This page (revision-42) was last changed on 26-Nov-2021 10:22 by mmcfarland

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

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
42 26-Nov-2021 10:22 17 KB mmcfarland to previous
41 26-Nov-2021 10:22 17 KB mmcfarland to previous | to last

Page References

Incoming links Outgoing links
US Federal Tax Calculation
US Federal Tax Calculation

Version management

Difference between version and

At line 1 changed 3 lines
[{TableOfContents }]
!!!US FEDERAL TAX CALCULATION
This document describes the US Federal Tax Calculation using the Symmetry Tax Engine (STE) Software.
[{TableOfContents }]
!!!US AUDIT PAY RULES
At line 5 changed 17 lines
!!!Federal Tax Calculation
!!General Set Up
__UDGNIS__\\This is the process to load all US Tax jurisdictions into [IDCO], [IDSP], [IDCN], [IDCI], [IDMN], [IDSD], [IDZR], and [IDTX]. \\ \\
__UPUTR__\\ This is the process to load all US Tax Rates and States Miscellaneous parameters.\\ After UPUTR is run, the applicable Tax Rates and Miscellaneous Parameters can be viewed by State in [IPUTR] and [IPUTP].\\ \\
__IPUTR__\\ US Tax Rates can be viewed by State and the Overridden Rates and Wage Base entered.\\ Some SUTA surcharge calculations for specific states can be suppressed by checking the 'Do not Calculate' toggle. \\ \\
__IPUTP__\\ The US Tax Miscellaneous parameters can be be viewed by the States that are applicable for [IPRLU]. \\ \\
__IDGV__\\ This form can optionally contain specific override rates and Wage Bases by Government Registration for each registration from the pay header's group. IDGV overridden amounts take precedence over the [IPUTR] overridden amounts.\\ \\
__IPPC__\\ Pay components must be set up with applicable [IPCU] PC Usages for US taxation.\\ \\
__IDTX__ Applicable Tax Jurisdictions that are paid by employees are entered here. On the [IPPH]/[IEPI], [IEAS], [IDLN], etc. forms that require a tax jurisdiction, the 'Tax Jurisdiction Editor Utility' dialog box can be used to enter the jurisdiction on [IDTX].\\ \\
__IPRLU/IPRLUS__\\ Each employee must be set up with the applicable tax methods. Miscellaneous Tax parameters must be set up by the states that need to be paid.\\ \\
__UPRLU__\\ This process audits the US Tax Filing Information and generates [IPRLU] Miscellaneous Tax Parameters information according to [IMCT] set up.\\ \\
__IPPH__\\
*The 'Pay Header' tab must define the default Work and Home jurisdictions.
*The 'Pay Lines' tab, 'Jurisdiction' field must define the Work Jurisdiction of this pay line.
* After the Trial Calc or [UPCALC], the 'Pay Amounts' tab contains all US Taxation amounts, in summary, that are used for the calculation of net pay.
*The 'Pay Jurisdiction' tab contains the default Work and Home jurisdictions.
*After Trial Calc or [UPCALC], the 'Pay Jurisdiction' tab contains all US Taxation amounts, by jurisdictions, in detail.\\ \\
!!Overview
This page describes the [UPRLU] process.
At line 23 changed 6 lines
!IPUTP - Federal Tax Parameters
When [UPUTR] is run, it loads in a list of federal tax parameters for Symmetry Federal Tax calculation.
