This page (revision-16) was last changed on 26-Nov-2021 10:22 by kparrott

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

Only authorized users are allowed to rename pages.

Only authorized users are allowed to delete pages.

Page revision history

Version Date Modified Size Author Changes ... Change note
16 26-Nov-2021 10:22 12 KB kparrott to previous
15 26-Nov-2021 10:22 12 KB rforbes to previous | to last
14 26-Nov-2021 10:22 12 KB rforbes to previous | to last
13 26-Nov-2021 10:22 12 KB rforbes to previous | to last
12 26-Nov-2021 10:22 12 KB rforbes to previous | to last
11 26-Nov-2021 10:22 12 KB rforbes to previous | to last
10 26-Nov-2021 10:22 12 KB rforbes to previous | to last
9 26-Nov-2021 10:22 12 KB rforbes to previous | to last
8 26-Nov-2021 10:22 12 KB rforbes to previous | to last
7 26-Nov-2021 10:22 12 KB rforbes to previous | to last VERTEX ==> Vertex.VERTEX
6 26-Nov-2021 10:22 12 KB JEscott to previous | to last
5 26-Nov-2021 10:22 11 KB JEscott to previous | to last
4 26-Nov-2021 10:22 11 KB JEscott to previous | to last
3 26-Nov-2021 10:22 11 KB JEscott to previous | to last
2 26-Nov-2021 10:22 11 KB JEscott to previous | to last
1 26-Nov-2021 10:22 7 KB JEscott to last

