PeopleSoft Enterprise HRMS 9.1 Application Fundamentals PeopleBook

Setting Up Company Tax Tables for North America

This chapter discusses how to:

(USA) Set up the Company State Tax table.
(USA) Set up the Company Local Tax table.
(CAN) Set Up the Canadian Company Tax table.
Define tax locations.

Note. The tax tables discussed in this chapter are required for both the Payroll for North America and Payroll Interface applications. The PeopleBook for each of these applications discusses additional tax data setup that is specific to the application.

(USA) Setting Up the Company State Tax Table

To set up the Company State Tax table, use the Company State Tax Table component (CO_STATE_TAX_TBL) or Agency State Tax Table USF component (CO_STATE_TAX_TBL) and Tax Collector Table component (TAX_COLLECTOR_TBL).

This section discusses how to:

Define states where you collect or pay taxes.
Identify the voluntary disability plans.
Enter general ledger account numbers for state taxes.

Pages Used to Set Up the Company State Tax Table

Page Name	Definition Name	Navigation	Usage
General	CO_STATE_TAX_TBL	Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Company State Tax Table, General Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Agency State Tax Table USF, General Set Up HRMS, Product Related, Payroll Interface, Payroll, Company State Tax Table, General	Set up an entry in the Company State Tax Table for each state where your organization collects or pays taxes.
VDI/FLI	CO_STATE_TAX_TBL2	Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Company State Tax Table, VDI/FLI Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Agency State Tax Table USF, VDI/FLI Set Up HRMS, Product Related, Payroll Interface, Payroll, Company State Tax Table, VDI/FLI	Identify the voluntary disability plans associated with the company.
GL Accounts	CO_STATE_TAX_TBL3	Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Company State Tax Table, GL Accounts Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Agency State Tax Table USF, GL Accounts Set Up HRMS, Product Related, Payroll Interface, Payroll, Company State Tax Table, GL Accounts	Enter your general ledger account numbers for state taxes.
Company State Tax Report	PRCSRUNCNTRL	Set Up HRMS, Product Related, Payroll for North America, Tax Table Reports, Company State Tax, Company State Tax Report Set Up HRMS, Product Related, Payroll for North America, Tax Table Reports, Agency State Tax USF, Company State Tax Report	Run TAX704 to print information from the Company State Tax Table, which identifies the states in which your company collects and pays taxes.

Specifying States Where You Collect or Pay Taxes

Access the Company State Tax Table - General page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Company State Tax Table, General).

Company State Tax Table - General page

The State field in State Tax Data 1 and Local Tax Data is edited against this table. You must create entries in this table before entering any state and local tax information for your employees.

State Withholding

Employer ID	Enter your state employer ID for state withholding.
Non-Resident Declaration Reqd	This check box is selected or deselected by default according to the Federal/State Tax Table 1 record for the state. Indicates whether the state requires a Non-Resident Declaration for non-resident employees.

State Unemployment

Exempt From SUT	Select this check box if the company is not required to pay SUT for this state. Use this option if you've specified, on the Company table, that the company as a whole is not exempt from SUT. If you select it here, Exempt from SUT becomes the default at the employee level; employees hired in this state have this check box selected on the State Tax Data page. See Setting Up SUT Exemptions To Generate Data for the TAX002, TAX810 and TAX860 Reports.
Employer ID	Enter your state employer ID for state unemployment.
Override	(MA only.) The Massachusetts standard Health Ins Rate is set by default from the State Tax table. For Massachusetts, the Health Insurance Rate differs for newer employers. If you're a Massachusetts employer to whom a lower rate applies, select this check box and enter the correct Massachusetts Health Ins Rate.
Experience Rate Percent	The experience rate you enter in the State Unemployment group box should reflect the rate you receive from your state unemployment agency. Enter the year and quarter when the rate becomes effective in the Effective Yr/Qtr field. This enables you to have different rates within a single calendar year.
MA Health Insurance Rate	(MA only.) If you select Override, enter the correct health insurance rate.
Branch Code	This field is informational for Arizona. TAX860AZ.SQR appends the branch code to the end of the state EIN.
UBI Number (unified business ID number)	If the company you're adding is in Washington State, enter the UBI number assigned. Used for quarterly reporting for companies in the State of Washington only.
EAF Rate (employment administration fund rate)	If the company you're adding is in Washington State, enter the EAF rate used to calculate an additional tax for the Employment Administration Fund, which finances work search assistance and training for the unemployed. Used for quarterly reporting for companies in the State of Washington only.

