This chapter provides an overview of payroll tax tables and discusses how to:
(USA) View federal and state tax tables.
(USA) View local tax tables.
(USA) Manage tax reciprocity.
(USA) Update the Taxable Gross Definition table.
(USA) View state marital status codes.
(CAN) View Canadian tax tables.
(CAN) Set up wage loss plans.
(CAN) Define Canadian WCB assessment reporting.
(USF) Set up state and locality tax routing.
(E&G) Establish 1042 processing for non-resident aliens.
(USA) Establish UI report codes.
(USA) Establish standard occupational classifications for Alaska.
(USA) Specify voluntary disability insurance plan location and contact information.
(USA) Specify parameters for quarterly tax reporting.
Set up tax types for PeopleSoft Payables integration.
Note. You must also set up tax locations and company tax tables, which is documented in the PeopleSoft HCM Application Fundamentals PeopleBook.
See Also
Setting Up Company Tax Tables for North America
(CAN) Canadian Tax Method Calculations
(USA) U.S. Tax Methods and Calculations
This section discusses how to:
Find instructions on year-end processing.
Work with payroll tax tables.
(USA) Work with U.S. Tax tables.
(CAN) Work with Canadian Tax tables.
Since year-end processing information changes regularly, PeopleSoft posts the most up-to-date instructions in the current year-end tax update documentation, posted on My Oracle Support.
See Accessing Year-End Processing Instructions.
The PeopleSoft Payroll for North America tax tables store tax information that the system requires to calculate and report taxes. PeopleSoft provides and maintains most of the payroll tax tables.
Payroll for North America delivers tax data for all federal and state or provincial taxing entities and almost all localities. Should you need a locality that PeopleSoft does not yet support, you can add and maintain entries using the tax pages. If you need to make a change or addition to the standard tax information delivered with the system, you are responsible for maintaining the change until it is incorporated into PeopleSoft-maintained tax tables. After you notify us of the missing locality, PeopleSoft will add it to our standard system and maintain it for you in subsequent versions.
You are responsible for completing the tax tables that contain data specific to your company.
Note. The pages for Federal/State Tax, Taxable Gross Definition, and Canadian Tax tables reference more than one table.
Some U.S. tax tables are maintained by PeopleSoft, others are maintained by the employers.
These are the PeopleSoft-maintained tables for U.S. employers:
Federal/State Tax and Local Tax tables, which contain rates and other constants used in the calculation of most forms of taxes for U.S. federal, state, and local taxing entities.
State and Local Tax Reciprocity tables, which define reciprocal taxing rules between states and localities, and other rules for determining tax liabilities for multiple jurisdictions.
Taxable Gross Definition table, which identifies differences between states or localities and the federal government in the definition of taxable wages.
PeopleSoft delivers sample taxable gross component IDs for Group Term Life (GTL), Section 125 (125), domestic partner benefits (DPB), Health Savings Accounts (HSA), and Health Savings Account employer contributions (HSR).
SWT Marital Status table, which defines the valid tax marital status codes for each state.
U.S. employers must set up and maintain the following tables:
Tax Location table, which contains the work locations for which you process payroll and taxes.
Company State Tax and Company Local Tax tables, which store tax identification numbers, unemployment and disability experience rates, and general ledger codes for the states and localities for which your company collects and pays taxes.
Tax Reporting Parameters table, which controls the execution of many of your quarterly and annual tax reports and specifies data needed for magnetic media filing.
See Also
Setting Up Company Tax Tables for North America
Some Canadian tax tables are maintained by PeopleSoft, others are maintained by the employers.
Canadian Tax tables, which contain rates and other constants used in the calculation of all forms of federal, provincial, and Quebec taxes.
Canadian employers must define and maintain the following tables:
The Canadian Wage Loss Plan table, which identifies your organization's valid wage loss replacement plans and general ledger account numbers.
The Canadian Company Tax table, which defines the Prescribed Interest rate, Provincial Premium Tax rate, and Health Insurance rate override.
Canadian Tax Reporting Parameters table, which controls the execution of many quarterly and annual tax reports and specifies data needed for magnetic media filing.
See Also
Setting Up Company Tax Tables for North America
To view federal and state tax tables, use the Federal/State Tax Table component (STATE_TAX_TABLE).
This section provides overviews of federal and state tax tables and of the Pennsylvania Local Services Tax (LST) and discuss how to:
View standard deductions, allowance amounts, and supplemental taxes.
View special tax amounts.
View wage bracket rate information.
View nonresident alien withholding adjustments.
View additional rate information.
Use the Federal/State Tax Table pages to view the tax data that PeopleSoft Payroll for North America uses to calculate U.S. federal, state, and certain local taxes. These pages supply the following information:
Identify the general type of withholding tax calculation employed by each jurisdiction and provide all the constants needed by the calculation routines for income tax withholding and unemployment and disability taxes.
Contain the wage bracket tax rate data used by the taxing authorities for implementing graduated taxes.
Special State Codes for Localities Using Graduated Tax Tables
In addition to the rules for state withholding, the rates for calculating federal withholding, FICA, and federal unemployment are defined on this table, primarily because the method of calculation is similar. Localities that use graduated tax tables are also included. These entries are identified by special state codes such as Z1 and Z2. Here are some of these special codes:
Code |
Description |
$E |
Earned income credit |
$U |
U.S. federal tax |
$UAS |
American Samoa federal tax |
$UGU |
Guam federal tax |
$UPR |
Puerto Rico federal tax |
$UVI |
Virgin Islands federal tax |
Z1 |
New York City, New York local tax |
Z2 |
Yonkers, New York local tax |
Z3 |
MD 1.25 % local tax |
Z4 |
MD 2.25 % local tax |
Z5 |
MD 2.96 % local tax |
Z6 |
MD 2.56 % local tax |
Z7 |
MD 2.85 % local tax |
Z8 |
MD 3.05 % local tax |
Z9 |
MD 3.20 % local tax |
ZA |
Maryland 3.10% local tax |
ZB |
MD resident works in DE |
ZC |
MD 2.65 % local tax |
ZD |
MD 2.62 % local tax |
ZE |
MD 2.63 % local tax |
ZF |
MD 2.80 % local tax |
ZG |
MD 2.83 % local tax |
ZH |
MD 2.90 % local tax |
ZI |
MD 2.93 % local tax |
ZJ |
MD 3.06 % local tax |
ZK |
MD 3.15 % local tax |
ZL |
MD 3.00% local tax |
On the Federal/State Tax Table - Additional Rates page, the Tax Class LS Tax represents the Local Services Tax (LST) for Pennsylvania employees. The total LST paid by any individual in a calendar year is limited to 52 USD, regardless of the number of political subdivisions in which the individual works during the year.
LST Localities
The LST can be imposed by both municipalities and school districts. Certain LST processing requirements relate to the combined LST rate for municipalities and school districts. Therefore, you must implement the LST using Local Tax Table entries that represent combined LST tax rates. These entries have the letter "C" in position 8 of the Locality Code.
For example, the locality code O430212C for Farrel City is used to process the LST at the combined tax rate of the Farrel City municipality and the Farrel City School District.
Lump Sum and Prorated LST Deductions
When the LST is levied at a combined rate of 10 USD or less annually, it is deducted as a lump sum from the employee's first paycheck of the year in the taxing jurisdiction.
If the LST is levied at a combined rate exceeding 10 USD annually, the tax is divided equally across the number of pay periods in the employee's pay frequency. When calculating prorated pay period deductions, employers are required to round down to the nearest cent. For example, a 52 USD annual combined tax rate is deducted at 1 USD per week from employees paid weekly, or at 4.33 USD per month from employees paid monthly.
Maximum Annual Deduction
If an employee pays LST of less than 52 USD to the first municipality where the employee works during a calendar year and transfers to one or more municipalities that impose the LST, the additional tax is withheld as long as the combined LST deductions are equal to or less than 52 USD. If the combined LST deductions exceed 52 USD, only the difference between 52 USD and the total of any previous LST is withheld from the employee.
For example, an employee who is paid weekly works in locality A, which imposes a 10 USD combined LST. At this rate, the entire LST is deducted in the employee's first paycheck. The next week, the employee works in locality B, which imposes a 52 USD combined LST. Locality B is entitled to a maximum of only 42 USD because the employee has already paid 10 USD of the 52 USD annual maximum tax.
The system deducts 1 USD per week from the employee's weekly paycheck (because locality B's entire 52 USD rate is prorated across 52 pay periods in the year) until 42 USD has been collected for locality B. At this point, the employee has reached the 52 USD annual maximum, and no further deductions are taken in locality B or in any other locality where the employee subsequently works in the same year.
The state-level Pennsylvania LST Memo tax record keeps track of how much Pennsylvania LST an employee has paid for the year. During the LST calculation, the system checks this state memo tax balance before computing the LST.
When you hire an employee whose LST for the current tax year has been fully or partially withheld by another employer, you can load the amount already withheld into the employee's state tax memo balance to prevent the system from exceeding the annual maximum for that employee. Alternatively, you can leave it to the employee to file for a refund of overpaid LS tax at year end.
See (USA) Reviewing and Adjusting U.S. Tax Balances.
Rules For Employees Working in Multiple Jurisdictions
Employees are not subject to LST at more than one place of employment during a payroll period. Pennsylvania indicates that the "priority of claim" to collect the LST is as follows:
Where the employee "maintains his or her principal office or is principally employed."
Where the employee "resides and works."
Where the employee is employed that is "nearest in miles" to the employee's home.