Page References

Incoming links Outgoing links
U.S. TAXATION
U.S. TAXATION

Version management

Difference between version and

At line 6 changed one line
[Pay components|PAY COMPONENTS] used to store taxation and government calculation results are defined in the Pay Component ([IPPC]) form with the U.S. [pay component usages|PAY COMPONENT USAGES] from the Pay Component Usage ([IPCU]) form.
[UPCALC] uses an external file provided by Vertex® to calculate U.S. Taxation. This information is accessed through the HLServer.
Pay components used to store taxation and government calculation results are defined in the Pay Component ([IPPC]) form with the US PC usage from the Pay Component Usage ([IPCU]) form.
At line 8 changed one line
[Pay elements|PAY ELEMENTS] defined in the ([IPPE]) form are used to define which [pay components|PAY COMPONENTS] are subject to each different tax.
Pay elements ([IPPE]) are used to define which pay components are subject to each different tax.
At line 10 changed one line
Default tax calculation methods are found on the pay rule ([IPRLUS]) form for each employee.
Default tax calculation methods are found on the pay rule ([IPRLU]) form for each employee.
At line 15 changed 2 lines
!!U.S. Federal Tax Calculations
The [Symmetry] Tax Engine calculates the Federal tax regardless of the Work and Residence Jurisdiction codes that are passed to it. After the tax engine is called, [UPCALC] will retrieve the Federal tax results and store into the proper Federal tax [pay components|PAY COMPONENTS].
!!U.S. FEDERAL TAX CALCULATIONS
Vertex calculates the Federal tax regardless of the Work and Residence Jurisdiction codes that are passed to Vertex. After Vertex is called, UPCALC will retrieve the Federal tax results and store into the proper Federal tax pay components.
At line 21 changed 2 lines
!!U.S. State Tax Calculations
When calculating the State tax, the tax engine takes into consideration the Work and Residence Jurisdiction codes that are passed and the State Reciprocation. The Work Jurisdiction code of the employee is derived from their primary assignment record ([IEAS]) that is being paid in the time sheet on the [IPPH] form. The Residence Jurisdiction code is from the employee’s Personal ([IEPI]) record, where they live, that is effective for the time sheet. You can override both work and residence jurisdiction for each timeliest on the [IPPH] form.
!!U.S. STATE TAX CALCULATIONS
When calculating the State tax, Vertex takes into consideration the Work and Residence Jurisdiction codes that are passed and the State Reciprocation. The Work Jurisdiction code of the employee is derived from their primary assignment record ([IEAS]) that is being paid in the time sheet on the [IPPH] form. The Residence Jurisdiction code is from the employee’s Personal ([IEPI]) record, where they live, that is effective for the time sheet. You can override both work and residence jurisdiction for each timeliest on the [IPPH] form.
At line 24 changed one line
When [UPCALC] calls the the tax engine module to calculate the State tax, there is a linkage area for State tax calculation that has 2 buffer areas, one for the Work State area and one for the Residence State area. The the tax engine|the tax engine module calculates the appropriate Work and/or Residence State tax and passes back the 2 buffer areas to [UPCALC]. [UPCALC] will then retrieve the State tax results and store into the proper Work State tax pay components and/or the Residence State tax pay components.
When [UPCALC] calls the Vertex module to calculate the State tax, there is a linkage area for State tax calculation that has 2 buffer areas, one for the Work State area and one for the Residence State area. The Vertex module calculates the appropriate Work and/or Residence State tax and passes back the 2 buffer areas to [UPCALC]. [UPCALC] will then retrieve the State tax results and store into the proper Work State tax pay components and/or the Residence State tax pay components.
At line 31 changed one line
When using an Alternate State Tax Method for AZ the Filing Status and the number of Exemptions for both Federal and State must be the same. Although the Alternate State Methods are a percentage of Federal Tax – separate calculations for Federal and State taxation are calculated. This means that for State Tax the Federal amount is recalculated based on the State Filing Status and Exemptions and the Alternate percentage is then calculated.
When using an Alternate State Tax Method for AZ the Filing Status and the number of Exemptions for both Federal and State must be the same. Although the Alternate State Methods are a percentage of Federal Tax – Vertex performs separate calculations for Federal
and State taxation. This means that for State Tax the Federal amount is recalculated based on the State Filing Status and Exemptions and the Alternate percentage is then calculated.
At line 34 changed 2 lines
!!U.S. Local Tax Calculations
When calculating the Local County and City tax, the tax engine|the tax engine takes into consideration the Work and Residence Jurisdiction codes. The Work Jurisdiction code of the employee is from the employee’s primary assignment ([IEAS]) record that is being paid in the time sheet on the [IPPH] form. The Residence Jurisdiction code is from the employee’s Personal ([IEPI]) form, where they live, that is effective for the time sheet. You can override both work and residence jurisdiction for each timeliest on [IPPH] form.
!!U.S. LOCAL TAX CALCULATIONS
When calculating the Local County and City tax, Vertex takes into consideration the Work and Residence Jurisdiction codes. The Work Jurisdiction code of the employee is from the employee’s primary assignment ([IEAS]) record that is being paid in the time sheet on the [IPPH] form. The Residence Jurisdiction code is from the employee’s Personal ([IEPI]) form, where they live, that is effective for the time sheet. You can override both work and residence jurisdiction for each timeliest on [IPPH] form.
At line 37 changed one line
When [UPCALC] calls the the tax engine|the tax engine module to calculate the Local tax, there is a linkage area for Local tax calculation that has 4 buffer areas - 1 for the Work County area, 1 for Work City area, 1 for Residence County area and 1 for the Residence City area. Then the the tax engine|the tax engine module calculates the appropriate Work and/or Residence County and City tax and passes back the 4 buffer areas to [UPCALC]. [UPCALC] will then retrieve the County and City tax results and store into the proper Work tax pay components and/or the Residence tax [pay components|PAY COMPONENTS].
When [UPCALC] calls the Vertex module to calculate the Local tax, there is a linkage area for Local tax calculation that has 4 buffer areas - 1 for the Work County area, 1 for Work City area, 1 for Residence County area and 1 for the Residence City area. Then the Vertex module calculates the appropriate Work and/or Residence County and City tax and passes back the 4 buffer areas to [UPCALC]. [UPCALC] will then retrieve the County and City tax results and store into the proper Work tax pay components and/or the Residence tax pay components.
