What are the wage accumulation rules for the US?

You set the state and resident wage accumulation rules at the organization level.

• Use the Legal Entity Calculation Cards task to set them at the payroll statutory unit (PSU) level.

• Use the Legal Reporting Unit Calculation Cards task to set them at the tax reporting unit (TRU) level. This overrides the setting on the PSU.

• You can also set resident wage accumulation rules at the state and local levels for employees on their tax cards. This would override settings on the organization cards.

Note:

The US Oracle Payroll Tax Engine (USOPTE) refers to wage accumulation rules as state interaction rules (SIRs).

The following tables describe the payroll process wage accumulation rules available for state and local.

State Wage Accumulation Rules

Payroll process rule	USOPTE SIR code	What it does
Use default behavior	Default	Executes the default behavior.
Credit resident tax by work tax, always accumulate wages	2	Calculates the resident tax. Reduces the tax by the amount of work tax withheld. Always accumulates wages for the residence, even if the resident tax is $0.
Credit resident tax by work tax, accumulate wages if taxed	3	Calculates the resident tax. Reduces the tax by the amount of work tax withheld. Only accumulates wages if there's a tax withheld.
No resident tax if work tax greater than zero, always accrue	4	Doesn't withhold residence taxes if there's a work tax. Always accumulates wages.
No resident tax if work tax greater than zero	5	Doesn't withhold residence taxes if there's a work tax. Always accumulates wages.
No resident tax if work tax on nonresident, always accrue	6	Doesn't withhold residence taxes if there's a work state tax. Accumulates wages for the residence.
No resident tax if work tax on nonresident, accrue if taxed	7	Doesn't withhold residence taxes if there's a work state tax. Accumulate wages only when there's a tax withheld.
No resident tax if work or residence location mismatch, accrue if taxed	8	Calculates work tax. Disregards resident tax.
Credit resident tax by work tax, accumulate wages if work tax not withheld	10	Credits the resident state by the amount of work tax withheld. Accumulates wages only if out of state tax isn't withheld.
No resident tax if work wages exist, always accumulate wages	13	Doesn't withhold residence tax if wages exist for the work state. Always accumulates wages.
Calculate tax independent of all other jurisdictions	99	Calculates resident tax independent of work tax.

Local wage accumulation rules

Payroll process rule	USOPTE SIR code	What it does
Use default behavior	Default	Executes the default behavior.
Credit resident tax by work tax, always accumulate wages	2	Calculates the resident tax. Reduces the tax by the amount of work tax withheld. Always accumulates wages for the residence, even if the resident tax is $0.
Credit resident tax by work tax, accumulate wages if taxed	3	Calculates the resident tax. Reduces the tax by the amount of work tax withheld. Only accumulates wages if there's a tax withheld.
No resident tax if work or residence location mismatch, accrue if taxed	8	Calculates work tax. Disregards resident tax.
Calculate tax independent of all other jurisdictions	99	Calculates resident tax independent of work tax.