\\ \\
On [IPUTP], the following Federal tax parameters are available to be used on the [IPRLU]/[IPRLUS] forms:
* IRS_MAX_EXEMPTIONS
* APPLY_BENEFIT_WAGE_LIMIT
The function has two purposes:
# To convert the Vertex U.S pay rule data to the Symmetry tax parameters
# To audit the U.S pay rules to ensure there are no missing tax parameters.
At line 30 changed one line
%%information These parameters will not automatically be added to [IPRLU]/[IPRLUS] by the [UPRLU] process for all employees. [IPRLU]/[IPRLUS] information is required to be manually added for employees who are eligible for each parameter.%%
!!UPRLU – Selection Criteria
At line 32 changed 10 lines
__IRS_MAX_EXEMPTIONS__
*IRS maximum number of exemptions allowed. Optional, numeric
*Allows an employer to define on the employee's [IPRLU]/[IPRLUS] form the maximum number of exemptions allowed for this employee as indicated by the IRS in a 'lock-in-letter'.
*[UPCALC] will cap the employee's 'Federal # of Exemptions' with the value from [IPRLU]/[IPRLUS] 'IRS_MAX_EXEMPTIONS' parameter.
*Any number provided will override the 'Federal # of Exemptions', including 0.
*Do not provide a default value
\\
__APPLY_BENEFIT_WAGE_LIMIT__
*Optional, alphanumeric
*Allows a user to specify if the Benefit Annual Wage Limit should be applied by the SymmetryTaxEngine when an employee’s wages reach the $250 000 limit. By applying the limit, when an employee reaches the limit (Regular and Supplemental wages combined), the employee’s 401k / 457 deductions become taxable. By not applying the annual limit, when an Employee reaches this annual wage the deductions are not taxable for Federal. This is typically used when an employee’s Supplemental wages should Not be considered in the annual wage equation.
!!!UPRLU – Audit US Tax Filing Information
At line 43 changed 2 lines
!IPUTR - Federal Tax Rates
When [UPUTR] is run, it loads in a list of Federal Tax rates for the Symmetry Federal tax calculation.
[US_Audit_Pay_Rules_01.JPG]
[{InsertPage page='UPRLU' section=2}]
At line 46 changed 2 lines
*On [IPUTR], when the State is defined as 'Federal' the Federal Tax Rates can be viewed.
*Each Tax Identifier can provide the default Tax Rates and Wage Base to be used for Federal tax calculation.
[{InsertPage page='UPRLU' section=3}]
At line 49 changed one line
%%warning __IMPORTANT:__ For the ER_FUTA identifier, users MUST enter their own Employer FUTA rate (provided by the government) on the 'Override Tax Rate' field. Symmetry requires this FUTA Rate to be passed into the Symmetry Tax Engine, otherwise ER FUTA will not be calculated.%%
!!UPRLU Processing
At line 51 changed 4 lines
!IPRLU - US Tax Filing Information
Both [IPRLU] and [IPRLUS] can be used to maintain US Tax Filing Information for an employee.\\
__IPRLU__ contains all US Tax Filing Information for both Vertex and Symmetry Tax users. \\
__IPRLUS__ contains the US Tax Filing Information for Symmetry Tax users only:
!!!Purpose
At line 56 changed one line
*The [Federal|IPRLU#FederalTab], [State|IPRLU#StateTab] and [Local|IPRLU#LocalTab] tabs must define all tax methods and eligibility information. \\
The UPRLU is a dual purpose function.
At line 58 changed 5 lines
* For Federal Tax Calculation, the '# of Exemptions' must be entered on the [Federal|IPRLU#FederalTab] tab, if an employee has an IRS letter that indicates the maximum number of exemptions allowed. Then, on either the [Miscellaneous|IPRLU#MiscellaneousTab] tab or the [State|IPRLU#StateTab] tab, the IRS_MAX_EXEMPTIONS Misc. Identifier must be defined.
