Processing Withholding in PeopleSoft Payables

This chapter provides an overview of the withholding process and discusses how to:

See Also

Resolving Complex Withholding Scenarios

Processing Special Withholding Requirements

(IND) Setting Up and Processing Tax Deducted at Source for India

Click to jump to parent topicUnderstanding the Withholding Process

This section discusses:

Withholding General Processing Overview

Our withholding architecture enables you to meet the varying withholding requirements of different countries. To use withholding in PeopleSoft Payables, you must set up your withholding environment, complete your business unit withholding setup, and set up your withholding vendors. The setup information you provide defaults onto the applicable voucher lines.

The system calculates the actual withholding amounts as part of the Payment Posting Application Engine process (AP_PSTPYMNT) or the Voucher Posting Application Engine process (AP_PSTVCHR) depending on your withholding entity setup or withholding override options at the voucher. To generate withholding reports, you need to post your payments (either using the Voucher Posting process or the Payment Posting process) and then post your withholding transactions. The system creates reporting information from the posted withholding transactions, enabling you to generate withholding reports, withholding certificates, and/or files as applicable.

The following diagrams illustrate the general process flow for withholding in PeopleSoft (the withholding process for your location may differ slightly):

Withholding process flow (part 1)

Withholding process flow (part 2)

You complete the withholding process as follows:

  1. Set up your withholding environment.

    Set up the appropriate withholding rules, classes, types, jurisdictions, and entities. Under the withholding entity, define the withholding remit vendor or vendors, assign the combination of withholding types, jurisdictions, classes, and rules that apply, and define the type of control information required from the vendor to process the withholding. You apply combinations of withholding entities, types, jurisdictions, classes, and rules to your withholding vendors when you define them. You can assign more than one combination to a vendor. For example, a U.S. vendor may be subject to both 1099–G and 1099–MISC withholding.

    You can also define withholding codes, which you can use to override the withholding information that defaults onto the voucher from the vendor; these, too, are combinations of withholding entities, types, jurisdictions, and classes.

    As a final step, set up the withholding reports to meet your reporting requirements.

  2. Enter withholding vendors.

    Make any vendor a withholding vendor by selecting the Withholding check box on the Vendor Information - Identifying Information page, and by transferring to the Withholding Vendor Information page from the Vendor Information - Location page, on which you select the appropriate withholding entities and enter the associated withholding control information.

    See Defining Withholding Options.

  3. Enter withholding vouchers.

    The type of withholding that you define for the vendor defaults to each voucher line. Therefore, any vouchers you enter for a vendor that you have defined as a withholding vendor are subject to withholding. If the voucher is for a withholding vendor, you can click the Withholding link on the Voucher - Invoice Information page to access the Withholding Information page, where you can view the withholding for each voucher line and make the lines not withholding applicable, or make adjustments as needed.

  4. Pay the vouchers.

    Depending on your withholding setup, the system may generate a separate withholding payment to the tax authority when the voucher is paid, or just calculate the withholding for reporting to the tax authority. During payment posting, a liability is created for the withholding portion. As you pay the withholding portion, the liability is reduced based on your general ledger setup.

    See Understanding Withholding Entity Setup.

    See Creating Withholding Accounting Entries.

  5. Post the withholding.

    Posting combines voucher and payment information into transaction tables.

  6. View withholding balances online.

  7. Complete the required set up for generating your withholding reports by entering your withholding control information and running a withholding control report.

    Once you have completed these steps you can run your withholding reports based on the requirements of your tax authority.

PeopleSoft Payables and PeopleSoft Real Estate Management Withholding Behavior

If you implement withholding functionality between PeopleSoft Payables and PeopleSoft Real Estate Management, the system does or does not default the withholding code onto the voucher, depending on the particular scenario. This table illustrates the scenarios:

Withholding Established in PeopleSoft Payables

Withholding Applicable in PeopleSoft Real Estate Management

Withholding Code

Voucher Results

Yes

Yes

Same code defined for the PeopleSoft Payables vendor and PeopleSoft Real Estate Management.

The system determines that the withholding codes are the same, and defaults the PeopleSoft Real Estate Management withholding code onto the voucher.

Yes

Yes

Different codes defined for the PeopleSoft Payables vendor and PeopleSoft Real Estate Management.

The system defaults the PeopleSoft Real Estate Management withholding code onto the voucher.

No

Yes

 

The system creates the voucher without a withholding code.

Yes

No

 

The system creates the voucher without a withholding code.

Important! Note that you must establish withholding in both PeopleSoft Payables and PeopleSoft Real Estate Management for the system to default a withholding code. If not, the system creates the invoice without a withholding code.

See Also

Defining Transaction Routing Codes

Click to jump to parent topicCommon Elements Used in This Chapter

Entity

Tax authority.

Type

Defines withholding at the highest level in PeopleSoft Payables. For example, in the U.S. 1099 is a withholding type.

Jurisdiction

Jurisdictions introduce an additional level of classification between the withholding type and class.

Class

For each withholding type, you can define classes or activities, such as Rent, or Royalties.

Withholding Class Combination

For the sake of brevity, we sometimes refer to the combination of withholding entity, type, jurisdiction, and class as a withholding class combination.

