4How to Define Federal Tax Rules on the Organization Cards for the US
The US Oracle payroll tax engine (USOPTE) provides all statutory compliance for the payroll process. However, you can set the following on the organization cards.
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Federal tax rules, such as:
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Supplemental calculation method for federal income tax (FIT)
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Regular and supplemental FIT calculation methods
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FIT withholding rules
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Period-to-date FIT calculation method
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Self-adjustment methods for federal unemployment tax (FUTA), Social Security, and Medicare
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Flat tax rate overrides for retirees
To configure these:
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Open the calculation card for editing.
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In Component Groups, click Federal.
Calculation Components lists rows for each federal tax.
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Select the row of the tax you want to edit.
Details updates for the selected tax type.
If a tax type is missing, click Create to add it.
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Enter the appropriate FIT-specific rules.
Rule
What it does
Where you can find it
Supplemental Tax Calculation Method
Overrides the default tax calculation method for supplemental wages
Calculation Component Details
Regular and Supplemental Tax Calculation Method
Overrides the default tax calculation method for regular and supplemental wages
Calculation Component Details
Tax Withholding Rules
Determines which states are applicable for courtesy resident taxation
Calculation Component Details
Enable Period-to-Date Tax Calculation
Determines if state and federal taxation is considered based on either the Run or Period-to-date
Calculation Component Details
Enforce Federal Income Tax Look-Back Rule
Enforces the look-back rule from the previous and current year when determing the proper withholding for supplemental earnings
Enterable Calculation Values on Calculation Cards
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Define any required rate or functional overrides in Enterable Calculation Values on Calculation Cards.
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Repeat to add self-adjustment settings for Social Security, Medicare, and FUTA.
These rules determine how the payroll process adjusts for rate or wage base changes.
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Click Save.