Because the system is not able to determine which jurisdiction has the highest priority when an employee has active LST deductions set up for multiple jurisdictions, it is your responsibility to determine which LST jurisdiction has priority and to structure the employee's Local Tax Data so that the employee has only one active LST deduction set up for the correct jurisdiction.
If you fail to do this, and an employee has active LST deductions set up for multiple jurisdictions, the system deducts the tax for the first jurisdiction encountered in the processing sequence. For multiple job employees with multiple active LST deduction setups, the tax is deducted for whichever job is the first one calculated in the primary pay group.
Important! Although the system takes the LST deduction for only one jurisdiction per pay period, it is your responsibility to structure the employee's Local Tax Data to ensure that the deduction is taken for the correct jurisdiction.
If you need to set up Local Tax Data records for multiple LS Tax jurisdictions for an employee in order to clear Payroll Error 92 (Local Tax Not Found: The local tax record for the locality cannot be found for this employee.), then you can limit the employee to one active LST by setting all but one of the employee's Local Tax Data records for LST to the Special Tax Status of "Do Not Maintain Taxable Gross and Do Not Withhold Tax".
Low Income Exemption
A jurisdiction that levies the LST at a combined rate greater than 10 USD is required to exempt from the tax employees whose total income within the jurisdiction is less than 12,000 USD for the calendar year.
To receive an up front exemption from LST deductions, an employee must provide the employer with a completed Local Services Tax Exemption Certificate. To record the employee's exemption from the tax, enter 999 as the number of Local Withholding Allowances in the employee's Local Tax Data page for the locality imposing the LST.
Entering 999 as the number of Local Withholding Allowances suspends deduction of the LST from the employee's paychecks. If the employee's YTD taxable gross for the locality reaches or exceeds 12,000 USD, then regular paycheck deductions of the tax will begin, and a catch-up lump sum tax deduction will be taken equal to the amount of tax that was not previously withheld from the employee as a result of the employee's exempt status.
Important! Once you set up an employee as exempt from a jurisdiction's LST for a particular calendar year, do not change that exempt status for the remainder of that calendar year. If an employee's exempt status is changed mid-year, the system will not take the catch-up lump sum tax deduction from the employee.
Page Name |
Definition Name |
Navigation |
Usage |
STATE_TAX_TABLE1 |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Table, General |
View standard deductions, allowance amounts, and supplemental rates. |
|
STATE_TAX_TABLE2 |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Table, Special Tax Amounts |
View information needed for tax calculations. The page for the Federal Tax Table differs from the one for specific states. |
|
STATE_TAX_TABLE3 |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Table, Rates |
View wage bracket information. Contains data from Connecticut Table B - Withholding Tax. |
|
STATE_TAX_TABLE3_A |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Table, CT Exemptions |
(Available only when the state entered is CT.) View the tax status, low gross, and exemption amount, from Connecticut Table A - Exemptions, that are used for calculating Connecticut state tax exemptions. |
|
STATE_TAX_TABLE3_B |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Table, CT Credits |
(Available only when the state entered is CT.) View the tax status, low gross, and credit percent, from Connecticut Table E - Personal Tax Credits, that are used for calculating Connecticut state tax credits. |
|
STATE_TAX_TABLE3_D |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Table, CT Phase Out |
(Available only when the state entered is CT.) View the tax status, low gross, and low tax amount, from Connecticut Table C - 3% Phase-Out, that are used for calculating the phase out of the Connecticut 3% state tax rate. |
|
STATE_TAX_TABLE3_E |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Table, CT Recapture |
(Available only when the state entered is CT.) View the tax status, low gross, and recapture tax amount, from Connecticut Table D - Tax Recapture, that are used for calculating the recapture of Connecticut state taxes from taxpayers over certain income brackets. |
|
STATE_TAX_TABLE3A |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Table, NRA Adjustment |
(Available only when the state entered is Federal, $U.) View the withholding adjustment rate to use for nonresident alien wages. |
|
STATE_TAX_TABLE4 |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Table, Additional Rates |
View wage limits for unemployment and disability taxes. |
|
PRCSRUNCNTRL |
Set Up HRMS, Product Related, Payroll for North America, Tax Table Reports, Federal/State Tax, Federal/State Tax Report |
Run TAX702 to print information from the State Tax Table and the State Other Tax Table, which store the most current tax rates and other parameters used in calculating state and federal withholding, disability, and unemployment taxes. |
|
PRCSRUNCNTRL |
Set Up HRMS, Product Related, Payroll for North America, Tax Table Reports, State Tax Rate, State Tax Rate Report |
Generate TAX707 that lists information from the State Tax Rate Table, which contains bracket rates needed for calculating state and federal taxes. |
Access the Federal/State Taxes - Tax Table - General page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Table, General).
Note. You shouldn't need to modify this table, but if you must, you can make changes if you have the appropriate security authorization. This applies to all pages in this component.
State Tax Calculation Type |
Indicates the type of withholding tax calculation required by the state. |
FWT Credit |
This check box indicates whether credit is given for FWT during calculation of state income tax withholding. |
Non-Resident Declaration Required |
This check box indicates whether the state requires a Non-Resident Declaration for non-resident employees. |
Allow Withholding Reduction |
This check box indicates whether the state allows a reduction amount to be computed in the state withholding calculation. Currently, this only applies to Connecticut. |
FICA Credit |
This check box indicates whether credit is given for FICA during calculation of state income tax withholding. |
Supplemental Method
Details of the values available for selection in this group box and examples of calculations are provided in this PeopleBook.
See Supplemental Tax Calculations.
Paid With Regular Wages |
PeopleSoft delivers the required selection: Aggregate − No Annualize, Aggregate, Aggregate-No Tax else Percent, Non-Resident Supplemental, Not Applicable, Percent of Taxable Gross, Special Table with Exemptions, and Special Table. |
Separate Payment |
PeopleSoft delivers the required selection: Aggregate − No Annualize, Aggregate, Aggregate-No Tax else Percent, Non-Resident Supplemental, Not Applicable, Percent of Taxable Gross, Special Table with Exemptions, and Special Table. |
Access the Special Tax Amts page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Table, Special Tax Amounts).
Special Tax Amount |
This field is used to store parameters or values used in withholding tax calculations for the selected state or federal jurisdiction. |
Special Tax Amount 5 |
When the selected state is Federal ($U), the amount displayed is the amount that the system adds to the annualized wages of the nonresident alien (NRA) solely for purposes of NRA tax withholding calculation. This amount does not add to the employee's federal taxable gross balance. |
State Statutory Minimum Hourly |
The system uses this field to calculate tip credit to pay overtime for tipped employees. The minimum hourly rate required by that state appears here. |
Report Neg Wages |
Options are include or separate. |
State Tips W/H Threshold |
This field appears if the value in the State field is $U. This field is used in conjunction with state regulations for delaying the withholding of taxes on tips until the employee reports monthly tips in the amount equal to the threshold amount. This field displays the monthly threshold amount from the federal regulations and as of now all states use that threshold amount. For states that allow you to delay withholding on tips, you can specify by Pay Group whether you delay withholding on tips. |
Tax Reporting |
Options include Annual, Monthly, or Quarterly. |
Delay Withholding for Tips |
On this page, this check box refers to state income tax. For each state, PeopleSoft selects or deselects this check box, depending on whether the state allows employers to delay withholding on tip income until the monthly threshold amount is reached. For states that allow you to delay withholding on tips, you can specify by Pay Group whether you'll delay withholding on tips. |
Employee Detail Required |
This field is informational only and indicates whether a state requires the quarterly reporting of individual employee wage data. All states currently require such reporting. |
Use Common PayMaster for SUI |
This check box is selected if the state recognizes common paymaster status between companies for purposes of state unemployment insurance taxes. |
Access the Federal/State Tax Table - Rates page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Table, Rates).
Tax Status |
The appropriate Federal/State tax status (Married, Single, and so on). |
Low Gross |
The minimum taxable gross for the bracket. |
Low Tax |
The tax to be withheld on the corresponding minimum gross. |
Tax Rate |
The rate to be applied until the next bracket is reached. |
Credit Amount |
Not currently used by PeopleSoft Payroll for North America. |
Access the Federal/State Tax Table - CT Exemptions, CT Credits, CT Phase Out, or CT Recapture page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Table, CT Exemptions, CT Credits, CT Phase Out, or CT Recapture).
When you access the Federal/State Taxes, Tax Table component for the state of CT (Connecticut), CT-specific data and pages appear. The CT-specific pages store values used in the calculation of Connecticut state taxes.
The Rates page contains values from Connecticut Table B - Withholding Tax.
The CT Exemptions page contains values from Connecticut Table A - Exemptions.
The CT Credits page contains values from Connecticut Table E - Personal Tax Credits.
The CT Phase Out page contains values from Connecticut Table C - 3% Phase-Out.
The CT Recapture page contains values from Connecticut Table D - Tax Recapture.
Access the Federal/State Tax Table - NRA Adjustment page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Table, NRA Adjustment).
The NRA Adjustment page is available only when the State = $U (Federal).
View the income, tax, and withholding rate to use to calculate the additional withholding adjustment amount required by IRS for nonresident alien wages.
Low Gross |
The minimum taxable gross income for the bracket. |
Low Tax |
The tax to be withheld on the corresponding minimum gross. |
Tax Rate |
The rate to apply until the next bracket is reached. |
Access the Federal/State Tax Table - Additional Rates page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Table, Additional Rates).