Click to jump to parent topicReviewing and Entering Withholding Information for Vouchers

This section provides prerequisites and explains how to view and override withholding information when you enter withholding vouchers.

Click to jump to top of pageClick to jump to parent topicPrerequisites

Before entering and processing withholding vouchers you must.

See Also

Setting Up the PeopleSoft Payables Withholding Environment

Maintaining Vendor Information

Selecting Withholding Options

Click to jump to top of pageClick to jump to parent topicPage Used to Review and Override Withholding on Vouchers

Page Name

Definition Name

Navigation

Usage

Withholding Information

VCHR_WTHD_EXP

Accounts Payable, Vouchers, Add/Update, Regular Entry, Invoice Information

Click the Withholding link on the Invoice Information page for a withholding-applicable voucher. During voucher entry, PeopleSoft Payables marks any vouchers for a withholding vendor as withholding-applicable.

Review or override the withholding for individual voucher lines for a withholding-applicable voucher.

Click to jump to top of pageClick to jump to parent topicReviewing and Overriding Withholding Information on a Voucher

Access the Withholding Information page (click the Withholding link on the Invoice Information page for a withholding-applicable voucher).

Postpone Withholding

Select this check box to postpone withholding for prepaid vouchers. If you select this option, withholding is not calculated when the prepaid voucher is paid. It is calculated when the regular voucher is created.

Apply Withholding at Voucher Post

Select to apply withholding during the voucher posting process. If the withholding has not yet been calculated, users with the appropriate security can select this option to override the entity setting and have withholding for unposted vouchers calculated at voucher posting. The Apply Withholding field in the Withholding Details grid updates to display Vchr Post as the withholding calculation setting.

Note. You provide users with the authority to override withhold calculation using the User Preferences component. This field does not appear unless users have the authority to override the calculation.

Line

Displays the voucher line number whose withholding information you are viewing.

Withholding Code

Select a withholding code for this voucher line if you are using withholding codes to define a set of withholding class combinations that you want to apply at the same time.

Instead of withholding codes, you can utilize the options in the grid to create the withholding class combinations you need.

Withholding Applicable

Deselect this check box to disable withholding for the individual voucher line.

Entity, Type, Jurisdiction, and Class

Displays the withholding entity, type, jurisdiction, and class specified for the vendor at the vendor location level. You can override the defaults by selecting new values.

Withholding Basis Amt Override (withholding basis amount override)

Enter an amount if you need to withhold on the basis of an amount other than the amount you established as the basis for withholding on the Withholding Options page.

If you don't enter an amount here, the system accepts the defaults you established on the Withholding Options page.

Contract Reference

(IND) Enter a contract reference number. This field is mandatory if you select the Contract Reference field for this type on the Withhold Type page.

Rule Override

Select a withholding rule to override the rule that defaults automatically from the withholding entity.

Note. Users typically leave this field blank.

Apply Withholding

See the definition for Apply Withholding at Voucher Post.

Applicable

Use this check box to control withholding applicability for the specific withholding class combination for a voucher line. If multiple withholding class combinations are listed you can choose to deselect this check box for one or more of them so that withholding does not occur for that withholding class combination on this voucher line.

Note. For the withholding to default properly, you must set up vendor and business unit information accordingly on the Procurement Control − Withholding Page. Also, if there are no values here withholding does not occur.

Note. If you try to save a voucher with a withholding vendor that wasn't set up completely, the system issues a warning.

See Also

Selecting Withholding Options

Click to jump to parent topicReviewing Withholding Calculations

This section provides overviews of the withholding calculation and hold payment options for withholding, and lists the page used to review withholding calculations.

Click to jump to top of pageClick to jump to parent topicUnderstanding Withholding Calculation

The PeopleSoft Payables calculation module calculates withholdings at voucher posting or at payment processing, depending on the withholding calculation setting on the withholding entity and the voucher.

The following diagram illustrates how the calculation model works (note that calculation for India is slightly different):

Withholding calculation process flow

See Also

(IND) Setting Up and Processing Tax Deducted at Source for India

Click to jump to top of pageClick to jump to parent topicUnderstanding Hold Payment Options for Withholding

When withholding is calculated at voucher post, the Voucher Posting process calls the Withhold Calculation Application Engine process (AP_WTHDCALC) to determine whether withholding vouchers exist. The Withhold Calculation process uses the payment hold option you define at the withholding entity or the vendor level, if specified, and the payment hold status on the original payment schedule of the voucher to determine if the scheduled payments should be placed on hold.

When withholding is calculated at payment post, and the payment is on hold, the payment is not selected or processed by the Withhold Calculation process.

