to give a letter designation to the file.

  7. Click OK and then Submit.

    When the report is complete, the application generates the files for electronic submission. You can view the processing status of the report from the View Requests window.

  8. Select Yes or No in the Fold Output parameter field. If you select Yes, then the output flat files (.mf) are folded as per the necessary specifications. The appropriate line feeds or carriage returns are added to the magnetic file (mf) output without any manual intervention being required. If 'No' (default option) is selected, then the process will not fold the output file and all the records in magnetic file are generated in one continuous line.

Generating Paper 1099-Rs for Individual Employees

You can generate a Paper 1099-R for an individual at any time. Using the Selection Criterion field in the Parameters Window, you can generate a single 1099-R by selecting Person Name or Social Security Number.

Running the 1099R Information Return PDF

Run the 1099R Information Return PDF report from the Submit Requests window

Prerequisites

To run the 1099R Information Return PDF Report

  1. Select 1099-R Information Return - PDF in the Name field.

  2. Click in the Parameters field if the Parameters window does not automatically open.

  3. Enter the Reporting Tax Year and a GRE Archived by Year End Pre-Process for the Paper 1099-R report.

    Note: 1099-Rs only print for assignments in the selected GRE.

  4. Click in the Selection Criterion field, and choose one selection criterion.

    Note: This step activates the corresponding field in the Parameters window.

  5. To run this report for an assignment set, make a selection in the Assignment Set field.

    This report does not support dynamic assignment sets.

  6. If you entered a value in the Selection Criterion field, in the corresponding field, enter an appropriate value.

  7. In the Submit Request window, select the printer and number of copies in the Print Options region.

    Note: Only the 1099-R Information Return – PDF is supported for Year End 2008. Oracle Payroll supports printing 1099-R PDF output on Evergreen Form #5179 (envelope #9999-1).

  8. Submit the report, or alternately, select sort options for the report.

To Generate Corrected 1099-R Information Return-PDF Reports

1099-Rs (Information Returns) must be checked as Corrected if there is any change to the data after the retiree received their 1099-R. The application should only generate Corrected 1099-Rs when the data is changed, but not when you add a new retiree assignment to the archive. When you add retiree assignments to the archive after the date set in profile option 'HR: Original 1099-R on or before (MM/DD)', you must use 'Add Assignment Actions To The Year End Pre-Process'. When you run the Retry US Payroll Process, retiree assignments added using the 'Add Assignment Actions To The Year End Pre-Process' will not be marked as Corrected. See: Paper 1099-R Requirements.

Running the 1099R Register Report

Run the 1099R Register report from the Submit Request Set window.

Note: You must successfully run the Year End Pre-Process for the GRE to run this report.

To run the 1099R Register report

  1. In the Request Set field, select 1099R Register from the List of Values.

  2. Click in the Parameters field if the Parameters window does not automatically appear.

  3. Select the parameters for the report.

    See: 1099R Register Parameters section

  4. Click OK to close the Parameters window.

  5. In the Options region, select the number of copies you want to print.

  6. In the Printer field, select a printer or accept the default.

  7. In the Run Options region, select any run options and click Submit.

    Navigate to the View Requests window to view the 1099R Register.

Running the 1099R Exception Register Report

Run the 1099R Exception Register report from the Submit Request Set window.

To run the 1099R Exception Register

  1. In the Request Set field, select 1099R Exception Register from the list.

  2. Click in the Parameters field if the Parameters window does not automatically appear.

  3. Select the parameters for the report.

    See: 1099R Exception Register Parameters section

  4. Click OK to close the Parameters window.

  5. In the Options region, select the number of copies you want to print.

  6. In the Printer field, select a printer or accept the default.

  7. In the Run Options region, select any run options and click Submit.

    Navigate to the View Requests window to view the 1099R Exception Register.

Running the 1099R Corrections Pre-Process

The 1099R Corrections Pre-Process archives employee information after year end corrections processing is complete. The corrected data that is archived as a result of running this process is used for producing any 1099-R corrected recipient returns. Note that in order for the 1099-R Corrections Pre-Process to run correctly you must have previously run the Year End Pre-Process.

Run the 1099R Corrections Pre-Process as a single concurrent request from the Submit Request window.

To run the 1099R Corrections Pre-Process

  1. In the Name field, select 1099R Corrections Pre-Process.

  2. Enter the following parameters:

    1. Reporting Year: Select the year for which you are generating the corrected 1099-R forms. This is a mandatory parameter and will default to the prior tax reporting year.

    2. GRE Archived by Year End Pre-Process: This is the GRE whose data has been archived by the Year End Pre Process and for which Federal 1099R Magnetic Report has been run. This is also a mandatory parameter.

    3. Selection Criterion: Select to run the process by Employee Name, Social Security Number, or Assignment Set. This is also mandatory parameter.

    4. Employee Name, Social Security Number or Assignment Set: Based on the selection criterion chosen above, one of these three parameters will be enabled while the other two parameters are grayed out.

  3. Click OK and then Submit.

    You cannot roll back the Year End Pre-Process once you have run the 1099R Corrections Pre-Process for the same GRE and Tax Reporting Year without first rolling back the 1099-R Corrections Pre-Process. If you have already run this process for an employee and subsequently changed information prior to running the 1099-R Corrections PDF process, the employee in question will not be archived a second time. The message 'An unprinted Corrected 1099-R PDF exists' will appear in the log file along with the employee's name and social security number. To correct these situations, you can retry the 1099-R Corrections PDF process for the affected employees or run the 1099-R Corrections PDF every time you change an employee's record.

Running the Corrected 1099R Information Return - PDF

The Corrected 1099R Information Return – PDF enables you to generate the Corrected 1099-R information returns for recipients based on the corrected data archived by running the 1099R Corrections Pre-Process. Note that the corrected 1099-R recipient returns (in PDF format) are only printed if there is a difference in the data archived by the Year End Pre-Process and the 1099R Corrections Pre-Process. If no corrections have been made, a message appears in the log files indicating that a corrected 1099-R was not generated.

Run the Corrected 1099R Information Return - PDF process as a single concurrent request from the Submit Request window.

To run the Corrected 1099R Information Return – PDF process

  1. In the Name field, select Corrected 1099R Information Return – PDF.

  2. Enter the following parameters:

  3. Reporting Year: Select the year for which you are generating the corrected 1099-R forms. This is a mandatory parameter and will default to the prior tax reporting year.

  4. Government Reporting Entity: This is the GRE for which data is archived by the 1099R Corrections Pre-Process and for which the Federal 1099R Magnetic Report is run. This is a mandatory parameter.

  5. Selection Criterion: Select to generate corrected 1099-R forms by Employee Name, Social Security Number, or Assignment Set. This is also a mandatory parameter.

  6. Employee Name, Social Security Number or Assignment Set: Based on the selection criterion chosen above, one of these three parameters will be enabled while the other two parameters are grayed out.

  7. Sort Option One: This will display the available sort options to sort the report data. It displays three choices: Employee Name, Social Security Number and Zip Code. This is an optional parameter.

  8. Sort Option Two: List of the available sort options (except the one selected in Sort Option One). This is an optional parameter.

  9. Sort Option Three: List of the available sort options (except the one that was selected in Sort Option One and Two). This is an optional parameter.

  10. Template Group: List of the available templates for running the report. A separate template 'Corrected 1099R PDF [YYYY]' is delivered for each reporting year, beginning with 2014.

  11. Print Instructions: Select 'Yes' to print the instructions when the corrected 1099-R form is printed or No to skip printing the instructions.

Important Notes

Running the Corrected Federal 1099R Magnetic Report

The corrected 1099-R return data needs to be submitted to the IRS if corrected Forms 1099-R have been provided to recipients after the original 1099-R return data has already been submitted to the IRS. Run the Corrected Federal 1099R Magnetic Report program to process the corrected 1099-R information return data and generate the magnetic data required for submission to the IRS. This process supports both One Transaction and Two Transaction type corrections. For more information on these types of correction transactions, refer to https://www.irs.gov/pub/irs-pdf/p1220.pdf

Run the Corrected 1099R Magnetic Report as a single concurrent request from the Submit Request window.

Prerequisites

To run the Corrected 1099R Magnetic Report

  1. In the Name field, select Corrected 1099R Magnetic Report.

  2. Enter the following parameters:

  3. Year: Enter the reporting year for which the corrections process needs to be run. This is a mandatory parameter.

  4. Transmitter: Select the Transmitter GRE for which the corrections process needs to be run. This is a mandatory parameter.

  5. All Payers: Select Yes or No in this mandatory field.

  6. Final Filing: Select Yes or No in this mandatory field.

  7. Test Tape: Select Yes or No in this mandatory field.

  8. File Type: Select Original File or Replacement File in this mandatory field.

  9. Replacement File AlphaCar: Enter the Replacement File AlphaCar, if required.

  10. Fold Output: Select Yes if you want to have the output formatted.

  11. Click OK and then Submit.

Running the Year End Pre-Process Re-Archive (ER info only) Process for 1099R

If you discover that employer data on the federal or state magnetic 1099R is missing or null (blank), you can:

  1. Correct this information

  2. Rollback and rerun the magnetic media generation process to include the data for electronic submission

  3. Run the Year End Employer Re-Archive process to include this data in the archive created by the Year End Pre-Process

You do not need to roll back the Year End Pre-Process for the GRE.

Run the Year End Employer Re-Archive process from the Submit Request window.

To run the Year End Employer Re-Archive

  1. In the Name field, select Year End Pre-Process Re-Archive (ER only).

  2. Select the reporting year for this process.

  3. Select the GRE archived by the Year End Pre-Process. This is a mandatory parameter.

  4. In the Selection Criterion field, select one of the following:

    • Federal - to archive federal-level information.

      Important: To optionally mask social security number (SSN) or taxpayer identification number (TIN) on payee copies (Copy B and C) of 1099-R forms, you can set the HR:Mask National Identifier in Year End Forms (Yes/No) profile option value to Yes before running the Year End Pre-Process. This process archives the profile option value. If the profile option value is not set to Yes before running the YEPP, then the Year End Pre-Process Re-Archive (ER info only) must be run to re-archive the profile option setting so that the YEPP does not have to be rolled back and rerun. Select the Federal option to re-archive the profile option value.

    • State - to archive state-level information.

    • View Online W2 Profile - to allow employees to view W2s online. This option applies only to Employee W-2 processing.

    • Original 1099-R on or before - to archive 1099-R information on or before the date set as the value for the HR:Original 1099-R on or before (MM/DD) profile option. This option is applicable only to 1099-R processing. For more information on the profile option, see: Paper 1099-R Requirements.

