CALIFORNIA STATE TAX CALCULATION#
State Tax Calculation - General Set Up#
Please refer to document PR_US_Federal_Tax_Calc.doc 'General Set Up' section for all set up requirement.
At state level, the following screens should be verified set up for each state:
IPUTR#
This screen is used to:- view US Tax Rates by state and to enter the Overridden rates and Wage Base.
- suppress some SUTA Surcharge Calculation for some states by checking the 'Do not Calculate' toggle
IPUTP #
This screen is used to:- view US Tax Miscellaneous Parameters by the states that are applicable for IPRLU
IDGV#
- This screen may optionally contain specific Override rates and Wage bases by Government Registration for each Registration from the Pay Header's group
- IDGV overridden amounts take precedence over the IPUTR overridden amounts
IPRLU/IPRULS #
- Each employee must be set up with the applicable Tax Methods
- Miscellaneous Tax Parameters must be set up by the states that need to be paid
UPRLU #
This process audits the US Tax Filing information and generates IPRLU Miscellaneous Tax Parameters information according to IMCT set upIPPH #
- The Pay Header tab must specify the default Work Jurisdiction and Home Jurisdiction
- In the Pay Lines tab, the Jurisdiction field must specify the Work Jurisdiction of this pay line
- After Trial Calc or UPCALC, the Pay Amounts tab will contain all US Taxation amounts in summary that are used for the calculation of net pay
- The Pay Jurisdiction tab contains the default Work Jurisdiction and Home Jurisdiction
- After Trial Calc or UPCALC, the Pay Jurisdiction tab contains all US Taxation amounts by jurisdiction in detail
California State Tax Calculation#
On IPUTR, there is a list of applicable taxes to be calculated for State of California:| 06-000-0000-SIT-000 | California State Tax |
| 06-000-0000-SSP-000 | California Supplemental Tax |
| 06-000-0000-ER_SUTA-000 | California State Unemployment Tax |
| 06-000-0000-ER_SUTA_SC-004 | California Employment Training Tax |
| 06-000-0000-SDI-000 | California SDI |
| 06-000-277593-ER_POP-000 | San Francisco Payroll Expense |
CA – IPRLU Set Up#
The Miscellaneous Tax Parameters must be set up for the following Miscellaneous Identifiers| Miscellaneous Identifiers | Description |
|---|---|
| FILINGSTATUS | Mandatory S'-single, 'M'-married, or 'H'-head of household |
| REGULARALLOWANCES | Optional |
| ADDITIONALALLOWANCES | Optional |
| SUPPLEMENTAL | Optional If this is blank, the Default Value from IPUTP will be used California has two Supplemental rates: one rate for Bonuses and one rate for Commissions If BONUS is set, the higher Supplemental rate will be used If COMMISSION is set, the lower Supplemental rate is used. e.g. for 2011, the lower rate of 0.066 will be used To calculate Supplemental Tax at higher rate, set up as ‘BONUS’ |
CA – ER SUTA Rate#
ER SUTA may be bypassed on IPUTR with ‘Do not Calculate’ or IPRLU ‘SUI ER Method’ = ‘Do not Calculate’.There are two options to set up the ER SUTA rate by state:
- IPUTR
- Enter the SUTA ER rate that is given by the government on the Override Tax Rate field.
- This rate is applicable for the entire company within the State of California.
- IDGV
CA – Employee SDI#
- California Employee SDI will be calculated and stored in PC with Usage 6721 – SDI Tax Deduction
- EE SDI Rate and Wage Base are provided by the government and stored on IPUTR
- This Rate and Wage Base may be overridden on IPUTR; the IPUTR values are applicable to the entire company
- A specific overridden Rate and Wage Base may be entered on IDGV by ‘Reg Type’ = ‘US SDI Regist n’ and ‘Govt Rate Type’ = ‘US SDI EE Rate’
- This calculation may be bypassed on IPUTR with ‘Do not Calculate’ or IPRLU ‘SDI EE Method’ = ‘Do not Calculate’
CA – IPPC / PC Usages#
IPPC – Set up Pay Components by PC UsagesIn order to calculate the following taxes for California, set up IPPC for these PC Usages:
| Usage | Description |
|---|---|
| 7140 State SUI | CA-Employment Training Tax |
| 7141 State SUI | CA-San Francisco PR Expense Tax |
CA – Special Taxes#
By default, the following taxes will be calculated, unless IPUTR ‘Do Not Calculate’ toggle is checked or IPRLU ‘SUI ER Method’ = ‘Do not Calculate’
IPUTR - Employer SUTA Surcharge Tax
- California Employment Training Tax
- CA-San Francisco PR Expense Tax
If the Tax Jurisdiction is for San Francisco, then ‘CA-San Francisco PR Expense Tax’ will be calculated and stored in the pay component with PC Usage 7141. If the pay component is not defined for PC Usage 7141, this tax will not be calculated.
CA – UPCALC Example#
Symmetry Set Up - CA_01.jpg
Work GEO: CA 06-075-277593 San Francisco, CA IPRLU FILINGSTATUS = S SUPPLEMENTAL = COMMISSION
Manually calculated Taxable Income based on Element set up: PC 1100 Regular + PC 2010 Pay In-Lieu + PC 3013 Gift Allowance (imputed income) = 3269.24 + 1000 + 21.35 = 4290.59
Less 125, 401K, 403B, 457, Simple IRA and custom benefits:etc PC 8046 Res SIT Earn = 2941.07 (note: same as PC 8005 FIT Earn) PC 8056 Res SSP Earn = 893.78 (note: same as PC 8015 FSP Earn)
PC 6045 Res SIT = 189.54 PC 6047 Res Supp Tax = 58.99 (893.78 x 0.066 = 58.99 lower rate is used)
PC 6703 SUI ER Contr = 4159.83 x IPUTR 06-000-0000-ER_SUTA-000 Overridden Rate 0.004 = 16.64 PC 6340 CA-Employment Train = 4159.83 x IPUTR 06-000-0000-ER_SUTA_SC-004 Rate 0.001 = 4.16
PC 6721 SDI EE = 4159.83 x IPUTR 06-000-0000-SDI-000 Rate 0.012 = 49.92
PC 6341 CA-San Francisco Tax = 4290.59 x IPUTR 06-000-277593-ER_POP-000 Rate 0.015 = 64.36
Notes#
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