(USA) TAX5162T – Two-Tiered Supplemental Adjustment Program

TAX5162T was provided to implement the new two-tiered federal supplemental tax rates in tax year 2005. You can also use it if you did not specify the supplemental payment special accumulator for all supplemental earnings codes and must correct the balances.

Note:

As a prerequisite to running this report, you must create a special accumulator code to store each employee's taxable gross for supplemental payments. Enter this special accumulator on the Earnings Table - Special Process page with T selected in the Effect on Special Balance field for each earnings code identified as using the supplemental tax method.

TAX5162T relies on the special accumulator for supplemental payments to determine the taxable gross (as opposed to the total gross) amounts from confirmed payments of supplemental wages. It populates the to-date balances of the special accumulator by overriding existing period-to-date balance amounts with the cumulative period-to-date taxable gross portions of supplemental wage payments.

Note:

The TAX5162T process cannot determine the taxable gross if supplemental payments were issued as part of the employee's regular paycheck. In this case, it updates the special accumulator with the total gross rather than the taxable gross.

TAX5162T produces a report to document the override to the special accumulator. From the run control page, run the process in either audit or update mode.

• Audit mode creates a preliminary report that you can review for accuracy.

  Audit mode does not update the database.

• Update mode updates the special accumulator balances in the database.

  Run the program only once in update mode. If previously calculated but unconfirmed payrolls exist, rerun the Pay Calculation process with the calculation option Recalculate All Checks selected so that the new special accumulator balances are accessed.