Configure FIT Elements for Balance Adjustments

You can use either the Elements task or HCM Data Loader (HDL) to define the tax adjustment element for tax adjustment element for federal income tax (FIT).

Note: FIT has no annual taxable limit. For an example of configuring a tax adjustment element with a taxable limit, see Configure SUI Employee Elements for Balance Adjustments in the Help Center.

For further info, see Use Element Entries for Tax Refund Balance Adjustments for the US in the Help Center.

Use the Elements Task

You define the element with the same values as your predefined Federal Income Tax element, with the exception that you define this tax adjustment element at the assignment level.

Field name	What you enter
Legislative Data Group	Select your US legislative data group (LDG), such as My US LDG
Primary Classification	Employee Tax Deductions
Secondary Classification	Leave blank
Name	Enter a meaningful name, such as TA Federal Income Tax
Reporting Name	Enter a meaningful name, such as TA Federal Income Tax
Description	Enter a meaningful description, such as Element for adjusting Federal Income Tax
Effective Date	1/1/1951
Input Currency	US Dollar
Should every person eligible for the element automatically receive it?	No
What is the earliest entry date for this element?	First Standard Earnings Date
What is the latest entry date for this element?	Final Close
At which employment level should this element be attached?	Assignment level
Does this element recur each payroll period, or does it require explicit entry?	Nonrecurring
Can a person have more than one entry of this element in a payroll period?	Yes

Configure these input values on the element.

Note: Don't define the Statutory Reference Type or Statutory Reference Code input values, as they aren't applicable for tax adjustments.

Name	Display sequence	Special purpose	Unit of measure	Displayed	Allow user entry	Required	Create a database item	Apply default during pay run
Deferred Compensation 401K Reductions	70		Money	Yes	Yes	No	No	No
Deferred Compensation 403B Reductions	80		Money	Yes	Yes	No	No	No
Deferred Compensation 457 Reductions	90		Money	Yes	Yes	No	No	No
Dependent Care Reductions	100		Money	Yes	Yes	No	No	No
Exempt Income	20		Money	Yes	Yes	No	No	No
Gross	10		Money	Yes	Yes	No	No	No
Other Pretax Reductions	110		Money	Yes	Yes	No	No	No
Reduced Subject Withholdable	50		Money	Yes	Yes	No	No	No
Section 125 Reductions	60		Money	Yes	Yes	No	No	No
Subject Not Withholdable	40		Money	Yes	Yes	No	No	No
Subject Withholdable	30		Money	Yes	Yes	No	No	No
Tax Calculated	120	Primary output value	Money	Yes	Yes	No	No	No

Use the HCM Data Loader

To define the Federal Income Tax adjustment element:

1. Define HDL upload files to upload the element and its input values.

   1. Define a DAT file with the necessary element details.

      For further info, see Example of Creating Earnings Element for Payroll in the Help Center.

      For example, here's how you'd use the PayrollElementDetails and PayrollElementQuestionnaire sections to define the FIT element.

      METADATA|PayrollElementDetails|ElementName|ReportingName|Description|LegislativeDataGroupName|PrimaryClassificationName|SecondaryClassificationName|Category|ElementStartDate
      MERGE|PayrollElementDetails|TA Federal Income Tax|TA Federal Income Tax|Element for adjusting Federal Income Tax|My US LDG|Employee Tax Deductions|||1951/01/01
      METADATA|PayrollElementQuestionnaire|ElementName|LegislativeDataGroupName|RuleCode|Rule|Response
      MERGE|PayrollElementQuestionnaire|TA Federal Income Tax|My US LDG|SpecCurrency|Input Currency|US Dollar
      MERGE|PayrollElementQuestionnaire|TA Federal Income Tax|MY US LDG|Availability Rule|Should every person eligible for the element automatically receive it?|No
      MERGE|PayrollElementQuestionnaire|TA Federal Income Tax|MY US LDG|Hire Process|What is the earliest entry date for this element?|First Standard Earning Date
      MERGE|PayrollElementQuestionnaire|TA Federal Income Tax|MY US LDG|Terminate Process|What is the latest entry date for this element?|Final Close
      MERGE|PayrollElementQuestionnaire|TA Federal Income Tax|MY US LDG|Processing Level|At which employment level should this element be attached?|Assignment level
      MERGE|PayrollElementQuestionnaire|TA Federal Income Tax|MY US LDG|Processing Asg Level|Do you want the element to be processed at Payroll Assignment level?|Yes
      MERGE|PayrollElementQuestionnaire|TA Federal Income Tax|MY US LDG|Recurring Or NonRecurring|Does this element recur each payroll period, or does it require explicit entry?|Nonrecurring
      MERGE|PayrollElementQuestionnaire|TA Federal Income Tax|MY US LDG|Multiple Entries|Can a person have more than one entry of this element in a payroll period?|Yes
      MERGE|PayrollElementQuestionnaire|TA Federal Income Tax|MY US LDG|CalculationRuleBasic|What is the calculation rule?|Flat amount

   2. Define a DAT file for the required input values. These are the same input values as described in the Use the Elements Task section above.

      For further info, see Example of Updating Payroll Element Definitions in the Help Center.

      For example, here's how you'd define the Gross input value.

      MERGE|InputValue|1951/01/01||Gross|Y|Y|Money |Y|Y|||TA Federal Income Tax|10|My USA LDG|Gross|N

2. Use HDL to upload the files.

Feed the Balances

After creating the input values for the element, link the element to the balances you intend to update.

Start the Balance Definitions task, and add these input values as balance feeds to the tax balance. Feed these balances before you feed the balances to the parent tax elements.

Note: You must use 1951-01-01 as the effective as-of date.

Feed these balances	Using these input values	Add or subtract
Employee Tax Deductions	Tax Calculated	Add
FIT 401k Reductions	Deferred Compensation 401K Reductions	Add
FIT 403b Reductions	Deferred Compensation 403B Reductions	Add
FIT 457 Reductions	Deferred Compensation 457 Reductions	Add
FIT Dependent Care Reductions	Dependent Care Reductions	Add
FIT Exempt	Exempt Income	Add
FIT Gross	Gross	Add
FIT Other Pretax Reductions	Other Pretax Reductions	Add
FIT Pretax Reductions	Other Pretax Reductions	Add
FIT Pretax Reductions	Section 125 Reductions	Add
FIT Pretax Reductions	Dependent Care Reductions	Add
FIT Pretax Reductions	Deferred Compensation 401K Reductions	Add
FIT Pretax Reductions	Deferred Compensation 403B Reductions	Add
FIT Pretax Reductions	Deferred Compensation 457 Reductions	Add
FIT Reduced Subject Withholdable	Reduced Subject Withholdable	Add
FIT Section 125 Reductions	Section 125 Reductions	Add
FIT Subject Not Withholdable	Subject Not Withholdable	Add
FIT Subject Withholdable	Subject Withholdable	Add
FIT Withheld	Tax Calculated	Add
Net	Tax Calculated	Subtract
Net Payment	Tax Calculated	Subtract
Tax Deductions	Tax Calculated	Add