State Disability

Exempt From ER Disability

Select this check box if employees in this state are exempt from employer-paid state disability tax. This field is for informational purposes only and is not used by the system.

Experience Rate Percent

The experience rate you enter in the State Disability group box should reflect the rate you receive from your state disability agency. Enter the year and quarter when the rate becomes effective in Effective Tax Yr/Qtr. This enables you to have different rates within a single calendar year.

Note. You must set up a record for Quarter 1, because the system assumes a Quarter 1 record exists. A record for a subsequent quarter is required only if the rate changes mid-year. If you set up a Quarter 2 record, and you don't have a Quarter 1 record, you receive the error "SUT rate not found on Company/State Tax table" during Pay Calculation. This error occurs regardless of the pay end date you are processing.

Employer ID

(E&G) Enter the appropriate employer ID for state disability grouping in California, Michigan, and Minnesota. The T002CAHP, T002MIHP, and T002MNHP reports are grouped by employer ID if you enter the employer ID here and select the Separate Tax Report check box on the run control page. The report lists state withholding, state unemployment, and state disability.

Setting Up SUT Exemptions To Generate Data for the TAX002, TAX810 and TAX860 Reports

The TAX002, TAX810, and TAX860 reports are generated based on SUT wages. When you select the Exempt From SUT field on this page, the system does not generate taxable wages, and the TAX002, TAX810, and TAX860 reports will contain no data.

Perform the following to generate taxable earnings, enabling the TAX002, TAX810, and TAX860 reports to produce the required wage detail reporting data, while still remaining exempt from State Unemployment Taxes:

Ensure that the Company Exempt from SUT field on the Company Table-FICA/Tax Details page is deselected.
Leave the Exempt From SUT field on the Company State Tax Table - General page deselected.

These steps should ensure that the Exempt From SUT field on the State Tax Data page remains clear for each employee. Verify that the Exempt From SUT field is clear on all three pages.
Enter a dummy number in the State Unemployment Employer ID field on the Company State Tax Table – General page.
Enter a value of 0 (zero) in the State Unemployment Experience Rate.

After you do these steps, the system can track taxable wages without calculating SUT tax dollars. The TAX002, TAX810, or TAX860 report can report the SUT subject wages.

Identifying Voluntary Disability Plans

Access the Company State Tax Table - VDI/FLI page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Company State Tax Table, VDI/FLI).

This page includes nearly identical sections for setting up information for your VDI (voluntary disability insurance) plan and your voluntary state family leave insurance plan.

Voluntary Disability Plan

Voluntary Disability Plan	Select this check box to indicate that the plan you're defining is a voluntary disability plan allowed by the state.
Plan Number	Enter the plan number of the voluntary disability plan. For New Jersey, this number appears on Form W-2.
VDI Administrator Code	Select the code that identifies the administrator of the plan. You maintain administrator codes on the VDI/FLI Administrator Table page.
Employee Rate Percent	Enter the employee-paid rate.
Employer Rate Percent	Enter the employer-paid rate.

To set up VDI with a rate of zero so that you can track the VDI wages, enter 99.99999 as the Employee Rate Percent and Employer Rate Percent on this page.

State Family Leave Insurance

Voluntary Family Leave Plan	Select this check box to indicate that the plan you're defining is a voluntary family leave plan allowed by the state.
FLI Plan Number	Enter the plan number of the voluntary family leave insurance plan.
FLI Administrator Code	Select the code that identifies the administrator of the plan. You maintain administrator codes on the VDI/FLI Administrator Table page.
Employee Rate Percent	Enter the employee-paid rate.
Employer Rate Percent	Enter the employer-paid rate.

To set up FLI with a rate of zero so that you can track the FLI wages, enter 99.99999 as the Employee Rate Percent and Employer Rate Percent on this page.

Entering General Ledger Account Numbers for State Taxes

Access the Company State Tax Table - GL Accounts page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Company State Tax Table, GL Accounts).

Enter the general ledger account numbers, if applicable, for the following company liabilities:

SWT	State Withholding liabilities.
SUT (Employee)	State Unemployment employee liabilities.
SUT (Employer)	State Unemployment employer liabilities.
SDI (Employee)	State Disability employee liabilities.
SDI (Employer)	State Disability employer liabilities.
VDI (Employee)	Voluntary Disability employee liabilities.
VDI (Employer)	Voluntary Disability employer liabilities.
FLI (Employer)	State family leave insurance employee liabilities.
VFLI (Employee)	Voluntary family leave insurance employee liabilities.
VFLI (Employer)	Voluntary family leave insurance employer liabilities.

