This page (revision-24) was last changed on 26-Nov-2021 10:22 by jmyers

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

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Page References

Incoming links Outgoing links
US Railroad Taxation
US Railroad Taxation

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All the Railroad Tax Deduction pay components must be added to the Deduction Element in order for [UPCALC] to deduct the Railroad tax from employee's gross pay
*All the Railroad Tax Deduction pay components must be added to the Deduction Element in order for [UPCALC] to deduct the Railroad tax from employee's gross pay
*On the [IPCU] screen, the PC Usage field set to '2 Total Deductions (PPE)' must already define a pay component from [IPPC] that specifies the Deduction element. The Associated Element field must be set to 'Deduction.
*Using the Associated Element for PC Usage 2 within [IPPC], go into the [IPPE] screen and add the list of Railroad Deduction pay components to be deducted from employee's gross pay.
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On the [IPCU] screen, the PC Usage field set to '2 Total Deductions (PPE)' must already define a pay component from [IPPC] that specifies the Deduction element. The Associated Element field must be set to 'Deduction.
Using the Associated Element for PC Usage 2 within [IPPC], go into the [IPPE] screen and add the list of Railroad Deduction pay components to be deducted from employee's gross pay.
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For groups for Railroad Employment, the Registration tab in IDGR must have the W2 Employment Type field set to 'Railroad' along with the appropriate [IDGV] Government registrations.
For groups for Railroad Employment, the Registration tab in [IDGR] must have the W2 Employment Type field set to 'Railroad' along with the appropriate [IDGV] Government registrations.
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*If the Railroad Registration # needs to be defined or the overridden Railroad Maximums or Experience rate needs to be specified, registration types 'US RR Regist 1' up to 'US RR Regist 9' must be defined on [IDGV].
*The last digit of the 'US RR Regist n' is the same digit as the [IDGR] Fed Regist Type 'US Fed Regist n'.\\''For example, if [IDGR] specifies 'US Fed Regist 2', then [IDGV] should define 'US RR Regist 2' with the same Registration Set to be used for this group.''
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If the Railroad Registration # needs to be defined or the overridden Railroad Maximums or Experience rate needs to be specified, registration types 'US RR Regist 1' up to 'US RR Regist 9' must be defined on [IDGV].
The last digit of the 'US RR Regist n' is the same digit as the [IDGR] Fed Regist Type 'US Fed Regist n'. For example, if [IDGR] specifies 'US Fed Regist 2', then [IDGV] should define 'US RR Regist 2' with the same Registration Set to be used for this group.
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For example:
''For example, suppose the RUIA Employer Portion is 2.15% (Experience rate) or 12% up to Wage Base $1280 per month. The default tax rate of 12% will be used by [UPCALC] at all times. If the 2.15% Experience rate is being used, this rate must be set up on the [IDGV] screen to override the default rate. Enter the percent 2.15% as a rate of 0.0215.''
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RUIA Employer Portion is 2.15% (Experience Rate) or 12% up to Wage Base $1280 per month. The default tax rate of 12% will be used by [UPCALC] at all times.
If the 2.15% Experience rate is being used, this rate must be set up on [IDGV] screen to override the default rate. Please enter the percent 2.15% as a rate of 0.0215.
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- after IDGR groups are defined for Railroad Employment, user can define Jobs and/or Positions that use these Groups of Railroad Employment.
*After the groups are defined for Railroad Employment, the jobs and/or positions that use these groups can be defined.
*These positions/jobs will then be used to set up employee assignments.
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- these Positions/Jobs will then be used to set up employees Assignments.
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- When setting up the employee's Assignment, user can select the Railroad Positions.
- after the Position is entered, the Group is retrieved according to the Position
- when the employee is paid by this Assignment, the Group of this Assignment will be used for the Pay Header and therefore the Railroad tax will be calculated according to the W2 Employment Type of the Group.
*When defining the employee's Assignment, a Railroad position may be selected in the Position field.
*After the Position is entered, it will be used to automatically retrieve the data for the Group field.
*When the employee is paid by this assignment, the associated group will be used for the Pay Header and therefore the Railroad tax will be calculated according to the group's W2 Employment type.