At line 42 changed 2 lines
!!125 Plan Processing – Cash Option and Non-Cash Option
If an employee has an option of receiving cash in lieu of the 125 plan benefits, then the tax engine|the tax engine will take into consideration the 125 cash option in calculating SUI and SDI. You should set up a [pay component|PAY COMPONENTS] for cash option 125 plan and a pay component for non-cash option 125 plan. Then as the 125 plan contribution is calculated, store the 125 plan amount into the proper cash 125 plan pay component or non-cash 125 plan pay component depending on if the employee elects to receive cash 125 or not.
!!125 PLAN PROCESSING – CASH OPTION AND NON-CASH OPTION
If an employee has an option of receiving cash in lieu of the 125 plan benefits, then Vertex will take into consideration the 125 cash option in calculating SUI and SDI. You should set up a pay component for cash option 125 plan and a pay component for non-cash option 125 plan. Then as the 125 plan contribution is calculated, store the 125 plan amount into the proper cash 125 plan pay component or non-cash 125 plan pay component depending on if the employee elects to receive cash 125 or not.
At line 48 changed one line
When [UPCALC] is run, as the 125 CASH OPT has a non-zero value, then the tax engine will take into consideration the 125 plan cash option when calculating the SUI and SDI.
When [UPCALC] is run, as the 125 CASH OPT has a non-zero value, then Vertex will take into consideration the 125 plan cash option when calculating the SUI and SDI.
At line 51 changed one line
!!Vacation Pay Processing
!!VACATION PAY PROCESSING
At line 58 changed one line
All taxable earnings at the federal, state and local levels will be adjusted according to the number of weeks, pro-ration factor before calling the tax engine|the tax engine. On return from the tax engine, all taxes calculated will be stored normally.
All taxable earnings at the federal, state and local levels will be adjusted according to the number of weeks, proration factor before calling Vertex. On return from Vertex, all taxes calculated will be stored normally.
At line 61 changed 2 lines
!!Multiple Tax Jurisdiction Processing
In Personality , each time sheet (pay header) contains the tax jurisdiction to be used for taxation purposes. Taxes are calculated according to the Pay Header's Work and Home Jurisdiction. One time sheet cannot be paid with multiple tax jurisdictions.
!!MULTIPLE TAX JURISDICTION PROCESSING
In [{$applicationname}] , each time sheet (pay header) contains the tax jurisdiction to be used for taxation purposes. Taxes are calculated according to the Pay Header's Work and Home Jurisdiction. One time sheet cannot be paid with multiple tax jurisdictions.
At line 73 changed 2 lines
!Set Up
;IPRLUS - Federal Tax Method
!SET UP
;IPRLU - Federal Tax Method
At line 80 changed one line
;IPRLUS - State Tax Method
;IPRLU - State Tax Method
At line 86 changed one line
;IPRLUS - Local Tax Method
;IPRLU - Local Tax Method
At line 103 changed 3 lines
;:At federal level, if PTD method is used, the 125 plan and 401K amounts are passed as PTD amount, therefore FICA/MEDI/FUTA will automatically be calculated using the PTD method.
;:At State level, if PTD method is used, the 125 plan and 401K amounts are passed as PTD amount, therefore SUI/SDI will automatically be calculated using the PTD method.
;:At Local level, if PTD method is used, the 125 plan and 401K amounts are passed as PTD amount, therefore School district tax will automatically be calculated using the PTD method.
;:At federal level, if PTD method is used, the 125 plan and 401K amounts are passed to Vertex as PTD amount, therefore FICA/MEDI/FUTA will automatically be calculated using the PTD method.
;:At State level, if PTD method is used, the 125 plan and 401K amounts are passed to Vertex as PTD amount, therefore SUI/SDI will automatically be calculated using the PTD method.
;:At Local level, if PTD method is used, the 125 plan and 401K amounts are passed to Vertex as PTD amount, therefore School district tax will automatically be calculated using the PTD method.
At line 108 changed 2 lines
*add PTD values to CTD values, these become the new CTD values to call the tax engine
*subtract PTD values from YTD values, because PTD are included in CTD, no need to be included in YTD
*add PTD values to CTD values, these become the new CTD values to call Vertex
*subtract PTD values from YTD values, because PTD are included in CTD, no need to be included in YTD for Vertex
At line 112 changed 2 lines
*call the tax engine to calculate tax amounts for the newly adjusted CTD amount for the entire period
*The tax engine returns all tax amounts for the entire period
*call Vertex to calculate tax amounts for the newly adjusted CTD amount for the entire period
*Vertex returns all tax amounts for the entire period
At line 116 changed 2 lines
*from tax results, UPCALC subtracts the PTD amounts of the previous pays to obtain the current pay's tax amount
*store the difference between tax results and PTD amounts in current pay
*from Vertex tax results, UPCALC subtracts the PTD amounts of the previous pays to obtain the current pay's tax amount
*store the difference between Vertex tax results and PTD amounts in current pay
At line 120 changed one line
;IPRLUS - EIC Tax Method
;IPRLU - EIC Tax Method
At line 125 changed one line
;:These EIC methods will pass the employee's prime assignment annual wage to the tax engine so it will calculate EIC base on prime assignment annual wage instead of deriving from the Current gross being passed.
;:These EIC methods will pass the employee's prime assignment annual wage to Vertex so that Vertex will calculate EIC base on prime assignment annual wage instead of deriving from the Current gross being passed.
At line 128 changed 3 lines
;Cumulative Tax Calculation
;:The tax engine supports the cumulative tax calculation at Federal level. For State and Local level, the user should use 'PTD' method.
;:The tax engineCumulative Averaging method accumulates past + current gross and then averages it according to the number of periods so far in current year. If an employee has not been paid at beginning of year or the employee is not paid consecutively, the estimated annual income based on past income will be low. For new hired in middle of year, this method will not project the income accurately.
;VERTEX CUMULATIVE TAX CALCUATION
;:Vertex supports the cumulative tax calculation at Federal level. For State and Local level, the user should use 'PTD' method.
;:Vertex Cumulative Averaging method accumulates past + current gross and then averages it according to the number of periods so far in current year. If an employee has not been paid at beginning of year or the employee is not paid consecutively, the estimated annual income based on past income will be low. For new hired in middle of year, this method will not project the income accurately.
At line 132 removed 5 lines
----
![Notes|Edit:Internal.U.S.+TAXATION]
[{InsertPage page='Internal.U.S.+TAXATION' default='Click to create a new notes page'}]
This page (revision-16) was last changed on 26-Nov-2021 10:22 by kparrottTop