Tax Class |
Tax classes identify different taxes that share certain characteristics. Local Services Tax represents Local Services Tax (LST) for Pennsylvania employees. |
Calculation Type |
Options are % Tax Grs, %ER Wage, and N/A. |
Tax Base |
Options are Disability, Unemployment, and Withholding. |
Tax Rate |
The tax rate for employer unemployment or disability contributions is blank on this page. The rate used during payroll calculations comes from the Company State Tax table. |
Maximum Gross |
If a tax applies only to a portion of an employee's annual wages up to a specified limit, such as employer unemployment taxes, that limit amount appears in this field. An entry of all 9s, as with Medicare taxes, indicates a tax without limit. |
Maximum Tax |
If there is an annual limit on a particular type of tax, such as Pennsylvania's Local Services Tax, enter that limit amount here. |
Taxability |
Select Employee Tax Only, Employer Tax Only, Empl and Emplr Tax, or Memo Tax Only to indicate whether a tax is paid by the employee, paid by the employer, or paid in equal matching amounts by both. |
Period Maximum |
If selected, this option indicates that the tax is calculated for a period other than annual. Two examples of this are SDI in New York and Hawaii, both of which have weekly maximums. |
Self Adjust (self-adjusting) |
This check box is for information only and does not affect processing. |
Delay W/H for Tips (delay withholding for tips) |
On this page, this check box is selected or deselected for each additional tax the state may impose. For each state, PeopleSoft selects or deselects this check box, depending on whether the state allows employers to delay withholding on tip income until the monthly threshold amount is reached. For states that allow you to delay withholding on tips, you can specify by Pay Group whether you'll delay withholding on tips. |
Of the states that provide disability insurance plans (currently California, Hawaii, New Jersey, New York, Rhode Island, plus Puerto Rico), all but Rhode Island allow employers to provide voluntary disability plans in place of the state plan. PeopleSoft maintains the Tax Class rows on the Federal/State Tax Table - Additional Rates page for the Employer and Employee paid tax for voluntary disability plans for each of these states.
Note. If you implement a voluntary disability plan for California, Hawaii, New Jersey, New York, or Puerto Rico, you must set up the appropriate tax rates on the Company State Tax table and the VDI/FLI Administrator table.
State Unemployment Insurance (SUI) Tax
You must make sure that the unemployment insurance taxable gross and tax balances transferred during the conversion process are consistent with the unemployment tax rates that have been entered for each quarter on the Company State Tax Table page.
Warning! If these amounts are not consistent and in balance, the system will either charge or refund additional unemployment tax amounts to account for the difference in the quarterly unemployment insurance tax balances.
See Also
Specifying States Where You Collect or Pay Taxes
To update local tax information, use the local Tax Table component (LOCAL_TAX_TABLE).
This section provides an overview of locality codes and discusses how to:
View local tax jurisdiction information associated with a locality code.
View the method used to calculate local withholding rates.
Enter a locality's tax reporting requirements.
The local Tax Table component (LOCAL_TAX_TABLE) displays information used when the system calculates local withholding tax. In this table, each locality is assigned a code of up to ten characters. Typically this is how these codes are assigned:
For Pennsylvania municipalities and school districts: an eight or nine character code based on codes assigned in the official Pennsylvania local tax register.
For municipalities in states other than Pennsylvania: a five-character Federal Information Processing Standards (FIPS) code.
For counties: a three-digit county number.
For Ohio school districts: a four-digit district number.
The State of Pennsylvania provides a registry of tax rates for all cities, counties, political subdivisions, school districts, and so on located in Pennsylvania. For each municipality and overlying school district, the registry lists effective tax rates for both local Earned Income Tax (EIT) and Local Services Tax (LST) for residents and, where applicable, nonresidents.
Pennsylvania Act 32 requires all-numeric locality codes for local EITs, which are called Political Sudivision (PSD) codes. The PSD codes of both the employee’s residence locality and work locality must be identified for each PA local EIT amount withheld from an employee. This means that for each local EIT withholding amount, you must identify these three codes:
PA EIT Work PSD code
PA EIT Residence PSD code
Locality code (the locality to which taxes are to be remitted and reported).
Note. This code will match the EIT Work PSD code in almost all cases.
Note. Pennsylvania Act 32 applies only to Pennsylvania local EIT withholding. Act 32 does not apply to deductions from employees for the Pennsylvania LST, and PSD codes are not used for Pennsylvania LST deductions.
The Pennsylvania codes are described as follows:
The PSD Locality code is a 6-digit code that identifies the locality to which the employer must remit and report an employee's local earned income taxes.
PA local EIT PSD codes are all numeric. PA local EIT PSD codes are 6 digits and all numeric. The first 2 digits of each 6-digit PSD code identifies the tax collection district. The first 4 digits of each 6-digit PSD code identifies the school district. The complete 6-digit PSD code identifies the unique municipality/school district combination. A complete list of the Act 32 PSD codes can be found on the website of the Pennsylvania Department of Community and Economic Development.
PA LST codes begin with the letter O. The next six digits are the numerical code assigned to the municipality by the state of Pennsylvania. The alphabetic code in the eighth position signifies the tax rate:
C - combined municipality and school district tax rate.
M - municipality tax rate.
S - school district rate.
A numerical digit in the last position indicates that the municipality overlaps with all or portions of multiple school districts.
Refer to the School District Code field on the Local Tax Table 1 page to determine which locality code applies to which school district, and then choose the appropriate entry for the employee's location.
For each municipality and overlying school district, PeopleSoft delivers the following locality types:
Pennsylvania Locality Description |
Example |
Combined municipality and school district earned income tax |
170303 |
Combined municipality and school district local services tax |
O123456C |
Municipality local services tax |
O123456M |
School district local services tax |
O123456S |
Note. The LST can be imposed by both municipalities and school districts. However, certain LST processing requirements relate to the combined LST rate for municipalities and school districts. Therefore, you must implement the LST using Local Tax Table entries that represent combined LST tax rates. These entries have the letter C in position 8 of the Locality code.
For each locality that PeopleSoft supports, we maintain the entries for that locality in the following tables:
Local Tax Table.
Local Tax Reciprocity table (if applicable).
Taxable Gross Definition table (if applicable).
Page Name |
Definition Name |
Navigation |
Usage |
LOCAL_TAX_TABLE1 |
Set Up HRMS, Product Related, Payroll for North America, Local Taxes, Tax Table |
View information about the geographic area associated with a locality code. |
|
LOCAL_TAX_TABLE2 |
Set Up HRMS, Product Related, Payroll for North America, Local Taxes, Tax Table |
View the method used to calculate local withholding taxes, tax rates, and other constants. |
|
LOCAL_TAX_TABLE3 |
Set Up HRMS, Product Related, Payroll for North America, Local Taxes, Tax Table |
Enter data on the locality's tax reporting requirements. This information is used in quarterly and year end reporting. |
|
PRCSRUNCNTRL |
Set Up HRMS, Product Related, Payroll for North America, Tax Table Reports, Local Tax, Local Tax Report |
Run TAX703 to print information from the Local Tax Table, which contains calculations for local income taxes. |
Access the Local Tax Table 1 page (Set Up HRMS, Product Related, Payroll for North America, Local Taxes, Tax Table, Local Tax Table1).
Customer or PeopleSoft |
All entries that Oracle delivers are the maintenance responsibility of PeopleSoft. However, if you add a locality to this table, the system marks it as Customer, indicating that it is your organization's maintenance responsibility. |
Locality Name |
The municipality name from the register (except for school district entries, which are school district name). Combined jurisdictions have the appendage M+SD. |
Local Jurisdiction |
Reserved for future use. |
Other Locality Name |
For Pennsylvania localities, combined entries display the school district name. |
PA Only
Partial District Indicator (LST) (Local Services Tax) |
(Used for Local Services Tax only.) This check box is selected to indicate a Pennsylvania municipality that is co-terminus with multiple school districts, meaning the boundary of the municipality overlaps the boundaries of multiple school districts. For example, in Westmoreland County, the City of Greensburg is co-terminus with both the Greensburg Salem School District and the Hempfield Area School District. Be sure to use the Local Tax Table entry that represents the correct municipality/school district combination. |
Tax Collection District Code |
The 2-digit location code under which local earned income taxes are reported by the employer according to PA Act 32. |
School District Code (LST) (Local Services Tax) |
(Used for Local Services Tax only.) For Pennsylvanian localities, the appropriate school district code appears here. |
See Also
Access the Local Tax Table 2 page (Set Up HRMS, Product Related, Payroll for North America, Local Taxes, Tax Table, Local Tax Table2).
Local Tax Calculation Type |
Indicates the calculation method used to determine the amount of local income tax withheld. |
Withhold On Work Locality Only |
When this check box is selected for a locality, only wages earned in that locality are considered taxable for residents of the locality. No resident tax is withheld from wages paid for work performed outside of the locality. |
Graduated Tax Table Code |
This option takes effect if the locality requires that tax tables be referenced during calculation, as do New York City, Yonkers, and Maryland counties. In this case, the graduated tax table code entered here links the record to the appropriate entry in the PeopleSoft Federal/State Tax table where the graduated tax rates are stored. |
Tax Rate
Resident |
This field displays the tax rate for residents of the locality. |
Nonresident |
This field displays the tax rate for nonresidents in the locality. |
Access the Local Tax Table 3 page (Set Up HRMS, Product Related, Payroll for North America, Local Taxes, Tax Table, Local Tax Table3).