    • Invalid PSD Code W2 Profile- to archive the value set for the HR:Allow invalid PSD codes on W-2(Y/N) profile option. For information on the profile option, see: Determining how to Handle Employees with Invalid PSD Codes in Year End Reports. This option applies only to Employee W-2 processing and is not applicable to 1099-R Magnetic Media processing.

Report Output

The Year End Pre-Process Re-Archive process produces output with the following information:

You can export the output of the Year End Pre-Process Re-Archive to a spreadsheet for verification of the data that you have updated. You find this file in the OUT directory. After saving the output as a text (.txt) or .csv file, view this comma-delimited file in a spreadsheet.

Note: You re-archive employer-level information based on the parameters you select when submitting the Year End Pre-Process Re-Archive. If you have already submitted a magnetic file, and employer-level information has since changed, the re-archive process re-archives the updated information. You must submit the Federal/State 1099R Magnetic Media process for retry (the new employer information is included in the output). Before submitting the Year End Pre-Process Re-Archive, review the updated employer level data and determine which federal/state magnetic processes were submitted and mark for retry the appropriate processes.

Re-archived Data

You can update the following data with this process:

Additional Organization Information Field Name
Employer Identification:
  • Employer Identification Number

W2 Reporting Rules:
  • W2 Transmitter

  • 2678 Filer

  • Company Name

  • Contact Name

  • Problem Notification Method

  • Preparer

  • Tax Jurisdiction

  • Terminated GRE Indicator

  • Third Party Sick Pay

  • Other EIN

Federal Tax Rules:
  • Type of Employment

Organization Information:
  • GRE Name

  • County Code of GRE

1099-R Magnetic Rules:
  • 1099-R Transmitter Code

  • 1099-R Transmitter Indicator

  • 1099-R Bureau Indicator

  • 1099-R Combined Fed State Filer

State Tax Rules:
  • FIPS Code JD

  • SIT Company State ID

  • SUI Company State ID

W-2 Processing

Federal and State Magnetic W-2 Reporting

Your enterprise may be required to submit magnetic W-2 reports to both federal and state agencies. These reports contain your enterprise's annual Wage and Tax Statement of employee earnings and tax withholding.

Note: You must successfully run the Year End Pre-Processor for each GRE in your enterprise prior to running a federal or state magnetic W-2 report. If the Year-End Pre-Processor is not run for each GRE, you will receive a warning message. This warning must be checked and corrected. If the Year End Pre-Processor has not been run for a GRE containing employees who have wages for the current reporting year, the W-2 reports will be incomplete.

The Social Security Administration has announced that employers that file Form W-2 on magnetic tape, cartridge, or diskette are required to file electronically. The current EFW2 layout is used for the electronic filing.

To determine the supported reporting formats for your state(s), see: State Formats for Report Submission

Prerequisites

Before printing online and paper W-2s, review and set the profile options.

See "Profile Options for Employee W-2s (Online and Paper)" for more information.

Reporting RW Records on the Federal Magnetic Tape

According to the Social Security Administration (SSA):

The employment code on the RW record is determined at runtime based on the wages and withholding for the employee. If the employee has Medicare but not Social Security withheld, the employment code is "Q." Any other combination of Medicare and Social Security (such as, zero Medicare and Social Security), or both Medicare and Social Security has an employment code of "R."

Oracle Payroll uses combined reporting to report the RW records for an employee who has both (1) wages from Medicare tax and (2) wages subject to both Social Security and Medicare Taxes (full-FICA). These wages must be for the same taxable year while in continuous employment for the same employer.

With combined reporting, you prepare one RW record combining both the Medicare only (MQGE) wages and the full-FICA wages. You place the RW record after an RE record with an Employment Code of "R."

Using Multiple Transmitters for Federal or State W-2 Reporting

If required by your business, you can submit the Federal W-2 Magnetic Media process or the State W-2 Magnetic Media process using more than one transmitter GRE within the same business group. To enable submission of the process using more than one transmitter GRE requires additional setup and configuration steps to be performed. See Setting Up Multiple Transmitter GREs for the Federal or State W-2 and Federal W-2c Reporting for more information.

State and Commonwealth Restrictions

Kentucky Kentucky does not accept Magnetic W-2s on 3480 or 3490 cartridges.
Louisiana Louisiana does not accept Magnetic W-2s on 9 track tape, but does accept diskette and cartridge tapes.
Pennsylvania Pennsylvania does not accept magnetic reel tapes for W-2 reporting. This state accepts only 3490 magnetic tape cartridges (CCH Payroll Management Guide No. 1142) or paper forms. You cannot submit W-2 data on diskette.
Puerto Rico Oracle Payroll supports EFW2 reporting requirements for employees in Puerto Rico. Employees who work in Puerto Rico must be in a different GRE than US employees.
Oracle Payroll supports reporting the following Exempt Salaries amounts and codes for the Puerto Rico State W-2 Magnetic Media (EFW2) report:
  • Code A: Public employees' wages for overtime worked during emergency situations under Act 324-2004. This amount is stored in W-2 balance PR W2 Exempt Salaries.

  • Code E: Salary not over $40,000 per year under Section 1031.02(a)(36) of the Code (Employees between ages of 16 and 26). This amount is stored in payroll balance PR Youth Exempt Wages.

  • Code G: Disaster Assistance Qualified payment according to Administrative Determination No. 17-21. This amount is stored in the payroll balance PR W2 Disaster Assistance.

  • Code H: Public Employees Payment under the Voluntary Transition Program. This amount is stored in the payroll balance PR W2 Public Empl Vol Transition.

  • Code I: Compensation or indemnification paid to employee dismissed by Section 1031.01(b)(11). This amount is stored in the payroll balance PR W2 Dismissed By 103101.

  • Code J: Payments to professionals regarding hard to fill positions under Section 2022.03(a) of the incentives code. This amount is stored in the payroll balance PR W2 Pay Hard Positions 2022 03 A.


To report the required wage amounts under Exempt Salaries and applicable code on the Employee PR W-2 and the PR W-2 State Magnetic Media for any applicable employees, you must perform a manual balance adjustment to populate the following balances:
  • PR W2 Exempt Salaries

  • PR W2 Disaster Assistance

  • PR W2 Public Empl Vol Transition

  • PR W2 Dismissed By 103101

  • PR W2 Pay Hard Positions 2022 03 A


Note that the PR Youth Exempt Wages balance is populated when processing payroll for the applicable employees.
Vermont Effective for 2010, Vermont mandates electronic filing of W-2's for employers exceeding 25 employees. Vermont follows the SSA EFW2 format.

See: State Paper W-2 Reporting

See: Year End Return Due Dates

Report Errors and Resolution

W-2 Output

The federal and state W-2 processes each generate four output files:

You can view the post archival reports from the application. After the magnetic media process completes successfully, navigate to Payroll Process Results to view the output files.

As part of the standard process for generating the state W-2 magnetic file, you should review the .a02 file. You must address all exceptions before submitting the file to the state. If exceptions are identified, you should proceed using one of the following options:

This process is especially important for the State of Maryland, since the Maryland (MD) employer record (RE) includes total employee wages. If an employee appears on the .a02 file for MD, the employee totals are still included in the RE record even though the process did not produce an RS record. This produces a reconciliation issue, and could possibly cause a rejection of the file.

Rolling Back State W-2 Magnetic Media Processes

Oracle US Payroll enables you to roll back a state W-2 magnetic media process using the Rollback US State W-2 Process concurrent program. See Running the Rollback US State W-2 Process for more information.

State Paper W-2 Reporting

Your enterprise must submit copies of employee W-2 reports to the state agencies. These reports contain your enterprise's annual Wage and Tax Statement of employee earnings and tax withholding. Use the Employer W2 to be filed with the state (PDF) process whenever the State W2 Magnetic Media process is not practical (you only have a small amount of employees to report) or is not supported by the state (Vermont and Hawaii do not accept magnetic W-2s).

You can print single state W-2s or a subset of W-2s for the state you define. Sort options give you further flexibility in printing state paper W-2s.

Run the "Employer W2 to be filed with the state (PDF)" report from the Submit Requests window.

Refer to State Formats for Report Submission to determine the supported reporting formats for your state(s).

Selection Options for State Paper W-2s

You specify selection criteria when generating state paper W-2s. With this option, you generate state paper W-2s for a single employee or a small set of employees.

Note: Selecting from the List of Values enables the corresponding field

Select W-2s by the following criteria:

Additionally, you can choose one item in the Selection Criterion field to further restrict your state paper W-2 report:

Sort Options for State Paper W-2s

You can sort your W-2s by one or more of the following options:

Organization Name From archived data.
Location From archived data.
Employee Name: (last, first, middle) From archived data.

Note: This is the default selection.

Social Security Number From archived data.
Termination Reason From archived data.
Zip Code Use the Zip Code of the employee's primary address as of the session date (or as of termination date for terminated employees).

Selecting Sort Options for State Paper W-2 Reporting

You can select and sort State Paper W-2s from the Submit Requests window.

Local Magnetic W-2 Reporting

Oracle Payroll supports the creation of W-2 magnetic media in EFW2 format for the reporting of annual local wages for the following cities or localities:

In addition, Oracle Payroll supports the creation of magnetic media for the following government organizations in the state of Ohio:

Additional Information: Oracle supports magnetic media reporting requirements for cities that have a statutory mandate for magnetic reporting and a population of 2-million or more persons.

For employers doing business in Pennsylvania, see:

Run the Local W-2 Magnetic Media report from the Submit Requests window.

Note: Only GREs you have archived in the selected year are available.

Local W-2 Magnetic Media Output Files

The Local W-2 Magnetic Media report produces the following four output files:

.mf Flat file to be sent to the appropriate local tax agency.
.a01 Totals for Tax withheld and Wages reported per Government Reporting Entity (GRE).
.a02 Exception file.
You can view this comma-delimited (.CSV) file in a spreadsheet for easy searching. If the process detects an error, the person in error is not included on the .mf file and is reported in this file. A successful process with no errors results in an empty .a02 file. A person may be excluded from .mf file and included in .a02 Exception Report file for the following reasons:
  • Negative value in any balance.

  • Amount reported exceeds 11 digits in the value column.

    Note: No value (NULL) does not exclude a person from the .mf file.

  • No Address or invalid address.

  • If Box 3 (Social Security Wages) + Box 7 (Social Security Tips) are greater than the Social Security wage base limit or if Box 4 (Social Security tax withheld) is greater than 6.2% multiplied by the Social Security wage base limit.