This table provides various scenarios and expected results for the payment hold options:

Withhold Entity or Vendor Payment Hold Option

Payment Hold Status on Original Payment Schedule

Payment Hold Status and Hold Reason of Original Payment Schedule After Voucher Posting

Payment Hold Status and Hold Reason of Withhold Payment Schedule After Voucher Posting

No Hold

No

No

No

No Hold

Yes

Reason code: QTY

Yes

Reason code: QTY

Yes

Reason code: QTY

Wthd Only

Reason Code: WTHD

No

No

Yes

Reason Code: WTHD

Wthd Only

Reason code: WTHD

Yes

Reason code: QTY

Yes

Reason code: QTY

Yes

Reason Code: WTHD

Hold Both

Reason code: WTHD

No

Yes

Reason Code: WTHD

Yes

Reason Code: WTHD

Hold Both

Reason code: WTHD

Yes

Reason code: QTY

Yes

Reason code: QTY

Yes

Reason Code: WTHD

See Also

Defining Withholding Entities

Defining Withholding Options

Click to jump to top of pageClick to jump to parent topicPage Used to Review Withholding Calculations

Page Name

Definition Name

Navigation

Usage

Withholding Calculation Report

RUN_APY7050

Accounts Payable, Reports, Payments, Withhold Calculation

Specify the pay cycle for which you want to review the withholding calculations and click run to run the Withholding Calculations report (APX7050). This report produces a listing of the calculations made during the specified pay cycle.

Click to jump to parent topicCreating Withholding Accounting Entries

This section provides an overview of withholding accounting entries.

Click to jump to top of pageClick to jump to parent topicUnderstanding Withholding Accounting Entries

Depending on your withholding setup, PeopleSoft Payables either generates a separate withholding payment when the voucher is paid, or tracks the withholding for reporting purposes. During payment posting or voucher posting (depending on whether you selected to have withholding calculated at voucher posting or at payment time), a liability is created for the withholding portion as the vendor portion is paid. As you pay the withholding portion, the liability is reduced based on the general ledger setup.

The posting process retrieves the ChartField information for the accounting liability entry from the procurement control definition based on the TableSet control value for the PeopleSoft Payables business unit used during voucher entry. You define the ChartFields for the withholding liability on the Withholding ChartFields page within the Procurement Control component (BUS_UNIT_INTFC2). For example:

  1. Define procurement controls for general ledger business units.

    Business unit = FED01.

    Business unit = FEDRL.

  2. Define, at a minimum, the account ChartFields for the withholding class combination for the general ledger business units.

    FED01 account ChartField = 230000.

    FEDRL account ChartField = 235000.

  3. Create a voucher in the FED01 PeopleSoft Payables business unit for a vendor who is set up for withholding.

    The TableSet control for this business unit's ChartFields is FEDRL.

  4. Run the posting process.

    The system looks at the TableSet control for the PeopleSoft Payables business unit and retrieves the account defined for FEDRL in the procurement control definition. The system selects account 235000 as the liability account.

Note. This example is intended to illustrate how the system determines the withholding liability ChartFields and does not represent the entire set up and process flow for withholding.

This section provides posting examples.

Withholding Calculated at Payment: Posting Example

The following example shows the accounting for a 100 USD voucher subject to 1099 withholding. The withholding portion is 33 USD and the non-withholding portion 67 USD.

The following are the accounting entries created:

  1. Post the voucher.

    Account

    Debit

    Credit

    Expense Account

    100.00

     

    AP Liability

     

    100.00

  2. Pay and post the non-withholding portion.

    Account

    Debit

    Credit

    AP Liability

    100.00

     

    Cash

     

    67.00

    Withholding Liability

     

    33.00

  3. Pay and post the withholding.

    Account

    Debit

    Credit

    Withholding Liability

    33.00

     

    Cash

     

    33.00

Withholding Calculated at Voucher Posting: Voucher and Payment Posting Example

The following example shows the accounting for a 100 USD voucher subject to 1099 withholding, but in this case the withholding is calculated at voucher posting. The withholding portion is 33 USD and the non-withholding portion 67 USD.

The following are the accounting entries created:

  1. Post the voucher.

    Account

    Debit

    Credit

    Expense Account

    100.00

     

    AP Liability

     

    67.00

    Withholding Liability

     

    33.00

  2. Pay and post the non-withholding portion.

    Account

    Debit

    Credit

    AP Liability

    67.00

     

    Cash

     

    67.00

  3. Pay and post the withholding.

    Account

    Debit

    Credit

    Withholding Liability

    33.00

     

    Cash

     

    33.00

Click to jump to parent topicPosting Withholding Transactions

You must post the withholding transactions using the Withholding Posting Application Engine process (AP_WTHD) before you can create withholding reports. Posting withholding combines the voucher and payment information in withholding transaction tables. The system uses these tables to generate the withholding reports.

You must post payments before running withholding posting.

This section lists the page used to post withholding transactions.

Click to jump to top of pageClick to jump to parent topicPage Used to Post Withholding Transactions

Page Name

Definition Name

Navigation

Usage

Withhold Transaction Post

WTHD_TRXN_POST

Vendors, 1099/Global Withholding, Maintain, Post Withholdings, Withhold Transaction Post

Define the parameters for running the Withholding Posting Application Engine process (AP_WTHD). You can post all transactions available for withholding post through a specified date, or specify by business unit. The through date is the withholding declaration date.