Locality Short Name |
The value in this field is printed as the locality name on Form W-2 if the W2 Print Name field is blank. If both the Locality Short Name and W2 Print Name fields are blank, then a truncated version of the value in the Locality Name field on the Local Tax Table1 page is used. Note. Customers are responsible for populating the Locality Short Name field for localities in Pennsylvania |
Tax Reporting |
Displays the interval required by the locality for tax reporting, Monthly, Quarterly, or Annual. This field is for your reference only. It has no function in the system. |
Employee Detail Required |
This check box is for your reference only. It has no function in the system. |
W2 Print Name |
A value entered in this field overrides a value in the Locality Short Name field to print as the locality name on Form W-2. Warning! Do not change any Oracle-delivered value that automatically populates this field. |
Taxing Entity Code |
Identifies the locality on the appropriate electronic or magnetic media records when reporting W-2 data to either state or local tax agencies. The system populates this field for the localities for which PeopleSoft supports the reporting of W-2 data to state and/or local tax agencies. |
W2 Reporting Agency |
Identifies the tax reporting agency to which W-2 data for the locality is submitted electronically or on magnetic media. In some cases, the value in this field is also included in the file records. |
W2 Electronic Reporting Name |
Displays the locality name that TAX960LC uses on electronic reports for the CLMBS reporting agency. This field is visible only when the value in the W2 Reporting Agency field is CLMBS. See Year End Processing: U.S., Puerto Rico, and the U.S. Territories Guide |
Important! If you add a locality, you are responsible for maintaining the entries on these tables for the new locality until PeopleSoft incorporates it into a tax update. Contact your Global Support Center if you discover any localities not listed or any errors so we can include the addition or correction in the next PeopleSoft Payroll Tax Update.
See Also
Accessing Year-End Processing Instructions
To manage tax reciprocity, use the State Tax Reciprocity Table component (STATE_TX_RECIP_TBL), local Tax Reciprocity Table component (LOCL_TAX_RECIP_TBL), and the Work Locality Reciprocity component (LCLTX_WK_RECIP_TBL).
This section provides an overview of tax reciprocity settings and discusses how to:
View state tax withholding reciprocity rules.
View local tax reciprocity rules.
View reciprocal agreements between work localities.
Although the employee's residence state may require withholding on all wages paid to the employee, many states provide credit for taxes paid by their residents to another state. Many other examples of reciprocity agreements also exist between states. Under these agreements, wages earned in a work state that has an agreement with the residence state are taxed by, and taxes withheld are submitted to, the employee's residence state. Reciprocity rules are defined in the State Tax Reciprocity table.
The State Tax Reciprocity table doesn't identify every state-to-state combination individually because most states have a single rule for dealing with residents who earn taxable wages in other states. The default reciprocity rule between a state of residence and all other states of employment is the one where no employment state is specified.
If you need to modify these table entries, consult the PeopleSoft Global Support Center.
Note. If you're a multi-state employer, review the rules in this table, particularly if you can be considered a non-resident employer for certain employees. For example, Alabama requires that resident employers withhold Alabama tax on wages earned both inside and outside the state by Alabama residents. Non-resident employers must withhold on only those wages earned in Alabama, regardless of where the employee resides. The entries in the State Tax Reciprocity table—as delivered by PeopleSoft—assume that you are a resident employer in each state.
Page Name |
Definition Name |
Navigation |
Usage |
STATE_TX_RECIP_TBL |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, State Tax Reciprocity Table |
Display the rules used during payroll calculation to determine withholding liability when an employee lives in one state and works in another. |
|
PRCSRUNCNTRL |
Set Up HRMS, Product Related, Payroll for North America, Tax Table Reports, State Reciprocity Rules |
Run TAX708 to print a summary of the rules that determine where to withhold income taxes when an employee works in one state and lives in another. |
|
LOCL_TAX_RECIP_TBL |
Set Up HRMS, Product Related, Payroll for North America, Local Taxes, Tax Reciprocity Table |
View reciprocal agreements between an employee's state of residence and a locality of employment. |
|
PRCSRUNCNTRL |
Set Up HRMS, Product Related, Payroll for North America, Tax Table Reports, Local Reciprocity Rules |
Run TAX709 to print a list of the rules that determine where to withhold income taxes when an employee works in one locality and lives in another. |
|
LOCLWK_TXRCP_TABLE |
Set Up HRMS, Product Related, Payroll for North America, Local Taxes, Work Locality Reciprocity |
Establish reciprocal agreements between work localities. |
|
PRCSRUNCNTL |
Set Up HRMS, Product Related, Payroll for North America, Tax Table Reports, Work Locality Reciprocity, Work Locality Reciprocity Rpt |
Run TAX713 to print the reciprocal rules that determine local income tax withholding when an employee works in a location that has multiple taxing jurisdictions that share a reciprocal agreement. |
Access the State Tax Reciprocity Table page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, State Tax Reciprocity Table).
Note. The State Tax Reciprocity Table page is used to set up any and all withholding tax relationships between an employee's residence state and employment state, to cover any situation where an employees lives in one state and works in another state. Although some of the table entries reflect formal reciprocal agreements between states, the majority of the table entries do not.
Residence and Employment
The Residence and Employment group boxes identify the state-to-state combination for the reciprocity rule. The default reciprocity rule between a state of residence and all other states of employment is the one where the with no employment state (the State field in the Employment group box is blank).
State Tax Reciprocity Information
SUT Credit when employee transfers to residence state |
When selected, this check box indicates that, for unemployment tax purposes, the (residence) state allows credit against its state unemployment taxable wage base for wages paid to an employee in another state. |
Reciprocity Rule
The Reciprocity Rule field displays the rule applied to the residence / employment state combination. The state tax reciprocity rules are:
State Rule 1 |
Withhold both work state tax and residence state tax on work state wages |
State Rule 2 |
Calculate residence state and work state withholding separately on work state wages. Withhold 100% of calculated work state withholding. Withhold calculated residence state tax on work state wages to extent that calculated residence state withholding exceeds calculated work state withholding. |
State Rule 3 |
Withhold 100% of calculated work state withholding on work state wages. Calculate residence state withholding on total wages, then factor the calculated residence state withholding by the percentage of total wages earned in the residence state, and withhold the factored amount of the residence state withholding. |
State Rule 4 |
Withhold 100% of calculated work state withholding on work state wages. Reduce total residence state wages by work state wages, and calculate residence state tax on the reduced residence state wages. |
State Rule 5 |
Do not withhold for the work state. |
State Rule 6 |
Special rule for Maryland residents working in Delaware. |
Access the Local Tax Reciprocity Table page (Set Up HRMS, Product Related, Payroll for North America, Tax Table Reports, State Reciprocity Rules).
When the residence locality differs from the employment locality, the system calculates both taxes and applies the reciprocity rule from this table to produce the correct net withholding for the employee in each locality.
Residence |
Displays the state and locality for the employee's locality of residence. This table does not identify every residence/employment combination, because most localities in a given state follow the same rule. The table entry for the default value, $DFLT, is used when there is no individual entry. Any exceptions require separate entries and act as overrides. Entries that identify reciprocity agreements between a state of residence and employment localities are special cases. The residence state is specified as usual, but the value in this field is a special code: STATERC. |
Employment |
Displays the state and locality for the employee's locality of employment. This table does not identify every residence/locality combination, because most localities in a given state follow the same rule. The table entry for the default value, $DFLT, is used when there is no individual entry. Any exceptions require separate entries and act as overrides. |
Reduce by x Percent |
The maximum portion of the work locality's tax rate which can qualify as a credit against the resident locality's withholding. |
Credit Limit Rate |
The maximum portion by which the resident locality's tax rate can be reduced by a credit for the work locality's withholding. |
Reciprocity Rule
The Reciprocity Rule field displays the rule applied to the residence / employment locality combination. The local tax reciprocity rules are:
Local Rule 1 |
Withhold both work locality tax and residence locality tax on work locality wages. |
Local Rule 2 |
Withhold 100% of calculated work locality withholding on work locality wages. Then calculate residence locality withholding by the applicable method:
|
Local Rule 3 |
Calculate work locality and residence locality withholding separately on work locality wages. Withhold 100% of calculated residence locality withholding. Reduce work locality withholding by the specified percent of the residence locality withholding. |
Local Rule 4 |
Withhold 100% of calculated work locality withholding on work locality wages. Reduce total residence locality wages by work locality wages, and calculate residence locality withholding on the reduced residence locality wages. |
Local Rule 5 |
Do not withhold for the work locality. |
Local Rule 6 |
Withhold 100% of calculated work locality withholding on work locality wages. Calculate residence locality withholding on total work locality wages. Then reduce the residence locality withholding by the work locality's tax rate as applied to the residence locality's definition of taxable wages. |
Access the Work Locality Reciprocity page (Set Up HRMS, Product Related, Payroll for North America, Local Taxes, Work Locality Reciprocity).
Other Jurisdiction
State |
The state of other jurisdiction for each record represents the state of the primary local tax jurisdiction. That is, the state of the local tax jurisdiction whose tax must be withheld in full. |
Locality |
This represents the primary tax jurisdiction. That is, the jurisdiction whose tax must be withheld in full. |
Local Work Tax Reciprocity Information
Reduce Percent |
Where allowed, this represents a percent of other jurisdiction withholding to be credited toward the withholding amount required by the locality of employment. This is not always 100%. PeopleSoft displays the percent of credit reduction allowed. |
Reciprocity Rule
The Reciprocity Rule field displays the rule applied to the employment locality / other jurisdiction combination. The work locality tax reciprocity rules are:
Work Local Rule 1 |
Withhold both employment locality tax and other jurisdiction locality tax on work locality wages. |
Work Local Rule 2 |
Calculate employment locality and other jurisdiction locality withholding separately on work locality wages. Then reduce employment locality withholding by percentage of other jurisdiction's withholding. |
See Also
To update the Taxable Gross Definition Table, use the Taxable Gross Definition Table component (TAXGR_DEFIN_TBL).