(USA) Setting Up the Company Local Tax Table

To set up the company local tax table, use the Company Local Tax Table component (COMP_LOCAL_TAX_TBL).

This section discusses how to set up company local tax table entries.

Note. You must complete the Company Local Tax table before local tax data for employees is entered because the locality field on the Local Tax Data page is edited against this table.

Pages Used to Define an Entry for the Company Local Tax Table

Page Name	Definition Name	Navigation	Usage
Company Local Tax Table	COMP_LOCAL_TAX_TBL	Set Up HRMS, Product Related, Payroll for North America, Local Taxes, Company Local Tax Table, Company Local Tax Table Set Up HRMS, Product Related, Payroll for North America, Local Taxes, Agency Local Tax Table USF, Company Local Tax Table Set Up HRMS, Product Related, Payroll Interface, Payroll, Company Local Tax Table, Company Local Tax Table	Set up an entry in the Company Local Tax Table page for each locality where the organization withholds or pays taxes.
Company Local Tax Report	PRCSRUNCNTRL	Set Up HRMS, Product Related, Payroll for North America, Tax Table Reports, Company Local Tax, Company Local Tax Report Set Up HRMS, Product Related, Payroll for North America, Tax Table Reports, Agency Local Tax USF, Company Local Tax Table	Run TAX705 to print information from the Company Local Tax Table, which identifies the localities for which your organization collects and pays taxes.

Setting Up Company Local Tax Table Entries

Access the Company Local Tax Table page (Set Up HRMS, Product Related, Payroll for North America, Local Taxes, Company Local Tax Table, Company Local Tax Table).

Employer ID

This field is used for local withholding tax for this locality. It is set by default to the Employer ID for state withholding taxes on the Company State Tax table.

GL Account Number - Local Withholding Tax for Non Commitment Accounting

These accounts are General Ledger accounts for use with local withholding tax; they are only used by the PayGL01 process. Only GL information not subject to Commitment Accounting would use these accounts.

Employee and Employer

If you have general ledger account numbers to which you post liability for local withholding tax for this locality, enter the employee and employer account numbers here.

(CAN) Setting Up the Canadian Company Tax Table

To set up Canadian company tax information, use the Company Tax Table component (CO_CAN_TAX_TABLE) and the Wage Loss Plan Table component (WAGELS_PLN_TBL).

This section discusses how to:

Set up the Canadian Company Tax Table.
Define wage loss plans.

Pages Used to Set Up the Canadian Company Tax Table

Page Name	Definition Name	Navigation	Usage
Company Tax Table	CAN_USR_TAX_TABLE1	Set Up HRMS, Product Related, Payroll for North America, Canadian Taxes, Company Tax Table, Company Tax Table Set Up HRMS, Product Related, Payroll Interface, Payroll, Company Tax Table CAN, Company Tax Table	Identify the Prescribed Interest Percent, Province, Provincial Premium Tax Percent, and Health Insurance Rate Override for each company you set up.

Setting Up the Canadian Company Tax Table

Access the Company Tax Table page (Set Up HRMS, Product Related, Payroll for North America, Canadian Taxes, Company Tax Table, Company Tax Table).

Note. It is your responsibility to update all rates on the Company Tax Table.

Company Tax Information

Prescribed Interest Percent

If your company processes low interest loans, enter the current prescribed interest percent. This rate is updated quarterly by the Canadian federal government.

Warning! It is your responsibility to update the Prescribed Interest Percent field according to the rate set each quarter by the Canadian federal government. PeopleSoft does not update this field in its tax updates; PeopleSoft leaves the field blank.

Company Tax Rates

Use these fields to enter company-specific overrides to provincial tax rates.

Important! The system ignores override values of zero. If the override value is 0.00, the system calculates taxes using the rates on the provincial tax tables.

Province	Enter all applicable provinces in which the company operates and needs to process PPT tax or override a Health Insurance Rate.
Provincial Premium Tax Percent	Enter the provincial premium tax percent applicable to group life and health insurance benefit plan premiums, if your company is responsible for withholding and submitting the tax.
Health Insurance Rate Override	Enter the health insurance rate override to specify the premium rate that applies to your company, if that rate is different from the rate defined on the Canadian Tax Table Provincial Rates page. This field applies to companies operating in provinces, such as Ontario and Manitoba, where variable rates apply based upon total gross payroll figures.

Defining Tax Locations

To define tax locations, use the Tax Location Table component (TAX_LOCATION_TBL). Use the TAX_LOCATION_TBL component interface to load data into the tables for this component.

This section provides an overview of tax locations and discusses how to:

Establish the locations for which you process payroll and taxes.
Associate provinces, states, and localities with the tax location code.

Understanding Tax Locations

The system sets up federal, state, and local employee tax data and tax distribution data according to the information you specify in the Tax Location table. In this table, you establish each of your locations with a Tax Location ID and identify the work states, provinces, and localities associated with each tax location.

Note. If you've selected Automatic Employee Tax Data on the Installation table, the system automatically sets up tax data for each work and resident state and locality of each of your employees. Tax distribution records are created for the work state/locality if the tax location represents a single state/locality.

Pages Used to Define Tax Locations

Page Name	Definition Name	Navigation	Usage
Tax Location Table - Address	TAX_LOCATION_TBL1	Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Location Table, Address Set Up HRMS, Product Related, Payroll for North America, Canadian Taxes, Tax Location Table, Address Set Up HRMS, Product Related, Payroll Interface, Payroll, Tax Location Table, Address	Establish the locations for which you process payroll and taxes.
Tax Location Table − State/Province/Locality	TAX_LOCATION_TBL2	Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Location Table, State/Province/Locality Set Up HRMS, Product Related, Payroll for North America, Canadian Taxes, Tax Location Table, State/Province/Locality Set Up HRMS, Product Related, Payroll Interface, Payroll, Tax Location Table, State/Province/Locality	Associate a province or any number of states, localities, and linked localities with the tax location code.
Tax Location Report	PRCSRUNCNTL	Set Up HRMS, Product Related, Payroll for North America, Tax Table Reports, Tax Location, Tax Location Report	Generate PAY718 that lists information from the Tax Location table.

Establishing the Locations for Which You Process Payroll and Taxes

Access the Tax Location Table - Address page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Location Table, Address or Set Up HRMS, Product Related, Payroll for North America, Canadian Taxes, Tax Location Table, Address).

Tax Location Code

Establish a tax location code for each location for which you process payroll and tax data. You can associate any number of states and localities with each code.

Alaska Area Code

If applicable, select an Alaskan area code.

Note. If you select Automatic Employee Tax Data on the Installation table and assign a Tax Location ID to each employee in the Job data, each employee's tax data is set by default on the Employee Tax Data page and the Employee Tax Distribution page.

Associating Provinces, States, and Localities with the Tax Location Code

Access the Tax Location Table − State/Province/Locality page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Location Table, State/Province/Locality or Set Up HRMS, Product Related, Payroll for North America, Canadian Taxes, Tax Location Table, State/Province/Locality).

State / Province

Use to identify each state that is associated with the tax location code. You can associate any number of states with a single tax location. For each state, identify each taxing locality, if any.

The states you associate with this tax location code must be defined on the Company State Tax table and the Company Local Tax table. This value is set by default to the Employee Tax Data pages and the Employee Tax Distribution page for employees you assign to this tax location.

Locality

The localities you associate with this tax location code must be defined on the Company State Tax table and the Company Local Tax table. This value is set by default to the Employee Tax Data pages and the Employee Tax Distribution page for employees you assign to this tax location.

Other Work Locality

Use this field only where multiple local taxes apply in one location, such as:

Paducah, KY and McCracken County, KY.

Earned Income Tax, and Emergency and Municipal Service Tax in Pennsylvania.

To form further links in a locality chain:

Add another row with the same state.

Enter the other work locality from the previous row in Locality.

Enter the new work locality.

Note. You should never attempt to enter multiple Indiana localities. Regardless of the number of Indiana locations in which an employee may work, either simultaneously or over the course of the year, the employee is liable for Indiana county tax for only one Indiana county per calendar year. This is the Indiana county of residence as of January 1, if that county imposes a tax, or the Indiana county of principal work activity as of January 1, if the residence county does not impose a tax.

Note. Locality and Other Work Locality are not required in Canada, because a Canadian employee can be taxed in only one province at a time, and there are no locality taxes in Canada.

Tax Location Code	Establish a tax location code for each location for which you process payroll and tax data. You can associate any number of states and localities with each code.
Alaska Area Code	If applicable, select an Alaskan area code.