.a03 Audit file.
You can view this comma-delimited (.CSV) file in a spreadsheet for easy searching. If the file is large, you can split it into smaller files. This file contains RS (Employee Wage Record) information.

You can view the post archival reports from the application. After the magnetic media process completes successfully, navigate to Payroll Process Results to view the output files.

Local W-2 Magnetic Media Output File Naming Convention

Local W-2 Magnetic Media files follow these naming conventions for output files:

Some examples of possible Local W-2 Magnetic Media output file names are:

Local Year End Interface Extract

Oracle Payroll provides a Local Year End Interface Extract process which produces XML output containing data items needed for reporting local W-2 information. The output file is in the EFW2 format. Also included, are a generic Local W-2 EFW2 template (.rtf), and a Summary report.

Process Parameters

The Local Year End Interface Extract process has the following parameters:

If you enter the State parameter and the Locality is left blank, the process produces an XML output file with records for all the localities within that state. If you enter the Locality parameter, the XML output file only contains records for that locality. For both the State and Locality parameters, locality details in the XML output file will include valid counties and related school districts in addition to the city values. The delivered template produces a file for a single locality. If you need to include multiple localities within a single file, you need to modify the template to include those localities.

Output File Format

The XML output file contains all possible data items that are required in an EFW2 file. This XML output file may also be used for a locality that accepts a format other than EFW2, as long as the data items you need for the layout are a subset of the ones included in the delivered XML output file. It is important to note that you may need to customize the generic template delivered with the process in order to meet the county, city, or school district W-2 reporting requirements.

You need to create your own rtf templates to produce a non-EFW2 output file. The wages in the delivered XML output file do not have the work and resident designations. If the locality you are trying to produce requires this breakdown of wages, the delivered XML output file does not support this.

You need to copy and modify the delivered rtf template for each locality due to the differences in requirements. If the locality accepts the default EFW2 format, the only change to the template is to specify the local specific info, for example city code, in the appropriate position on the file. You need to contact each locality for their specific requirements. Oracle Payroll recommends you create a separate .rtf template for each locality being filed.

You can use the Template Group parameter to select from a list of custom template groups comprised of delivered and custom templates in order to meet specific local statutory requirements. This is accomplished by:

See: Setting Up Custom BI Publisher Templates for Payroll.

For information on how to modify and upload the rtf templates, see the Oracle XML Publisher Administration and Developer's Guide and the Oracle XML Publisher Report Designer's Guide available on My Oracle Support. Check the technical details section on steps to register the template with the process Local Year End Interface Extract concurrent program.

Output Files and Naming Convention

The Local Year End Interface Extract process produces three output files, one .xml file and three .out files.

The naming convention of the XML file is:

o<Request id of the parent process>.xml For example, if the parent concurrent program request id is 513931, the xml file name is o513931.xml .

The concurrent process generates .out files for the magnetic (mf) file in flat file format, and the a01 and a02 files in RTF format. You will see three concurrent jobs under the parent request id. For example, if the parent concurrent request id is 513931, you will see three concurrent jobs spawned in View Requests with the concurrent process name Generate Payroll XDO Reports. In order to view these output files, simply click on the View Output button. However, if saving the files on your local machine you should rename the files with the appropriate extensions so that these can be opened properly using the appropriate word processor like MS Word (for a01 and a02 file) or Notepad (for magnetic file).

The seeded template restricts those employees with negative earnings/withheld from appearing in the magnetic file and .a01 reports. Therefore, similar modifications must be made to custom templates.

The .a02 Employee Exception report contains the following message at the top of the report if there are any erroneous records (exceptions):

***Warning: This Local W2 XML file contains employees with exceptions. Following is the list of such employees along with the exception details. These exceptions will need to be corrected or removed before filing.

The report then displays Submitter information (Name, Address, City, State, Zip Code), Employer Information (Name, EIN, Address, City, State, Zip Code), and Employee information (Employee Name, Employee SSN, and Exception details) for those employees with exceptions.

Once the details of all such employees are displayed, the report will display the total number of such employees that belongs to this Employer. The entire structure will repeat itself for any other Transmitters or Employers with any employee(s) displaying exceptions.

Taxation of Group Term Life Insurance Coverage

Any group term life insurance coverage in excess of $50,000, when provided to retired employees, is subject to tax and requires W-2 reporting. You cannot report the income from the excess coverage on a 1099-R.

The excess coverage amounts are taxable for Social Security and Medicare, but Federal law permits you to report these taxes as due in Box 12 with special codes. The taxes due appear in Box 12, Code M and N. The imputed income amounts appear in W-2 Boxes 1, 3, 5, and 12 Code C.

See:Populating Box 12 with Taxes Due for Group Term Life Insurance

Elective Deductions for Returning Veterans (USERRA Compliance)

Under the Uniformed Services Employment and Reemployment Rights Act (USERRA), employers must reinstate individuals returning from service in the Armed Forces or National Guard to their former jobs following discharge or release from active duty, reserve duty, or training. USERRA is intended to guarantee that returning employees are reemployed in the jobs held when military leave began, if feasible, but with the same seniority, pay, status, and benefit rights the employees would have if they had worked continuously for the employer.

Your pension plans must treat employees on military leave as though they had been in continuous employment. When an employee returns from military leave, you must credit them for pension entitlements and other deferred-income plans, plus profit-sharing plans, for the period that the employee was on military leave.

To ensure that plans to which employers have made retroactive contributions for returning veterans still meet qualification requirements (not exceeding annual contribution limits), pursuant to USERRA, any employer or employee contributions are not taken into account in the year to which they relate. Under this provision, contributions are not subject to the limitations of elective deferrals, Section 403(b), Section 415 limitations, Section 457 government plans, and IRAs and SIMPLE accounts (Section 408). Plans that accept such contributions are also treated as passing the nondiscrimination test, minimum coverage tests, and minimum participation tests.

Employers must permit returning employees to make up to the maximum elective deferral the employee could have made during military service, from the date of reemployment through three times the period of military service or 5 years (whichever is lesser). Employers must match such contributions.

Note: If employees assigned to a Puerto Rico GRE contribute to a deduction under the USERRA plan, you must manually generate a Form 499R/W2PR or create a separate statement showing the type of plan, the year to which the deferrals relate, and the amount deferred.

See: Setting up Elective Deductions for Returning Veterans (USERRA Compliance)

Roth Contributions

Under USERRA, employees who served in the military can make up retirement plan contributions. Employees can designate after-tax investment amounts for prior years for Roth 401k and 403b. Current year Roth 401K and 403b withholding amounts and prior year makeup amounts under USERRA are reported on the W-2 in Box 12. The amount reported under the current year includes the total for the calendar year and prior years. The prior years are also listed and include: the designated year of the makeup amount, the amount and the appropriate code (AA for Roth 401k or BB for Roth 403b)

The Year End Pre-Process archives theUSERRA balances. For the generated Roth 401k and 403b elements, the Year End Pre-Process archives the date of designated Roth contributions using the element's input value Year of Prior Deferrals.

Note: Elements feeding the Roth USERRA 401k and 403b balances automatically feed the standard Roth 401k and 403b balances.

Employee Verification Service

The Social Security Administration (SSA) offers the free Employee Verification Service (EVS) you can use to verify that the employee names and social security numbers you report on Form W-2 match the SSA's records. The SSA recommends detecting these errors early and correcting them prior to W-2 submission. If you submit Form W-2 with errors, the affected employees receive notification letters from the SSA. As the employer, you will receive a no-match letter from the SSA if you have at least 11 mismatches and 1/2 of 1% of all your W-2 forms have a mismatch.

The inability to resolve an employee's name with their social security number may result in the employee being unable to collect their benefits when needed.

IRS Advice to Employers

The IRS provides the following suggestions to aid employers in verifying they have the correct employee SSNs on record:

Electronic Employee Verification Service (EVS) Report

Oracle HRMS now provides the Electronic Employee Verification Service (EVS) Report concurrent process to assist you in your employee verification efforts. This process creates an output file that you can submit electronically to the Social Security Administration (SSA) Employee Verification Service.

See Verifying Employee Names and Social Security Numbers

Note: Electronic EVS Report is the Social Security Administration (SSA) name. Electronic Employee Verification Service (EVS) Report is the Oracle concurrent program name.

SSNVS File Using Spreadsheet Software Program

The Social Security Administration offers a spreadsheet software program that creates an SSNVS file that you can use to verify up to 250,000 names/Social Security numbers. You create the spreadsheet in the specified file format, and submit the information either online, or through electronic file submission. Access the specifications for the record layout at http://www.ssa.gov/employer/ssnvs_handbk.htm.

Note: Effective 2007, the Social Security Administration will no longer accept employee verifications on tape or diskette.

Pennsylvania Employee SUI Reporting on W-2

The Department of Labor and Industry does not require that the employee contribution to State Unemployment be included on the W-2 form. Use Box 14 on Form W-2 to display the employee SUI information.

See: Populating Box 14 with Additional Information

Profile Options for Employee W-2s (Online and Paper)

This topics provides information about profile options that affect employee W-2s (online and paper).

Determine the Employee Name Archived and Displayed on Employee W- 2s (Online and Paper)

Oracle US Payroll enables you to determine the employee name that is archived and displayed on Employee W-2s (Online and Paper):

You can set these following profile options:

Setting these profile options can help resolve any name reporting inconsistencies with the Employee W-2s and Employee Online W-2s. By default, the 'HR:Archive Latest Name for W-2' and 'HR:Display Archived Name on W-2' profile options are delivered with N (No) as the default value (which reflects the current system behavior).

HR:Archive Latest Name for W-2

The 'HR:Archive Latest Name for W-2' profile option determines which name is archived when the Year End Preprocessor (or YEPP) is run. When set to Y (Yes), this will result in the employee's latest name being archived when the Year End Preprocessor (YEPP) is run or retried. This will also result in the latest name being reported on the Federal W-2 Magnetic Media files as a "smart archive" call is made which archives and reports the current/latest name in the Federal W-2 Magnetic Media magnetic file (mf) output. When set to N (No), the YEPP will archive the employee name as of December 31st of the reporting year, and the same name will also then be reported in the Federal W-2 Magnetic Media output file.

HR:Display Archived Name on W-2

The 'HR:Display Archived Name on W-2' profile option determines which name is displayed on the online Employee W-2 or is printed on the Employee W-2 when the Employee W-2 PDF report is run. When set to Y, both the online Employee W-2 PDF and the printed Employee W-2 PDF will display the archived name (the name that was archived for that reporting year). When set to No, it will display the latest name which is the current behavior: the Employee W2 PDF will display the name in effect on the effective date the report was run, and the online employee W-2 PDF will display the current name on the date it is viewed.

For example, an employee named Jane Smith (as of December 31st, 2012) changes her name to Jane West on January 16th, 2013, and then on April 1st 2013, she changes it again to Jane Jones. If the 'HR:Display Archived Name on W-2' profile option is set to Y, when the employee W-2 PDF report is run for reporting year 2012 (by date tracking to the effective date of January 25th, 2013), the archived name (Jane Smith) is displayed in the report's W-2 PDF output. If she views her 2012 W-2 PDF online via self service on April 5th, 2013, the archived name (Jane Smith) will still be shown. However, with the profile option set to N (the default setting), when the Employee W2 PDF is run for reporting year 2012 (by date tracking to the effective date of January 25th, 2013), the current name in effect (Jane West) is printed in the W-2 PDF report output. If she were to view her W-2 PDF online via self service on April 5th, 2013 she will see her latest name (Jane Jones) on the W-2.

Important Notes

Impact of the Profile Options

The following tables below summarize the effect of each of the profile options when set to Y or N on the applicable Year End reports:

HR:Archive Latest Name for W-2
Option Y Year End Preprocessor Archive latest name
  W-2c Pre-Process Archive latest name
  Federal W2 Magnetic Media Archive the latest name and report it
Option N Year End Preprocessor Archive Name as of 31st December of reporting year
  W-2c Pre-Process Archive Name as of 31st December of reporting year
  Federal W2 Magnetic Media Report the archived name
HR:Display Archived Name for W-2
Option Y Employee W-2 PDF Display the archived name
  Online W-2 PDF Display the archived name
Option N Employee W-2 PDF Display the name as of the effective date set when the report is run
  Online W-2 PDF Display the latest name

Enable Employees to View and Download W-2s as PDF Files

Use the HR: Allow online W-2 viewing as of Month/Day (MM/DD) profile option to enable employees to view and download their W-2s.

HR: Allow online W-2 viewing as of Month/Day (MM/DD)

Enable the profile option to allow your employees to view and download their W-2 or W-2c forms as PDF files. Specify the month and day that the current year's W-2 or W-2c are viewable and grant these rights at the application, responsibility, user, server, organization, or site level. The Online W-2 will not be available to employees until the date specified in the profile option. If employees attempt to view their W-2 or W-2c form before the specified date, then they only see the previous years' W-2 or W-2c forms. For example, Jan 31st of 2014 is the date specified in the profile option. An employer has already run the year-end preprocess for 2013 and employees logs into self-service on 15th November, 2013 to view their W-2 online. Employees can view their online W-2 for all years up until 2012. They cannot view the 2013 W-2 until Jan 31st of 2014, which is the date specified in the profile option.

Use this profile option to:

Note: Customers who have set up multiple application servers must bounce these servers after setting the HR: Allow online W-2 viewing as of Month/Day (MM/DD) profile option in order for users to be able to view W2s online. Customers may have different configuration on the middle tier, for example, more than one application server, multiple JVMs, and load balancing. Such setup can contribute to the caching of the profile values and may not reflect the profile option setting on bouncing of Apache only, it may require bouncing of the application or middle tier to make sure the cache value is cleared.

Control the Availability of Employee W-2s Online

HR: View Online W-2 From Date (MM/DD/YYYY)

Set the HR: View Online W-2 From Date (MM/DD/YYYY) profile option to control the display of W-2s that employees can view and download using the Employee Self-Service responsibility. Only those W-2s that are generated after the date set in this profile option are available for viewing online. This profile option can be set at the site, application, responsibility, and user level.

For example, for security reasons, you do not want employees to view their W-2s online for the year 2016 and prior years. Before setting a date in the profile option, ensure that the employees have received their W-2s online for the previous years. Then, set a date in the profile option, for example, 01/31/2018 (31st January, 2018) and generate W-2s. Employees can view only those W-2s that are generated after this date.

Determine the Employer Address Reported on Previous Years Employee W-2 Forms

An employer's GRE location or corporate address may change. However, once W-2 forms are delivered to employees and the W2 Magnetic Media is filed with the old address, the reprinted W-2s must retain the old address to comply for audit purposes. In the event of an address change, Oracle US Payroll provides the ability to report the employer's old address on the previous years' forms.

HR: Report Archive Employer Address on W-2 (Y/N)

The HR:Report Archive Employer Address on W-2 (Y/N) profile option determines which employer address is archived when the Year End Pre-Process (YEPP) is run. When set to Y (Yes), this will result in the employer's old corporate address being archived when the Year End Pre-Process (YEPP) is run or retried. If the profile option value is left blank or set to N (No), then the current address is archived and both the current and previous years W-2s report the employer's current address.

Important: This profile option is applicable to both paper and online W-2s.

Printing Unsecured Employee W-2 PDF Reports

The Employee W-2 PDF reports are generated with secured PDF output when run with “RUN_XDO” and “PRINT_FILES” pay action parameters set to No. In this scenario, use the HR:Password Protect PDF Output profile option to generate PDFs that are not secured.

HR:Password Protect PDF Output

Set the value of the “HR:Password Protect PDF Output” profile option to No to generate PDF output that is it not secured when the program is run with the pay action parameters “RUN_XDO” and “PRINT_FILES” set to No. If this profile option is not configured or set to Yes, then the system will follow the default behavior which is to generate secured PDF output when the report is run with the pay action parameters “RUN_XDO” and “PRINT_FILES” set to No.

Mask the Social Security Number (SSN) on Employee Copies of W-2 and W-2c Forms

To optionally mask the social security number (SSN) on employee copies of the W-2 and W-2c forms, configure the HR:Mask National Identifier in Year End Forms (Yes/No).

HR:Mask National Identifier in Year End Forms (Yes/No)

Set this profile option value to Yes to mask all but the last 4 digits of the recipient's SSN. The default value is No. The format of the masked SSN is XXX-XX-1234. Run the Year End Pre-Process Re-Archive (ER info only) process before you set the profile option value to Yes.

The SSN is masked in the following documents:

If the profile option is not set to Yes before running the Year End Pre-Process (YEPP), then you must run the Year End Pre-Process Re-Archive (ER info only) process to rearchive the profile option setting so that you do not have to rollback and rerun the YEPP. Select "Federal" for the Selection Criterion parameter when submitting the Year End Pre-Process Re-Archive (ER info only) process to rearchive the profile option value. See Managing the Year End Pre-Process and Year End Pre-Process Re-Archive (ER info only) for more information.

Employee Paper W-2s

Employers use the Wage and Tax Statement (Form W-2) to report to the IRS, state, and local governments taxable and non-taxable income information for individual employees.

Note: Your system administrator can set the HR:Mask National Identifier in Year End Forms (Yes/No) profile option to mask all but the last 4 digits of the recipient's SSN on the W-2 and W2c forms. See Profile Options for Employee W-2s (Online and Paper) for more information.

With Oracle Payroll, you can print single W-2s or a range of W-2s. You can also select an option to print W-2s for only terminated employees. Sort options give you further flexibility in W-2 distribution.

Oracle Payroll supports output in .PDF format. You can view and create employee W-2s in Adobe Acrobat .PDF format. You can also print the Employee W-2 PDF report in batch or individually in PDF format from the application.

W-2's need to display Corrected, and the correction date, if there is any change to the data after the employee received the W-2. The application should only display Corrected when the data is changed, but not when you add a new employee to the archive. When you add employees to the archive after the allow online display date, you must use Add Assignment Actions To The Year End Pre-Process. When you run the Retry US Payroll Process, employees added using the Add Assignment Actions To The Year End Pre-Process will not be marked as Corrected.

Oracle Payroll supports printing employee W-2 PDF output using products from Evergreen Document Solutions and RR Donnelley (formerly Moore).

The following products are available from Evergreen Document Solutions for blank W-2's:

The following products are available from RR Donnelley for blank W-2's:

Employee copies of Form W-2 (Copies B, C, and 2), including those that you print on a single sheet of paper, must be easily separated. The best method of separation is to provide perforations between the individual copies. Each copy should be easily distinguished whatever method of separation is used.

The perforation requirement does not apply to printouts of copies of Forms W-2 that you furnish electronically to employees. However, you should caution these employees to carefully separate the copies of Form W-2.

Note: The unique control number printed on each form is the Assignment Action ID archived by the Year End Pre-Process.

Run the Employee W2 PDF report from the Submit Requests window.

Note: Only GREs you have archived in the selected year are available.

Prerequisites

Before printing employee paper W2s, review and set the profile options.

See "Profile Options for Employee W-2s (Online and Paper)" for more information.

Document Delivery Preferences

In the Employee Self-Service responsibility, from the Document Delivery Preferences page, employees can choose online or paper delivery, or both of Employee W-2 and Employee W-2c forms. If they choose to receive paper copies, they can specify a mailing address. See Setting Document Delivery Preferences, Oracle SSHR Deploy Self-Service Capability Guide for more information.

Selection Options for Paper W-2s

With Oracle Payroll, you can enter selection criteria for generating paper W-2s. This option is useful if an employee has lost their W-2 and needs a new copy.

Oracle Payroll requires you to select W-2s by the following criteria:

Additionally, you can choose one item to further restrict your paper W-2 report:

Sort Options for Paper W-2s

You can sort W-2s by one or more of the following options:

Field Description
Organization Name From archived data.
Location From archived data.
Employee Name (last, first, middle) From archived data.

Note: This is the default selection.

Social Security Number From archived data.
Termination Reason From archived data.
Zip Code Use the Zip Code of the employee's primary address as of the session date (or as of termination date for terminated employees).

Selecting Sort Options for Paper W-2 Reporting

You can select sort criteria for Paper W-2 distribution purposes.

Generating Paper W-2s for Individual Employees

You can generate a Paper W-2 for an individual employee at any time. Using the Selection Criterion field in the Parameters Window, you can generate a single W-2 by selecting Employee Name or Social Security Number. You can also specify an Assignment Set and generate Paper W-2s only for those employees in that set.

Employee Online W-2s

Employers use the Wage and Tax Statement (Form W-2) to report taxable and non-taxable income information for individual employees to the SSA, state, and local governments.

Note: Your system administrator can set the HR:Mask National Identifier in Year End Forms (Yes/No) profile option to mask all but the last 4 digits of the recipient's SSN on the W-2 and W2c forms. See Profile Options for Employee W-2s (Online and Paper) for more information.