This section provides an overview of the Taxable Gross Definition table and discusses how to set up a taxable gross definition.
Taxing jurisdictions may have different rules as to whether a given type of earnings or deduction should be taxed, and whether or not the tax should be withheld at the time of payment. The Taxable Gross Definition table defines the taxability for specific earnings or deduction types that must be treated differently at the state or local level than at the federal tax level. It also enables you to specify whether the state and local income tax withholding follows the same rules as federal withholding.
This section discusses:
Taxability.
Withholding.
Delivered entries on the Taxable Gross Definition table.
Example of setting up an earning with state tax withholding but without federal tax withholding.
Reference table of taxability and withholding setup.
Taxability
PeopleSoft Payroll for North America tracks these differences in taxability by documenting where the taxable wage definition of a particular jurisdiction differs from a standard definition for the following basic payroll tax types:
Withholding
Unemployment
Disability
For each of these tax types, certain earnings and deductions are taxable at the state or local level, while others are not. What is taxable differs for each tax, so we have a separate standard definition for each type. Because most states and localities follow federal guidelines for taxing earnings, we use Federal income tax withholding, Federal unemployment, and FICA as the standard taxes from which to develop these rules.
The system automatically maintains federal taxable grosses, FWT, FICA, and FUT, based on entries in the Earnings table and Deduction table:
Deduction Table |
Earnings Table |
Deduction classification = Taxable |
Subject to FWT |
Effect on FICA gross |
Subject to FICA |
Effect on FUT gross |
Subject to FUT |
Normally, the system calculates state and local taxes using the following taxable grosses:
Calculation |
Taxable Gross Used |
State withholding taxes (SWT) |
FWT gross |
State unemployment taxes (SUT) |
FUT gross |
State disability insurance (SDI) |
FUT gross |
Local withholding taxes (LWT) |
FWT gross |
PeopleSoft uses the FUT gross as the starting point for SDI because most states do not publish any separate definition of subject wages for SDI. Instead, states treat the definition of wages for SDI purposes as the same as the definition of wages for SUI purposes. Since SUI wages are based on FUT wages, and SDI subject wages are the same as SUI wages, FUT is the starting point for determining both SUI and SDI wages.
You can override or establish exceptions to the federal definitions of taxable gross for the following taxable grosses:
State withholding
State unemployment
State disability
Local withholding
When a state or locality declares that taxability of a certain earnings or deduction is different from one of these federal standards, a rule must be placed in the Taxable Gross Definition table indicating the deviation. The system uses the rules stored in the Taxable Gross Definition table to adjust the taxable gross for the states and localities that deviate from the federal norm.
For each of these taxable gross definitions, identify a Taxable Gross Component ID and assign it to the various states or localities affected.
Withholding
When you set up earnings and taxable benefits that are federally taxable, you specify whether or not that amount should also be subject to federal income tax withholding using:
The Subject to FWT field on the Earnings Table - Taxes page.
The Withhold FWT field on the Deduction Table – Tax Effect page.
Use the Withholding Follows Fed Rules (withholding follows federal rules) field on the Taxable Gross Definition Tbl page (TAXGR_DEFIN_TBL) to specify whether the state and local income tax withholding follows the same rules as federal withholding.
Note. You must create a Taxable Gross Definition table entry when you want to stop state or local income tax withholding on a particular earnings or taxable benefit. This is true regardless of whether or not the state or locality follows the federal rule for including the amount in taxable income, and regardless of whether or not you have selected to withhold federal income tax on the earnings or taxable benefit.
Delivered Entries on the Taxable Gross Definition Table
PeopleSoft delivers sample entries on the Taxable Gross Definition table for 401(k), employer 401(k) match (401R), Section 125, TIP, domestic partner benefits (DPB), group-term life (GTL), Health Savings Account (HSA), and Health Savings Account employer contribution (HSR) taxable gross definitions. These sample entries are intended as examples and are delivered with the Plan Type element blank and the Deduction Code set to $DFLT. You must review these entries and update them with the specific values for your implementation. You must maintain any taxable gross definitions that you add.
For Section 125 cafeteria plans, the taxable gross definitions are for employee deductions only. You may have to set up your own entries to process specific parts of your plan. In some states, the taxability of deductions depends on whether the employee has the option of receiving cash.
Review the definitions in this table carefully with regard to your particular 125 plans.
How Taxable Gross Definitions Affect Earnings and Deductions
The standard definition of taxability of an earnings or deduction type is determined by entries on the Earnings and Deduction tables. When establishing an entry on these tables, you specify if the earning or deduction is to be taxed for FWT, FUT, and FICA. Any earnings and deductions you marked as taxable are totaled during payroll processing to determine an employee's taxable gross for each of the standard tax types. For earnings or deduction types that increase or decrease the state or local taxable grosses compared to the federal taxable gross, enter a taxable gross component ID that identifies which rules on the Taxable Gross Definition table to use.
For example, Pennsylvania considers employee before-tax 401(k) contributions taxable for state withholding, whereas they are not taxed at the federal level. Therefore, you must have a Taxable Gross Definition for 401(k) deductions that indicate to the payroll calculation programs that when taxable gross for withholding is determined, 401(k) deductions should be included as earnings for Pennsylvania (but not for federal) withholding purposes.
Example of Setting Up an Earning with State Tax Withholding but Without Federal Tax Withholding
Take a hypothetical example of moving expenses in the state of Pennsylvania. This example assumes the following:
Certain types of moving expense reimbursement payments that you make to Pennsylvania employees are includable in taxable gross at both the federal and state level.
Federal regulations do not require that federal income tax be withheld from these moving expense reimbursement payments.
Pennsylvania regulations do require that Pennsylvania income tax be withheld from these amounts at the time of payment.
In this case, state withholding does not follow the federal rules.
The following table illustrates these assumptions:
Taxing Jurisdiction |
Include in Taxable Gross? |
Withholding Required? |
Federal |
Yes |
No |
Pennsylvania |
Yes |
Yes |
To define the moving expense earnings with the proper tax and withholding effects:
Define a Taxable Gross Component ID (here named MOV) to identify these moving expense reimbursement payments that require different tax treatments at the federal and state levels.
This table shows the relevant page elements and values on the Taxable Gross Definition Table page:
Page Element |
Value |
Explanation |
Taxable Gross |
Withholding |
|
Base Gross |
FWT |
|
Taxable Gross Component ID |
MOV |
|
Withholding Follows Fed Rules |
deselect the check box. |
You do not want state tax withholding to follow the selection you will make for the Subject to FWT check box on the Earnings Table - Taxes page for these moving expense reimbursement amounts. You do not want federal income tax withheld on this earnings type, but you do want Pennsylvania income tax withheld. |
Tax Gross Effect |
No Effect |
The earnings type is to be included in both the federal and Pennsylvania taxable grosses. |
Enter the Taxable Gross Component ID when you set up the earnings on the Earnings Table - Taxes page.
This table shows the relevant page elements and values for setting up this moving expense reimbursement earning on the Earnings Table - Taxes page:
Page Element |
Value |
Explanation |
Earnings Type |
MOV |
|
Earnings Description |
Mov Exp Reimb – No Fed W/H |
Moving expense reimbursement without federal withholding |
Tax Method |
Annualized |
|
Subject to FWT |
Selected |
|
Taxable Gross Component ID |
MOV |
You must set up the taxable gross component ID before you can select it on this page. |
Add to Gross Pay |
Selected |
|
Maintain Earnings Balances |
Selected |
Reference Table of Taxability and Withholding Setup
Use the table below to look up the table entries for any combination of federal and state/local taxing options that you might need for a particular earnings or taxable benefit. The table lists the correct values in the relevant fields on the Earnings table, Deduction table, and Taxable Gross Definition table.
|
Earnings Table - Taxes page: |
Deduction Table - Tax Effect page: |
State/local tax treatment you want: |
State/local withholding treatment you want: |
Taxable Gross Definition Table: |
Taxable Gross Definition Table: |
Taxable Gross Definition Table: |
Row |
Subject to FWT |
Withhold FWT |
Subject to state/local tax? |
Withhold SWT/LWT? |
Entry required? |
Tax Gross Effect |
Withholding Follows Federal Rules |
1 |
Yes |
Yes |
Yes |
Yes |
No |
NA |
NA |
2 |
Yes |
Yes |
Yes |
No |
Yes |
No effect |
No (deselected) |
3 |
Yes |
Yes |
No |
No |
Yes |
Subtracts from |
NA (check box does not apply) |
4 |
Yes |
No |
Yes |
No |
Yes |
No effect |
Yes (select) |
5 |
Yes |
No |
No |
No |
Yes |
Subtracts from |
NA (check box does not apply) |
6 |
Yes |
No |
Yes |
Yes |
Yes |
No effect |
No (deselected) |
7 |
No |
No |
Yes |
No |
Yes |
Adds to |
Yes (select) |
8 |
No |
No |
No |
No |
No |
NA |
NA |
9 |
No |
No |
Yes |
Yes |
Yes |
Adds to |
No (deselected) |
Row 6 contains the setup values for the MOV earnings described in the example.
