MAINTAINING US TAX FILING INFORMATION#
The Maintain US Tax Filing Information screen (IPRLUS) contains the individual pay factors and rules that are required to calculate all legislated deductions and contributions required for each employee, by effective date.
The IPRLUS screen is a slimmed down version of the original IPRLU screen. The fields used only by Vertex have been removed on this screen as this screen is intended for users running payroll with the SymmetryTaxEngine.
U.S. pay rules are completed according to the W-4 form submitted by employees and are maintained on the Maintain US Tax Filing Information (IPRLUS) form.
U.S. Federal, State and Local Tax rules are also known as W4 information.
The SymmetryTaxEngine, a payroll tax calculator, is directly linked into the UPCALC program to perform U.S. Taxation calculations. When calculating U.S. taxation, the tax methods for each employee are defined in the pay rules. Then depending on the pay category of each timesheet, the U.S. pay category from that timesheet may override the default employeeâs tax methods on the U.S. pay rule file. You should refer to both the pay category file and pay rule file to determine the actual tax methods being used for tax calculation.
You must set up the federal, and, if applicable, state and local tax methods for each employee on this form by employment.
IPRLUS may be defined for a specific state, jurisdiction or a default entry may be used. If a default entry is used, the pay rule information below will be respected by all states the employee lives or works in. If a specific state or jurisdiction is defined the State Misc Tax Parameters will be filtered to the state or jurisdiction provided.
If a default record is defined, the record should have a blank jurisdiction. This means that the jurisdiction in which the employee works or lives will use the corresponding set of pay rules. The only reason to add a second record (not a new effective date record) is if the employee works in more than one jurisdiction and requests to have different tax rules for that other jurisdiction.
1. Do NOT create records for every possible jurisdiction the employee may work in unless their filing status changes from jurisdiction to jurisdiction, in which case they still need a one default record.
2. Do NOT create 3 records, one each for federal, state, and local taxes. All three levels of government are defined in a single IPRLUS record (one row in the header area).
3. Do NOT create new records if the employee wants to be taxed based on where they live rather than work (i.e. employee works in Ohio but lives in Pennsylvania, and wants to pay tax based on Pennsylvania). This situation is covered in the default record in the âState Reciprocation" field, where you may indicate "Calc Res Tax only" or "Non-Residency Certificate Filed"
U.S. Pay Rules data is stored in the P2K_PR_US_TAX_AREAS, P2K_PR_US_PAY_RULES and P2K_PR_US_PAY_RULE_MISCS tables.
NOTES:
- A new feature effective as of the STE 2021-R9a release has been implemented. A new IMST Site Preference US IPRLUS W4 OPTION was added.
This option allows users to define how to setup the Federal W4 Form and State W4 forms on the IPRLUS screen for each employee.
- Effective as of the STE 2023-R6a, an enhanced version of this screen is designed for Federal Tab to contain Federal Misc Parms and State tab to contain State Misc Parms.
-For Admin version, two new screens are added, one screen for Federal IPW4F, one screen for State IPW4S.
-For Self Service version, two new screens are added, one for Federal WEPW4F and one for State WEPW4S.
Users can continue to use IPRLUS screen or to use two new screens: Federal (IPW4F), State (IPW4S), the W4 information are the same on IPRLUS and IPW4F/IPW4S.
- State
- This field allows the user to enter a State in which the employee either lives or works in. The field will show the name of the state.
- Jurisdiction
- This field allows the user to enter a Tax Jurisdiction.
- Description
- The reason why these taxation rules are being maintained is shown in this field. (i.e. Default Tax rules). Users may wish to enter "Default W4", "Default" or similar description for the first blank jurisdiction record.
- There must be one blank jurisdiction record.
Federal tab#
- Filing Status
- The Federal Filing Status indicates how the employee is filing.
- Tax Method
- This field specifies the federal tax method for this employee.
- Suppl. Tax Method
- This field specifies the Federal supplemental tax method for this employee.
- FICA Method
- This field specifies the calculation method for FICA.
- Medicare Method
- This field specifies the calculation method for the Medicare portion of the FICA.
- FUTA Method
- This field specifies the calculation method for FUTA.
- EIC Method
- This field specifies the calculation method for employee Earned Income Credit.
- Multiple Jobs Multiple Jobs/Two Job
- This field is not used in Personality and can be removed using object security. This field is in place for the HRIS product only.
- Qualifying Children (age under 17) - Multiply by $2000 - $
- This field is not used in Personality and can be removed using object security. This field is in place for the HRIS product only.
- Other Dependents - Multiply by $500 - $
- This field is not used in Personality and can be removed using object security. This field is in place for the HRIS product only.
- Total Dependent amount
- This field is not used in Personality and can be removed using object security. This field is in place for the HRIS product only.
- Dependent amount override
- This field is not used in Personality and can be removed using object security. This field is in place for the HRIS product only.
- Other Income $
- This field is not used in Personality and can be removed using object security. This field is in place for the HRIS product only.
- Deductions $
- This field is not used in Personality and can be removed using object security. This field is in place for the HRIS product only.
- Extra Withholding
- This field is not used in Personality and can be removed using object security. This field is in place for the HRIS product only.
- # of Exemptions
- This field specifies the number of exemptions the employee claims.
- Add'l $ or % Per Period
- This field shows the amount of additional tax to be taken each pay period. If the employee does not have enough taxable earnings this amount will only be taken if the additional tax option is set to 'always' in the Payroll Information form and the pay is a 'Regular Pay' pay category.
