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

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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

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US Federal Tax Calculation
US Federal Tax Calculation

Version management

Difference between version and

At line 123 changed 2 lines
** If there is a specific rate given by the government for different Registration #, then enter on IDGV by 'Reg Type', this overrides the IPUTR Rate
** UPCALC retrieves IDGV by Government Registration from Employee's Pay Header Group
** If there is a specific rate given by the government for different Registration #, then enter on [IDGV] by 'Reg Type', this overrides the IPUTR Rate
** [UPCALC] retrieves [IDGV] by Government Registration from the employee's pay header group.
At line 126 changed one line
If you do business in a state that has been given a FUTA Tax Credit reduction, the new FUTA tax rate for that particular state may be entered in IDGV for the state. In IDGV add a new entry for the specific state, select Registration Type ‘US SUI Regist 1’, the Govt Rate Type should be ‘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.
If you do business in a state that has been given a FUTA Tax Credit reduction, the new FUTA tax rate for that particular state may be entered in [IDGV] for the state. In [IDGV], add a new entry for the specific state, select Registration Type 'US SUI Regist 1'. The Govt Rate Type should be '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.
At line 128 changed one line
!!!PC Usage – Railroad Taxation
!!!PC Usage - Railroad Taxation
At line 130 changed one line
PC Usages 6301 – 6356
PC Usages 6301 - 6356
At line 151 changed 2 lines
|PC 8005 FIT Earn|1923.08 – 295.08 = 1628.00
|PC 8015 FSP Earn|100.00 – 15.34 = 84.66
|PC 8005 FIT Earn|1923.08 - 295.08 = 1628.00
|PC 8015 FSP Earn|100.00 - 15.34 = 84.66
At line 154 changed one line
|PC 6000 FIT Tax|Based on PC 8005 $1628.00 = 237.77
|PC 6000 FIT Tax|Based on PC 8005 $1628.00 = 237.77
At line 161 changed one line
Employee works for Regular Employment and Railroad Employment. FICA YTD and RRTA YTD are both used in FICA Calculation.
When the employee works for both Regular and Railroad employment, FICA YTD and RRTA YTD are both used in the FICA calculation.
At line 166 changed 2 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
|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
At line 169 changed one line
__1) FICA ER – No Self Adjust Method__
__1) FICA ER - No Self Adjust Method__
At line 173 changed one line
This employee uses ‘Self-Adjust method’, please see next page.
This employee uses the Self-Adjust method.
At line 175 changed one line
__2) FICA ER – Self Adjust Method__
__2) FICA ER - Self Adjust Method__
At line 183 changed one line
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 (i.e. Usage 6261 – Usage 6051), called this Additional FICA Wages
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 (i.e. Usage 6261 - Usage 6051). This is called Additional FICA Wages
At line 186 changed one line
|CTD Addn FICA Wages|6596.13 – 6676.24 = -80.11 (negative means FICA Earn < Pre-FWT Earn)
|CTD Addn FICA Wages|6596.13 - 6676.24 = -80.11 (negative means FICA Earn < Pre-FWT Earn)
At line 190 changed one line
|YTD Addn FICA Wages|51057.92 – 51747.29 = -689.37 (negative means FICA Earn < Pre-FWT Earn)
|YTD Addn FICA Wages|51057.92 - 51747.29 = -689.37 (negative means FICA Earn < Pre-FWT Earn)
At line 216 changed 2 lines
|FICA Taxable Earnings|= FICA_Wages_Total – FICA_125_Total|
|FICA Taxable Earnings|= 63354.05 – 1850.74 | = 61503.31
|FICA Taxable Earnings|= FICA_Wages_Total - FICA_125_Total|
|FICA Taxable Earnings|= 63354.05 - 1850.74 | = 61503.31
At line 225 changed 2 lines
|FICA ER this pay|= FICA ER Contribution – FICA ER YTD so far|
|FICA ER this pay|= 3813.21 – 3459.44 |= 353.77 (RPREGC slight rounding 353.80)
|FICA ER this pay|= FICA ER Contribution - FICA ER YTD so far|
|FICA ER this pay|= 3813.21 - 3459.44 |= 353.77 (RPREGC slight rounding 353.80)
At line 235 changed 2 lines
|MEDI ER this pay|= MEDI ER Contribution – MEDI ER YTD so far|
MEDI ER this pay|= 891.80 – 809.06 |= 82.74 (RPREGC slight rounding 82.75)
|MEDI ER this pay|= MEDI ER Contribution - MEDI ER YTD so far|
MEDI ER this pay|= 891.80 - 809.06 |= 82.74 (RPREGC slight rounding 82.75)
At line 239 changed one line
!!!Railroad – Tier1 Tax Example
!!!Railroad - Tier1 Tax Example
At line 244 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
|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 247 changed one line
__1)RRTA – No Self Adjust Method__
__1)RRTA - No Self Adjust Method__
At line 251 changed 5 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.
*Next page example shows the ‘RR Self-Adjust method’ and should be used when Employee does not have FICA employment
__2) RRTA – Self Adjust Method__
*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. 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, which would cause the entire YTD Earnings to be subject to Tier2 tax.
*Since employee should only pay Tier2 tax for the earnings that are earned for Railroad employment, if the 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 to 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
__2) RRTA - Self Adjust Method__
At line 264 changed one line
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 (i.e. Usage 6306 – Usage 6051), called this Additional RRTA Wages
If RRTA Earnings (RRTA_Wages.ctd) are different than FIT Earnings (FIT_Wages.ctd), then calculate the difference between the wages for RRTA and FIT (i.e. Usage 6306 - Usage 6051). This is called Additional RRTA Wages.
At line 267 changed one line
|CTD Addn FICA Wages|6079.97 – 6153.82|= -73.85 (negative means RRTA Earn < Pre-FWT Earn)
|CTD Addn FICA Wages|6079.97 - 6153.82|= -73.85 (negative means RRTA Earn < Pre-FWT Earn)
At line 271 changed one line
|YTD Addn FICA Wages|57654.05 – 58423.53|-769.48 (negative means RRTA Earn < Pre-FWT Earn)
|YTD Addn FICA Wages|57654.05 - 58423.53|-769.48 (negative means RRTA Earn < Pre-FWT Earn)
At line 297 changed 2 lines
|RRTA Taxable Earnings|= RRTA_Wages_Total – RRTA_125_Total|
|RRTA Taxable Earnings|= 69434.02 – 2044.46 | = 67389.56
|RRTA Taxable Earnings|RRTA_Wages_Total - RRTA_125_Total|
|RRTA Taxable Earnings|69434.02 - 2044.46 | = 67389.56
At line 301 changed one line
|RRTA Tier1 ER Contribution|= 67389.56 x 0.062 | = 4178.15
|RRTA Tier1 ER Contribution|= 67389.56 x 0.062 | = 4178.15
At line 305 changed 2 lines
|RRTA Tier1 ER this pay| = RRTA ER Contribution – RRTA ER YTD so far|
|RRTA Tier1 ER this pay| = 4178.15 – 3813.24 | = 364.81
|RRTA Tier1 ER this pay| = RRTA ER Contribution - RRTA ER YTD so far|
|RRTA Tier1 ER this pay| = 4178.15 - 3813.24 | = 364.81
This page (revision-42) was last changed on 26-Nov-2021 10:22 by mmcfarlandTop