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

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
22 26-Nov-2021 10:22 25 KB mmcfarland to previous
21 26-Nov-2021 10:22 25 KB mmcfarland to previous | to last

Page References

Incoming links Outgoing links
US Taxation Supplemental Pay Processing
US Taxation Supplemental Pay Processing

Version management

Difference between version and

At line 10 changed 4 lines
*The Supplemental tax for federal withholding is computed using the federal percentage. Example: 25% of wages on the first $1,000,000 in supplemental wages and 35% of wages on any amount over $1,000,000.
*At the Employee level on [IPRLU], the employee defines the employee's Federal Supplemental Tax Method that determines if the Supplemental tax should be calculated for the 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 the FSP tax using the federal 25% or 35% tax method.
*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: Supplemental 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
*The Supplemental tax for federal withholding is computed using the federal percentage (i.e. 25% of wages on the first $1,000,000 in supplemental wages and 35% of wages on any amount over $1,000,000).
*At the 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 17 changed one line
When a supplemental pay is paid with a regular pay, the taxable benefit deductions can be prorated between both Federal and Supplemental wages. This is controlled by the set up of elements attached to specific pay components, as indicated below.
When a supplemental pay is paid with a regular pay, the taxable benefit deductions may be prorated between both Federal and Supplemental wages. This is controlled by the set up of elements attached to specific pay components as indicated below.
At line 19 changed one line
Prorating the taxable benefit deductions will cause a slight difference in the tax calculated. Organizations will need to consider their business processes to determine if they would prefer the taxable benefits to be prorated or not. Some organizations may want to prorate Section 125 deductions and not 401k deductions.
Prorating the taxable benefit deductions will cause a slight difference in the tax calculated. Clients will need to consider their business processes to determine if they would prefer the taxable benefits to be prorated or not. Some clients may want to prorate section 125 deductions and not 401k deductions.
At line 31 added one line
At line 42 changed 2 lines
*No supplemental element is associated to the Supplemental PC Usages listed above, such as 7921, 7922. UPCALC will prorate all of the Section 125 and 401k deduction amounts between Regular and Supplemental.
*A supplemental element has been associated to the Supplemental PC Usages listed above, the element is defined with PCs and those PCs have amounts. UPCALC will use the element and prorate the taxable benefits defined in the element. This should NOT be the same element as the one associated to the regular earnings Pre-Tax Benefit PC, such as 7901, 7902. This setup option is used when not all of the pre-tax benefits listed in the element used in the regular Pre-Tax Benefit PC (i.e. 7901, 7902) should be applied to supplemental earnings, therefore a different element is needed.
*No supplemental element is associated to the Supplemental PC Usages listed above (i.e. 7921, 7922), UPCALC will prorate all of the section 125 and 401k deduction amounts between Regular and Supplemental.
*A supplemental element has been associated to the Supplemental PC Usages listed above, the element is defined with PCs and those PCs have amounts, UPCALC will use the element and prorate the taxable benefits defined in the element.
At line 46 changed one line
*A supplemental element has been associated to the Supplemental PC Usages but the element is empty (no PCs defined).
*A supplemental element has been associated to the Supplemental PC Usages but the erlement is empty (no PCs defined).
At line 48 removed one line
\\
At line 50 changed 4 lines
__Set Up Options to Prorate Section 125 Taxable Benefits between Federal and Supplemental:__
#On IPPC, do not associate an element to 'PC Usage 7921 - Pre-FWT 125 Exemption - Suppl Tax (PPE)'. This will cause UPCALC to prorate all of the Section 125 taxable benefit deductions that are defined in the element tied to 'PC Usage 7901 - Pre-FWT 125 Exemption - Reg Tax (PPE)'.
#If only certain Section 125 deductions should be prorated, define an element on IPPE that lists only the Section 125 deductions that should be prorated between Federal and Supplemental. On IPPC, attach this element to the Pay Component tied to 'PC Usage 7921 - Pre-FWT 125 Exemption - Suppl Tax (PPE)'. The element should not be the same as the one associated to the regular Pre-Tax Benefit PC, such as 7901.
\\
Set Up Options to Prorate Section 125 Taxable Benefits between Federal and Supplemental:
#In IPPC do not associate an element to PC Usage 7921 - Pre-FWT 125 Exemption - Suppl Tax (PPE). This will cause UPCALC to prorate all of the section 125 taxable benefit deductions that are defined in the element tied to PC Usage 7901 - Pre-FWT 125 Exemption - Reg Tax (PPE).