\\ \\
----
!!Federal PC Usages
!PC Usage - Federal Tax
#Vertex to Symmetry Conversion\\ \\The initial purpose of the UPRLU function is to populate the state’s Miscellaneous Tax parameters in [IPRLU] based on the fields used by Vertex. The UPRLU will read the custom table ‘UPRLU Mapping’ in the [IMCT] screen to determine which field in IPRLU should be used to populate the Miscellaneous Tax parameter.\\ \\For example, the UPRLU will take the value stored in Filing Status (UST_FILING_STATUS column) and will populate the Tax parameter FILINGSTATUS.\\ \\The vertex mapping would only occur when the parameter Vertex Conversion is set to <Yes>.\\ \\
#Audit IPRLU Data\\ \\TBD - UPRLU has not been programmed for this as of yet.\\ \\The intent on this second purpose is to audit the date in IPRLU on a regular basis to ensure that employee records are kept up to date with new tax parameters etc.
At line 64 changed one line
On [IPPC], set up the pay components for these PC Usages for federal tax calculation:
!!!IPRLU Tax Filing Conversion
In order for [UPCALC] to calculate state tax correctly using the Symmetry Tax Engine (STE), the IPRLU state information (tax parameters) must be set up for each applicable state the employee lives and works in.
At line 66 changed 19 lines
||Usage||Description
|6001|FWT Deduction - Regular Tax
|6002|FWT Deduction - Additional Tax
|6003|FWT Deduction - Supplemental Tax
|6004|FWT Earnings - Regular Tax
|6005|FWT Earnings - Regular Tax
|6051|Pre-FWT Earnings - Reg Tax Table Method (PPE)
|6052|Pre-FWT Earnings - Reg Tax % Method (PPE)
|6053|Pre-FWT 125 Exemption - Reg Tax (PPE)
|6054|Pre-FWT 401K Exemption - Reg Tax (PPE)
|6055|Pre-FWT Earnings - Supplemental Tax (PPE)
|6056|Pre-FWT 125 Exemption - Supplemental Tax (PPE)
|6057|Pre-FWT 401K Exemption - Supplemental Tax (PPE)
|6058|Pre-FIT Hours - Total Hours worked (PPE)
|7901 to|Pre-FWT 125 Exemption - Reg Tax (PPE)
|7928|Pre-FWT HSA Exemption -Suppl Tax (PPE)
|7801 to|Pre-Reg Custom Benefit 01 - Reg Tax (PPE)
|7830|Pre-Sup Custom Benefit 10 - Suppl Tax (PPE)
\\
The UPRLU will insert and populate the appropriate tax parameters for any state the employee lives and works in. The function will use the data in the original Vertex fields in IPRLU to populate the new tax parameters.
At line 86 changed 2 lines
!PC Usage - Federal Insurance Contribution Act (FICA) Tax
Federal Insurance Contributions Act Tax (FICA) is imposed by the federal government on both employees and employers. The FICA tax is calculated using Pay Component Usages 6201 - 6261.
Using the As Of date provided in the report parameters, UPRLU will read [IEAS] and [IEPI] effective records where this date falls between the effective start and end dates. Any records whose effective start date is greater than the As Of date used will also be read, this is so that the UPRLU picks up any future changes in work or residence locations.
At line 89 changed 8 lines
||Usage||Description
|6201|FICA Employee Deduction
|6202|FICA Employee Earnings
|6210|FICA Employer Contribution
|6211|FICA Employer Earnings
|6251|Pre-FICA Employee Earnings (PPE)
|6261|Pre-FICA Employer Earnings (PPE)
\\
The Work State is retrieved from IEAS using the Jurisdiction field. If there is no Jurisdiction defined then the UPRLU will look at the Works in Location field in IEAS to retrieve the Jurisdiction defined for the location.
At line 98 changed 2 lines
!PC Usage - Medicare Tax
Medicare Tax is an employer and employee paid tax. The Medicare tax is calculated using Pay Component Usages 6501 - 6552.
Since Symmetry calculates taxes based on Residence state the UPRLU will create Misc Tax Parameters for the home state if the home state differs from the state defined in the IEAS Jurisdiction field. The home state is retrieved from the employee’s personal information defined in IEPI.