Click to jump to parent topicRunning the Withholding Mismatch Report

Before you can create the Withholding Mismatch report (APX9010), you must run the Withholding Mismatch Application Engine process (WTHD_MISMTCH). The Withholding Mismatch report enables to you identify voucher lines on which the withholding applicable flag does not match the withholding flag on the vendor. You can update transactions using the Withholding Update Application Engine process (AP_WTHD_UPDT), and then rerun the Withholding Missmatch process and Withholding Mismatch report to recheck the voucher line withholding.

Note. If you manually adjust mismatches reported on this report by using the Withhold Adjustment page, the mismatches will continue to appear on this report even after you make the adjustments, although the adjusted transactions have been written to the withholding transaction table.

This section discusses how to enter the Withholding Mismatch parameters.

Click to jump to top of pageClick to jump to parent topicPage Used to Run the Withholding Mismatch Report

Page Name

Definition Name

Navigation

Usage

Withhold Mismatch Request

WTHD_MISMTCH_RQST

Vendors, 1099/Global Withholding, General Reports, Wthd Voucher/Vendor Mismatch, Withhold Mismatch Request

Define run parameters for the Withholding Missmatch Application Engine process (WTHD_MISMTCH) and the Withholding Mismatch report (APX9010). Use the report to identify all voucher lines on which the withholding applicable flag does not match the withholding flag on the vendor. The report does not compare the withholding class combination on the vendor to the withholding class combination on the voucher lines. It only checks the withholding flag.

Click to jump to top of pageClick to jump to parent topicEntering the Withholding Mismatch Parameters

Access the Withhold Mismatch Request page (Vendors, 1099/Global Withholding, General Reports, Wthd Voucher/Vendor Mismatch, Withhold Mismatch Request).

Business Unit

Select a business unit to run the report for only that particular business unit.

Vendor SetID

Select a vendor setID to run the report for only that setID.

Vendor ID

Select a vendor ID to run the report for only that vendor.

Start Date and End Date

Specify the date range for which you want to run the report. These are required fields.

Click Run to access the Process Scheduler Request page. You can select to run the Withholding Missmatch process and the Withholding Mismatch report as part of a job, or you can select to run them individually.

Click to jump to parent topicAdjusting Withholding Manually

Once you have posted the withholding data, you may need to make adjustments to the withholding transactions. You can either run the Withholding Update process to make adjustments automatically, or you can enter adjustments manually using the Withhold Adjustments page.

This section discusses how to manually adjust posted withholding transactions.

See Also

Processing Withholding Updates

Click to jump to top of pageClick to jump to parent topicPage Used to Adjust Withholding Manually

Page Name

Definition Name

Navigation

Usage

Withhold Adjustments

WTHD_ADJUSTMENT

Vendors, 1099/Global Withholding, Maintain, Adjust Withholding, Withhold Adjustments

Manually adjust posted withholding transactions by vendor or add withholding entries from a legacy or third-party system.

Click to jump to top of pageClick to jump to parent topicManually Adjusting Posted Withholding Transactions

Access the Withhold Adjustments page (Vendors, 1099/Global Withholding, Maintain, Adjust Withholding, Withhold Adjustments).

You can either modify existing posted withholding entries or add withholding entries from a legacy or third-party system.

To modify an existing withholding entry:

  1. Enter your search criteria in the Search Criteria group box and click the Search button.

    The Adjustments grid displays all posted withholding transactions that meet your criteria.

  2. Modify data for each withholding transaction in the Adjustments grid that requires it.

    You can also add and delete transaction rows as needed.

  3. Save.

    Saving the page updates the withholding transaction table, but does not update the underlying voucher tables. To have the system update the underlying voucher tables, use the Withholding Update process.

To add legacy or third-party data:

  1. Add a withholding transaction row in the Adjustments grid.

  2. Enter the following information, at minimum: business unit, entity, type, jurisdiction, class, rule, basis amount, liability amount, paid amount, payment date, declaration date, and adjustment reason.

  3. Save.

    Each transaction row you enter is added to the withholding transaction table, and is added to or subtracted from the totals already in the withholding transaction table.

Adjustments

This grid shows business unit and withholding class combination data on the Main Information tab, withholding transaction details on the Transaction Info tab, and bank account and payment information on the Payment Information tab. The Adjustment Reason tab displays the creation date and the user ID of the user who created the transaction adjustment row, along with a field for entering adjustment reasons.

Basis Amt (basis amount)

Displays the amount on which the withholding is calculated. This is the basis amount that is reported to the withholding entity for this payment. It includes the liability amount and is typically the gross amount of the voucher.

Liability Amt (liability amount)

Displays the amount of back up withholding that is retained to remit to the withholding entity. This amount may also be remitted to the original vendor depending on your business processes.

Paid Amount

Displays the amount of the withholding liability amount that has been paid to the withholding entity or original vendor. This value appears after you pay the liability to the entity or original vendor and post the payment.

An amount of 0.00 means that no withholding has been paid.

Payment Date

Displays the date on which the payment was made.

Some entities, including the IRS in the United States, require that you report withholding based on payment date. In this case the payment date needs to be in the year that you are reporting in. For example, let's say that you need to do an adjustment for a vendor for 2005 but the current year is 2006. When you add a row, the payment date defaults to today's date, which you must override with a 2005 date.

Declaration Date

Displays the date on which the withholding is declared. Declaration date is used for withholding entities who use a date other than payment date—accounting date, for example—to report withholding transactions.

