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PENNSYLVANIA OREGON STATE TAX CALCULATION#

Oregon State Tax Calculation#

On IPUTR, there is a list of applicable taxes to be calculated for State of Oregon:

41-000-0000-SIT-000	Oregon State Tax
41-000-0000-ER_SUTA-000	Oregon State Unemployment Tax
41-000-0000-WC-000	Oregon Worker's Compensation
41-000-0000-ER_WC-000	Oregon Worker's Compensation - Employer

If UPUTR is run with list of Jurisdictions, the following entries may exist:

41-000-0000-ER_TRANS-001	Canby Transit Tax
41-000-0000-ER_TRANS-002	Lane Transit Tax
41-000-0000-ER_TRANS-003	Trimet Excise Tax
41-000-0000-ER_TRANS-004	Sandy Transit Tax
41-000-0000-ER_TRANS-005	Wilsonville Transit Tax
41-000-0000-ER_TRANS-006	South Clackamas Transit Tax

On IPUTP, there is a list of applicable US Miscellaneous Tax Parameters for State of Oregon. If these Miscellaneous identifiers do not exist, run UPUTR for State of Oregon to generate them.

Miscellaneous Identifiers	Description
STATE_ROUNDING	State Rounding Rule The default value is always set to DEFAULT when this identifier is first created by UPUTR. For State of Oregon, the Default Rounding Rule used by Symmetry is to ROUND the State Tax result. If rounding the state tax is not desired, enter NO in this field.

• In order to calculate the Transit tax for all employees, enter 'YES' to the applicable Transit Tax on IPUTP.
• In order to calculate Transit Tax for certain employees, enter YES to the Transit Tax on IPRLU.

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OR – IPRLU Set Up#

The Miscellaneous Tax parameters must be set up for the following Miscellaneous Identifiers, if these identifiers do not exist, UPCALC will generate the default entries for them.

Miscellaneous Identifiers	Description
FILINGSTATUS	Mandatory 'S'-single, 'M'-married, or 'MH'-married but w/h at higher single rate.
TOTALALLOWANCES	Optional Enter the total number of allowances.

The following optional Miscellaneous Identifiers may be manually entered on IPRLU:

Miscellaneous Identifiers	Description
SUP_PAID_WITH_REG	Optional Supplemental Paid with Regular Wages
SUP_PAID_WITHOUT_REG	Optional Supplemental Paid without Regular Wages
TRANSIT_CANBY_TAX	Oregon Canby Transit Tax
TRANSIT_LANE_TAX	Oregon Lane Transit Tax
TRANSIT_TRIMET_EXCISE_TAX	Oregon Trimet Excise Tax
TRANSIT_SANDY_TAX	Oregon Sandy Transit Tax
TRANSIT_WILSONVILLE_TAX	Oregon Wilsonville Transit Tax
TRANSIT_SOUTH_CLACKAMAS_TAX	Oregon South Clackamas Transit Tax

• If the Workers Compensation Fund is to be calculated for an employee, the ‘WC Method’ in the IPRLU State tab must be set to ‘Calc by US Taxation’ or ‘Both by IPWC and US Taxation’.
• WC Method ‘Calc by IPWC Class’ will use the rates defined by class in IPWC to calculate the Workers Compensation
• If the IPRLU WC Method is not set up, then the IPPGU Pay Category WC Method will be used

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OR – ER SUTA#

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:

1. 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 Oregon.
2. IDGV
   • If there is a specific rate given by the government for a different State Registration #, then enter the rate on IDGV by ‘Reg Type’; this overrides the IPUTR rate.

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OR – IPPC / PC Usages#

IPPC – Set up Pay Components by PC Usages
In order to calculate the following taxes, set up IPPC for these PC Usages:

Usage	Description
6058	Pre-FWT Hours - Total Hours worked, this is used for WC calculation
7006	Workers Comp Employee Tax
7007	Workers Comp Employer Tax
7480	OR-Canby Transit Tax
7481	OR- Lane Transit Tax
7482	OR-Trimet Excise Tax
7483	OR-Sandy Transit Tax
7484	OR-Wilsonville Transit Tax
7485	OR-S Clackamas Transit Tax

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OR – County Tax#

On May 20, 2003, Multnomah county residents (GNIS Code 41-051-1135861) passed Measure 26-48, which established a temporary three year personal income tax on county residents. The tax was effective January 1, 2003 and is 1.25% of Oregon taxable income after an exemption deduction ($5,000 for joint filers and $2,500 for a single filer). The Multnomah County Tax was discontinued beginning January 1, 2006, thus STE will return zero for this County tax.