At line 101 changed 8 lines
||Usage||Description
|6501|Medicare Employee Deduction
|6502|Medicare Employee Earnings
|6503|Medicare Employer Contribution
|6504|Medicare Employer Earnings
|6551|Pre- Medicare Employee Earnings (PPE)
|6552|Pre- Medicare Employer Earnings (PPE)
\\
Once UPRLU has determined an employee’s work and resident state, it will then read [IMCT] ‘UPRLU Mapping’ to retrieve the necessary Misc Tax parameters for the employee’s states. UPRLU will then populate the employee’s IPRLU with the appropriate tax parameters. Using the mapping indicated in IMCT, UPRLU will retrieve the data stored in the fields used by Vertex to populate the values for the tax parameters.
At line 110 changed one line
!PC Usage - Federal Unemployment Tax Act (FUTA)
If the employee does not have an IPRLU record and a Default Pay Rule has been defined in the site preference ‘DFLT PAYRULE’, then UPRLU will create a default IPRLU record. The default record will be populated with the Misc Tax parameters from the employee’s prime assignment ‘Jurisdiction Code’.
At line 112 changed one line
Federal Unemployment Tax Act (FUTA) is an employer paid tax. The FUTA tax is calculated using Pay Component Usages 6401 - 6451.
If the employee does not have an IPRLU record and the ‘DFLT PAYRULE’ site preference has not been defined, the UPRLU will not create a default IPRLU record for the employee.
At line 114 changed 4 lines
||Usage||Description
|6401|FUTA Employer Contribution
|6402|FUTA Employer Earnings
|6451|Pre-FUTA Employer Earnings (PPE)
If there are multiple effective records in IPRLU, the UPRLU will insert the appropriate tax parameters for these records with the information that was effective within those records. If there are effective records in IPRLU that are greater than the date the UPRLU is run, these will also be updated. For example:
At line 119 changed 8 lines
There are two ways of providing the FUTA tax rate:
#IPUTR
#*Enter the rate or wage base provided by the government on the Override fields
#*These overrides are applicable for the entire company for the federal calculations
#IDGV
#*If there is a specific rate provided by the government for a different Registration #, update the 'Reg Type' field on [IDGV]. This overrides the [IPUTR] Rate.
#*[UPCALC] retrieves [IDGV] by Government Registration from the employee's Pay Header group
\\ \\
;In IPRLU an employee has three effective records:01 Jan 0000 – 31 Dec 1999 (no information as EE was hired Jan 1 2000)\\01 Jan 2000 – 31 Jan 2010, EE claimed Single, 1 exemption\\01 Feb 2010 – 31 Dec 3999, EE claimed Married, two exemptions\\ \\The UPRLU is run for 1 Jan 2010 – it will update the employee's 01 Jan 2000 record with the appropriate tax parameters with a Single filing status. The 01 Feb 2010 record will also be updated with the appropriate tax parameters with a Married filing status and two exemptions.
At line 128 changed 2 lines
If you do business in a State that has been given a FUTA Tax Credit reduction, the new FUTA tax rate for that specific State can be entered on [IDGV] for the State.
In [IDGV], add a new entry for the specific State, define the Registration Type as 'US SUI Regist 1', and define the Govt Rate Type as 'US FUTA Rate'. This State specific FUTA rate will be picked up by the UPCALC program when an employee is being paid in that State.
!!!IMCT – Custom Table
At line 131 changed 3 lines
!PC Usage - Railroad Taxation
Railroad taxation is calculated using Pay Component Usages 6301 - 6356.
\\ \\
In order for UPRLU to convert the Vertex information to the Symmetry Tax Parameters, mapping had to be laid out for each individual state.
At line 135 changed 7 lines
!!Federal Tax Calculation
!UPCALC Example - Federal Withholdings
[US Federal Tax Calculation_01.JPG]
|IPRLU Federal Filing Status:|= Single
|Regular Earnings:|= 1923.08
|Supplemental Earnings:|= 100.00
\\ \\
The mapping has been provided in the custom table ‘UPRLU Mapping’ within the IMCT screen.
