41 Set Up Tax Information

This chapter contains these topics:

Section 41.1, "Setting Up Tax Area Information,"
Section 41.2, "Setting Up Corporate Tax IDs."

The Time Accounting system requires information for at least one tax area to process employee and summary history information.

Before you can use the Time Accounting system, you must establish tax information. This includes:

Information	Description
Tax areas	You set up a tax area that you assign to your employees when you enter them in the Time Accounting system.
Corporate tax IDs	You set up a corporate tax identification code to process the information the system requires to create summary history tables.

41.1 Setting Up Tax Area Information

Navigation

From Time Accounting (G05), enter 29

From Time Accounting Setup (G054), choose Payroll Constants and Tables

From Additional Constants and Tables (G0541), choose Tax Area Information

You must set up one tax area that you assign to your employees when you enter them into the Time Accounting system. The system requires you to enter this value on Employee Entry in order to save the information to the Employee Master table (F060116). It is not necessary to set up more than one tax area in the Time Accounting system. The system does not recognize the various tax areas used to calculate taxes. To calculate taxes, you must use the Payroll system and assign the appropriate tax areas to your employees.

To set up tax area information

On Tax Area Information

Figure 41-1 Tax Area Information screen

Description of "Figure 41-1 Tax Area Information screen"

Complete the following fields:

Tax Area
Tax Type
Description
Company/Employee Paid
Print on Net Pay Instruction

The remaining tax area setup fields are not applicable to Time Accounting. The system enters default values for any required fields, if left blank.

Field	Explanation
Tax Area	A code that identifies a geographical location and the tax authorities for the employee's work site. Authorities include both employee and employer statutory requirements. In Vertex payroll tax terminology, this code is synonymous with GeoCode. Refer to Vertex System's Master GeoCode List for valid codes for your locations.
Tax Type	A user defined code (07/TT) that identifies the type of payroll tax being processed. Refer to the associated user defined code records for the current descriptions of these codes. The values and meanings associated with this user defined code are pre-set by JD Edwards World. You should not alter the values and meanings. Form-specific information For Canadian provincial tax types: Set up tax type CF for every tax area even if there is no provincial tax because wage history is maintained by province. For U.S. state tax types: Set up tax type C, Federal Unemployment Insurance (FUI) for each state, because the FUI rate might vary from state to state. Use the 2 character statutory code for the state. You must have the tax type Z, weeks worked, whenever you have tax type H. state unemployment. Some states require weeks worked to be reported with state unemployment. For U.S. local tax areas: Local tax areas use all 9 digits of the GeoCode tax area. You should define a 3 character statutory code. For U.S. Earned Income Credit (EIC) For Tax Type B, the EIC prints on the check, advice, or payslip. The system subtracts this tax amount from the total deductions at the bottom of the paystub.
Description-Alpha	Categorizes data item names. Enter text in upper and lower case. The system uses this field to search for similar data items. To enter an alpha description, follow these conventions: Dates - Begin all Date fields with Date Amounts - Begin all Amount fields with Amount Units - Begin all Unit, Quantity, and Volume fields with Units Name - Begin all 30-byte description fields with Name Prompt - Begin any Y/N prompting field with Prompt Address Number - Begin all address numbers (employee, customer, owner) with Address Number Form-specific information For Tax Area Information: The first 12 characters of the description print on the paystub. Because the tax area index sorts on this description: Begin each state tax with the statutory code or state abbreviation so similar state taxes display together on the index. Begin federal tax descriptions with the same letters, for example FED.
Print On N.P. Instrctn	Identifies whether the item is to be printed on the paystub and whether the item is to be printed on a separate check from other payroll items. Valid codes are: Pay Types/Payroll Taxes: Y – Print on paystub (default) S – Print separate check (one item per check) C – Print separate check (C types combined) N – Do not print on paystub Deduction/Benefit/Accrual Types: Y – Print as total deductions (default) S – Print separate check (one item per check) C – Print separate check (include detail) N – Do not print on paystub I – Print individual transactions T – Print by DBA Print Group The separate check feature is not available for any payroll taxes being withheld from the employee's paycheck. Form-specific information Enter a Y for taxes paid by the employee.
Company/Employee Paid	A code that specifies whether the payroll tax associated with the tax authority is paid by the company (expense) or a employee deduction (withholding). Codes are: C – Company Paid E – Employee withheld If a code of E is used for employee withheld, then an associated DBA must be set up in order for this table to calculate correctly. DBA No. 9050 can be used as an example when setting up employee paid workers compensation.

41.2 Setting Up Corporate Tax IDs

Navigation

From Time Accounting (G05), enter 29

From Time Accounting Setup (G054), choose Payroll Constants and Tables

From Additional Constants and Tables (G0541), choose Corporate Tax IDs

You must set up a corporate tax ID in order to maintain summary timecard history information in the Payroll Month PDBA Summary History table (F06146). It is not necessary to set up more than one corporate tax ID number in the Time Accounting system.

To set up corporate tax IDs

On Corporate Tax IDs

Figure 41-2 Corporate Tax IDs screen

Description of "Figure 41-2 Corporate Tax IDs screen"

Complete the following fields:
- Company
- Tax Area
- Tax Type
- Tax Identification Number

Field	Explanation
Tax Identification Number	A number that identifies your company to the tax authority. Such numbers include social security number, federal or state corporate tax IDs, sales tax number, etc. This number has specifically been established for the Payroll system to handle the current requirement of states such as Idaho and Louisiana which use more than 9 positions. Do not enter hyphens (dashes) embedded in the code. Form-specific information You must make an entry in this field. If you do not currently have the number, type applied for followed by the tax area and tax type. When you receive the number, replace this temporary entry. For Canadian employment insurance: Enter the Revenue Canada business identification number (BIN) as the corporate tax ID.

Field

Explanation

Tax Identification Number

A number that identifies your company to the tax authority. Such numbers include social security number, federal or state corporate tax IDs, sales tax number, etc.

This number has specifically been established for the Payroll system to handle the current requirement of states such as Idaho and Louisiana which use more than 9 positions.

Do not enter hyphens (dashes) embedded in the code.

Form-specific information

You must make an entry in this field. If you do not currently have the number, type applied for followed by the tax area and tax type. When you receive the number, replace this temporary entry.

For Canadian employment insurance:

Enter the Revenue Canada business identification number (BIN) as the corporate tax ID.