(USA) Converting Tax Balances in Mid-Year Conversions

This topic provides an overview of issues related to converting tax balances mid-year, and discusses how to:

  • Convert federal taxable wages for part-year New York City (NYC) residents.

  • Convert tax balances for employees paid in multiple tax jurisdictions.

Mid-year conversion of tax balances without converting the actual check detail to Payroll for North America can produce inaccurate year-end results for two SQR processes:

  • Year-End NYC Part Year Resident Allocation SQR report (TAX909NY).

  • Year-End Jurisdiction Split SQR report (TAX911LD).

These processes use the check detail to determine the amounts for year-end reporting. If you do not convert the check detail, the results from TAX909NY and TAX911LD may not be correct on the W-2 forms or annual magnetic media files.

The level of detail required for these reports is not available on the balance records, and can only be found on the paycheck detail record.

This topic provides suggestions for working around this limitation.

The TAX909NY.SQR:

  • Identifies employees who were part-year New York City residents

  • Sums the federal taxable wages paid to these employees from their check detail records that indicate New York City residency status.

The SQR selects only check detail because PeopleSoft can determine resident or non-resident status only from PS_PAY_TAX on each check. The TAX_BAL tables do not store this level of detail.

You can use one of these methods to resolve this issue:

  • Update PS_R_TAX909NY.

    Calculate the wages and update this temporary table for collection of YTD taxable gross wages for NYC residents before you run TAX910LD.

  • Calculate the wages and update the NYC WAGES data in the PS_YE_AMOUNTS after running TAX910LD.

    If you run the TAX910LD again after the update, your entries will be overridden.

  • Set the NYC wages equal to the NY State wages.

    This method would definitely result in some errors but might acceptable if you have a small number of NYC employees.

Note: Even if you run SQR TAX910LD multiple times, you must run TAX909NY only once, to load the table PS_R_TAX909NY. These updates must be done before you run TAX910LD. It is not necessary to run TAX909NY multiple times unless you make changes to employees that have NYC year-end data. TAX910LD reads the PS_R_TAX909NY table each time it's run.

The TAX911LD SQR:

  • Identifies employees who were paid in multiple jurisdictions (United States, Puerto Rico, American Samoa, Guam, or the U.S. Virgin Islands) in the same tax year.

  • Allocates earnings and/or deductions to the correct jurisdiction's year-end data record based on the employee check detail.

The SQR selects only check detail because Payroll for North America does not track earnings and deductions by jurisdiction, except from PS_PAY_DED on each check. The DED_BAL tables do not store this level of detail.

To resolve this issue manually (not using the TAX911LD SQR), determine which earnings and deductions must be reported by each jurisdiction. These earnings and deductions can be found on the Tax Form Definition table for boxes 12 and/or 14. Update the PS_YE_AMOUNTS table by indicating the territory in the State field and the amount of the earnings or deductions in the appropriate boxes 12 and/or 14.

The available values in the State field are:

  • $U: U.S.

  • $UAS: American Samoa

  • $UGU: Guam

  • $UPR: Puerto Rico

  • $UVI: Virgin Islands

If the TAX910LD or TAX911LD are run after the manual changes, your data will be overwritten.

Note: You must run TAX911LD immediately following each and every run of TAX910LD.