At line 143 changed 8 lines
__Pre-Tax Benefits:__
|125 Plan| 145.89
|401K Plan| + 112.54
|403B Plan| + 20.84
|457 Plan| + 16.18
|Simple IRA Plan|+ 14.97
|__Total__|= 310.42
\\ \\
[US_Audit_Pay_Rules_02.JPG]
At line 152 changed 4 lines
__Prorate Pre-Tax Benefits to Regular and Supplemental Earnings:__
|Reg Earn Pre-Tax Benefit|= 1923.08 / 2023.08 * 310.42|= 295.08
|Sup Earn Pre-Tax Benefit|= 100 / 2023.08 * 310.42|= 15.34
\\ \\
In IMCT, the Custom Key field holds the state code and the state’s Misc Tax parameter.
At line 157 changed 13 lines
__FIT Withholding:__
|PC 8005 FIT Earn|= 1923.08 - 295.08|= 1628.00
|PC 8015 FSP Earn|= 100.00 - 15.34|= 84.66
| | |
|PC 6000 FIT Tax|= Based on PC 8005 $1628.00|= 237.77
|PC 6010 FSP Tax|= Based on PC 8015 $84.66 x 25%|= 21.17
\\ \\
----
!!FICA / MEDICARE
!FICA Wage < FIT Wage Example
[US Federal Tax Calculation_02.JPG]
\\ \\
When an Employee works for Regular Employment and Railroad Employment, FICA YTD and RRTA YTD are both used in the FICA calculation.
Custom Subkey displays the IPRLU field UPRLU will read in order to retrieve the data. This data will be printed in the output file.
At line 171 changed 3 lines
|FIT_Wages|Usage 6051 Pre FWT Earnings|6676.24
|FICA_Wages|Usage 6261 Pre-FICA Employer Earnings|6596.13
\\
The Custom Data holds the necessary coding and mapping for that Custom Key. This field tells UPRLU how to decode the lexicon fields to match the values supported for the tax parameter.
At line 175 changed 3 lines
|PC 8005 FIT Earn|= FIT_Wages - 125 - 401K|= 6676.24 - 200.33 - 239.57|= 6236.34
|PC 8039 FICA ER Earn|= FICA_Wages - 125|= 6596.13 - 200.33|= 6395.80
\\ \\
In the above example, the UPRLU will read the UST_FILING_STATUS field in IPRLU to populate the tax parameter ‘FILINGSTATUS’ for California. This decode statement tells UPRLU that the lexicon value of '01' is the equivalent of 'S' for this tax parameter, a value of '02' is equal to 'M' and a value of '03' is equal to 'H'.
At line 179 changed 3 lines
__FICA ER - No Self Adjust Method__
|PC 7031 FICA ER|= FICA ER Earn x 0.062|= 6395.80 x 0.062|= 396.54
|PC 7030 Medicare ER|= Med ER Earn x 0.0145|= 6395.80 x 0.0145|= 92.74
IMCT has been defined with Tax Parameters from the Symmetry Tax Engine. It does not include Tax Parameters that have been system created. (i.e. Those that have a Provided By = Internal or Legislative).
At line 183 changed 38 lines
\\ \\
__FICA ER - Self Adjust Method__\\
This employee uses the 'Self-Adjust Method'. \\
|FIT_Wages.ctd|Usage 6051 Pre FWT Earnings|= 6676.24
|FIT_Wages.ytd|Usage 6051 Pre FWT Earnings|= 51747.29
|FSP_Wages.ctd|Usage 6055 Pre-FIT Suppl Earns|= 0
|FSP_Wages.ytd|Usage 6055 Pre-FIT Suppl Earns|= 5700
|FICA_Wages.ctd|Usage 6261 Pre-FICA Employer Earnings|= 6596.13
|FICA_Wages.ytd|Usage 6261 Pre-FICA Employer Earnings|= 51057.92
\\ \\
If FICA Earnings (FICA_Wages.ctd) is different than FIT Earnings (FIT_Wages.ctd), then calculate the difference between the Wages for FICA and FIT (such as Usage 6261 - Usage 6051). This is called 'Additional FICA Wages'.
|CTD Usage 6261 Pre-FICA Employer Earnings:| |6596.13
|CTD Usage 6051 Pre FWT Earnings:| |- 6676.24
|CTD Addn FICA Wages:|6596.13 - 6676.24|= -80.11 (negative means FICA Earn < Pre-FWT Earn)
\\
|YTD Usage 6261 Pre-FICA Employer Earnings:| |51057.92
|YTD Usage 6051 Pre FWT Earnings:| |51747.29
|YTD Addn FICA Wages:|51057.92 - 51747.29|= -689.37 (negative means FICA Earn < Pre-FWT Earn)
\\
|Addn FICA_Wages.ctd|= -80.11|FICA.ytdEE|= 3459.44 (dedn so far)|MEDI.ytd = 809.06 (dedn so far)
|Addn FICA_Wages.ytd|= -689.37|FICA.ytdER|= 3459.44 (dedn so far)|
\\
|YTD 125 Total (from YTD):|= 1649.91 (prorate to YTD FIT / FSP Wages, such as 51747.29 and 5700)
|YTD 401K Total (from YTD):|= 2026.80 (prorate to YTD FIT / FSP Wages, such as 51747.29 and 5700)
\\
|FIT_ben_125.ctd:|= 200.83|FSP_ben_125.ctd:|= 0|
|FIT_ben_125.ytd:|= 1486.20|FSP_ben_125.ytd:|= 163.71|(1486.20 + 163.71 = 1649.91)
|FIT_ben_401K.ctd:|= 239.57|FSP_ben_401K.ctd:|= 0|
|FIT_ben_401K.ytd:|= 1825.70|FSP_ben_401K.ytd:|= 201.1|(1825.70 + 201.1 = 2026.80)
\\
__Calculate FICA Wages for the Year:__
|FIT_Wages.ctd|6676.24
|Addn FICA_Wages.ctd|+ (-80.11)
|FIT_Wages.ytd| + 51747.29
|Addn FICA_Wages.ytd| + (-689.37)
|__Total__|= 57654.05
\\
If clients need to edit the mapping or add Internal tax parameters we advise you to request Client Services for assistance.
At line 222 changed 4 lines
|FSP_Wages.ctd|0
|FSP_Wages.ytd|+ 5700
|__Total__|= 5700
\\
The internally provided Tax Parameters may be manually added to an employee’s IPRLU record, or added to IMCT and the UPRLU run for those few employees.
At line 227 changed 14 lines
|FICA_Wages_Total|57654.05 + 5700|= 63354.05
\\
__Calculate 125 Exemption for the Year:__
|FIT_ben_125.ctd|200.83
|FSP_ben_125.ctd|+ 0
|FIT_ben_125.ytd|+1486.20
|FSP_ben_125.ytd|+163.71
|__FICA_125_Total__|=1850.74
\\
__FICA ER Calculation:__
|FICA_Wages_Total|63354.05
|FICA_125_Total|- 1850.74
|__FICA Taxable Earnings__|= 61503.31
\\
;Symmetry Tax Parameters Not Included in IMCT
There are a number of tax parameters that are provided by Symmetry which were not added to IMCT. The following were not included as it was not able to determine a valid value based on the information currently provided in the IPRLU.
At line 242 changed 4 lines
|FICA Taxable Earnings|61503.31
|FICA Rate|x 0.062
|__FICA ER Contribution__|= 3813.21
\\
If you have employees who live and/or work in the following states please review these and determine if they are required for your employees. The document PR_US_State_Tax_Calc.doc provides more details on the parameters.