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OR– Workers Comp Employee and Employer#

The Oregon Employee Workers Compensation Fund is computed as a dollar amount multiplied by the number of hours worked by the employee with no limit on the amount withheld. For 2011, the dollar amount is $0.014 and IPPC must be set up for PC Usage 6058 Pre-FWT Hours for Workers Comp.

• The Oregon Employer Workers Compensation tax is computed on the hours worked by employees.
• If the Workers Compensation Fund is to be calculated for an employee, the ‘WC Method’ in the IPRLU State tab) must be set to ‘Calc by US Taxation’ or ‘Both by IPWC and US Taxation’.
• If the method is ‘Calc by US Taxation’, only the WC Fund will be calculated for the employee using the rate in IPUTR.
• If the method is ‘Both by IPWC and US Taxation’, WC will be calculated using the rates defined in IPWC for Workers Compensation Class, as well as the WC fund rate defined in IPUTR. The WC amounts will be stored in separate pay components.
• The ‘Do Not Calculate’ toggle may be checked on IPUTR to bypass WC Calculation if desired.
• If IPRLU WC Method is not set up, then the IPPGU Pay Category WC Method will be used.

Note: For Oregon Workers Compensation, in order to override the employee WC portion and move to the employer WC portion, then this employee WC portion becomes taxable and subject to SIT and SUTA tax.

In this case, WC should be calculated via Usercalc instead of by Symmetry.

• In Usercalc, calculate the employee and employer WC portion and store in the pay component before US Taxation Pay point.
• Then include this employee WC pay component into the Elements of Pre-State Earnings (Usage 6651) and Pre-SUI Employer Earnings (Usage 6752).

This approach truly reflects the Employee WC portion in the Pre-Tax Earnings pay components and will carry through the system for the use of Self-Adjust method etc.

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OR – Transit Tax#

Oregon has levied a transit tax upon employers doing business within certain transit areas. There are six areas which have Transit tax which tax is upon regular and supplemental wages.

On IPUTR, there are six entries for Transit Tax

• OR-Canby Transit Tax
• OR- Lane Transit Tax
• OR-Trimet Excise Tax
• OR-Sandy Transit Tax
• OR-Wilsonville Transit Tax
• OR-S Clackamas Transit Tax

In order to calculate the Transit Tax for all employees, enter 'YES' for Transit Tax on IPUTP.
In order to calculate the Transit Tax for certain employee, enter 'YES' to the Transit Tax on IPRLU for each employee.

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OR – UPCALC – Symmetry Result#

Symmetry Set Up - OR_01.jpg
IPRLU Miscellaneous Tab
FILINGSTATUS = S
TOTALALLOWANCES = 0
TRANSIT_SANDY_TAX = YES

PC 8046 Res SIT Earn	= 2291.31
PC 8056 Res SSP Earn	= 89.36
PC 6042 Res SIT	= 170.44 (IPUTP STATE_ROUNDING = NO)
PC 6052 Res Supp Tax	= 89.36 x 0.09 = 8.04
PC 6703 SUI ER Contr	= 2510.71 x IPUTR 41-000-0000-ER_SUTA-000 Override Tax Rate 0.054
	= 135.58
PC 8110 RCNTY Earn	= 2291.31
PC 8111 RCNTY SupEarn	= 89.36
PC 6831 Res CNTY Tax	= 0 (County Tax discontinued)
PC 6850 Res CNTY Sup Tax	= 0 (County Tax discontinued)
PC 5331 Workers Comp EE	= (PC Usage 6058 Pre-FWT Hours) 80 hours x 0.014 = 1.12
PC 5332 Workers Comp ER	= (PC Usage 6058 Pre-FWT Hours) 80 hours x 0.014 = 1.12
PC 5383 OR-Sandy Transit Tax	= Reg 2291.31 x IPUTR 41-000-0000-ER_TRANS-004 Tax Rate 0.006
	= 13.75
	= Sup 89.36 x IPUTR 41-000-0000-ER_TRANS-004 Tax Rate 0.006 = 0.54
	= 13.75 + 0.54 = 14.29

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OR – UPCALC – Vertex Result#

Symmetry Set Up - OR_02.jpg
For Vertex Calculation, the IPRLU State tab Vtx. Alt Tax Method = ‘01’ must be set up in order to re-calculate State Tax using the Federal Tax based on State parameters. Also the IPRLU State tab Vtx # of Exemption 1 should = 1 in order to for Vertex to apply the ‘Standard Deduction in the tax formula’ to match the Symmetry Oregon State tax result as above.

