This page (revision-35) was last changed on 26-Nov-2021 10:22 by mmcfarland

This page was created on 26-Nov-2021 10:22 by jmyers

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Version Date Modified Size Author Changes ... Change note
35 26-Nov-2021 10:22 17 KB mmcfarland to previous
34 26-Nov-2021 10:22 17 KB mmcfarland to previous | to last
33 26-Nov-2021 10:22 17 KB mmcfarland to previous | to last
32 26-Nov-2021 10:22 17 KB rforbes to previous | to last PR_US_Federal_Tax_Calc ==> Taxation - US Federal
31 26-Nov-2021 10:22 17 KB jmyers to previous | to last
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Taxation - US Federal
Taxation - US Federal

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Difference between version and

At line 260 added 2 lines
|FIT_Wages|Usage 6051 Pre FWT Earnings|6153.82
|RRTA_Wages|Usage 6306 Pre-RR Tier1 SOC ER Earnings|6079.97
At line 263 added 2 lines
|PC 8005 FIT Earn|= FIT Wages - 125 - 401K|= 6153.82 - €“194.22 -€“ 225.31|= 5734.29
|PC 8201 RR Tier1 Soc ER Earn|= RRTA Wages -€“ 125|= 6079.97 - €“194.22|= 5885.75
At line 262 changed 2 lines
FIT_Wages Usage 6051 Pre FWT Earnings 6153.82
RRTA_Wages Usage 6306 Pre-RR Tier1 SOC ER Earnings 6079.97
__RRTA - €“ No Self Adjust Method__
At line 268 added 2 lines
|PC 7033 RR Tier1 Soc ER|= RR Tier1 Earn x 0.062|= 5885.75 x 0.062|= 364.92
|PC 7034 RR Tier1 Med ER|= RR Tier1 Earn x 0.0145|= 5885.75x 0.0145|= 85.34
At line 266 changed 2 lines
PC 8005 FIT Earn = FIT Wages – 125 - 401K = 6153.82 –194.22 – 225.31 = 5734.29
PC 8201 RR Tier1 Soc ER Earn = RRTA Wages – 125 = 6079.97 –194.22 = 5885.75
For Railroad Taxation, if an employee has FICA contribution during the year, this means the employee works between the Railroad and Non-Railroad Assignments. In this case, please check if the '€˜RR Self-Adjust' method should be used for this employee or not.
At line 269 changed one line
(1) RRTA – No Self Adjust Method
The reason is, if '€˜RR Self-Adjust'€™ method is defined on [IPRLU], this method is applicable for both RR Tier1 and Tier2 calculation. However, since Regular FICA does not have a Tier2 calculation, the '€˜RR Self-Adjust'€™ method will automatically re-adjust all earnings that include YTD FICA Earnings that are not subject to Tier2 calculation; this would cause the entire YTD Earnings to subject to Tier2 tax.
At line 271 changed 2 lines
PC 7033 RR Tier1 Soc ER = RR Tier1 Earn x 0.062 = 5885.75 x 0.062 = 364.92
PC 7034 RR Tier1 Med ER = RR Tier1 Earn x 0.0145 = 5885.75x 0.0145 = 85.34
Since employee should only pay Tier2 tax for the Earnings that are earned for Railroad employment, if employee has FICA contribution, the user should verify if this employee should use the ‘Self-Adjust’ method to re-calculate all Tier2 tax or just to use ‘RR No Self-Adjust’ method.
At line 274 removed 8 lines
- For Railroad Taxation, if an employee has FICA contribution during the year, this means the employee works between the Railroad and Non-Railroad Assignments. In this case, please check if the ‘RR Self-Adjust’ Method should be used for this Employee or not.
- The reason is, if ‘RR Self-Adjust’ method is defined on IPRLU, this method is applicable for both RR Tier1 and Tier2 calculation, but since Regular FICA does not have a Tier2 calculation, the ‘RR Self-Adjust’ method will automatically re-adjust all Earnings that include YTD FICA Earnings that are not subject to Tier2 calculation, this would cause the entire YTD Earnings to subject to Tier2 tax
- since employee should only pay Tier2 tax for the Earnings that are earned for Railroad employment, if employee has FICA contribution, the user should verify if this employee should use the ‘Self-Adjust’ method to re-calculate all Tier2 tax or just to use ‘RR No Self-Adjust’ method.
This page (revision-35) was last changed on 26-Nov-2021 10:22 by mmcfarlandTop