At line 247 changed 4 lines
|YTD PC 7031 FICA ER|1810.19
|PC 7033 RR Tier1 Soc ER|1649.25
|__FICA ER YTD So Far__|= 3459.44 (FICA.ytdER so far)
\\
If it is determined these parameters are needed for some employees they may be manually added to the employee’s IPRLU record. Alternatively the parameters may be manually added to the IMCT using valid values as determined by the client, and the UPRLU run for the specific employees these parameters are valid for.
At line 252 changed 10 lines
|FICA ER Contribution|3813.21
|FICA ER YTD So Far|- 3459.44
|__FICA ER This Pay__|= 353.77 (RPREGC slight rounding 353.80)
\\
__Medicare ER Calculation__
|FICA Taxable Earnings|61503.31
|FICA Rate|x 0.0145
|__MEDI ER Contribution__|= 891.80
\\
Nebraska
*NONRESPERCENTAGE
At line 263 changed 4 lines
|YTD PC 7030 Medicare ER|423.35
|PC 7034 RR Tier1 Med ER|+ 385.71
|__MEDI ER YTD So Far__|= 809.06 (MEDI.ytd So Far)
\\
Oregon
*TRANSIT_CANBY_TAX
*TRANSIT_LANE_TAX
*TRANSIT_TRIMET_EXCISE_TAX
*TRANSIT_SANDY_TAX
*TRANSIT_WILSONVILLE_TAX
*TRANSIT_SOUTH_CLACKAMAS_TAX
At line 268 changed 12 lines
|MEDI ER Contribution|891.80
|MEDI ER YTD So Far|- 809.06
|__MEDI ER This Pay__|= 82.74 (RPREGC Slight Rounding = 82.75)
\\ \\
----
!!Railroad Tax Calculation
!Railroad - Tier1 Tax Example
[US Federal Tax Calculation_03.JPG]
\\ \\
|FIT_Wages|Usage 6051 Pre FWT Earnings|6153.82
|RRTA_Wages|Usage 6306 Pre-RR Tier1 SOC ER Earnings|6079.97
\\
!!!UPRLU - Audit Tax Filing Information
At line 281 changed 3 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
\\
TBD – the UPRLU has not yet been programmed for this purpose.
At line 285 changed one line
__RRTA - No Self Adjust Method__
!!!Output File
At line 287 changed 4 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
\\ \\
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 UPRLU function provides the option of creating an output file. This output file displays what IPRLU records the UPRLU has updated. The file also shows what the values were in the Vertex fields as well as the new values inserted in the Tax Parameters.
At line 292 removed 82 lines
The reason is, if 'RR Self-Adjust' method is defined on [IPRLU], this method is applicable for both RR Tier1 and Tier2 calculations. 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.
Since employees should only pay Tier2 tax for the earnings that are earned for Railroad employment, if employee has FICA contribution, it should be verified if this employee should use the 'Self-Adjust' method to re-calculate all Tier2 tax or just use 'RR No Self-Adjust' method.
\\ \\
The next example shows the 'RR Self-Adjust' method and should be used when the employee does not have FICA employment. \\
\\
__RRTA - Self Adjust Method__
|FIT_Wages.ctd|Usage 6051 Pre FWT Earnings|= 6153.82
|FIT_Wages.ytd|Usage 6051 Pre FWT Earnings|= 58423.53
|FSP_Wages.ctd|Usage 6055 Pre-FIT Suppl Earns|= 0
|FSP_Wages.ytd|Usage 6055 Pre-FIT Suppl Earns|= 5700
|RRTA_Wages.ctd|Usage 6306 Pre-Tier1 Soc ER Earn|= 6079.97
|RRTA_Wages.ytd|Usage 6306 Pre-Tier1 Soc ER Earn|= 57654.05
\\
If RRTA Earnings (RRTA_Wages.ctd) is different than FIT Earnings (FIT_Wages.ctd), then calculate the difference between the wages for RRTA and FIT (such as Usage 6306 - Usage 6051). This is called Additional RRTA Wages.
