This page (revision-22) 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
22 26-Nov-2021 10:22 25 KB mmcfarland to previous
21 26-Nov-2021 10:22 25 KB mmcfarland to previous | to last

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US Taxation Supplemental Pay Processing
US Taxation Supplemental Pay Processing

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At line 11 changed 3 lines
*At Employee level on IPRLU, the employee specifies the employee’s Federal Supplemental Tax Method that determines if the Supplemental tax should be calculated for this employee
*If Federal Supplemental tax is to be calculated for an employee, UPCALC will internally pass the ‘FLAT’ Percentage Method to Symmetry that will calculate FSP Tax using the federal 25% or 35%
*Regardless if the Supplemental Wages are paid WITH or WITHOUT the Regular Wages, Federal Supplemental tax is calculated using this ‘FLAT’ Percentage Method by Symmetry\\ \\For Example: Sup is Paid with Regular Wages, when FSP Method = ‘Flat Percent Method’\\ \\[US_Taxation _Supplemental Pay Processing_01.JPG]\\ \\PC 6010 FSP Tax 916.96 x 25%= 229.24
*At Employee level on [IPRLU], the employee specifies the employee's Federal Supplemental Tax Method that determines if the Supplemental tax should be calculated for this employee.
*If Federal Supplemental tax is to be calculated for an employee, [UPCALC] will internally pass the 'FLAT' Percentage Method to Symmetry that will calculate FSP Tax using the federal 25% or 35%
*Regardless if the Supplemental Wages are paid WITH or WITHOUT the Regular Wages, Federal Supplemental tax is calculated using this ‘FLAT’ Percentage Method by Symmetry\\ \\For Example: Sup is Paid with Regular Wages, when FSP Method = ‘Flat Percent Method’\\ \\[US_Taxation _Supplemental Pay Processing_01.JPG]\\ \\PC 6010 FSP Tax 916.96 x 25%= 229.24
At line 43 changed one line
After UPCALC or Trial Calc, on IPPH ‘PAY JURISDICTION’ Tab, user can click the Jurisdiction ’00-000-0000 Federal’ entry and scroll down the ‘Tax Identifier’ list, the prorated 125 and 401K amounts are stored for these Benefit usages with description ‘Pre-FWT 125 Exemption - Supplemental Tax (PPE)’ etc.
After UPCALC or Trial Calc, on IPPH ‘PAY JURISDICTION’ Tab, user can click the Jurisdiction ’00-000-0000 Federal’ entry and scroll down the ‘Tax Identifier’ list, the prorated 125 and 401K amounts are stored for these Benefit usages with description ‘Pre-FWT 125 Exemption - Supplemental Tax (PPE)’ etc.
At line 99 changed one line
On IPPH ‘PAY JURISDICTION’ tab, user can click the Jurisdiction ’00-000-0000 Federal’ entry and scroll down the ‘Tax Identifier’ list, the prorated 125 and 401K amounts are stored as ‘Pre-FWT 125 Exemption - Supplemental Tax (PPE)’ etc.
On IPPH ‘PAY JURISDICTION’ tab, user can click the Jurisdiction ’00-000-0000 Federal’ entry and scroll down the ‘Tax Identifier’ list, the prorated 125 and 401K amounts are stored as ‘Pre-FWT 125 Exemption - Supplemental Tax (PPE)’ etc.
At line 147 changed one line
*For State that has a specific Supplemental Flat percentage, the ‘Flat Rate Method’ can be used
*For State that has a specific Supplemental Flat percentage, the ‘Flat Rate Method’ can be used
At line 149 changed one line
*Not all States have a specific flat percentage for Supplemental wages, for these States, the ‘Current Aggregation’ method should be used.
*Not all States have a specific flat percentage for Supplemental wages, for these States, the ‘Current Aggregation’ method should be used.