These PDFs meet the substitute forms requirements specified in IRS Pub 1141. Perforations are required between forms on all copies except Copy A to make separating the forms easier.

If employees attempt to view their W-2 before the specified date, they only see the previous years' W-2s.

Employees must have Adobe Acrobat Reader installed to view these online W-2s.

W-2s need to display Corrected and the correction date, if there is any change to the data after the employee received the W-2. The application should only display Corrected when the data is changed, but not when you add a new employee to the archive. When you add employees to the archive after the allow online display date, you must use Add Assignment Actions To The Year End Pre-Process. When you run the Retry US Payroll Process, employees added using the Add Assignment Actions To The Year End Pre-Process will not be marked as Corrected.

When generating 2012 (and later) Employee W-2s for viewing online, a custom template may be used. For details on setting up and using custom templates with the Employee Online W-2, see: Setting Up Custom BI Publisher Templates for Payroll.

Prerequisites

Before printing employee online W2s, review and set the profile options.

See "Profile Options for Employee W-2s (Online and Paper)" for more information.

Document Delivery Preferences

In the Employee Self-Service responsibility, from the Document Delivery Preferences page, employees can choose online or paper delivery, or both of Employee W-2 and Employee W-2c forms. If they choose to receive paper copies, they can specify a mailing address. See Setting Document Delivery Preferences, Oracle SSHR Deploy Self-Service Capability Guide for more information.

Paper Versus Online Delivery

You can specify that employees receiving online W-2s do not receive paper copies. The online W-2 functionality uses the statutory document printing option, which specifies the method of delivery for statutory documents. You manage this option by setting up the self-service preferences at the person, location, HR organization, and/or business group levels:

Person Defined through the Self Service Preference for Person Extra Information Type. You must add this type to your user-defined responsibility to access the statutory document printing option.
Location Defined through the Self Service Preference for Location Extra Information Type. You must add this type to your user-defined responsibility to access the statutory document printing option.
HR Organization Defined through the Self Service Preference segment in the HR Organization descriptive flexfield.
Business Group Defined through the Self Service Preference segment in the Business Group descriptive flexfield.

Outsourcing the Printing of Employee W-2s

Employers use the Wage and Tax Statement (Form W-2) to report taxable and non-taxable income information of individual employees to the IRS, state, and local governments.

If your organization outsources your employee W-2 print operations, Oracle HRMS provides an XML interface for exporting your W-2 reports. Use the interface to generate your employee W-2s in XML format.

Run the Employee W-2 XML Interface report from the Submit Requests window.

Note: Only the GREs you archived in the selected year are available when running the XML Interface report.

Selection Options for XML W-2s

You can provide selection criteria for generating W-2s in XML format. This option is useful if an employee has lost their W-2 and needs a new copy.

If you do not want to generate W-2s for all employees, you can limit the reports by specifying an Assignment Set (but not a dynamic assignment set).

Note: When you run the Employee W-2 XML Interface program with more than one thread, the program automatically generates another concurrent request 'Employee W-2 XML Output' that contains the XML output which you can use to view the details. When you run the process with a single thread, the output can be viewed using the View Output button.

Agent 2678 Filer Support

Oracle HRMS supports the use of Agent 2678 Filers for payroll processing and W-2 distribution.

When you use a payroll vendor for W-2 distribution, your agent's company name appears on your employee W-2s as the employer, followed by a statement that they are an agent on your behalf, followed by their business address. The agent's EIN appears in the EIN Identification Number field of the W-2.

For instructions on how to set up an Agent 2678 Filer, see Setting Up an Agent 2678 Filer for W-2 Reporting.

Form W-2 Box Information

The following table depicts the various boxes and fields on form W-2 and indicates where Oracle Payroll draws the appropriate balances to complete the form:

Box Title Information Contained
a Control Number Assignment Action ID archived by the Year End Pre-Process
b Employer Identification Number Employer ID (Federal EIN)
c Employer's Name, Address, and Zip Code Tax Unit Name (GRE Name), Tax Unit Address (GRE Location)
d Employee's SSN National Identifier
e Employee's Name First, Middle Initial, Last
f Employee's Address, and Zip Code Primary Address
1 Wages, Tips, and Other Compensation FIT Reduced Subject Withholdable (FIT Subject Withholdable - FIT Pre Tax Redns) + FIT Subject Non Withholdable
2 Federal Income Tax Withheld FIT Withheld (PER_GRE_YTD)
3 Social Security Wages SS EE TAXABLE (PER_GRE_YTD)
4 Social Security Tax Withheld SS EE Withheld (PER_GRE_YTD)
5 Medicare Wages and Tips Medicare EE Taxable (PER_GRE_YTD)
6 Medicare Tax Withheld Medicare EE Withheld (PER_GRE_YTD)
7 Social Security Tips W2 BOX 7
8 Allocated Tips W2 BOX 8
9 Verification Code Note: Oracle is currently not a participant in the W-2 Verification Code Initiative, so this box will remain blank.
10 Dependent Care Benefits W2 Dependent Care (PER_GRE_YTD)
11 Nonqualified Plans W2 Nonqual Plan (PER_GRE_YTD)
12 Codes See Balances for W-2 Box 12 for descriptions of the supported codes and their content
13 Statutory Employee Check box on Tax Information form
13 Retirement Plan W2 Pension Plan (PER_GRE_YTD)
13 Third-party Sick Pay W2 Third Party Sick Pay (PER_GRE_YTD)
14 Other

Note: The Employee W-2 PDF reports a maximum of five records in Box 14.

  • BOONOC: Kentucky Boone County occupational tax

  • BOONMH: Kentucky Boone County Mental health tax

  • CA SDI: California SDI

  • CA VPDI: California VPDI

  • NJDI: New Jersey SDI.

  • NJDIPP: New Jersey DIPP number

  • NY SDI: New York SDI. Employee deductions for New York Paid Family Leave are reported along with New York State Disability Insurance (SDI) contributions.

  • UI/WF/SWF: New Jersey SUI

  • YN: Deferrals under a NQDC plan included in SS and Med wages as a result of the amount no longer subject to a substantial risk of forfeiture and for prior year services.

  • YT: Distributions from a NQDC plan included in Box 1 of the W-2.

  • ZN: Earnings from prior year NQDC deferrals now included in SS and Med wages.

  • MMIPAA: Annual $3 employee deduction for the Medical Malpractice Insurance Premium

  • For New Jersey this box displays the State Family Leave Insurance (FLI) deduction amount.

14A Other W2 BOX 14A
14B Other W2 BOX 14B
14C Other W2 BOX 14C
14D Other W2 BOX 14D
14E Other W2 BOX 14E
14F Other W2 BOX 14F
14G Other W2 BOX 14G
14H Other W2 BOX 14H
14I Other W2 BOX 14I
14J Other W2 BOX 14J
14X Other PA LST: Pennsylvania Local Services Tax
14Z CTB Predefined balance fed by user-defined CTB element
14AA - 14ZZ Other User-defined
15 State State Code (The state information on the W-2 is provided only if that state or locality information is entered in the tax information form for the assignment.)
15 Employer's State ID Number State_id from ORG_INFORMATION of hr_organization_information
16 State Wages, Tips, and so on
  • SIT Reduced Subject Withholdable (SIT Subject Withholdable - SIT Pre Tax Redns) + SIT Subject Non Withholdable (PER_GRE_YTD)

  • For New Jersey, this box could display the Family Leave Insurance Private Plan (FLI PP) ID.

17 State Income Tax
  • SIT Withheld (PER_GRE_YTD)

  • For New Jersey this box could display the Family Leave Insurance (FLI) deduction amount.

18 Local Wages, Tips, and so on Tax type (SDI, city, county, school) (Reduced Subject Withholdable (Subject Withholdable - Pre Tax Redns) + Subject Non Withholdable) (PER_GRE_YTD)
19 Local Income Tax Tax type (SDI, city, county, school) Withheld (PER_GRE_YTD)
20 Locality Name Locality Name

Note: For employees subject to Pennsylvania Act 32*, effective for 2012 and later, the two-digit Tax Collection District (TCD) Code of the Tax Collection District to which their employer remitted the local income tax withheld is reported instead of Locality Name.

*Philadelphia is exempt from PA Act 32, so for employees either working or residing in Philadelphia, the applicable locality name will continue to be reported. Also, any Pennsylvania employee W-2s generated prior to 2012 will still report the applicable locality name and not the TCD code in Box 20.

Even though Philadelphia does not have a school district, a school district code of "00000" should still be added to the employee's Philadelphia city tax rules record in order to properly report Philadelphia wages and withholding on the employee W-2 PDF report. If you do not add the school district code of "00000" for Philadelphia, then the tax withheld will still be correct but there will be bad data reported on the Employee W-2 PDF. There will be two rows of duplicate local information reported as shown in the following example:

Employee lives and works in Philadelphia

  • First row

    • W2 Box 16 State wages, tips etc. 2307.69

    • W2 Box 18 Local wages, tips etc. 2307.69

    • W2 Box 19 Local income tax 90.65

    • W2 Box 20 Locality name Philadelphia

  • Second duplicate row:

    • W2 Box 18 Local wages, tips etc. 2307.69

    • W2 Box 19 Local income tax 90.65

    • W2 Box 20 Locality name 99

When the employee's local tax rules record for Philadelphia is updated with a school district code of "00000", then the second duplicate row is no longer reported on the employee W-2.


Ohio: To comply with the reporting requirement of the Ohio Department of Taxation, the Box 20 information in the Employee W-2 PDF report displays the 4-digit school district code immediately following the school district name.
* EFW2 Balances only
  • W2 Nonqual 457 (PER_GRE_YTD)

  • Territory Taxable Commission (PER_GRE_YTD)

  • Territory Taxable Allowances (PER_GRE_YTD)

  • Territory Taxable Tips (PER_GRE_YTD)

  • Territory Retire Contributions (PER_GRE_YTD)

For instructions on how to set up feed balances for Box 13 and 14, see: Feeding Balances for W-2 Box 13 and Box 14.

If you are adding new feeds to balances for the W2 box information, then Run Balances data may become invalid. It is necessary to ensure that the related Run Balances data is regenerated for optimal performance of the Year End Preprocess. To determine the invalidated run balances, run the "Run Balance Architecture Diagnostic Report". For the invalid balances, it is recommended to run the 'Generate Run Balances' request for the respective balances by selecting the mode as 'A single balance'.