|CTD Usage 6306 Pre-Tier1 Soc ER Earn| |6079.97
|CTD Usage 6051 Pre FWT Earnings| |6153.82
|CTD Addn FICA Wages|6079.97 - 6153.82|= -73.85 (The negative sign means that RRTA Earn < Pre-FWT Earn)
\\
|YTD Usage 6306 Pre-Tier1 Soc ER Earn| |57654.05
|YTD Usage 6051 Pre FWT Earnings| |58423.53
|YTD Addn FICA Wages|57654.05 - 58423.53|= -769.48 (negative means RRTA Earn < Pre-FWT Earn)
\\
|Addn RRTA_Wages.ctd|= -73.85 RRTA.ytd_Tier1_ER = 3813.24 (dedn so far)
|Addn RRTA_Wages.ytd|= -769.48
\\
|YTD 125 Total (from YTD)|= 1850.24 (prorate to YTD FIT / FSP Wages, i.e. 58423.53 and 5700)
|YTD 401K Total (from YTD)|= 2266.37 (prorate to YTD FIT / FSP Wages, i.e. 58423.53 and 5700)
\\
|FIT_ben_125.ctd|= 194.22|FSP_ben_125.ctd|= 0|
|FIT_ben_125.ytd|= 1685.77|FSP_ben_125.ytd|= 164.47| (1685.77 + 164.47 = 1850.24)
|FIT_ben_401K.ctd|= 225.31|FSP_ben_401K.ctd|= 0|
|FIT_ben_401K.ytd|= 2064.91|FSP_ben_401K.ytd|= 204.46| (2064.91 + 204.46 = 2269.37)
\\ \\
__Calculate RRTA Wages for the Year:__
|FIT_Wages.ctd|6153.82
|Addn RRTA_Wages.ctd|+ (-73.85)
|FIT_Wages.ytd|+ 58423.53
|Addn RRTA_Wages.ytd|+ (-769.48)
|__Total__|= 63734.02
|FSP_Wages.ctd|0
|FSP_Wages.ytd|+ 5700
|__Total__|= 5700
|RRTA_Wages_Total =|63734.02 + 5700|= 69434.02
\\ \\
__Calculate 125 Exemption for the Year__
|FIT_ben_125.ctd|194.22
|FSP_ben_125.ctd|+ 0
|FIT_ben_125.ytd|+ 1685.77
|FSP_ben_125.ytd|+ 164.47
|__RRTA_125_Total__|= 2044.46
\\ \\
__RRTA Tier1 ER Calculation:__
|RRTA_Wages_Total|69434.02
|RRTA_125_Total|- 2044.46
|__RRTA Taxable Earnings__|=67389.56
\\
|RRTA Taxable Earnings|67389.56
|RRTA Tier1 ER Rate|x 0.062
|__RRTA Tier1 ER Contribution__|=4178.15
\\
|YTD PC 7031 FICA ER|2163.99
|PC 7033 RR Tier1 Soc ER|+ 1649.25
|__RRTA ER YTD so far__|= 3813.24 (RRTA.ytdER so far)
\\
|RRTA ER Contribution|4178.15
|RRTA ER YTD so far|- 3813.24
|__RRTA Tier1 ER this pay__|= 364.81
At line 375 changed 2 lines
![Notes|Edit:Internal.PR_US_Federal_Tax_Calc.doc]
[{InsertPage page='Internal.PR_US_Federal_Tax_Calc.doc' default='Click to create a new notes page'}]
![Notes|Edit:Internal.US Federal Tax Calculation]
[{InsertPage page='Internal.US Federal Tax Calculation' default='Click to create a new notes page'}]
This page (revision-42) was last changed on 26-Nov-2021 10:22 by mmcfarlandTop