See Also
Defining Earnings Codes and Earnings Programs
Page Name |
Definition Name |
Navigation |
Usage |
TAXGR_DEFIN_TBL |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Taxable Gross Definition Table, Taxable Gross Definition Table |
Set up a taxable gross definition, which defines the taxability and withholding for specific earnings or deduction types that must be treated differently at the state or local level than at the federal tax level. |
|
PRCSRUNCNTRL |
Set Up HRMS, Product Related, Payroll for North America, Tax Table Reports, Taxable Gross Definition, Taxable Gross Definition Rpt |
Run TAX706 to print information from the Taxable Gross Definition Table, which contains definitions that the system uses during payroll calculation to determine state and local taxable grosses that deviate from the normal federal withholding. It specifies the base for taxable gross and indicates modifications to that base. |
Access the Taxable Gross Definition Table page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Taxable Gross Definition Table, Taxable Gross Definition Table).
Taxable Gross
Taxable Gross |
Select Disability, Unemployment, or Withholding to identify the type of taxable gross you're defining. |
Base Gross |
Select either FUT (Federal Unemployment Tax) for unemployment and disability, or FWT (Federal Withholding Tax) for withholding. (FICA is not currently used as a base gross.) |
Adjustment to Base Gross
This scroll area lists the specific components for which adjustments are necessary.
Taxable Gross Component ID |
The taxable gross component ID you specify must be unique in what it represents (for example, 401k, GTL, 125, and so forth). If it is not unique, it can cause the taxable grosses to be incorrect. |
Withholding Follows Federal Rules |
This check box is selected by default. Deselect it if the withholding associated with the taxable gross component ID does not follow the same rules as federal withholding. This check box appears only if you select Withholding in the Taxable Gross field. This check box applies only to earnings and taxable benefit amounts identified by a taxable gross component ID. It has no effect on the processing of any before-tax deductions (such as 401(k) and Sec 125 amounts) for which there may also be entries on the Taxable Gross Definition table. |
Tax Gross Effect |
This field controls the effect on the gross. It can either add to the gross, subtract from it, or have no effect. |
Plan Type and Deduction Code |
Some states do not recognize certain before-tax benefits deductions. They require specific before-tax deductions to be included in taxable gross wages. Use these fields to identify such plans to the system by plan type and deduction code on the Taxable Gross Definition record for the applicable states. |
See Also
To view state marital status codes, use the SWT Marital Status Table component (SWT_MAR_STATUS_TBL).
This section discusses how to view a state's marital status codes.
Page Name |
Definition Name |
Navigation |
Usage |
SWT_MAR_STATUS_TBL |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, SWT Marital Status Table |
View descriptions of a state's marital status codes for state withholding tax (SWT). |
|
PRCSRUNCNTRL |
Set Up HRMS, Product Related, Payroll for North America, Tax Table Reports, SWT Marital Status Codes |
Print information from the Marital Codes Status Table, which contains all valid marital status codes, sorted by state. |
To view Canadian tax tables, use the Canadian Tax Table component (CAN_TAX_TABLE).
This section provides an overview Canadian tax tables and discusses how to:
View the wage thresholds and rates for calculating Canadian federal surtax.
View the rates, thresholds, and constants to determine withholding of Canadian provincial taxes.
The Canadian Tax tables are used during payroll calculation to compute all federal, provincial, and Quebec taxes. Because these tables are maintained largely by PeopleSoft and updated based on the standards outlined in the Canada Revenue Agency (CRA) publication Payroll Deductions Formulas for Computer Programs and the Revenu Quebec publication Guide for Employers: Source Deductions and Contributions, you shouldn't need to modify them. However, you can make changes using the Canadian Tax Table pages if you have the appropriate security authorization.
Page Name |
Definition Name |
Navigation |
Usage |
CAN_TAX_TABLE1 |
Set Up HRMS, Product Related, Payroll for North America, Canadian Taxes, Tax Table, CPP/QPP and EI |
View the constant values required for calculation of contributions to Canada and Quebec Pension Plans and premiums for Employment Insurance, as well as premiums for Quebec Employment Insurance, and the Quebec Parental Insurance Plan. PeopleSoft maintains this table for you. |
|
CAN_TAX_TABLE4 |
Set Up HRMS, Product Related, Payroll for North America, Canadian Taxes, Tax Table, Tax Rates, Credits, and Other |
View the wage threshold and rates for calculating Canadian federal surtax. PeopleSoft maintains this page for you. |
|
CAN_TAX_TABLE2 |
Set Up HRMS, Product Related, Payroll for North America, Canadian Taxes, Tax Table, Provincial Rates |
View rates, thresholds, and constants needed to determine withholding of Canadian provincial taxes, including withholding, health insurance, and sales taxes. PeopleSoft maintains this page for you. |
|
CAN_TAX_TABLE3 |
Set Up HRMS, Product Related, Payroll for North America, Canadian Taxes, Tax Table, Provincial Tax Thresholds |
View by province the net claim amount threshold and tax reduction amount. Note that this page does not affect all provinces. PeopleSoft maintains this table for you. |
Access the Tax Rates, Credits and Other page (Set Up HRMS, Product Related, Payroll for North America, Canadian Taxes, Tax Table, Tax Rates, Credits, and Other).
Other
RRP/RRSP Limit (F factor) |
This field is used during the calculation of Canadian income taxes subject to the commission tax method. |
Maximum Credit |
This field displays the monetary amount to be applied to employee purchases of shares in Labour Sponsored Venture Capital Corporations (LSVCC). The federal tax credit is limited to the lesser of the maximum credit and the LCF Rate. The system applies this credit to each participating employee, according to the LCF Amount you enter on the employee's Canadian Income Tax Data page. |
LCF Rate |
This field displays the percentage to be applied to employee purchases of shares in Labour Sponsored Venture Capital Corporations (LSVCC). The federal tax credit is limited to the lesser of the maximum credit and the LCF rate. The system applies this credit to each participating employee according to the LCF Amount you enter on the employee's Canadian Income Tax Data page. |
Access the Provincial Rates page (Set Up HRMS, Product Related, Payroll for North America, Canadian Taxes, Tax Table, Provincial Rates).
Maximum LCP Credit |
For provinces where provincial labor-sponsored venture tax credits are available, you maintain the maximum LCP credit amount to be applied for that province on this table. This applies to employee purchases of shares in Labour Sponsored Venture Capital Corporations (LSVCC). |
LCP Rate |
For provinces where provincial labor-sponsored venture tax credits are available, you maintain the LCP rate to be applied for that province on this table. This applies to employee purchases of shares in Labour Sponsored Venture Capital Corporations (LSVCC). |
Health Insurance Rate |
You override the default health insurance rate on the Canadian Company Tax table. |
See Also
Setting Up the Canadian Company Tax Table
To set up wage loss plans, use the Wage Loss Plan (WAGELS_PLN_TBL) component
This section provides an overview and discusses how to set up wage loss plans.
The Canadian Wage Loss Plan table identifies valid Canadian wage loss replacement plans. The Wage Loss Replacement Plan field in the Canadian Income Tax Data table at the employee level is edited against this table. You must create entries on this table before you enter any Canadian tax data for your employees.
You must set up at least one entry on the Wage Loss Plan table for each company. Typically, you create this entry using the default EI Employer Rate and corresponding Quebec EI Employer Rate. You must define additional entries for each wage loss plan your company has registered with CRA.
Page Name |
Definition Name |
Navigation |
Usage |
WAGELS_PLN_TBL1 |
Set Up HRMS, Product Related, Payroll for North America, Canadian Taxes, Wage Loss Plan Table, Wage Loss Plan Table |
Define a wage loss plan for your company. |
|
PRCSRUNCNTL |
Set Up HRMS, Product Related, Payroll for North America, Tax Table Reports, Wage Loss Plan CAN |
Generate a report that lists information from the Wage Loss Plan Table for Canadian employers. |
Access the Wage Loss Plan Table page (Set Up HRMS, Product Related, Payroll for North America, Canadian Taxes, Wage Loss Plan Table, Wage Loss Plan Table).
Wage Loss Plan Information
Payroll Account Number |
For each plan you set up, enter your company's unique CRA Taxation account number in this field. Because a company can have more than one wage loss replacement plan, you can set up any number of plans on this table. |
EI Employer Rate |
This is the rate of your contribution to Employment Insurance. The default rate (which comes from the Employer EI Premium Rate on the Canadian Tax table) may be overridden with your specific plan rate. |
RCT Account Nbr |
This field is hidden on the page for all entries with an Effective Date of 01/01/1997 or later. The field will be displayed and is available for use for all entries dated prior to 01/01/1997 for historical purposes only. |
Quebec EI Employer Rate |
This is the rate of your contribution to Employment Insurance. You can override the default rate (which comes from the Quebec Employer EI Premium Rate on the Canadian Tax table) by entering your specific plan rate. |
To define Canadian WCB assessment reporting, use the WCB Classifications Component (CAN_WCB_CU_RATES). Use the CAN_WCB_CU_RATES component interface to load data into the tables for this component.
This section provides an overview of Canadian WCB assessment reporting and discusses how to:
Define WCB assessable earnings.
Define WCB classifications, rate groups, and assessment rates.
PeopleSoft Payroll for North America enables employers registered with the Workers' Compensation Boards (WCB) in Canada to report and pay assessments based on the total assessable earnings of their workers. The system accommodates the assessment reporting structures of all provinces. This functionality enables the reporting of assessments by rate groups and classification units.