Customizing W-2 Box 20 on the Employee W2 XML Interface to Comply with Ohio State Legislative Requirements

Oracle US Payroll provides the ability to customize Box 20 reporting on the Employee W2 XML Interface, if necessary. As required by the state of Ohio, the school district code is appended to the school district name when it is reported in Box 20 in the W2 Register report output. There may be customers who use the Employee W2 XML Interface output to give to a third-party for printing employee W-2 forms. If that third-party has field length limitations and the school district name exceeds their limit, then it could result in the school district code getting truncated or trimmed off entirely on the employee W-2. To avoid such problems and print employee W-2 forms, an XML tag “SD_CODE” has been added to the XML output of the Employee W2 XML Interface. The SD_CODE tag reports only the school district code, and it is reported only for Ohio employees.

To prevent any problems with third-party field length limitations, customers can instruct their third party systems to use the following logic:

Get the appropriate school district from locality_name and append the XML tag "SD_CODE"

Configuring W-2 Box 20 for Compliance with Pennsylvania Act 32

To accommodate employers who have elected to be Combined Filers, a field "Act 32 Combined Filer TCD Code (PA)" has been added to a DFF "W2 Reporting Rules 1" at the GRE level. This field needs to be set to the applicable TCD code where the taxes have been remitted.

Note: This field must be populated for all applicable GREs. For example, a Combined Filer with 4 GREs (with Pennsylvania employees) that remitted local income taxes to TCD code '01', ('01') needs to be entered in the field 'Act 32 Combined Filer TCD Code (PA)' for each of the 4 GREs in 'W2 Reporting Rules 1'. ("W2 Reporting Rules 1" can be found by navigating to Work Structures > Description > GRE/legal Entity > Others.)

For non-combined filers (i.e. those who have a single work site and report/remit local income taxes to just one TCD or multi site employers who file separately with each TCD) should leave the field "Act 32 Combined Filer TCD Code (PA)" blank. In this case, no additional setup is required. The TCD Code printed in Form W-2 box 20 will be the first two digits of the Work PSD Code for the corresponding Pennsylvania Local Earned Income Tax value reported in W-2 Box 19.

In cases where the employee's Work PSD Code is 880000 [Out of State], the TCD Code printed in Form W-2 box 20 will be the first two digits of the employee's Resident PSD Code. In cases where the employee's Work and/or resident PSD Code is 990000 [Unknown], the employee will be reported on the W2 Exception Register. For more information, see: W2 Exception Register Reporting

Note: Oracle US Payroll enables you to determine whether employees with invalid PSD codes are to be reported in the W2 Exception Register or receive a W-2 with a potentially invalid or incorrect TCD code in Box 20. The setting for the HR:Allow invalid PSD codes on W-2(Y/N) profile option determines whether or not an employee is reported in the Employee W-2 PDF, W2 Register reports or the W2 Exception Register. Before you run the W2 Exception Register report, review the setting of the HR:Allow invalid PSD codes on W-2(Y/N) profile option.

For more information, see:

For Philadelphia employees: Although the City of Philadelphia is assigned PSD Code 510101 under Pennsylvania Act 32, as the City of Philadelphia is not subject to the requirements of Pennsylvania Act 32, the local wage and withholding reporting for employees subject to the Philadelphia Wage Tax is unchanged and not impacted by the Pennsylvania Act 32 Form W-2 reporting requirements. For Philadelphia Earned Income taxes reported in W-2 box 19, W-2 box 20 will continue to display the applicable locality name.

Balances for W-2 Box 12

Box 12 holds a variety of information. Many of these boxes represent balances that need to be fed by an element. You can create individual elements to feed box 12 as appropriate.

Define Box 12 balances from the Balances window in the Total Compensation area of the Navigator.

For each Box 12 code, a definition is provided below:

Code Description Information Contained
A Uncollected social security or RRTA tax on tips
A balance for Code A includes the amount of social security tax on an employees tips that could not be collected because of insufficient funds.
W2 Uncollected SS Tax Tips (PER_GRE_YTD)
B Uncollected Medicare tax on tips
A balance for Code B includes the amount of Medicare tax on an employee's tips that could not be collected because of insufficient employee funds.
W2 Uncollected Medicare Tips (PER_GRE_YTD)
C Taxable cost of group-term life insurance over $50,000
A balance for Code C includes the value of employer-provided group-term life insurance coverage over $50,000 minus the employee's after-tax contributions.
W2 Group Term Life (PER_GRE_YTD)
D Elective deferrals to a section 401(k) cash or deferred arrangement
A balance for Code D includes the employee's total elective deferrals to a 401(k) cash or deferred arrangement, even if the employee exceeds the annual elective deferral limit.
For participating employees, lists USERRA by year.
W2 401K (PER_GRE_YTD)
E Elective deferrals to a section 403(b) salary reduction arrangement
A balance for Code E includes the employee's total elective deferrals to a 403(b) salary reduction agreement to purchase an annuity contract, even if the employee exceeds the annual elective deferral limit.
For participating employees, lists USERRA by year.
W2 403B (PER_GRE_YTD)
F Elective deferrals to a section 408(k)(6) salary reduction SEP
A balance for Code F includes the employee's total elective deferrals to a 408(k)(6) salary reduction Simplified Employee Pension plan, even if the employee exceeds the annual elective deferral limit.
For participating employees, lists USERRA by year.
W2 408K (PER_GRE_YTD)
G Elective deferrals and employers contributions (including non-elective deferrals) to any governmental or non-governmental section 457(b) deferred compensation plan
A balance for Code G includes the total elective and nonelective contributions made to a 457(b) deferred compensation plan for government employees or tax exempt organizations, even if the employee exceeds the annual elective deferral limit.
For participating employees, lists USERRA by year.
W2 457 (PER_GRE_YTD)
H Elective deferrals to a section 50(c)(18)(D) tax-exempt organization plan
A balance for Code H includes the total elective deferrals to a 501(c)(18)(D) tax-exempt organization plan (not employer nonelective contributions or employee after-tax contributions).
For participating employees, lists USERRA by year.
W2 501C (PER_GRE_YTD)
J Nontaxable sick pay
A balance for Code J includes the amount of third-party sick pay that is not subject to federal income tax because of the employee's after-tax contributions to the sick pay plan.
W2 Nontax Sick (PER_GRE_YTD)
K 20% excise tax on golden parachute payments
A balance for Code K includes a 20% excise tax on excess golden parachute payments made to key corporate employees after a merger or acquisition.
W2 Excise Parachute Payments (PER_GRE_YTD)
L Substantiated employee business expense reimbursements
A balance for Code L includes the amount of employee business expense treated as substantiated (nontaxable) only if the employer reimburses its employees for expenses under a per diem or mileage allowance that exceeds the government-approved rates.
W2 Expense reimbursement (PER_GRE_YTD)
M Uncollected social security or RRTA tax on taxable cost of group-term life insurance over $50,000 (for former employees)
A balance for Code M includes the amount of uncollected social security tax on the value of excess group-term life insurance coverage for former employees.
W2 Uncollected SS GTL (PER_GRE_YTD)
N Uncollected Medicare tax on taxable cost of group-term life insurance coverage over $50,000 (for former employees)
A balance for Code N includes the amount of uncollected Medicare tax on the value of excess group-term life insurance coverage for former employees.
W2 Uncollected Medicare GTL (PER_GRE_YTD)
P Excludable moving expense reimbursements paid directly to employees
A balance for Code P includes the amount of moving expense reimbursements paid to employees that were not included in the employee's income because they were paid for qualified moving expenses.
W2 Qualified Moving Expenses (PER_GRE_YTD)
Q Nontaxable combat pay. See the instructions for Form 1040 or Form 1040A for details on reporting this amount. W2 Nontax Combat (PER_GRE_YTD)
R Employer contributions to an Archer MSA
A balance for Code R includes employer contributions to your medical savings account (MSA).
W2 Medical Savings Account (PER_GRE_YTD)
S Employee salary reduction contributions under a section 408(p) SIMPLE
A balance for Code S includes employee salary reduction contributions under a section 408(p) SIMPLE (not included in box 1).
W2 408P (PER_GRE_YTD)
T Adoption benefits
A balance for Code T includes adoption benefits not included in box 1.
W2 Adoption (PER_GRE_YTD)
V Income from the exercise of nonstatutory stock option(s) (included in boxes 1, 3, and 5)
A balance for Code V includes income from the exercise of non-statutory stock options.
W2 Nonqual Stock (PER_GRE_YTD)
W Employer contributions to a Health Savings Account (including amounts the employee elected to contribute using a section 125 (cafeteria) plan). W2 Health Savings Accounts (PER_GRE_YTD)
Y The amount set aside under a nonqualified deferred compensation plan. This includes the current year deferrals and earnings on the current year and prior year deferrals. W2 W2 Nonqual Def Comp (PER_GRE_YTD)
Z The amount set aside under a nonqualified deferred compensation plan that is taxable in the year of deferral due to the failure of the employers plan to meet certain qualifications under section 409A. Can also be used to report amounts deferred into a nonqualified plan in prior years if the employer's plan was not modified W2 409A Nonqual Income (PER_GRE_YTD)
AA Designated Roth contributions to a Section 401K plan. If an employee participates in a Section 401K plan that includes a qualified Roth contribution program, the employee may elect to make a designated Roth contribution to the plan or program in lieu of elective deferrals. W2 Roth 401k (PER_GRE_YTD)
BB Designated Roth contributions to a Section 403B plan. If an employee participates in a 403B salary reduction program that includes a qualified Roth contribution program, the employee may elect to make a designated Roth contribution to the plan or program in lieu of elective deferrals. W2 Roth 403b (PER_GRE_YTD)
DD Cost of Employer Sponsored Health Insurance. The amount reported with Code DD is not taxable. W2 Health Coverage (PER_GRE_YTD)
EE Designed Roth contributions under a governmental section 457(b) plan. This amount does not apply to contributions under a tax exempt organization section 457(b) plan. W2 Roth 457b (PER_GRE_YTD)
FF Employer contributions to the “Permitted Benefits under a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA).” healthcare plan. To report the QSEHRA amount, you must you must manually populate the "W2 QSEHRA Amount" information payroll balance by creating the applicable balance feeds or performing balance adjustments. W2 QSEHRA Amount (PER_GRE_YTD)
GG Income from qualified equity grants under section 83(i).
To report the GG code and the amount on employee W-2 forms as well as the EFW2 and EFW2c reports using the Federal W-2 and W2-c Magnetic Media reports, you must complete the following steps:
  1. Create a recurring or a non-recurring element.

  2. Populate the W2 Qualified Eqty Grants balance by creating the applicable balance feeds.

  3. Perform balance adjustments as required.

W2 Qualified Eqty Grants (PER_GRE_YTD)
HH Aggregate deferrals under section 83(i) elections as of the close of the calendar year.
To report the HH code and the amount on employee W-2 forms as well as the EFW2 and EFW2c reports using the Federal W-2 and W2-c Magnetic Media reports, you must complete the following steps:
  1. Create a recurring or a non-recurring element.

  2. Populate the W2 Agg Deferrals Sec 83i balance by creating the applicable balance feeds.

  3. Perform balance adjustments as required.

W2 Agg Deferrals Sec 83i (PER_GRE_YTD)

For instructions on how to populate Box 12 with taxes due, see: Populating Box 12 with Taxes Due for Group Term Life Insurance

If you are adding new feeds to balances for the W2 box information, then Run Balances data may become invalid. It is necessary to ensure that the related Run Balances data is regenerated for optimal performance of the Year End Preprocess. To determine the invalidated run balances, run the "Run Balance Architecture Diagnostic Report". For the invalid balances, it is recommended to run the 'Generate Run Balances' request for the respective balances by selecting the mode as 'A single balance'.

Balances for W-2 Box 14

Form W-2 Box 14 is designated as "Other" and can hold information such as:

Form W-2 Box 14 also allows you to place other information that you may be tracking throughout the year as a user-defined balance.

If you have been tracking user-defined information and need to report it in box 14 of form W-2, you need to feed the balance.

W2 Register Reporting

You preview W-2s before printing by using the W2 Register Report. Through the W2 Register request set, you view the amounts reported in each box of the Form W-2 for all employees in a particular GRE for a given year. You can also view the amounts for a particular assignment set (but not a dynamic assignment set). The W2 Register report shows totals by W-2 box number (1 through 20). Using sort options, you can customize this report to further display withholding totals for employees, organizations, and locations.

You use the W2 Register report to verify your W-2 box totals prior to running your W-2s. The totals generated by this report balance to the GRE Totals report, the Year-to-Date values on the Tax Remittance Report, and the .a01 report created when you run the process.

Prerequisite Step

Before you run the W2 Register Report, review the setting of the HR:Allow invalid PSD codes on W-2(Y/N) profile option. Oracle US Payroll enables you to determine whether employees with invalid PSD codes are to be reported in the W2 Exception Register or receive a W-2 with a potentially invalid or incorrect TCD code in Box 20. The setting for the HR:Allow invalid PSD codes on W-2(Y/N) profile option determines whether or not an employee is reported in the Employee W-2 PDF, W2 Register reports or the W2 Exception Register.

For more information, see:

Important: To report Federal wages in the State Wages Box on W-2 for NY state, the business group level option 'W2 State wages match Fed(NY)' (navigation: Business Group > Others> State Tax Rules) must be set to Yes. Note that this option is set to Yes as a default for all business groups. This setting displays federal wages only for the NY state on the W2. Customers can still update the flag value back to 'No' if NY state rules any legislative change.

W2 Register Sort Options

You can organize the W2 Register report according to user-defined criteria or sort options. Oracle Payroll does not require that you use sort options to generate your W2 Register report, but they are the best way to customize the report to your specific needs. You sort reports by any three of the following options:

Note: You cannot choose to sort by Social Security Number and then Employee Name. If you select Social Security Number as a sort option, Employee Name does not appear in the List of Values for the remaining sort options.

Sort Options and Report Layout

When printed, the W2 Register report inserts a page break between each selected sort option, with the exception of Employee Name or Social Security Number.

For Example, if you choose Organization, Location, and Employee Name as sort options, the report contains a page break every time the Organization or the Location changes. The report does not have page breaks between the individual employees.

The report then lists the following information:

W2 Register Parameters

The following parameters exist for the W2 Register report:

Reporting Year (required) Four-digit calendar year.
Government Reporting Entity (required) GREs that you archived using the Year End Pre-Process for the specified Reporting Year appear in the list. GREs for retirees do not appear.
State Select the state code to show only the employees in a particular state
Locality Select the locality code to show only the employees in a particular locality. You must first select the correct state.
Totals Only (required) Select Yes to show only the W-2 box totals for all selected employees in the report. The report does not include Individual employees. Select No to show W-2 box totals in the report for selected individual employees, as well as the totals for these employees.
Assignment Set (optional) Select an assignment set to generate a report for only those employees.

Note: This report does not support dynamic assignment sets.

Sort Options (optional) Use the three fields for sort options to sort your report results. You cannot select Sort Options if you have set the Totals Only parameter to Yes.
If you do not select any sort options, the report uses Employee Name as the default.

W2 Register Output

The W2 Register report prints according to the parameters that you select in landscape format to fit on 8.5" x 11" paper.

The values for boxes 1 through 6 of form W-2 always print on the report. The values for all other W-2 boxes appear on the report only if they are non-zero values.

W2 Exception Register Reporting

The W2 Exception Register request set identifies employees who have negative box 1 totals on the Form W-2, or have a zero box 1 total on the Form W-2, but have other negative W-2 box totals. This report also identifies Pennsylvania employees with invalid PSD codes.

The W2 Exception Register reports the following employees as an exception and not receiving a W-2 (for 2013 or later):

Prerequisite Step

Before you run the W2 Exception Register, review the setting of the HR:Allow invalid PSD codes on W-2(Y/N) profile option. Oracle US Payroll enables you to determine whether employees with invalid PSD codes are to be reported in the W2 Exception Register or receive a W-2 with a potentially invalid or incorrect TCD code in Box 20. The setting for the HR:Allow invalid PSD codes on W-2(Y/N) profile option determines whether or not an employee is reported in the Employee W-2 PDF, W2 Register reports or the W2 Exception Register.

For more information, see:Determining how to Handle Employees with Invalid PSD Codes in Year End Reports

W2 Exception Register Sort Options

Organize the W2 Exception Register report according to user-defined criteria or sort options. Oracle Payroll does not require that you use sort options to generate your W2 Exception Register, but they are the best way to customize the report to your specific needs. You can sort the report by any three of the following options:

Note: You cannot choose to sort by Social Security Number and then Employee Name. If you select Social Security Number as a sort option, Employee Name does not appear in the List of Values for the remaining sort options.

Following is an example of how to use sort options to customize the W2 Exception Register.

To create a W2 Exception Register sorted by Organization, Location, and Employee Name:

  1. Enter Organization into the Sort Option One field.

  2. Enter Location into the Sort Option Two field.

  3. Enter Employee Name into the Sort Option Three field.

Using these Sort Options, Oracle Payroll generates the report listing each employee by location within each organization for the selected GRE.

Note: The application nests the sort options. Using the previous example, if you change Sort Option Two from Location to Employee Name, Sort Option Three automatically clears.

Sort Options and Report Layout

When printed, the W2 Exception Register inserts a page break between each selected sort option, with the exception of Employee Name or Social Security Number.

For Example, if you choose Organization, Location, and Employee Name as sort options, the report contains a page break every time the Organization or the Location changes. The report doesnot have page breaks between the individual employees.

W2 Exception Register Parameters

The following parameters exist for the W2 Exception Register:

Reporting Year (required) Four-digit calendar year.
Government Reporting Entity(required) GREs archived using the Year End Pre-Process for the specified Reporting Year will appear. GREs for retirees do not appear.
Totals Only (required) Yes to display only the W-2 box totals for all selected employees in the report; the report does not include individual employees. No to display W-2 box totals in the report for selected individual employees, as well as the totals for these employees.
Assignment Set (optional) Assignment set to generate an exception report for only those employees.

Note: This report does not support dynamic assignment sets.

Sort Options (optional) Use the three fields for sort options to sort your report results. You cannot select Sort Options if the Totals Only parameter is set to Yes. See the Sort Options section for more information on how to properly use these parameters.
If you do not select any sort options, the report uses Employee Name as the default.

W2 Exception Register Output

The W2 Exception Register prints according to the parameters that you select in landscape format to fit on 8.5" x 11" paper.

The values for boxes 1 through 6 of form W-2 always appear on the report. The values for all other W-2 boxes appear on the report only if they are non-zero values. This report format is the same as the W2 Register report.

The report then lists the following information:

Setting Up Custom BI Publisher Templates for Payroll

Oracle Payroll supports the use of custom BI Publisher templates for the following Year–End (and other) reports:

Creating Custom BI Publisher Templates

This functionality may be used after performing the following procedures:

  1. Registering Custom Templates: Register the custom templates using the XML Publisher Administrator responsibility.

  2. Grouping Related Templates: After registering the custom templates, you must group them so that all the related templates can be seeded at the same time using the new concurrent program.

  3. Registering the Custom Template Group: Once a template group has been created, it needs to be registered in the Payroll tables in order to make use of the custom templates. For this purpose, use the concurrent program Register BI Publisher Templates for Payroll. This program will accept two parameters: the XML based Payroll report name for which registering is to be done and the template groups that have been created based on the custom templates. This concurrent program will seed the template details in the Payroll tables after which the template group can then be selected when running the applicable report.

  4. Using the Template Group: Select the applicable template group from the list of all available template groups when running a report in order to produce the output in the desired format.

    Note: Custom Employee W-2 and W-2cTemplate Supportt: Custom Template Support: While Oracle provides the flexibility of using custom W-2 PDF and W-2c templates when printing or viewing Online Employee W-2s and W-2cs, any customizations are the customer's responsibility to develop and maintain. If any errors are encountered or there is unexpected output using your custom template, you are recommended to try running the Employee W-2 and W-2c PDF reports or viewing the Online W-2 and W-2c using one of the seeded templates first to confirm the issue is reproducible prior to logging a service request with Oracle Support.

Creating Custom BI Publisher Templates for Local Year End Interface Extract Reporting

To register custom BI Publisher templates for Local Year End Interface Extract reporting:

The following example can be used to create custom templates for producing the magnetic file (mf), the audit report (.a01) and the Employee Exception report (.a02). However, other templates can be created if necessary for use with the Local Year End Interface Extract. Using the XML Publisher Administrator responsibility, navigate to Templates.

  1. Click on Create Template.

  2. Enter the following fields:

    • Name: Enter an appropriate name, for example: Custom Template for Local Year End for Alexandria, VA(MF).

    • Code: Enter the code using the mandatory format: <CODENAME>_MF to indicate that this template will be used for generating the magnetic file, for example LOCW2ALEXVA_MF.

    • Application: Select Payroll.

    • Data Definition: Select US LOCAL W2 XML Tape.

    • Type: Enter Type as 'eText Outbound' to indicate that this template will be used for generating the magnetic file.

    • Start Date: Enter a date prior to today's date.

    • Subtemplate: Select No.