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*The Railroad tax methods must be set up for each Railroad employee on [IPRLU] screen.
*The Railroad Taxation Area must be set up for Railroad Employees only
*The FICA Method and Medicare Method are used when the employee is paid by groups that are not Railroad Employment.
*For Railroad employees, both the FICA/Medicare Method and the Railroad Tax section must be set up so that when the employee is transferred between Railroad and Regular employment, the corresponding tax will be calculated.
*Once all the groups have been defined for the Railroad employment and [IEAS] has been set up to pay employees with the Railroad Employment groups, a fix up script can be run to populate the [IPRLU] Railroad tax method with the default method of 'Self Adjust'. This script is called __fix_IPRLU_Railroad_default.sql__\\%%information Please note that fix_IPRLU_Railroad_default.sql only populates the Railroad tax methods, the IPRLU record must first be created.%%
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User must set up the Railroad tax methods for each Railroad employee on IPRLU screen.
- the Railroad Taxation Area must be set up for Railroad Employees only
- the FICA Method and Medicare Method are used when the employee is paid by Groups that are not Railroad Employment.
- for Railroad Employees, the user should set up both the FICA/Medicare Method and the Railroad Tax section so that when employee is transferred to and from Railroad and Regular Employment, the corresponding tax will be calculated
- once after the user defines all Groups for the Railroad employment and finishes the set up on IEAS for the employees to be paid with the Railroad Employment Groups, the user can run a fix up script to populate the IPRLU Railroad tax method to the default method of 'Self Adjust', the script is called fix_IPRLU_Railroad_default.sql
- note: fix_IPRLU_Railroad_default.sql only populates the Railroad tax methods, user must first create the IPRLU record\\ \\
The following is a list of the Database columns used for Railroad Tax calculation:
The following is a list of the database columns used for Railroad Tax calculation:
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The Railroad tax methods may be overiden by Pay Categories on [IPPGU] screen.
The Railroad tax methods may be overridden by the Pay Categories on [IPPGU] screen.
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Because the Railroad Unemployment Insurance (RUIA) is calculated at a Rate up to a Monthly Maximum Earnings, the user must turn ON the MTD Toggle on IPPR screen in order to maintain the MTD values.
Because the Railroad Unemployment Insurance (RUIA) is calculated at a rate up to the Monthly Maximum Earnings, the MTD toggle on [IPPR] must be turned on in order to maintain the MTD values.
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*When an employee is paid with the [IEAS] assignment for the group that points to the Railroad W2 Employment Type, this employee's Pay Header is subject to Railroad Tax calculation.
*The Pay Header's group determines if this pay should calculate the Railroad tax.
*The [IPRLU] screen defines each Railroad Tax method that is eligible for this employee.
*[UPCALC] retrieves all Taxable Earnings according to [IPCU] Railroad PC Usages and passes that on to Vertex in order to calculate the Railroad taxation.
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When an employee is paid with the IEAS Assignment for the Group that points to the Railroad W2 Employment Type, this employee's Pay Header is subject to Railroad Tax calculation.
- the Pay Header's Group determines if this pay should calculate the Railroad Tax
- the IPRLU screen defines each Railroad Tax method that is eligible for this employee
- UPCALC retrieves all Taxable Earnings according to IPCU Railroad PC Usages and pass to Vertex to calculate Railroad taxation
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*There are different Annual Maximum Earnings and Rates for different Railroad tax calculation
*There are different Annual Maximum earnings and rates for different Railroad tax calculations.
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*When an employee is paid throughout the year of 2008, the employee will first reach the Tier2 maximum earnings $75,900 and thus Tier2 contribution will stop, then the employee will reach the OASDI maximum of $102,900 while the Medicare portion will continue with no Base limit
*The Railroad Unemployment Insurance (RUIA) has a Monthly Maximum Wage Base of $1280 per month, thus the MTD Earnings and contributions are passed to Vertex to determine if the RUIA Maximums are reached for each month
*When an employee is paid throughout the year of 2008, the employee will first reach the Tier2 maximum earnings $75,900 and thus the Tier2 contribution will stop, then the employee will reach the OASDI maximum of $102,900 while the Medicare portion will continue with no Base limit.
*The Railroad Unemployment Insurance (RUIA) has a Monthly Maximum Wage Base of $1280 per month, thus the MTD Earnings and contributions are passed to Vertex to determine if the RUIA Maximums are reached for each month.
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*An employee can transfer to and from a Railroad employment by just changing the [IEAS] Assignment position with an effective date change.
*When the Pay Headers are generated from this assignment, the effective Assignment group will be used and therefore the Railroad tax will be calculated accordingly.
*When calculating the Railroad Tier1 Social Security / Medicare portion and the Regular FICA/MEDI for the different assignments, the YTD amounts of these contributions are taken into consideration so that the employee will not contribute over the Annual maximums.
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*An employee can transfer to and from Railroad Employment by just changing the IEAS Assignment Position with an effective date change
*When the Pay Headers are generated from this Assignment, the effective Assignment Group will be used and therefore the Railroad tax will be calculated accordingly
*When calculating the Railroad Tier1 Social Security / Medicare portion and the Regular FICA/MEDI for the different Assignments, the YTD amounts of these contributions are taken into consideration so that the employee will not contribute over the Annual maximums
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*An employee may be assigned with an additional assignment in order to perform either regular or railroad type of work throughout the year.
*When the employee is paid with either assignment, the Pay Header's group determines if the Railroad tax should be calculated.
*When calculating the Railroad Tier1 Social Security / Medicare portion and the regular FICA/MEDI for the different assignments, the YTD amounts of these contributions are taken into consideration so that the employee will not contribute over the annual maximums.
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*An employee may be assigned with an additional Assignment to perform Regular or Railroad type of work throughout the year
!IEEI - Transfer with Different Employments
*An employee can be terminated and re-hired in different employments.
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*When the employee is paid with either Assignment, the Pay Header's group determines if the Railroad tax should be calculated
For Employment with Hire Date of '01-Sep-2000', the [IEAS] Assignments are defined for this Employment.
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*When calculating the Railroad Tier1 Social Security / Medicare portion and the Regular FICA/MEDI for the different Assignments, the YTD amounts of these contributions are taken into consideration so that the employee will not contribute over the Annual maximums
!IEEI - Transfer with different Employments
An employee can be terminated and re-hired in a different Employments.
For Employment with Hire Date of '01-Sep-2000', the IEAS Assignments are defined for this Employment.
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*When calculating the Railroad Tier1 Social Security / Medicare portion and the Regular FICA/MEDI for the different Assignments, the YTD amounts of these contributions are taken into consideration so that the employee will not contribute over the Annual maximums
*When calculating the Railroad Tier1 Social Security / Medicare portion and the Regular FICA/MEDI for the different assignments, the YTD amounts of these contributions are taken into consideration so that the employee will not contribute over the annual maximums.
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For Employment with Hire Date of '01-Jan-2002', the IEAS Assignments are defined for this Employment.
*For an employment with Hire Date of '01-Jan-2002', the [IEAS] Assignments are defined for the employment.
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When Pay Headers are entered for this Assignment, the Assignment Group is used to determine if the Railroad Tax should be calculated.
*When Pay Headers are entered for this assignment, the assignment's group is used to determine if the Railroad Tax should be calculated.
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*When the employee is paid with either Employments, the Pay Header'™s group determines if the Railroad tax should be calculated
*When the employee is paid with either Employments, the Pay Header's group determines if the Railroad tax should be calculated.
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*When calculating the Railroad Tier1 Social Security / Medicare portion and the Regular FICA/MEDI for the different Assignments, the YTD amounts of these contributions are taken into consideration so that the employee will not contribute over the Annual maximums
*When calculating the Railroad Tier1 Social Security / Medicare portion and the Regular FICA/MEDI for the different assignments, the YTD amounts of these contributions are taken into consideration so that the employee will not contribute over the annual maximum.
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__From W2 Form instructions:__
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From W2 Form Instructions:
*Box 14 is used to report RRTA (Railroad Retirement Tax Act) Tier1 and Tier2 employee taxes.