Posted Date

Displays the date the payment was posted.

Adjustment Reason

Enter an adjustment reason for the listed transaction.

Click to jump to parent topicProcessing Withholding Updates

This section provides an overview of the Withholding Update process and discusses how to:

Click to jump to top of pageClick to jump to parent topicUnderstanding the Withholding Update Process

Occasionally, you may discover that a vendor's withholding setup was incorrect during the year and that you must correct it before generating your final withholding reports. You can do this by:

Important! To change a vendor's voucher lines to withholdable, you must first ensure that the withholding information on the vendor is correct before running the Withholding Update process.

Special Cases and How the Withholding Update Process Handles Them

The following situations may require some manual processing in addition to or instead of using the Withholding Update process:

Warning! Pay close attention to the exclusions listed above before attempting to use the Withholding Update process.

See Also

Adjusting Withholding Manually

Defining Withholding Options

Click to jump to top of pageClick to jump to parent topicCommon Elements Used in This Section

Action

Select an on-demand process group option and click Run to perform the following process online:

Withhold Update: Select to run the Withholding Posting process and the Withholding Update process. The on-demand update process will process all pending transactions.

See Also

Posting Withholding Transactions

Adjusting Withholding Manually

Click to jump to top of pageClick to jump to parent topicPages Used to Process Withholding Updates

Page Name

Definition Name

Navigation

Usage

Withholding Invoice Line Update

WTHD_LINE_UPDT

Vendors, 1099/Global Withholding, Maintain, Update Voucher Line Withholding, Withholding Invoice Line Update

Enter and store the updated voucher line withholding information which will be used to update the withholding transaction table and underlying voucher tables when you run the Withholding Update process.

Withholding Vendor Update

WTHD_VNDR_UPDT

Vendors, 1099/Global Withholding, Maintain, Update Vendor Withholdings, Withholding Vendor Update

Enter and store updated withholding information for vendors. This information will be used to update the withholding transaction table and voucher tables with withholding information for all of the vendor's vouchers when you run the Withholding Update process.

Withhold Update Request

UPDT_WTHD_RQST

Vendors, 1099/Global Withholding, Maintain, Update Withholdings, Withhold Update Request

Request a run of the Withholding Update process to update the withholding transaction table and voucher tables with the updated withholding information you've entered on the Withholding Vendor Update and Withholding Invoice Line Update pages.

Click to jump to top of pageClick to jump to parent topicUpdating Individual Voucher Lines

Access the Withholding Invoice Line Update page (Vendors, 1099/Global Withholding, Maintain, Update Voucher Line Withholding, Withholding Invoice Line Update).

Use the Criteria and Tax Reporting Year group boxes to enter the selection criteria for the vouchers you want to update. Click Search when you have entered all of your search criteria in these group boxes.

Use the Defaults group box to enter the withholding class combination you want to apply to your updated voucher lines.

Use the Details grid to view the voucher lines retrieved by your search and select voucher lines for updating.

Criteria

Enter a business unit and date range for the vouchers you want to update. These fields are required.

Clear Updated Withholding

Select to delete all the previously updated voucher lines from the staging table upon save. This does not delete the voucher lines from the transaction table. It is for cleaning up previous update requests.

Defaults

Specify any withholding entity, type, jurisdiction, and class you want to apply to all of your updated voucher lines. You can also override these for individual lines on the Details grid after you've applied them to all of the lines.

Set All Lines to Wthd (set all lines to withhold)

Click to apply the withholding combination you enter here to all of the voucher lines in the Details grid.

Set All Lines to No Wthd (set all lines to no withholding)

Click to set all voucher lines in the Details grid to withholding not applicable.

Tax Reporting Year

Enter the start and end dates of the tax year for which you are reporting withholding.

Details

The Details grid lists the voucher lines returned by your search. The Current Withhold Details tab displays the original withholding information for the selected voucher lines. You can update these by entering new values on each row. If you want to update all the voucher lines to the same new withholding combination, enter the withholding combination in the Defaults group box and click the Set All Lines to Wthd button.

The New Withhold Details tab shows the updated withholding details after you have saved the page.

The following are fields that appear on the Current Withhold Details tab:

Current Withhold

Displays selected to indicate that the voucher line is currently withholdable.

New Withhold

Select Y for withholding applicable or N for no withholding on the voucher line.

Note. You must complete the remaining line information (Entity, Type, Jurisdiction, and Class fields), regardless of whether selecting Y or N. This ensures the system correctly processes the withholding data.

Payment Date

Displays the voucher payment date. Vouchers must be paid before you can update voucher lines.

The following field appears on the New Withhold Details tab:

Status

Displays the update status:

P (pending) means that an update occurs the next time you run the Withholding Update process.

U (updated) means that the Withholding Update process has run and the transaction tables are updated.

If this field is blank, the line is not selected for update.

Click to jump to top of pageClick to jump to parent topicUpdating all Voucher Lines for a Vendor

Access the Withholding Vendor Update page (Vendors, 1099/Global Withholding, Maintain, Update Vendor Withholdings, Withholding Vendor Update).