Page Name |
Definition Name |
Navigation |
Usage |
TAXFORM_DEFN_TBL |
Payroll for North America, Year-End Processing CAN, Define Annual Tax Reporting, Tax Form Definitions, Tax Form Definitions |
Define WCB assessable earnings. |
|
CAN_WCB_CU_RATES |
Set Up HRMS, Product Related, Payroll for North America, Canadian Taxes, WCB Classifications |
Define WCB classifications, rate groups, and assessment rates. |
Access the Tax Form Definitions page (Payroll for North America, Year-End Processing CAN, Define Annual Tax Reporting, Tax Form Definitions, Tax Form Definitions).
To define WCB assessable earnings:
Establish a new Tax Form ID—WCB Assessable Earnings—and the associated tax form Boxes for each province on the Tax Form Definition page.
The Boxes reflect the two-letter province code, preceded by a W.
Define and associate the assessable Earnings and Deduction Codes for each province with the WCB Assessable Earnings Tax Form ID.
Select the applicable provinces and define the assessable earnings.
The Earnings Codes defined as Regular Hours and Overtime Hours on the Pay Group table are automatically accumulated by the system as assessable earnings without defining them on the Tax Form Definitions page.
Associate the WCB Assessable Earnings tax form ID with the appropriate Plan Type, Deduction Code, Deduction Class, Sales Tax, and Earnings Code.
Note. The earnings codes defined as Regular Hours and Overtime Hours on the Pay Group table are automatically accumulated by the system as assessable earnings without defining them on the Tax Form Definitions page.
See Also
Accessing Year-End Processing Instructions
Access the WCB Classifications page (Set Up HRMS, Product Related, Payroll for North America, Canadian Taxes, WCB Classifications).
This page can accommodate both a single classification assigned to a single province and multiple Rate Groups associated with multiple classifications (or CUs) for a single province.
WCB Firm Number |
Enter the WCB firm number. If a single rate group and/or classification and assessment rate applies to all covered employees in the province, select Single Classification Firm. |
Single Classification Firm |
If this check box is selected, the Workers Compensation report (PAY102CN) uses the entry on this page as the source for reporting assessment information for all covered employees in the province. If this check box is deselected, the information defined on the Job Code table (WCB Classifications page) 4 is used as the source for reporting. |
Rate Group |
When adding the original entry for a province, this is set by default to N/A . If rate groups are applicable to the specified province, override the default by entering the rate group. |
Default Assessment Rate |
If you enter a default assessment rate, that rate populates into the Assessment Rate for each Classification assigned to the Rate Group. |
Description (for Rate Group) |
Enter the rate group description, if applicable. Similar to the Rate Group field, the description is set by default to Not Applicable when adding the original entry for a province. |
Classification |
Define a classification or classification unit (CU). |
Assessment Rate |
Enter the assessment rate applicable to the classification. |
To set up state and locality tax routing, use the State Tax Routing USF component (GVT_STATE_TAX_ROUT) and the Locality Tax Routing USF component (GVT_LOC_TAX_ROUT).
This section lists the pages used to set up state and locality tax routing.
Page Name |
Definition Name |
Navigation |
Usage |
GVT_ST_TAX_RT1 |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, State Tax Routing USF, State Tax Routing 1 |
Identify the payment method for paying state taxes and provide details of the EFT method. |
|
GVT_ST_TAX_RT2 |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, State Tax Routing USF, State Tax Routing 2 |
Identify check address information if the payment method for paying state taxes is by check. |
|
GVT_LC_TAX_RT1 |
Set Up HRMS, Product Related, Payroll for North America, Local Taxes, Locality Tax Routing USF, Locality Tax Routing 1 |
Identify the payment method for paying local taxes and provide details of the EFT method. |
|
GVT_LC_TAX_RT2 |
Set Up HRMS, Product Related, Payroll for North America, Local Taxes, Locality Tax Routing USF, Locality Tax Routing 2 |
Identify check address information if the payment method for paying local taxes is by check. |
|
GVT_ST_TAX_RT_DET |
Click the TXP Addendum Control button on the State Tax Routing 1 page or the Locality Tax Routing 1 page. |
Provide TXP addendum information and amount controls. |
To establish 1042 processing for non-resident aliens, use the Treaty/NR Alien Table component (TREATY_NR_ALIEN_TA).
This section provides an overview of tax treaties and discusses how to set up 1042 processing for non-resident aliens.
The U.S. government has entered into tax treaties with nearly 40 foreign jurisdictions. Income tax treaties coordinate the tax systems of the United States and other countries that are parties to treaties. Treaty provisions affect the taxation of non-resident aliens working in the U.S. While tax treaties are generally based on a standard model, each treaty might have slightly different provisions.
In addition to employees covered by tax treaties, you must also report earnings on a 1042-S form for some non-resident alien employees, such as those with specific types of earnings such as scholarships, fellowships, and grants.
Employee and Employer Requirements
To claim benefits of a treaty, an employee must have a visa and be a resident of one of the treaty countries. An employee can claim benefits of only one treaty at any given time. Employees who want to claim benefits under a tax treaty must submit a written statement and applicable forms (W-4, Form 8233, Form 1001) to their employer.
As an employer, you must apply the specific treaty rules when calculating federal withholding tax. These rules often include time limits and earnings caps. Different types of earnings, such as scholarships, grants, and fellowships, might be subject to different taxation rates. You must produce a Form 1042-S and a 1042 summary form for each non-resident alien employee affected by the special withholding rates. If you file 250 or more 1042-S forms, you must report on magnetic media. Earnings reported on a 1042-S are not reported on a W-2; so, an employee may need both a W-2 and a 1042-S if some earnings are covered by the special tax treaty rates and some are not.
Tax Treaty Setup in Payroll for North America
Use the NR Alien Tax Treaty Table page to capture the tax rates specified in tax treaties (including exempt earnings, which are recorded with a 0% tax rate). This table identifies those earnings subject to a 30% flat withholding tax.
If you employ nonresident aliens from countries that do not have a tax treaty with the U.S., set up a record with NO TREATY as the treaty ID. You can either set up a record for each country that does not have a treaty, or one record for all countries without treaty. You must also identify these employees as nonresident aliens on their federal tax data records.
Note. PeopleSoft re-delivers the tax treaty table with each major version and, if required, with the year-end Tax Update. If interim changes are required, you must track and apply the changes in your environment.
See Also
Page Name |
Definition Name |
Navigation |
Usage |
TREATY_NRA_TABLE |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, NR Alien Tax Treaty Table, NR Alien Tax Treaty Table |
Set up the rules associated with the treaties required for each country with which the U.S. has an agreement. |
|
PRCSRUNCNTL |
Set Up HRMS, Product Related, Payroll for North America, Tax Table Reports, Treaty/Non Resident Alien, Treat/Non Resident Alien Rpt |
Report on information from the Tax Treaty Table using Tax Treaty Table report (TAX720.SQR) |
Access the NR Alien Tax Treaty Table page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, NR Alien Tax Treaty Table, NR Alien Tax Treaty Table).
Country |
If you want to establish entries on the NR Alien Tax Treaty table that are applicable to more than one country (for example, to use for all scholarship income that is to be taxed at 30%, or for countries that do not have a treaty), you can use any value prefixed by a $ in the country code (for example, Country = $S). |
Treaty ID |
For countries that do not have a treaty agreement with the U.S., enter NO TREATY in this field on the search page. |
Allowances Permitted |
For each tax treaty record you establish, specify the number of allowances permitted by the treaty. The system issues an error message when the employee's claimed allowance is over the maximum allowance permitted. For countries with no treaty, enter 1. |
Income Code (for 1042-S) |
Select each type of earnings subject to special tax treatment under the treaty. |
Max Earnings Eligible Per Year |
Specify the earnings caps that apply for each earnings type. |
Tax Rate After Form Received |
Specify the taxation rates that apply for each earnings type. |
Tax Rate Before Form Received |
Specify the taxation rates that apply for each earnings type. |
See Also
To establish UI report codes, use the UI Report Code Table component (CO_UI_RPTCD_TBL).
This section provides an overview and discusses how to set up UI report codes.
Information you enter on the UI Report Code Table page works with the Multiple Worksite Report (TAX004) to link a tax location code to a UI report code. When you add an entry to the UI Report Code table, the system prompts you to enter the company code and the location code of the site you want to establish for reporting worksite information to the U.S. Bureau of Labor Statistics.
Exceptions for MI and MN
Most states do not require the reporting of multiple worksite data at the individual state level if the information is consolidated and reported to the U.S. Bureau of Labor Statistics. However, the states of Michigan and Minnesota do require that this data be reported individually as part of the quarterly unemployment wage reporting using these reports:
TAX810MN for commercial and E&G customers.
TAX810MI for E&G customers only.
The TAX810MN and TAX810MI reports append the employer ID extension to Employer SUT ID (from the Company State Tax table) as a unique ID for reporting purposes.
Page Name |
Definition Name |
Navigation |
Usage |
CO_UI_RPTCD_TBL |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, UI Report Code Table, UI Report Code Table |
Establish UI report codes in PeopleSoft Payroll for North America for multiple work sites. |
Access the UI Report Code Table page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, UI Report Code Table, UI Report Code Table).
Company UI Information
UI Report Code |
Enter the code you have received from the state for this site. |
Employer ID Ext (employer ID extension) |
This field is available for data entry when the tax location state is MI or MN. Enter the employer ID extension for reporting multiple worksite data. |
To establish standard occupational classifications for Alaska, use the U.S. SOC Table component (US_SOC_TBL). Use the US_SOC_TABLE component interface to load data into the tables for this component.