    • Description: Enter a description.

    • File: Browse to select the desired template file. Make sure this is the correct file to be used for .mf file generation.

    • Language: Select English.

    • Territory: Select United States.

  3. Click on Apply.

  4. Again, click on Create Template.

  5. Enter the following fields:

    • Name: Enter an appropriate name, for example, Custom Template for Local Year End for Alexandria, VA(A01).

    • Code: Enter the code using the mandatory format <CODENAME>_A01 to indicate that this template will be used for generating the .a01 file, for example LOCW2ALEXVA_A01.

    • Application: Select Payroll.

    • Data Definition: Select US LOCAL W2 XML Tape.

    • Type: Enter Type as 'RTF' to indicate that this template will be used for generating the magnetic file.

    • Start Date: Enter a date prior to today's date.

    • Subtemplate: Select No.

    • Description: Enter a description.

    • File: Browse to select the desired template file. Make sure this is the correct file to be used for .a01 file generation.

    • Language: Select English.

    • Territory: Select United States.

  6. Click on Apply.

  7. Again, click on Create Template.

  8. Enter the following fields:

    • Name: Enter an appropriate name, for example, Custom Template for Local Year End for Alexandria, VA(A02).

    • Code: Enter the code using the mandatory format <CODENAME>_A02 to indicate that this template will be used for generating the .a02 file, for example LOCW2ALEXVA_A02.

    • Application: Select Payroll.

    • Data Definition: Select US LOCAL W2 XML Tape.

    • Type: Enter Type as 'RTF' to indicate that this template will be used for generating the magnetic file.

    • Start Date: Enter a date prior to today's date.

    • Subtemplate: Select No.

    • Description: Enter a description.

    • File: Browse to select the desired template file. Make sure this is the correct file to be used for .a02 file generation.

    • Language: Select English.

    • Territory: Select United States.

  9. Click on Apply.

To group related templates for Local Year End Interface Extract reporting:

Use the following steps to group the custom templates created earlier for use with the Local Year End Interface Extract so that all the necessary output is generated using the applicable templates and the correct format. Using the Application Developer responsibility, navigate to Applications > Lookups > Common.

  1. Enter the following fields:

    • Type: Enter an appropriate type name. The name must be in the following format: %US_LOCALW2XML%, for example, VISION_US_LOCALW2XML_ALEXVA. Note: The type name has a maximum size of 30 characters.

      Note: The type name has a maximum size of 30 characters.

    • Meaning: Enter an appropriate name. This name will be displayed as the Template Group name in the report, for example, Custom Template for Local Year End for Alexandria, VA

    • Application: Select Payroll.

    • Code: Enter the code used to register the template (in XML Publisher Administrator) for example, LOCW2ALEXVA_MF

    • Meaning: Re-enter the same template code.

    • From: Enter a date prior to today's date.

  2. Create another record.

  3. Enter the following fields:

    • Code: Enter the code used to register the template for the .a01 file, for example, LOCW2ALEXVA_A01.

    • Meaning: Re-enter the same template code.

    • From: Enter a date prior to today's date.

  4. Click Save.

To register the custom template group for Local Year End Interface Extract reporting

Use the following steps to register the template group comprised of the custom templates created earlier with the Payroll tables. Using the US HRMS Manager responsibility, navigate to View > Request.

  1. Submit a New Request and click on OK.

  2. Name: Select Register BI Publisher Templates for Payroll.

  3. Enter the parameters as follows:

    • Payroll Process Name: Select Local Year End Interface Extract.

    • Template Group: Select the template group to be registered.

  4. Click on OK and submit the request.

To use the template group for Local Year End Interface Extract reporting

The template group comprised of the custom templates created earlier can now be used with the Local Year End Interface Extract to produce the desired magnetic (and other) output files. Using the US HRMS Manager responsibility, navigate to View > Request.

  1. Submit a New Request and click on OK.

  2. Name: Select Local Year End Interface Extract.

  3. In the parameters form select the applicable Template Group created earlier.

To register custom BI Publisher templates for Employee W-2 PDF reporting and Online W-2

Oracle Payroll delivers the following predefined template to produce custom Employee W-2 PDF and Online Employee W-2 PDF:

To register custom BI Publisher templates for Employee W-2 PDF reporting and Online W-2

The following example can be used to create custom templates for producing the Employee W-2 PDF report and for the Online Employee W-2. Using the XML Publisher Administrator responsibility, navigate to Templates.

  1. Click on Create Template.

  2. Enter the following fields:

    • Name: Enter an appropriate name, for example: Form W-2 Main (2008).

    • Code: Enter the code such as '%_PDF' to indicate that this template will be used for generating the pdf file, e.g., PAYUSW2MAIN2008 _PDF,

    • Application: Select Payroll.

    • Data Definition: Select US W-2.

    • Type: Select RTF.

    • Start Date: Enter a date prior to today's date.

    • Subtemplate: Select No.

    • Description: Enter a description.

    • File: Browse to select the desired template file. Make sure this is the correct file to be used for PDF file generation.

    • Language: Select English.

    • Territory: Select United States.

  3. Click on Apply.

To group related templates for Employee W-2 PDF reporting

Using the Application Developer responsibility, navigate to Applications > Lookups > Common.

Note: These steps do not apply to the custom Employee Online W-2.

  1. Enter the following fields:

    • Type: Enter an appropriate name. The name should be in a format like %US%PAYUSW2PDF%. The format is mandatory, e.g. VISION_US_PAYUSW2PDF_2008.

    • Meaning: Enter an appropriate name here as this name will be displayed as the Template Group in the report, e.g., Custom Template for Employee W-2 PDF for 2008 .

    • Application: Select Payroll

    • Code: Enter the code used to register the template (in XML Publisher Administrator) for example, PAYUSW2MAIN2008 _PDF.

    • Meaning: Re-enter the same template code.

    • From: Enter a date prior to today's date.

  2. Click Save.

To register a template group for Employee W-2 PDF reporting

The template group comprised of the custom template created earlier can now be registered to produce the Employee PDF report output. Using the US HRMS Manager responsibility, navigate to View > Request.

Note: These steps do not apply to the custom Employee Online W-2.

  1. Submit a New Request and click on OK.

  2. Name: Select Register BI Publisher Templates for Payroll.

  3. Enter the parameters as follows:

    • Payroll Process Name: Employee W-2 PDF.

    • Template Group: Enter the template group name to be registered, e.g., Custom Template for Employee W-2 PDF for 2008.

  4. Click on OK and submit the request.

To use a template group for Employee W-2 PDF reporting

The template group comprised of the custom template created earlier can now be used to produce the Employee PDF report output. Using the US HRMS Manager responsibility, navigate to View > Request.

Note: These steps do not apply to the custom Employee Online W-2.

  1. Submit a New Request and click on OK.

  2. Name: Employee W-2 PDF.

  3. In the parameters form select the applicable Template Group created earlier.

To configure the custom Online Employee W-2 template in Self Service Preference at Business Group or HR Organization level

  1. Log into the application for the desired responsibility.

  2. Navigate to Work Structures > Organization > Description and query the applicable Business Group or HR Organization.

  3. In the 'Organization Classifications' section, click on Business Group (or HR Organization) > Others > Self Service Preference.

  4. Add the configuration for W-2. Set the following:

    • Document Type: W-2

    • Online: Yes

    • Template: Select the custom template defined earlier. (Note: any template selected in Self Service Preference at the HR Organization level will override the template selected at Business Group level.)

  5. Click OK, save your changes and close the form.

To configure the custom Online Employee W-2 template in Self Service Preference at the Location EIT level

  1. Login into the application using the desired responsibility.

  2. Navigate to Work Structures > Location. Query the location.

  3. Click on Extra Information.

  4. For 'Type' click on 'Self Service Preference for Location'.

  5. Click on Details, and for the Self Service Preference setup for the W-2, select:

    • Document Type: W-2

    • Online: Yes

    • Template: Select the applicable custom W-2 template. (Note: any custom template selected here will override the template selected at either the HR Organization or Business Group level.)

  6. Click on OK, save your changes and close the form.

If necessary, set the Self Service Preference at the Person EIT level so the employee is able to view their W-2 online via Employee Self Service.

Creating Custom BI Publisher Templates for Employee W-2c PDF and Online W-2c

You can run the Employee W-2c PDF concurrent program, which is XML based to generate the W-2c PDF.

Oracle Payroll delivers the following predefined template to produce custom corrected Employee W-2s for use with the Employee W-2c PDF report and the Online Employee W-2c:

You can use the Template Group parameter to select from a list of custom template groups comprised of delivered and custom templates in order to meet specific local statutory requirements.

The following example can be used to create a custom template for Employee W-2c PDF and Online W-2c.

This is accomplished by the following procedures:

To register a custom BI Publisher template for Employee W-2c PDF and Online W-2c

  1. Using the XML Publisher Administrator responsibility, navigate to Templates.

  2. Click Create Template.

  3. Enter the following fields:

    • Name: Enter an appropriate name, for example: Form W-2c Main (2013).

    • Enter the code such as ' <custom name>_PDF'.

      Note that the code must be in capital alphabets. This field is also required and holds the code with which the template gets referenced subsequently. Therefore the code must be chosen very carefully. Moreover, you must follow a naming convention while entering the template code. If the report for which the custom template is being registered generates multiple output files, the template code should be followed with an underscore along with a short description of the output type for which the template is being registered. For example, if the report produces two output files: one for the PDF and one for the audit report (CSV), the template codes must be defined as follows: <TEMP_CODE>_PDF and <TEMP_CODE>_CSV respectively, where <TEMP_CODE> can be any string. This is required to create a link between the template and the output file which it correlates to.

      Audit (CSV) report is not currently available with the W-2c PDF report; it will be available in a future release.

    • Application: Select Payroll.

    • Data Definition: Select US W-2C.

    • Type: Select RTF.

    • Start Date: Enter a date prior to today's date.

  4. Subtemplate: Select No.

  5. Description: Enter a description.

  6. File: Browse to select the desired template file. Make sure this is the correct file to be used for PDF file generation.

    Language: Select English.

    Territory: Select United States.

  7. Click on Apply.

To group related templates for Employee W-2c PDF

Note: These steps do not apply to the custom Employee Online W-2c.

  1. Using the Application Developer responsibility, navigate to Applications > Lookups > Common.

  2. Enter the following fields:

    • Type: Enter an appropriate name. The name should be in a format like %US%PAYUSW2CXML%. The format is mandatory, for example, CUSTOM_US_PAYUSW2CXML.

    • Meaning: Enter