Enter a vendor setID and tax reporting year before you enter information in the Details grid.

Warning! If you change the vendor setID, the system deletes all the information in the grid. This is necessary to ensure that only vendors for the specified setID exist in the grid.

Details

You must select a vendor ID, vendor location, and business unit. The following fields also appear on the Vendor tab:

Current Withhold

Displays the current withholding applicability of the vendor location:

Y if the vendor location is currently withholding applicable.

N if the vendor location is not withholding applicable.

The following fields appear on the New Withhold Details tab:

New Withhold (new withholding)

Select the new withholding applicability status for the vendor location:

Y if the new vendor location is withholding applicable.

N if the new vendor location for withholding is not applicable.

If you select Y, the withholding combination fields appear.

If the new withholding applicability is Y, then you must enter a withholding entity in the Entity field. Fields for new withholding type, new jurisdiction (New Jur CD), and new class also appear. Enter as needed.

Criteria

Displays the update status:

P (pending) means that an update occurs the next time you run the Withholding Update process.

U (updated) means the Withholding Update process has run and the transaction tables are updated.

Click to jump to top of pageClick to jump to parent topicRunning the Withholding Update Process

Access the Withhold Update Request page (Vendors, 1099/Global Withholding, Maintain, Update Withholdings, Withhold Update Request).

For the run control, enter the request ID and a description.

Process Option

Select among Process All Updates, Process Only Vendor Updates, or Process Only Voucher Lines.

Warning! The Withholding Update process is not advised if there are multiple withholding classes per voucher line or there are multiple entity-withholding type combinations for a given voucher or for a vendor's vouchers (the latter when updating by vendor).

Also, the Withholding Update process does not adjust entries in the WTHD_PERIOD_LOG or WTHD_CALC_RPT tables.

See Also

Understanding the Withholding Update Process

Click to jump to parent topicGenerating Withholding Reports

To set up your withholding reports, use the following components:

PeopleSoft Payables provides withholding reporting capabilities. Throughout the year, PeopleSoft Payables tracks all withholding vendor information. When it is time to send your withholding reports, PeopleSoft Payables extracts all the withholding balances from vouchers in the period, business units, and vendors you specify, and prepares a report or electronic file for transmission to the tax authority, based on your setup.

This section discusses how to:

Some reports specific to particular tax authorities are discussed in the chapter, "Processing Special Withholding Requirements."

See Also

Processing Special Withholding Requirements

Click to jump to top of pageClick to jump to parent topicPages Used to Generate Withholding Reports

Page Name

Definition Name

Navigation

Usage

Report Control Information - Payor Data

WTHD_CONTROL

Set Up Financials/Supply Chain, Product Related, Procurement Options, Withholding, Report Control Information, Payor Data

Identify payor information.

Transmitter Address

WTHD_CNTL_ADDR_SEC

Click the Go To Address button in the Transmitter Information group box on the Payor Data page.

Enter transmitter's address data, formatted as required by your tax authority.

Transmitter Phone

WTHD_CNTL_PHN_SEC

Click the Telephone... button in the Transmitter Information group box on the Payor Data Page.

Enter transmitter phone information.

Payer Address

PAYER_ADDRESS_SEC

Click the Go To Address button in the Payer Information group box on the Payor Data page.

Enter the payer's address data, formatted as required by your tax authority.

Payer Phone

PAYER_PHONE_SEC

Click the Telephone... button in the Payer Information group box on the Payor Data Page.

Enter the payer's phone information.

Report Control Information - Vendors and Business Units

WTHD_CNTL_VNDR_BU

Set Up Financials/Supply Chain, Product Related, Procurement Options, Withholding, Report Control Information, Vendors and Business Units

Specify which withholding vendors you want to include as well as the PeopleSoft Payables business units from which you want the system to select paid vouchers for each payer.

1099 Piggyback States

WTHD_STATE_TABLE

Set Up Financials/Supply Chain, Product Related, Procurement Options, Withholding, 1099 Piggyback States, 1099 Piggyback States

(USA) Define states that participate in the U.S. Combine Federal/State Filing Program. Specify a minimum reporting amount.

Report Control Information - Piggyback States/Numbers

WTHD_CNTL_STATE

Set Up Financials/Supply Chain, Product Related, Procurement Options, Withholding, Report Control Information, Piggyback States/Numbers

(USA) Enter the information the IRS requires to have the IRS forward copies of your 1099 report tapes to the state governments (defined on the 1099 Piggyback States page) who have an interest in your vendors' 1099 earnings.

Withholding Control Report

RUN_APY3012

Vendors, 1099/Global Withholding, General Reports, Withhold Control Report, Withholding Control Report

Define run parameters for the Withholding Control Report (APY3012). This report is an optional process that enables you to track withholding activity for internal audits. It is advisable to run the report on a regular basis to check the withholding summaries.

Withhold Report Post

WTHD_RPT_POST

Vendors, 1099/Global Withholding, Global Withholding Reports, Create Reporting Information, Withhold Report Post

Run the Withholding Reporting Application Engine process (AP_WTHDRPT) to populate the withholding report table with data from the withholding transaction table based on your report setup.