- If Federal Tax Method = Annualized + %, then this field contains the percentage that will be apply to federal earnings and treats as additional tax. (e.g. 5%, enter as 5).
- If Federal Tax Method = Annualized + Amount, then this field contains a per pay period additional tax amount.
- Tax Amount
- This field contains the flat tax amount that has been pre-calculated by you to be taken for the pay.
- It will be used when Federal Tax Method = Flat Amount Method.
- Tax %
- This field contains the federal tax percentage applicable to this employee.
- If the percentage is greater than zero, it will be used whenever the FED-TAX-METHOD or FED-SUP-METHOD specifies to use %. Otherwise the percentage from GOVTREG file (IDGV) will be used.
Railroad Taxation#
For US Railroad Employers, this section contains the pay methods required to calculate all legislated deductions and contributions required for those employees.- Tier1 & 2 RRTA Method
- This field specifies the Tier 1 and Tier 2 Railroad Retirement Tax calculation method for railway employees.
- Tier1 MED Method
- This field specifies the Tier 1 Medicare tax calculation method for railway employees. There is no tax rate specified in IPUTR for this tax, it uses the Medicate tax rate instead.
- RUIA Method
- This field specifies the Railroad Unemployment Insurance Act (RUIA) tax calculation method for railway employees.
State tab#
- Tax Method
- This field specifies the State tax method for the employee.
- Suppl. Tax Method
- This field specifies the state supplemental tax method for the employee.
- WC Method
- This field specifies the calculation method for Workersâ Compensation.
- SUI Employee Method
- This field specifies the employeeâs calculation method for State Unemployment Insurance:
- SUI Employer Method
- This field specifies the employerâs calculation method for State Unemployment Insurance:
- SDI Employee Method
- This field specifies the employeeâs calculation method for State Disability Insurance:
- SDI Employer Method
- This field specifies the Employerâs calculation method for State Disability Insurance:
- Add'l Tax Per Period
- This field indicates the amount of additional tax to be taken each pay period.
- If the employee does not have enough taxable earnings this amount will only be taken if the additional tax option is set to 'alwaysâ in the Payroll Information form and the pay is a âRegular Payâ pay category.
- If State Tax Method = Annualized +%, then this field contains the percentage that will be apply to federal earnings and treats as additional tax. (e.g. 5%, enter as 5).
- If State Tax Method = Annualized + Amount, then this field contains a per pay period additional tax amount.
- Add'l Tax for Res.
- This field indicates whether the additional tax per period is for Residence State tax:
- Add Tax not for RES
- Add Tax for RES
- Add'l Tax for Work
- This field indicates whether the additional tax per period is for Work State tax:
- Add Tax not for WORK
- Add Tax for WORK
- Tax Amount
- This field contains the flat tax amount that has been pre-calculated by you to be taken for the pay. This field will be used when State Tax Method = Flat Amount method.
- Tax Percent
- This field contains the state tax percentage applicable to this employee.
- If the percentage is greater than zero, it will be used whenever UST_TAX_METHOD or UST_SUPPL_TAX_METHOD specifies to use %. Otherwise, the percentage from GOVTREG file (IDGV) will be used.
- Reciprocity Agreement
- This field indicates if the employee has filed a 'Non-Residency Certificate' with the employer and therefore the state tax is to be calculated by the certificate.
Misc Tax Parameters#
The Misc Tax Parameters must be provided for all States the employee lives and works in.
- Tax Parm
- Misc Tax Parameter is in the format of 'XXnnnn', where XX is the State code and nnnn is a sequential 4 digit number. The sequence is not pre-determined, it is simply the order in which the parameter was loaded in by UPUTR. The sequence is used to order the parameters and to distinguish them at the state level in IPRLUS.
- Misc. Identifier
- The Miscellaneous Identifier is used to 'identify' the state's tax parameters used to provide additional information as supplied by the client or employee to calculate the taxes. These parameters often simulate information requested on the withholding certificate of the state. For example, FILINGSTATUS is a common Miscellaneous Tax Identifier.
- Description
- The Description field is used to display the name of the Tax Identifier without abbreviations.
- Type
- Field Type indicates if the value of the Tax Identifier/Parameter is to be a Char or Number.
- Dflt Value
- The client may provide a default value to a Tax Identifier/Parameter. The default value will be used by UPCALC unless the Employee provides a Value in IPRLU or IPRLUS. The Default Value must be a valid value as indicated in the Reference Text.
- Value
- The Value field allows the Employee to provide their choice for the Tax Parameter. The Value field holds the valid value as indicated in the Reference Text. For example, for Filing Status the value may be S for single or M for married. The Values may be different for each state.
- Reference Text
- The Reference Text field contains the editing information for the Miscellaneous Identifier. Valid values for the Tax Parameter in focus is displayed. Only these values will be accepted, if a different value is entered the system will display a warning message to the user upon Save.
Local tab#
Local level Taxation is automatically calculated by the SymmetryTaxEngine based on the GNIS location code (i.e.GEO Code).
There is no need to set up Local Tab Information except to suppress certain Tax Calculation by entering âDo Not Calculateâ on the Local Tab.
Additional Local Misc Identifiers may be supplied by the system via IPUTP (Maintain US Tax Parameters) screen. If there are local level Tax Identifiers for the state in which the Employee lives or works in, these should be added to the Misc Tax Parameters table in the State tab.
- County Tax Method
- This field specifies the county tax method for the employee:
- City Tax Method
- This field specifies the city tax method for the employee:
- School Tax Method
- This field specifies the school district tax method for the employee:
- Head Tax Method
- This field specifies whether head tax should be calculated for the employee:
