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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US Railroad Taxation
US Railroad Taxation

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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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*After the groups are defined for Railroad Employment, the jobs and/or jositions that use these groups can be defined.
*After the groups are defined for Railroad Employment, the jobs and/or positions that use these groups can be defined.
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*The Railroad tax methods must be set up for each Railroad employee on IPRLU screen.
*The Railroad tax methods must be set up for each Railroad employee on [IPRLU] screen.
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*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__
*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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- 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