Withholding Report Info

WTHD_RPT_PNL

Set Up Financials/Supply Chain, Product Related, Procurement Options, Withholding, Withholding Report Information, Withholding Report Info

Review the information you generated during the Withholding Reporting Application Engine process (AP_WTHDRPT).

Withhold Report

WTHD_RPT_RUN

Vendors, 1099/Global Withholding, Global Withholding Reports, Withholding Report, Withhold Report

Define run parameters to run your withholding reports.

Click to jump to top of pageClick to jump to parent topicEntering Transmitter and Payor Data

Access the Report Control Information - Payor Data page (Set Up Financials/Supply Chain, Product Related, Procurement Options, Withholding, Report Control Information, Payor Data).

Note. Withholding control information is keyed by setID and control ID. This enables you to define several control information IDs to run different withholding reports. You may wish to run separate reports based on business units, vendors, or payors. Typically, you have one control ID set up for each government reporting entity.

Transmitter Information

Click to access the Transmitter Address page, where you can enter the transmitter's address data, formatted as required by your tax authority.

Click to access the Transmitter Phone page, where you can enter the transmitter's telephone, fax information, and contact information.

Vendor Software Indicator

Selected by default indicating that the electronic file was generated via outside vendor software. Deselect this check box if you have customized this process.

Transmitter Name 1 and Transmitter Name 2

Use to enter the transmitter's name.

Tax ID

Enter your tax ID for this transmitter.

Transmitter Cntl Code (transmitter control code)

If applicable, enter your transmitter control code.

Media Number

If applicable, enter your media number.

Contact Name 1 and Contact Email Address

Enter the name of a contact person for this transmitter and email address, as applicable

Payer Information

Click to access the Payer Address page on which you can enter the payer address data, formatted as required by your tax authority.

Click to access the Payer Phone page on which you can enter the payer's telephone and fax information.

Combined Federal State Filing Participant

(USA) Select this flag if the payer is participating in the Combined Federal State Filing program.

Payer Name 1 and Payer Name 2

Enter the payer's name.

Control ID

Enter a control ID. This could be a business unit.

Payer Tax ID

Enter your tax ID for this payer.

Employer's Ref # (employer's reference number)

Enter the employer's reference number for use in payment reporting to Sub-contractors and the monthly reporting for the HMRC.

HMRC Office #(HM Revenue and Customs office number

Enter the HM Revenue & Customs Office number for use in payment reporting to Sub-contractors and the monthly reporting for the HMRC.

Accts Office Ref # (accounts office reference number)

Enter the HM Revenue & Customs Office reference number for use in payment reporting to Sub-contractors and the monthly reporting for the HMRC.

Click to jump to top of pageClick to jump to parent topicSelecting Vendors and Business Units

Access the Report Control Information - Vendors and Business Units page (Set Up Financials/Supply Chain, Product Related, Procurement Options, Withholding, Report Control Information, Vendors and Business Units).

All Vendors

Select if you want to process all withholding vendors that are associated with the business units you specify.

If you only want to process specific withholding vendors, deselect this check box. A Vendors group box displays in which you can enter the individual vendor IDs.

Note. (USA) Select this option for 1099 reporting. If you do not, your correction files will be incorrect.

Include Direct Sales Vendors

Select to have the reporting process list all direct sales vendors who have no vouchers for the reporting year. Only select this for one payer, not for all. Otherwise, the system reports vendors several times.

Vendors

Use this group box to select the withholding vendors (that are associated with the business units you specify) on which you want to report if you do not select the All Vendors option.

Business Units

Specify one or more business units to process. The business units must be associated with the selected setID. If you fail to specify any business units, the system will not find any withholding transactions to report.

If you specify multiple business units, the system consolidates the balances of vendors that have vouchers spread out over the selected business units.

Click to jump to top of pageClick to jump to parent topic(USA) Entering States for the Combined Federal and State Filing Program

Access the Report Control Information - Piggyback States/Numbers page (Set Up Financials/Supply Chain, Product Related, Procurement Options, Withholding, Report Control Information, Piggyback States/Numbers).

Note. This page applies only to 1099 reporting in the U.S.

Piggyback States

Displays the states participating in the combined federal and state 1099 filing process. Only states that you have defined on the 1099 Piggyback States page appear here.

Process?

Select the Process check box for each relevant state name to tell the IRS which states need copies.

Payer State

Enter the standard two-character alpha state abbreviation for the payer state.

Numbers

Enter the state number. This is the ID number that is assigned by individual states. This number is used on the forms (Copy B) that you send to your vendors, but is not included on the tape you send to the IRS.

Click to jump to top of pageClick to jump to parent topicRunning the Withholding Reporting Application Engine Process (AP_WTHDRPT)

Access the Withhold Report Post page (Vendors, 1099/Global Withholding, Global Withholding Reports, Create Reporting Information, Withhold Report Post).

Important! For 1099 reports, you use a separate report posting process, described in another chapter.

See Processing Special Withholding Requirements.

Report ID

Select the withholding report ID for which you want to create the report information.

Report Date

Select the date of the report.

Control ID

Select the report control ID.

Calendar ID

Select the appropriate calendar ID.