This section discusses how to set up U.S. standard occupation classifications.
Page Name |
Definition Name |
Navigation |
Usage |
US_SOC_TABLE |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, U.S. SOC Table, U.S. SOC Table |
Set up the U.S. Standard Occupational Classification (SOC) Table page used in quarterly unemployment insurance reporting for the state of Alaska or for the Wyoming Workers Compensation Division. |
Access the U.S. SOC Table page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, U.S. SOC Table).
Standard Occupational Classification Code |
The codes established here are used in the Quarterly UI Wage Tape for Alaska (TAX810AK). This report corresponds to Alaska's quarterly Employer's Report of Wages for Each Employee form. The codes are also used as NAICS codes for Wyoming. |
Note. Use the Job Code table to link Standard Occupational Classification codes with particular job codes in your organization. If your organization has employees in both Alaska and Wyoming, you must set up unique job codes for these two states because the SOC codes on this table are used differently in these two states.
To specify voluntary disability insurance plan location and contact information, use the VDI/FLI Administrator Table component (VDI_ADMINISTRATOR).
This section lists the pages used to enter voluntary disability insurance plan location and contact information.
Page Name |
Definition Name |
Navigation |
Usage |
VDI_ADMIN_TABLE |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, VDI/FLI Administrator Table, VDI/FLI Administrator Table |
Enter location and contact information about the administrators of employee voluntary disability plans and voluntary family leave plans. After you've established your VDI and FLI administrators, assign administrators to their voluntary plans on the Company State Tax Table - VDI/FLI page. |
|
PRCSRUNCNTL |
Set Up HRMS, Product Related, Payroll for North America, Tax Table Reports, VDI Administrator |
Report on information from the VDI/FLI Administrator Table using the VDI/FLI Administrator report (TAX715.SQR). |
Access the VDI/FLI Administrator Table page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, VDI/FLI Administrator Table, VDI/FLI Administrator Table).
Note. After you've established your VDI and FLI administrators, assign administrators to their voluntary plans on the Company State Tax Table - VDI/FLI page.
Administrator Type |
Select VDI, FLI, or Both to indicate whether this administrator administers your voluntary disability insurance plan, your voluntary family leave insurance plan, or both. |
To specify parameters for quarterly tax reporting, use the Tax Reporting Parameters component (TAX_RPT_PARAMETERS).
This section discusses how to define parameters for quarterly tax reporting:
Page Name |
Definition Name |
Navigation |
Usage |
TAX_RPT_PARAMETERS |
Payroll for North America, U.S. Quarterly Processing, Define Quarterly Tax Reporting, Tax Reporting Parameters, Quarterly Tax Reporting Parameters |
Set up parameters for quarterly tax reporting. |
Access the Quarterly Tax Reporting Parameters page (Payroll for North America, U.S. Quarterly Processing, Define Quarterly Tax Reporting, Tax Reporting Parameters, Quarterly Tax Reporting Parameters).
Balances for Year |
The value you enter here defines the reporting period. |
Balances for Quarter |
The value you enter here defines the reporting period. |
Electronic Mag Media Rpt Parms
Transmitter ID |
Enter the Company ID of the company transmitting W-2s for tax reporting. This is used in a multi-company environment when a single company acts as the transmitter for all companies in the organization. |
Computer Manufacturer |
Enter the name of the manufacturer, such as IBM, Compaq, or Digital that makes the computer you use to create the magnetic media (such as diskette or tape) for tax reporting. |
Organization Type |
Select Government or Other. |
Type of Employment |
Select Agriculture, Federal, Medicare Qualified Government Employee, Military, Railroad, or Regular (All Others). |
Recording Code |
Select ASCII or EBCDIC. |
Tape Label |
Select the type of tape label. |
Tape Density |
Select the tape density. |
Blocking Factor |
Enter the blocking factor. |
To set up tax types for PeopleSoft Accounts Payables integration, use the Tax Type Table USA component (TAX_TYPE_TBL), Tax Type Table USF component (TAX_TYPE_TBL), or Tax Type Table CAN component (CAN_TAX_TYPE), the State Tax Types/Classes USA component (STAT_TAX_TYPE_TBL) or State Tax Types/Classes USF component (STAT_TAX_TYPE_TBL), and the Local Tax Types/Classes USA component (LOCL_TAX_TYPE_TBL) or Local Tax Type/Classes USF component (LOCL_TAX_TYPE_TBL). Use the TAX_TYPE_TABLE component interface to load data into the tables for the Tax Type Table USA component and Tax Type Table USF component
This section provides an overview of tax types for accounts payable integration and discusses how to:
(CAN) Define Canadian federal and provincial tax types.
(USA) Link tax types to federal or state tax vendors and tax classes.
(USA) Link tax types to local tax vendors and tax classes.
Maintaining the Tax Collector table for Payables.
See Also
Integrating with PeopleSoft Payables
If you plan to use PeopleSoft Accounts Payable to send tax authorities the taxes deducted from employees' paychecks, you must link the appropriate set of deductions to each tax vendor.
Tax types are used to link tax classes to vendors. A tax type represents a collection of tax classes, such as withholding, earned income credit, and so on, specific to a particular tax jurisdiction (federal, state, local, provincial).
Setting up tax types and linking them to vendors is done differently for the U.S. and Canada.
Canada
Use the Canadian Tax Types page to name the tax type and link it to tax classes and vendors.
U.S.A.
Define tax types on the Tax Type Table page.
Link tax types to tax classes and vendors on the AP State Tax Types/Classes Table page or the AP Local Tax Types/Classes page.
Example
In the state of California, employees are subject to two taxes for short-term disability: SDI (paid to the state) and OASDI (paid to the federal government). Each tax is comprised of a different set of tax classes. In this case, you might create a tax type named Short-Term disability. You would then access the Fed/State Tax Type/Classes page and define what Short-Term Disability represents at the federal level: For the vendor, you select the Internal Revenue Service; for the tax classes you select only those included in OASDI. You then repeat the process to define Short-Term Disability at the state level. This time, you select the Franchise Tax Board as the vendor and just those tax classes that contribute to SDI.
Page Name |
Definition Name |
Navigation |
Usage |
TAX_TYPE_TBL |
|
Define the names of the tax types you want to use. |
|
CAN_TAX_TYPE |
Set Up HRMS, Product Related, Payroll for North America, AP - Tax Types/Classes, Tax Type Table CAN, Tax Type Table |
Define Canadian federal and provincial tax types and link them to vendors and tax classes. |
|
STAT_TAX_TYPE_PNL |
|
Link a tax type to a federal or state tax authority and set of tax classes. |
|
LOCL_TAX_TYPE_PNL |
|
Link a tax type to the local tax authority and the applicable set of tax classes. |
|
VNDR_ID1 |
Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Collector Table, Vendor Information |
Enter vendor data for tax collectors. |
Access the Canadian Tax Type Table page (Set Up HRMS, Product Related, Payroll for North America, AP - Tax Types/Classes, Tax Type Table CAN, Tax Type Table).
Source |
Select the type of tax transaction from the options available. Values include Goods and Services Tax, Health and Payroll Taxes, Provincial Sales Tax, or Statutory Deductions. |
Province |
If you chose Provincial Sales Tax in the Source field, select the Province in this field. |
Tax Class |
Select the tax class you want to associate with this tax type and vendor from the options available. Add all applicable tax classes. The Source field determines which tax classes are available for selection.
|
See Also
Access the AP State Tax Types/Classes Table page (Set Up HRMS, Product Related, Payroll for North America, AP - Tax Types/Classes, State Tax Types/Classes USA, AP State Tax Types/Classes Table).
Note. Enter $U in the search page to enter federal tax type information.
Tax Type |
Select the tax type you want to define. The prompt table displays the names of the tax types you set up on the Tax Type Table page. |
SetID |
Select the setID for the tax type. This determines which set of vendors (tax authorities) you can select in the Vendor ID field. |
Vendor ID |
Select the tax authority (vendor) to which you want the taxes for this tax type paid. The prompt table displays only those vendors associated with the setID you selected. |
Class Name |
Select the tax classes associated with this tax type and vendor. Add all applicable tax classes. |
Access the AP Local Tax Types/Classes page (Set Up HRMS, Product Related, Payroll for North America, AP - Tax Types/Classes, Local Tax Types/Classes USA, AP Local Tax Types/Classes).
The fields on this page are the same as those on the AP State Tax Types/Classes Table page.
See (USA) Linking Tax Types to Federal or State Vendors and Tax Classes.
Access the Vendor Information page (Set Up HRMS, Product Related, Payroll for North America, Federal/State Taxes, Tax Collector Table, Vendor Information).
Set up tax collectors as vendors using the Tax Collector Table (TAX_COLLECTOR_TBL) component or the Vendor Table component (VNDR_ID).
After entering information about the tax-collecting agency, enter the vendor code on the Local Tax Type-Classes page for .
Maintaining the Tax Collector Table for Pennsylvania
For each municipality and overlying school district, the State Tax Register lists the effective rates for both Earned Income and Emergency and Municipal Service taxes for residents and, when applicable, nonresidents. Earned income and emergency and municipal service tax collector information for each municipality and school district are also listed. In some instances, there are different tax collectors for the municipality and the school district. When this occurs, employers must remit the school district's tax to its collector and the municipality's tax to its collector.
See Also
Setting Up Tax Types for PeopleSoft Payables Integration