#If only certain Sect 125 deductions should be prorated, define an element in IPPE that only lists the 125 deductions that should be prorated between Federal and Supplemental. In IPPC, attach this element to the Pay Component tied to PC Usage 7921 - Pre-FWT 125 Exemption - Suppl Tax (PPE).
At line 55 changed 4 lines
__Set Up Options to Prorate 401k Taxable Benefits between Federal and Supplemental:__
#On IPPC, do not associate an element to 'PC Usage 7922 - Pre-FWT 401K Exemption - Suppl Tax (PPE)'. This will cause UPCALC to prorate all of the 401k/457 taxable benefit deductions that are defined in the element tied to '7902 - Pre-FWT 401K Exemption - Reg Tax (PPE)'.
#If only certain 401k or 457 deductions should be prorated between Federal and Supplemental, define an element on IPPE that only lists the 401k and 457 deductions that should be prorated. On IPPC, attach this element to the pay component tied to PC Usage '7922 - Pre-FWT 401K Exemption - Suppl Tax (PPE)'.
\\
Set Up Options to Prorate 401k Taxable Benefits between Federal and Supplemental:
#In IPPC do not associate an element to PC Usage 7922 - Pre-FWT 401K Exemption - Suppl Tax (PPE). This will cause UPCALC to prorate all of the 401k/457 taxable benefit deductions that are defined in the element tied to 7902 - Pre-FWT 401K Exemption - Reg Tax (PPE).
#If only certain 401k or 457 deductions should be prorated between Federal and Supplemental, define an element in IPPE that only lists the 401k and 457 deductions that should be prorated. In IPPC, attach this element to the pay component tied to PC Usage 7922 - Pre-FWT 401K Exemption - Suppl Tax (PPE).
At line 60 changed one line
After UPCALC or Trial Calc, go to the Pay Jurisdiction tab on IPPH, click on 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 the description 'Pre-FWT 125 Exemption - Supplemental Tax (PPE)' etc.
After UPCALC or Trial Calc, go to the Pay Jurisdiction tab in IPPH, where you 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 70 changed 2 lines
|PC 8000 Fed Tax Earnings|2249.7300
|PC 8010 Fed Sup Earnings|974.8800
|PC 8000 Fed Tax Earns|2249.7300
|PC 8010 Fed Sup Earns|974.8800
At line 74 changed 2 lines
|PC 8055 Res SIT Earnings|2249.7300
|PC 8058 Res Supp Earnings|974.8800
|PC 8055 Res SIT Earn|2249.7300
|PC 8058 Res Supp Earn|974.8800
At line 77 changed 3 lines
|PC 8403 Pre-Fed Sup Earnings|1000.0000
|PC 8153 Pre Fed 125 Earnings|34.8800
|PC 8154 Pre Fed 401 Earnings|23.0800
|PC 8403 Pre-Fed Sup Ern|1000.0000
|PC 8153 Pre Fed 125 Earn|34.8800
|PC 8154 Pre Fed 401 Earn|23.0800
At line 81 changed one line
|PC 8167 Pre FSP 401 Earnings|10.0000
|PC 8167 Pre FSP 401 Earn|10.0000
At line 83 changed one line
|PC 8453 Pre-SIT Suppl Earnings|1000.0000
|PC 8453 Pre-SIT Suppl Earns|1000.0000
At line 88 removed 3 lines
\\
UPCALC prorated both Section 125 and 401k taxable benefits against regular and supplemental wages for federal and state.
\\ \\
At line 92 changed 3 lines
__PC 4020 Medical EE (Section 125) $50.0000__
|PC 8153 Pre Fed 125 Earnings|34.8800 prorated amount on regular wages
|PC 8156 Pre Fed Sup 125|+ 15.1200 prorated amount on suppemental wages
UPCALC prorated both sect 125 and 401k taxable benefits against regular and supplemental wages for federal and state.