At line 153 changed one line
*The ‘Previous Aggregation’ Method will not be supported until there is a need to use this method
*The ‘Previous Aggregation’ Method will not be supported until there is a need to use this method
At line 157 changed 2 lines
*From this list, the following states do not supply a Flat percent and therefore the ‘Current Aggregation’ method is used in order to calculate State Sup Tax:\\ \\AK, AZ, CT, DE, FL, HI, KY, LA, MA, MD, MS, NH, NJ, SD, TN, TX, UT, WA, WY, PR
*From this list, the remaining states will use the ‘Flat’ method in order to calculate State Sup Tax
*From this list, the following states do not supply a Flat percent and therefore the ‘Current Aggregation’ method is used in order to calculate State Sup Tax:\\ \\AK, AZ, CT, DE, FL, HI, KY, LA, MA, MD, MS, NH, NJ, SD, TN, TX, UT, WA, WY, PR
*From this list, the remaining states will use the ‘Flat’ method in order to calculate State Sup Tax
At line 162 changed 2 lines
*If State Supplemental tax is to be calculated by Symmetry, then the Default Sup Tax Method of ‘Flat’ or ‘Current Aggregation’ method will be passed to Symmetry
*On IPTUP for each State, the user can manually override the default Supplemental Tax Method to ‘FLAT’ or ‘CURRAGG’ depending on if the users prefer to tax by which method, then on IPRLU State Miscellaneous Tab, employee may override this State level default Supplemental tax method
*If State Supplemental tax is to be calculated by Symmetry, then the Default Sup Tax Method of ‘Flat’ or ‘Current Aggregation’ method will be passed to Symmetry
*On IPTUP for each State, the user can manually override the default Supplemental Tax Method to ‘FLAT’ or ‘CURRAGG’ depending on if the users prefer to tax by which method, then on IPRLU State Miscellaneous Tab, employee may override this State level default Supplemental tax method
At line 168 changed 2 lines
!State Supplemental Tax – WITH or WITHOUT Regular Pay
*Depending on if the Supplemental Wages are paid WITH or paid WITHOUT the Regular Wages, each State may have different methods to handle Supplemental taxes. Please refer to this link:\\ \\[http://www.payroll-taxes.com/PayrollTaxes/supplemental_states.htm]\\ \\An Example for the State of Maryland below shows the differences of the State Supplemental Tax results when the ‘FLAT’ or ‘CURRAGG’ tax methods are used.
!State Supplemental Tax – WITH or WITHOUT Regular Pay
*Depending on if the Supplemental Wages are paid WITH or paid WITHOUT the Regular Wages, each State may have different methods to handle Supplemental taxes. Please refer to this link:\\ \\[http://www.payroll-taxes.com/PayrollTaxes/supplemental_states.htm]\\ \\An Example for the State of Maryland below shows the differences of the State Supplemental Tax results when the ‘FLAT’ or ‘CURRAGG’ tax methods are used.
At line 176 changed 3 lines
*#Supplemental is Paid with Regular Wages, when SSP Method = ‘Flat Percent Method’
*#*this actually uses Method ‘Paid at Different Time than Regular Wages’\\ \\[US_Taxation _Supplemental Pay Processing_03.JPG]\\ \\Maryland Sup Rate 916.96 x 6.25% = 57.31\\Local Rate for Allegany County, MD 916.96 x 0.0305 = 27.97\\%%(indent:8em) = 85.28: PC 6052\\Res SIT + Res Supp Tax 214.07 + 85.28 = 299.35\\%%information Note: Higher than ‘CURRAGG’ method%%
*#Sup is Paid with Regular Wages, when SSP Method = ‘Current Aggregation’\\ \\[US_Taxation _Supplemental Pay Processing_04.JPG]\\ \\Res SIT + Res Supp Tax 214.07 + 71.52 = 285.59\\ \\%%information Note: same result as Vertex below%%
*#Supplemental is Paid with Regular Wages, when SSP Method = ‘Flat Percent Method’