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*Box 14 is used to report RRTA (Railroad Retirement Tax Act) Tier1 and Tier2 employee taxes
*When reporting the Railroad Employees information, Box 3, 4, 5, 6, 7 Social Security Information should be zero.
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*When reporting the Railroad Employees information, Box 3, 4, 5, 6, 7 Social Security Information should be zero
*When an employee has contributions to both the Railroad and Regular employments, then Box 3, 4, 5, 6, 7 Social Security Information should be reported. This is used for the scenario when an employee is transferred between Railroad and Regular employments.
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*When an employee has contributions to both the Railroad and Regular Employments, then Box 3, 4, 5, 6, 7 Social Security Information should be reported, this is the case when employee is transferred to and from Railroad and Regular Employments
[IDFDV] Identifiers W2-OTHER-01 to W2-OTHER-nn Box 14 Information must be set up for Railroad TIER1 and TIER2 taxes as follows:
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__From EFW2 File Instructions:__
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User must set up IDFDV Identifiers W2-OTHER-01 to W2-OTHER-nn Box 14 Information for Railroad TIER1 and TIER2 taxes as follows:
*A different Code RE Employer Record must be generated by the W2 Employment Type
*Railroad Employees who have been paid by the Code RE Federal Registration# and W2 Employment Type must be grouped and reported under this RE record.
*Social Security and Medicare information should be zero filled for these employees.
*Information from Box 14 is not reported on EFW2 File.
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From EFW2 File Instructions:
- different Code RE Employer Record must be generated by the W2 Employment Type
- Railroad Employees who have been paid by this Code RE Federal Registration# and W2 Employment Type must be grouped and reported under this RE record
- Social Security and Medicare information should be zero filled for these employees
- Box 14 information are not reported on EFW2 File
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*When RPYEU is run, the [IPVT] Group code is used to retrieve the W2 Employment Type to be reported.
*Employee 507 will be reported under both Regular and Railroad Employment.
*When reporting the Regular Employment, the Box 3, 4, 5, 6 Social Security Information will be retrieved from [IPVT] for the Regular Employment Group which had calculated the Social Security taxes throughout the year.
*Box 14 Railroad taxes will not be reported because the Regular Employment Group will not calculate Railroad taxes.
*When reporting the Railroad Employment, the Box 3, 4, 5, 6 Social Security Information will not be retrieved from [IPVT] for the Railroad Employment Group because the Social Security taxes have not been calculated throughout the year.
*Box 14 Railroad taxes will be reported because the Railroad Employment Group has been calculated the Railroad taxes.
%%information Note that Box 7 SOC SEC TIPS are calculated and set up by users. This report is an example only, should not be used to calculate for Railroad employees%%
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*When RPYEU is run, IPVT Group Code is used to retrieve the W2 Employment Type to be reported
*Employee 507 will be reported under Regular Employment and Railroad Employment.
*When reporting the Regular Employment, the Box 3, 4, 5, 6 Social Security Information will be retrieved from IPVT of the Regular Employment Group which had calculated the Social Security taxes throughout the year
*Box 14 Railroad taxes will not be reported because the Regular Employment Group will not calculate Railroad taxes
*When reporting the Railroad Employment, the Box 3, 4, 5, 6 Social Security Information will not be retrieved from IPVT of the Railroad Employment Group because the Social Security taxes have not been calculated throughout the year
*Box 14 Railroad taxes will be reported because the Railroad Employment Group has been calculated the Railroad taxes
%%information Note that Box 7 SOC SEC TIPS are calculated and set up by users, this report is an example only, user should not calculate this for Railroad employees%%
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For Regular Employment:
Box 3, 4, 5, 6 Social Security Information will be printed
Box 14 Railroad information will not be printed
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For Railroad Employment:
Box 3, 4, 5, 6 Social Security Information will not be printed
For Regular Employment:\\
Box 3, 4, 5, 6 Social Security Information will be printed\\
Box 14 Railroad information will not be printed\\ \\
For Railroad Employment:\\
Box 3, 4, 5, 6 Social Security Information will not be printed\\
This page (revision-24) was last changed on 26-Nov-2021 10:22 by jmyersTop