PC 4020 Medical EE (sect125) $50.0000
|PC 8153 Pre Fed 125 Earn|34.8800 prorated amt on reg wages
|PC 8156 Pre Fed Sup 125|+ 15.1200 prorated amt on supp wages
At line 96 removed one line
\\
At line 98 changed 3 lines
__PC 4041 401K Dedn $33.0800__
|PC 8154 Pre Fed 401 Earnings|23.0800 prorated amount on regular wages
|PC 8167 Pre FSP 401 Earnings|+ 10.0000 prorated amount on suppemental wages
PC 4041 401K Dedn $33.0800
|PC 8154 Pre Fed 401 Earn|23.0800 prorated amt on reg wages
|PC 8167 Pre FSP 401 Earn|+ 10.0000 prorated amt on supp wages
At line 102 removed one line
\\
At line 106 changed 4 lines
|Pre Fed 125 Earnings|-34.8800
|Pre Fed 401 Earnings|-23.0800
|Fed Tax Earnings|2249.7300
\\
|Pre Fed 125 Earn|-34.8800
|Pre Fed 401 Earn|-23.0800
|Fed Tax Earns|2249.7300
At line 112 changed one line
|Pre-Fed Sup Earnings|1000.0000
|Pre-Fed Sup Ern|1000.0000
At line 114 changed 4 lines
|Pre FSP 401 Earnings|- 10.0000
|Fed Sup Earnings|974.8800
\\
The FIT Tax is based on $2249.73\\
|Pre FSP 401 Earn|- 10.0000
|Fed Sup Earns|974.8800
The FIT Tax is based on $2249.73
At line 119 changed 3 lines
\\ \\
On the Pay Jurisdiction tab on IPPH, click the Jurisdiction '00-000-0000 Federal' entry and scroll down the 'Tax Identifier' list. The prorated Section 125 and 401K amounts are stored as 'Pre-FWT 125 Exemption - Supplemental Tax (PPE)' etc.
\\
On the Pay Jurisdiction tab in IPPH, you 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 124 changed 18 lines
|PC 1010 Regular Earnings |2307.6900
|PC 2002 Bonus $|1000.0000
|PC 4020 Medical EE (Section 125)|50.0000
|PC 4041 401K Dedn |33.0800
|PC 6000 Fed Tax |386.9200
|PC 6003 Fed Supp Tax|250.0000
|PC 6055 Res SIT Tax|136.0000
|PC 6057 Res Supp Tax|63.0000
|PC 8000 Fed Tax Earnings|2224.6100
|PC 8010 Fed Sup Earnings|1000.0000
|PC 8055 Res SIT Earnings|2224.6100
|PC 8058 Res Supp Earnings|1000.0000
|PC 8400 Pre-Fed Earnings|2307.6900
|PC 8403 Pre-Fed Sup Earnings|1000.0000
|PC 8153 Pre Fed 125 Earnings|50.0000
|PC 8154 Pre Fed 401 Earnings|33.0800
|PC 8551 Pre-SIT Earnings|2307.6900
|PC 8453 Pre-SIT Suppl Earnings|1000.0000
|PC 1010 Regular Earnings | 2307.6900
|PC 2002 Bonus $ | 1000.0000
|PC 4020 Medical EE (sect125)| 50.0000
|PC 4041 401K Dedn | 33.0800
|PC 6000 Fed Tax | 386.9200
|PC 6003 Fed Supp Tax | 250.0000
|PC 6055 Res SIT Tax | 136.0000
|PC 6057 Res Supp Tax | 63.0000
|PC 8000 Fed Tax Earns | 2224.6100
|PC 8010 Fed Sup Earns| 1000.0000
|PC 8055 Res SIT Earn| 2224.6100
|PC 8058 Res Supp Earn | 1000.0000
|PC 8400 Pre-Fed Earnings| 2307.6900
|PC 8403 Pre-Fed Sup Ern | 1000.0000
|PC 8153 Pre Fed 125 Earn | 50.0000
|PC 8154 Pre Fed 401 Earn | 33.0800
|PC 8551 Pre-SIT Earnings| 2307.6900
|PC 8453 Pre-SIT Suppl Earns| 1000.0000
At line 144 removed one line
\\
At line 146 changed 2 lines
UPCALC did not prorate the Section 125 or 401k deductions against regular and supplemental wages.
\\ \\
UPCALC did not prorate the sect 125 or 401k deductions against regular and supplemental wages.
At line 150 changed 3 lines
|Pre Fed 125 Earnings|-50.0000
|Pre Fed 401 Earnings|-33.0800
|Fed Tax Earnings|2224.6100
|Pre Fed 125 Earn|-50.0000
|Pre Fed 401 Earn|-33.0800
|Fed Tax Earns|2224.6100
At line 154 changed 2 lines
The Pre-Fed Supplemental Earnings are not reduced since the Section 125 and 401k taxable benefits were not prorated. \\
Pre-Fed Sup Earnings 1000.0000
The Pre-Fed Supp Earnings are not reduced since the sect 125 and 401k taxable benefits were not prorated.
Pre-Fed Sup Ern 1000.0000
At line 157 changed one line
The FIT Tax is based on $2224.6100\\
The FIT Tax is based on $2224.6100
At line 163 changed 2 lines
*At the State level, Symmetry Tax Engine uses the following tax methods to calculate tax on supplemental wages:
**Flat
*At the State level, Symmetry Tax Engine uses the following tax methods to calculate tax on supplemental wages: **Flat
At line 170 changed one line
*For a State that has a specific Supplemental Flat percentage, the Flat Rate method can be used.