Fiscal Year

Enter the fiscal year for the report.

Period

Enter the period for the report.

The fiscal year and period determine the date range used to select vendor payments for withholding reporting.

Withhold Certificate

Select if you require the system to create a withholding certificate.

Quarterly Return Certificate

Select if you require the system to create a TDS quarterly return certificate.

Note. Before you can run the Withholding Reporting process, you must define the withholding control information on the pages in the Report Control Information component.

Click to jump to top of pageClick to jump to parent topicReviewing Withholding Report Information

Access the Withholding Report Info page (Set Up Financials/Supply Chain, Product Related, Procurement Options, Withholding, Withholding Report Information, Withholding Report Info).

Tax ID and Description

Displays the tax ID of the vendor from whom the withholding in this report was withheld, and the description of the Tax ID.

Basis Amt (basis amount)

Displays the basis amount on which the withholdings were calculated.

Liability Amt (liability amount)

Displays the amount of the withholding.

Paid Amount

Displays how much of the withholding has been paid to the tax authority.

Report Date

Displays the date on which you created your reporting information.

Click to jump to top of pageClick to jump to parent topicRunning Withholding Reports

Access the Withhold Report page (Vendors, 1099/Global Withholding, Global Withholding Reports, Withholding Report, Withhold Report).

Note. Do not use this page for 1099 reporting. Use the Withhold 1099 Report page instead.

You must run the Withholding Reporting process before you can generate withholding reports.

Withholding Report ID

Select the ID of the withholding report you want to run. The Report Processes group box displays the name of the process for this report and a description.

The following table lists some of the sample global withholding reports we provide with PeopleSoft Payables using the Withhold Report page.

Report ID

Report Type

Country

Report Name

APY8025

BI Publisher

Japan

Japan Withholding Report

APY8030

BI Publisher

Spain

Spain IRPF Model 190

APY8031

File

Spain

Spain IRPF Model 190 File

APX8032

BI Publisher

United Kingdom

CIS (construction industry scheme) File

APX8035

BI Publisher

France

DAS-2 'Declaration d'honoraires'/Fees return

BI Publisher

France

France DAS2 Withholding File

APX8045

BI Publisher

Australia

PPS Remittance Advice to ATO

APX8048

BI Publisher

Australia

PPS Annual Reconciliation Statement to ATO

APX8049

BI Publisher

Australia

PPS Payment Summary to ATO

APX8050

BI Publisher

Canada

T4A - Statement of Pension, Retirement, Annuity, and other Income

APX8055

BI Publisher

Italy

Withholding Report 770

See Also

Processing Special Withholding Requirements

PeopleSoft Payables Reports

Click to jump to parent topicReviewing Withholding Information

You can review withholding information using several inquiry pages.

This section discusses how to review payments to withholding vendors.

Click to jump to top of pageClick to jump to parent topicPages Used to Review Withholding Information

Page Name

Definition Name

Navigation

Usage

Vendor Balance

WTHD_BAL_VNDR

Vendors, 1099/Global Withholding, Review, Vendor Balance by Class, Vendor Balance

View the totals for all of a vendor's withholding transactions over a specified period of time.

Vouchers by Vendor

WTHD_VCHR_VNDR

Vendors, 1099/Global Withholding, Review, Vouchers by Vendor, Vouchers by Vendor

View a vendor's withholding transactions.

Withhold Payment Inquiry

WTHD_PYMNT_SRCH

Vendors, 1099/Global Withholding, Review, Withhold Payment, Withhold Payment Inquiry

Inquire on the payment amount, schedule number, and payment date for vendors subject to withholding. This page shows all withholding payments made to the withholding entities by vendor.

Click to jump to top of pageClick to jump to parent topicReviewing Payments to Withholding Vendors

Access the Withhold Payment Inquiry page (Vendors, 1099/Global Withholding, Review, Withhold Payment, Withhold Payment Inquiry).

Entering Search Criteria

Vendor SetID

Select the setID of the vendors for which you want to run the report.

From Vendor ID and To Vendor ID

Select the vendor ID. The From Vendor ID is a required field. You can also include a range of vendors using the From Vendor ID and To Vendor ID fields.

From Date and To Date

Enter the date range you want to inquire on.

Payment Details

The Payment Details group box shows details on the withholding payment information for each withholding payment. If you are using the federal payment option, the payment details display by payment schedule.

(USF) Schedule ID

Shows the payment schedule ID. This field only displays if you are a U.S. federal agency and have selected the federal payment option on the Installation options page.

Payment Amount

Displays the payment amount in the payment currency for the remit vendor.

Vendor Liability Amount Paid

Displays the portion of the payment amount that has been paid to the specified vendor in the transaction currency.

The system displays payment and withholding information for each payment or payment schedule. In addition, the system displays:

Gross Payment Amount

Displays the amount of payment paid to the remit vendor to cover the invoicing vendor's liability.

Withholding Basis Amount

Displays the basis amount of the withholding for the payment or payment schedule.

Withhold Liability

Displays the amount to be withheld and paid to the withholding entity for the payment or payment schedule.

Remit SetID and Remit Vendor Name

Displays the setID and name of the remit vendor for the payment or payment schedule.