*#*this actually uses Method ‘Paid at Different Time than Regular Wages’\\ \\[US_Taxation _Supplemental Pay Processing_03.JPG]\\ \\Maryland Sup Rate 916.96 x 6.25% = 57.31\\Local Rate for Allegany County, MD 916.96 x 0.0305 = 27.97\\%%(indent:8em) = 85.28: PC 6052\\Res SIT + Res Supp Tax 214.07 + 85.28 = 299.35\\%%information Note: Higher than ‘CURRAGG’ method%%
*#Sup is Paid with Regular Wages, when SSP Method = ‘Current Aggregation’\\ \\[US_Taxation _Supplemental Pay Processing_04.JPG]\\ \\Res SIT + Res Supp Tax 214.07 + 71.52 = 285.59\\ \\%%information Note: same result as Vertex below%%
At line 182 changed 2 lines
*When Sup is paid WITH Regular Wages, the ‘Current Aggregation’ method should be used
*When Sup is paid WITHOUT Regular Wages, the ‘Current Aggregation’ or ‘Flat’ method can be used
*When Sup is paid WITH Regular Wages, the ‘Current Aggregation’ method should be used
*When Sup is paid WITHOUT Regular Wages, the ‘Current Aggregation’ or ‘Flat’ method can be used
At line 185 changed 2 lines
!IPUTP – Supplemental Tax Method by State
*when UPUTR is run, UPUTR automatically loads in two Miscellaneous Identifiers for each State to provide the Default Supplemental Tax Method:\\ \\SUP_PAID_WITH_REG\\SUP_PAID_WITHOUT_REG\\ \\[US_Taxation _Supplemental Pay Processing_06.JPG]\\ \\Default Value - this contains ‘FLAT’ or ‘CURRAGG’ depending on each state\\Provided By - always ‘Internal’. When UPCALC is passing State Misc Parms to Symmetry, UPCALC will not pass the State Misc Parm that are with ‘Provided By’ = ‘Internal’
!IPUTP – Supplemental Tax Method by State
*when UPUTR is run, UPUTR automatically loads in two Miscellaneous Identifiers for each State to provide the Default Supplemental Tax Method:\\ \\SUP_PAID_WITH_REG\\SUP_PAID_WITHOUT_REG\\ \\[US_Taxation _Supplemental Pay Processing_06.JPG]\\ \\Default Value - this contains ‘FLAT’ or ‘CURRAGG’ depending on each state\\Provided By - always ‘Internal’. When UPCALC is passing State Misc Parms to Symmetry, UPCALC will not pass the State Misc Parm that are with ‘Provided By’ = ‘Internal’
At line 188 changed one line
*in UPCALC, if an employee is paid Supplemental Wages with the Regular Wages in the same pay, then the ‘SUP_PAID_WITH_REG’ Default Value will be used
*in UPCALC, if an employee is paid Supplemental Wages with the Regular Wages in the same pay, then the ‘SUP_PAID_WITH_REG’ Default Value will be used
At line 190 changed one line
*in UPCALC, if an employee is paid Supplemental Wages without the Regular Wages in the same pay, then the ‘SUP_PAID_WITHOUT_REG’ Default Value will be used
*in UPCALC, if an employee is paid Supplemental Wages without the Regular Wages in the same pay, then the ‘SUP_PAID_WITHOUT_REG’ Default Value will be used
At line 192 changed one line
!IPRLU – Supplemental Tax Method by Employee
!IPRLU – Supplemental Tax Method by Employee
At line 230 changed one line
After UPCALC or Trial Calc, on IPPH ‘PAY JURISDICTION’ Tab, user can click the Jurisdiction entry for the appropriate Jurisdiction name and scroll down the ‘Tax Identifier’ list, the prorated 125 and 401K amounts are stored for these Benefit usages with description ‘Pre-State 125 Exemption - Reg Tax (PPE)’ etc.
After UPCALC or Trial Calc, on IPPH ‘PAY JURISDICTION’ Tab, user can click the Jurisdiction entry for the appropriate Jurisdiction name and scroll down the ‘Tax Identifier’ list, the prorated 125 and 401K amounts are stored for these Benefit usages with description ‘Pre-State 125 Exemption - Reg Tax (PPE)’ etc.
This page (revision-22) was last changed on 26-Nov-2021 10:22 by mmcfarlandTop