*For a state that has a specific Supplemental Flat percentage, the Flat Rate method can be used.
At line 172 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 178 changed one line
*Below is a list of States that are with and without the Supplemental Tax Percent
*Below, is a list showing states that are with and without the Supplemental Tax Percent
At line 180 changed one line
*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 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
At line 182 changed one line
*From this list, the remaining States will use the 'Flat' method in order to calculate State Supplemental Tax
*From this list, the remaining states will use the 'Flat' method in order to calculate State Sup Tax
At line 184 changed one line
*From this State list, the Default Supplemental Tax Method is set for each State internally by the system.
*From this State list, the Default Supplemental Tax Method is set for each state internally by the system.
At line 186 changed one line
*Depending on if the Supplemental Wages are paid WITH or WITHOUT the Regular Wages, each State may provide a different method to calculate the State Supplemental Tax. (Please read below.)
*Depending on if the Supplemental Wages are paid WITH or WITHOUT the Regular Wages, each state may provide a different method to calculate the State Supplemental Tax. (Please read below.)
At line 188 changed one line
*At the Employee level on IPRLU, the employee will define the State Supplemental Tax Method that determines if the Supplemental tax is to be calculated for the employee for a pay.
*At the Employee level on IPRLU, the employee will specify the State Supplemental Tax Method that determines if the Supplemental tax is to be calculated for this employee for a pay.
At line 190 changed one line
*If State Supplemental tax is to be calculated by Symmetry, then the Default Supplemental Tax Method of 'Flat' or 'Current Aggregation' method will be passed to Symmetry.
*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.
At line 192 changed one line
*The Supplemental Tax Method cannot be overridden on IPUTP from ‘CURRAGG’ to ‘FLAT’. If the State does not provide a Percent, the SymmetryTaxEngine must calculate the Supplemental tax with ‘CURRAGG’, otherwise Symmetry is not able to calculate the Supplemental Tax.
*The Supplemental Tax Method cannot be overridden in IPUTP from ‘CURRAGG’ to ‘FLAT’. If the State does not provide a Percent, the SymmetryTaxEngine must calculate the Supp tax with ‘CURRAGG’, otherwise Symmetry is not able to calculate the Sup Tax.
At line 194 changed one line
*If the user prefers to calculate the Supplemental Tax using a flat percentage, even though the State legislation states to use the Current Aggregation method, use the State Supplemental Tax Method on IPPGU or IPRLU. The value of the Supplemental Tax Method could be defined as ’31-Concur-% Meth (IDGV %)’ with a flat percentage defined on IDGV. This method forces the UPCALC program to internally calculate the Supplemental tax.
*If the user prefers to calculate the Supplemental Tax using a flat percentage even though the State legislation states to use the Current Aggregation method, this can be accomplished by using the State Supplemental Tax Method in IPPGU or IPRLU. The value of the Supplemental Tax Method could be defined as ’31-Concur-% Meth (IDGV %)’ with a flat percentage specified in IDGV. This method forces the UPCALC program to internally calculate the Supplemental tax.
At line 196 removed 31 lines
\\ \\
The following table lists the States that are with and without the Supplemental Tax Percent, as of July 2017.
||State||Percent|| ||State||Percent
|Alabama|5.0| |Montana|6.0
|Alaska| | |Nebraska|5.0
|American Samoa|25.0| |Nevada|
|Arizona| | |New Hamshire|
|Arkansas|6.9| |New Jersey|(3)
|California|6.6\\10.23| |New Mexico|4.9
|Colorado|4.63| |New York|9.62(4)
|Connecticut| | |North Carolina|5.599
|Delware| | |North Dakota|1.84
|Florida| | |Ohio|3.5
|Georgia|(1)| |Oklamhoma|5.0
|Guam|25.0| |Oregon|9.0
|Hawaii| | |Pennsylvania|3.07
|Idaho|7.4| |Puerto Rico|
|Illinois|4.95| |Rhode Island|5.99
|Indiana|3.23| |South Carolina|7.0
|Iowa|6.0| |South Dakota|
|Kansas|5.0| |Tennessee|
|Kentucky| | |Texas|
|Louisiana| | |Utah|
|Maine|5.0| |Vermont|(5)
|Mariana Islands|25.0| |Virgin Islands|25.00
|Maryland|(2)| |Virginia|5.75
|Massachusetts|5.1| |Washington|
|Michigan|4.25| |West Virginia|(6)
|Minnesota|6.25| |Wisconsin|(7)
|Mississippi| | |Wyoming|
|Missouri|6.0
At line 228 changed 7 lines
(1) Georgia rates vary from 2% to 6% based upon the year-to-date gross pay.\\
(2) Maryland varies based upon the County. The base percentage is 5.75% and the County percentage is added to the base.\\
(3) New Jersey has no provision, but for pay over $500,000, withhold at 9.9%\\
(4) New York City residents have an additional supplemental of 4%. Yonkers City residents have an additional supplemental of 1.103%. Non-resident Yonkers additional supplemental is 0.5%.\\
(5) Vermont rate is 24% of Federal Tax
(6) West Virginia rates vary from 3% to 6.5% based upon the year-to-date gross pay.\\
(7) Wisconsin rate vary from 4.0% to 7.65% based upon the year-to-date gross pay.\\
The following table lists the States that are with and without the Supplemental Tax Percent as of Sept 2006.
[US_Taxation _Supplemental Pay Processing_02.JPG]
At line 236 removed one line
At line 238 changed 2 lines
Depending on if the Supplemental wages are paid WITH or WITHOUT the Regular wages, each State may have different methods to handle Supplemental taxes. Please refer to this link for more details:\\ \\[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.
*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 243 changed one line
|Add to regular wages and withhold on total|Withhold at 5.75% plus applicable county of residence rate,\\ \\Or add to regular wages, compute tax on total, and subtract the tax withheld on regular wages
|Add to regular wages and withhold on total|Withhold at 6.25% plus rate applicable to county of residence\\ \\Or add to regular wages, compute tax on total, and subtract tax withheld on regular wages
At line 245 changed one line
The Local Level Supplemental Tax method uses the same State Level Supplemental Tax method\\ \\For Example: State of Maryland:
*Local Level Supplemental Tax method uses the same State Level Supplemental Tax method'\\ \\For Example: State of Maryland:
At line 247 changed 2 lines
*#*this actually uses the 'Paid at Different Time than Regular Wages' method\\ \\[US_Taxation _Supplemental Pay Processing_03.JPG]\\ \\Maryland Sup Rate 916.96 x 5.75% = 52.72\\Local Rate for Allegany County, MD 916.96 x 0.0305 = 27.97\\52.72 + 27.97 = 80.69\\80.69: PC 6052\\Res SIT + Res Supp Tax 214.07 + 80.69 = 294.76\\%%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\\
*#*this actually uses the 'Paid at Different Time than Regular Wages' method\\ \\[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%%
*#Sup is paid with Regular wages, Vertex Supplemental tax for Maryland:\\ \\[US_Taxation _Supplemental Pay Processing_05.JPG]\\ \\Work SIT = Res SIT + Res Supp Tax = 285.59
At line 255 changed one line
When UPUTR is run, it automatically loads in the two Miscellaneous Identifiers for each State, to provide the Default Supplemental Tax Method:\\ \\SUP_PAID_WITH_REG\\SUP_PAID_WITHOUT_REG\\ \\Default Value: should be set to 'FLAT' or 'CURRAGG', depending on each State\\Provided By: always set to 'Internal'. When UPCALC is passing the State Misc Parms to Symmetry, UPCALC will not pass the State Misc Parm that are defined as 'Provided By' = 'Internal'.
*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 262 changed one line
At the Employee level, employees can optionally override the default State Sup Tax Method on IPUTP for:\\* SUP_PAID_WITH_REG\\* SUP_PAID_WITHOUT_REG \\
*At the Employee level, the employee may optionally override the default State Sup Tax Method on IPUTP for:\\ SUP_PAID_WITH_REG\\SUP_PAID_WITHOUT_REG
*If there is no override by employee, there is no need to set up these Misc Tax Parm\\[US_Taxation _Supplemental Pay Processing_07.JPG]\\
*For IPRLU Federal and State Tab Suppl Tax Method explanation, please refer to: PR_US_IPRLU_methods_v1.0.doc or later
*when an employee is paid with Supplemental wages, the IPRLU Federal and State Tab Suppl Tax Method determines if the Supplemental Wages are to be taxed or not, and which Suppl Tax Method is to be used
*once when the State Supplemental tax is to be calculated by Symmetry, then IPUTP State specific tax method from SUP_PAID_WITH_REG or SUP_PAID_WITHOUT_REG will be passed to Symmetry for calculation depending on if the Supplemental wages are paid with or without Regular wages, therefore FLAT or CURRAGG is passed
At line 264 removed 5 lines
If there is no override by an employee, there is no need to set up these Misc Tax Parm. \\ \\
For the IPRLU Federal and State Tab Suppl Tax Method explanation, please refer to the PR_US_IPRLU_methods_v1.0.doc or later. \\ \\
When an employee is paid with Supplemental wages, the IPRLU Federal and State Tab Suppl Tax Method determines if the Supplemental Wages are to be taxed or not, and which Suppl Tax Method is to be used. \\ \\
When the State Supplemental tax is to be calculated by Symmetry, the IPUTP State specific tax method from SUP_PAID_WITH_REG or SUP_PAID_WITHOUT_REG will be passed to Symmetry for calculation, depending on if the Supplemental wages are paid with or without Regular wages (either FLAT or CURRAGG is used).
At line 271 changed one line
Like with the Federal Supplemental Pay, taxable benefits can be prorated between regular state wages and supplemental wages when both are paid together. This is controlled by the set up of the elements attached to specific pay components, as indicated below.
Like with the Federal Supplemental Pay, taxable benefits may be prorated between regular state wages and supplemental wages when both are paid together. This is controlled by the set up of elements attached to specific pay components as indicated below.
At line 273 changed one line
Prorating the taxable benefit deductions will cause a slight difference in the tax calculated. Organizations need to consider their business processes to determine if they would prefer the taxable benefits to be prorated or not. Some organizations may want to prorate Section 125 deductions and not 401k deductions.
Prorating the taxable benefit deductions will cause a slight difference in the tax calculated. Clients will need to consider their business processes to determine if they would prefer the taxable benefits to be prorated or not. Some clients may want to prorate section 125 deductions and not 401k deductions.
At line 275 changed 2 lines
UPCALC reviews the set up of the following State PC Usages to determine if it should prorate the taxable benefit deductions. \\
__NOTE__: If the State Level Benefit PC Usages are not set up on IPPC, then the Federal Level Benefit PC Usages that are described in the Federal section will be used.
UPCALC reviews the set up of the following State PC Usages to determine if it should prorate the taxable benefit deductions: If the State Level Benefit PC Usages are not set up on IPPC, then the Federal Level Benefit PC Usages that are described in the Federal section will be used.
At line 240 added one line
At line 298 changed 2 lines
*No Supplemental Element is associated to the Supplemental PC Usages listed above. UPCALC will prorate all of the Section 125 and 401k deduction amounts between Regular and Supplemental.
*A Supplemental Element has been associated to the Supplemental PC Usage. The Element is defined with PCs and those PCs have amounts. UPCALC will use the Element and prorate the taxable benefits defined in the element. This element should not be the same element as the one associated to the regular Pre-Tax Benefit PC, such as 7901, 7902.
*No Supplemental Element is associated to the Supplemental PC Usages listed above, UPCALC will prorate all of the section 125 and 401k deduction amounts between Regular and Supplemental
*A Supplemental Element has been associated to the Supplemental PC Usage, the Element is defined with PCs and those PCs have amounts, UPCALC will use the Element and prorate the taxable benefits defined in the element.
At line 302 changed 3 lines
*A Supplemental Element has been associated to the Supplemental PC Usages listed above, but the Element is empty (no PCs defined).
*A Supplemental Element has been associated to the Supplemental PC Usages listed above, but the PCs within the Element do not have amounts in the pay.
\\
*A Supplemental Element has been associated to the Supplemental PC Usages listed above but the Element is empty (no PCs defined).
*A Supplemental Element has been associated to the Supplemental PC Usages listed above but the PCs within the Element do not have amounts in the pay.
At line 306 changed 4 lines
__Set Up Options to Prorate Section 125 Taxable Benefits between State Regular Wages and Supplemental:__
#In IPPC do not associate an element to PC Usage 7971 - Pre-State 125 Exemption - Suppl Tax (PPE). This will cause UPCALC to prorate all of the Section 125 taxable benefit deductions that are defined in the element tied to PC Usage 7951 -Pre-State 125 Exemption - Reg Tax (PPE).
#If only certain Section 125 deductions should be prorated, define an element in IPPE that only lists the Section 125 deductions that should be prorated between Federal and Supplemental. In IPPC attach this element to the Pay Component tied PC Usage 7971 - Pre-State 125 Exemption - Suppl Tax (PPE).
\\
Set Up Options to Prorate Section 125 Taxable Benefits between State Regular Wages and Supplemental:
#In IPPC do not associate an element to PC Usage 7971 - Pre-State 125 Exemption - Suppl Tax (PPE). This will cause UPCALC to prorate all of the section 125 taxable benefit deductions that are defined in the element tied to PC Usage 7951 -Pre-State 125 Exemption - Reg Tax (PPE).
#If only certain Sect 125 deductions should be prorated, define an element in IPPE that only lists the 125 deductions that should be prorated between Federal and Supplemental. In IPPC attach this element to the Pay Component tied PC Usage 7971 - Pre-State 125 Exemption - Suppl Tax (PPE).
At line 311 changed one line
__Set up Options to Prorate 401k Taxable Benefits between Federal and Supplemental:__
Set up Options to Prorate 401k Taxable Benefits between Federal and Supplemental:
At line 315 changed one line
After UPCALC or Trial Calc, on IPPH, 'Pay Jurisdiction' tab, click the Jurisdiction entry for the appropriate Jurisdiction name and scroll down the 'Tax Identifier' list. The prorated Section 125 and 401K/457 amounts are stored for these Benefit usages with the description of '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.
At line 320 changed one line
|PC 4020 Medical EE (Section 125)|50.0000
|PC 4020 Medical EE (sect125)|50.0000
At line 323 changed 20 lines
|PC 6003 Fed Supp Tax |243.7200
|PC 8000 Fed Tax Earnings|2249.7300
|PC 8010 Fed Sup Earnings|974.8800
|PC 6055 Res SIT Tax|138.0000
|PC 6057 Res Supp Tax|61.0000
|PC 8055 Res SIT Earnings|2249.7300
|PC 8058 Res Supp Earnings|974.8800
|PC 8400 Pre-Fed Earnings|2307.6900
|PC 8403 Pre-Fed Sup Earnings|1000.0000
|PC 8153 Pre Fed 125 Earnings|34.8800
|PC 8154 Pre Fed 401 Earnings|23.0800
|PC 8156 Pre Fed Sup 125|15.1200
|PC 8167 Pre FSP 401 Earnings|10.0000
|PC 8551 Pre-SIT Earnings|2307.6900
|PC 8453 Pre-SIT Suppl Earnings|1000.0000
|PC 8353 Pre-SIT 125 |34.8800
|PC 8354 Pre-SIT 401/403/457 |23.0800
|PC 8356 Pre-SIT Supp 125|15.1200
|PC 8357 Pre-SIT Supp 401K|10.0000
\\
|PC 6003 Fed Supp Tax | 243.7200
|PC 8000 Fed Tax Earns| 2249.7300
|PC 8010 Fed Sup Earns| 974.8800
|PC 6055 Res SIT Tax| 138.0000
|PC 6057 Res Supp Tax| 61.0000
|PC 8055 Res SIT Earn| 2249.7300
|PC 8058 Res Supp Earn | 974.8800
|PC 8400 Pre-Fed Earnings| 2307.6900
|PC 8403 Pre-Fed Sup Ern| 1000.0000
|PC 8153 Pre Fed 125 Earn| 34.8800
|PC 8154 Pre Fed 401 Earn| 23.0800
|PC 8156 Pre Fed Sup 125| 15.1200
|PC 8167 Pre FSP 401 Earn| 10.0000
|PC 8551 Pre-SIT Earnings| 2307.6900
|PC 8453 Pre-SIT Suppl Earns| 1000.0000
|PC 8353 Pre-SIT 125 | 34.8800
|PC 8354 Pre-SIT 401/403/457 | 23.0800
|PC 8356 Pre-SIT Supp 125| 15.1200
|PC 8357 Pre-SIT Supp 401K| 10.0000
At line 344 changed one line
UPCALC prorated both the Section 125 and 401k taxable benefits against regular and supplemental wages for both Federal and State.
UPCALC prorated both the sect 125 and 401k taxable benefits against regular and supplemental wages for both Federal and State.
At line 346 changed 3 lines
||PC 4020 Medical EE (Section 125) $50.0000||
|%%(text-align:right;display:block;)PC 8353 Pre-SIT 125%%|%%(text-align:right;display:block;)34.8800 prorated amount on reg wages%%
|%%(text-align:right;display:block;)PC 8356 Pre-SIT Supp 125%%|%%(text-align:right;display:block;)+ 15.1200 prorated amount on supp wages%%
||PC 4020 Medical EE (sect125) $50.0000||
|%%(text-align:right;display:block;)PC 8353 Pre-SIT 125%%|%%(text-align:right;display:block;)34.8800 prorated amt on reg wages%%
|%%(text-align:right;display:block;)PC 8356 Pre-SIT Supp 125%%|%%(text-align:right;display:block;)+ 15.1200 prorated amt on supp wages%%
At line 352 changed 2 lines
|%%(text-align:right;display:block;)PC 8354 Pre-SIT 401/403/457%%|%%(text-align:right;display:block;)23.0800 prorated amount on reg wages%%
|%%(text-align:right;display:block;)PC 8357 Pre-SIT Supp 401K%%|%%(text-align:right;display:block;)+ 10.0000 prorated amount on supp wages%%
|%%(text-align:right;display:block;)PC 8354 Pre-SIT 401/403/457%%|%%(text-align:right;display:block;)23.0800 prorated amt on reg wages%%
|%%(text-align:right;display:block;)PC 8357 Pre-SIT Supp 401K%%|%%(text-align:right;display:block;)+ 10.0000 prorated amt on supp wages%%
At line 360 changed 2 lines
|RES SIT Earnings|%%(text-align:right;display:block;)2249.7300%%
\\
|RES SIT Earns|%%(text-align:right;display:block;)2249.7300%%
At line 364 changed one line
|Pre-SIT Suppl Earnings|%%(text-align:right;display:block;)1000.0000%%
|Pre-SIT Suppl Earns|%%(text-align:right;display:block;)1000.0000%%
At line 367 changed 2 lines
|Fed Sup Earnings|%%(text-align:right;display:block;)974.8800%%
\\
|Fed Sup Earns|%%(text-align:right;display:block;)974.8800%%
At line 372 removed one line
\\
At line 376 changed 21 lines
|PC 1010 Regular Earnings |2307.6900
|PC 2002 Bonus $ |1000.0000
|PC 4020 Medical EE (Section 125)|50.0000
|PC 4041 401K Dedn |33.0800
|PC 6000 Fed Tax |386.9200
|PC 6003 Fed Supp Tax|250.0000
|PC 6055 Res SIT Tax|136.0000
|PC 6057 Res Supp Tax |63.0000
|PC 8000 Fed Tax Earnings|2224.6100
|PC 8010 Fed Sup Earnings|1000.0000
|PC 8055 Res SIT Earnings|2224.6100
|PC 8058 Res Supp Earnings|1000.0000
|PC 8400 Pre-Fed Earnings|2307.6900
|PC 8403 Pre-Fed Sup Earnings|1000.0000
|PC 8153 Pre Fed 125 Earnings|50.0000
|PC 8154 Pre Fed 401 Earnings|33.0800
|PC 8551 Pre-SIT Earnings|2307.6900
|PC 8453 Pre-SIT Suppl Earnings|1000.0000
|PC 8353 Pre-SIT 125|50.0000
|PC 8354 Pre-SIT 401/403/457|33.0800
\\
|PC 1010 Regular Earnings | 2307.6900
|PC 2002 Bonus $ | 1000.0000
|PC 4020 Medical EE (sect125)| 50.0000
|PC 4041 401K Dedn | 33.0800
|PC 6000 Fed Tax | 386.9200
|PC 6003 Fed Supp Tax| 250.0000
|PC 6055 Res SIT Tax| 136.0000
|PC 6057 Res Supp Tax | 63.0000
|PC 8000 Fed Tax Earns| 2224.6100
|PC 8010 Fed Sup Earns| 1000.0000
|PC 8055 Res SIT Earn| 2224.6100
|PC 8058 Res Supp Earn| 1000.0000
|PC 8400 Pre-Fed Earnings| 2307.6900
|PC 8403 Pre-Fed Sup Ern| 1000.0000
|PC 8153 Pre Fed 125 Earn| 50.0000
|PC 8154 Pre Fed 401 Earn| 33.0800
|PC 8551 Pre-SIT Earnings| 2307.6900
|PC 8453 Pre-SIT Suppl Earns| 1000.0000
|PC 8353 Pre-SIT 125| 50.0000
|PC 8354 Pre-SIT 401/403/457| 33.0800
At line 398 changed 2 lines
UPCALC did not prorate the Section 125 or 401k deductions against regular and supplemental wages.
\\
UPCALC did not prorate the sect 125 or 401k deductions against regular and supplemental wages.
At line 405 changed 2 lines
|RES SIT Earnings|%%(text-align:right;display:block;)2224.6100%%
\\
|RES SIT Earns|%%(text-align:right;display:block;)2224.6100%%
At line 408 changed 3 lines
The Pre-SIT Supplemental Earnings are not reduced since the Section 125 and 401k taxable benefits were not prorated.\\
Pre-SIT Suppl Earnings $1000.0000\\ \\
The Pre-SIT Supplemental Earnings are not reduced since the sect 125 and 401k taxable benefits were not prorated.
Pre-SIT Suppl Earns $1000.0000
At line 412 changed one line
The SIT Tax is based on $2224.6100 \\
The SIT Tax is based on $2224.6100
This page (revision-22) was last changed on 26-Nov-2021 10:22 by mmcfarlandTop