PC 8045 Work SIT Earn	= 2291.31
PC 8055 Work SSP Earn	= 89.36
PC 6040 Work SIT	= 170.44 (Rounding = NO)
PC 6042 Work SIT Sup	= 89.36 x 0.09 = 8.04
PC 6703 SUI ER Contr	= 2510.71 x SUI ER Tax Rate 0.054
	= 135.58
PC 8100 WCNTY Earn	= 2291.31
PC 8101 WCNTY SupEarn	= 89.36
PC 6811 WCNTY Sup Tax	= 0 (County Tax discontinued)

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OR – Manual Calculation#

Oregon Manual Tax Calculation from:
http://www.oregon.gov/DOR/BUS/payroll_updates.shtml
http://www.oregon.gov/DOR/forms/business/withholding_formulas_150-206-436_2011.pdf

Symmetry Set Up - OR_03.jpg
Using the formula from Annual wages of $50,000 or higher

Annual Wages 2291.31 x 26	= 59574.06
Federal Tax: 403.06 x 26	= 10479.56
Since Wages <= $125.000, use PHASE OUT	= 5950.00
BASE Wages 59574.06 – 5950.00	= 53624.06

Symmetry Calculation:

BASE Wages	= 53624.06
Standard deduction $1980 for Single	= 1980 (Note:Vtx Exemption 1 = 1 must be set up for Vertex, otherwise the standard deduction will not be applied)
53624.06 – 1980	= 51644.06

Annual Tax Calculation:

WH	= 481 + (BASE – 7750) x 0.09 – (179 x allowance)
WH	= 481 + (51644.06– 7750) x 0.09 – (179 x 0)
WH	= 481 + 3950.47 – 0
WH	= 4431.47

State Tax for the period

WH	= 4431.47 / 26 = 170.44

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Notes#

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Pennsylvania State Tax Calculation#

On IPUTR, there is a list of applicable taxes to be calculated for State of Pennsylvania:

42-000-0000-SIT-000	Pennsylvania State Tax
42-000-0000-ER_SUTA-000	Pennsylvania State Unemployment Tax
42-000-0000-SUI-000	Pennsylvania SUI

If UPUTR is run with list of Pennsylvania Jurisdiction, the following entries may exist:

42-000-1209052-CITY-000	Philadelphia City Tax
42-000-1213644-ER_POP-000	Pittsburgh Payroll Tax

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PA – IPRLU Set Up#

There is no State Miscellaneous Parameters for Pennsylvania, however IPRLU Miscellaneous Tax Parameters may be required to be set up for additional information.

If these Identifiers do not exist, UPCALC will generate the default entries for the identifiers

Miscellaneous Identifiers	Description
LOC_COURTESY_PA_EIT	Optional//Pennsylvania EIT Local Courtesy Option

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PA – ER SUTA, EE SUI#

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:

1. 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 Pennsylvania.
   • The SUI Rate and Wage Base are supplied and will be used as default
   • This SUI Rate or Wage Base may be overridden, if necessary
2. IDGV
   • If there is a specific rate given by the government for a different State Registration #, then enter the rate on IDGV by ‘Reg Type’; this overrides the IPUTR rate.
     
     

For SUI, the IPUTR SUI built-in rate and SUI wage base may be overridden by one of the options above. It is recommended that if the SUI rate is overridden, the SUI overridden wage base should also be entered. This is to ensure that with the overridden SUI rate, the SUI is able to stop at the proper maximum wage base with the new rate.

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PA – IPPC / PC Usages#

IPPC – Set up Pay Components by PC Usages
In order to calculate the following taxes, a pay component must be set up in IPPC for these PC Usages:

Usage	Description
7501	PA-EMST / LST Local Service Tax

EMST (Emergency Service Tax) and LST (Local Service Tax) are the same tax, the tax has had a few different names over the past few years.

Pennsylvania EIT (Earned Income Tax) is treated and stored as City and School District tax. Pay components will need to be defined for PC Usage 6901 (City Work Tax pay components) to PC Usage 6933 (City Res Tax pay components).

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PA – EIT#

The Pennsylvania Earned Income Tax (EIT) is a tax levied as a percent of earned income at the City, Municipality or School District level. Therefore the jurisdiction must be set up with State, County, City, Municipality and School district.

Pennsylvania EIT will be calculated based on State Regular and Supplemental Earnings. The tax results are stored at the City and School District level taxation.

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PA – OPT / EMST / LST#

This tax has had three different names over the past few years, OPT / EMST / LST. The tax will be calculated based on the GNIS Code.

41.6 PA – Towanda – LST, EIT, School Tax example

Work GEO: 42-015-1213646 Towanda

PC 5402 PA-EMST / LST Tax - will be calculated by GNIS Code, no need to set up - applicable once per period

PC 6931 RCITY Sup Tax - PA EIT is treated as City and School district tax PC 6932 RCITY Schl Sup Tax PC 6951 Res CITY Tax PC 6953 RCITY Schl Reg Tax

41.7 PA – Philadelphia – City Tax example

Work GEO: 42-101-1209052 Philadelphia

The City of Philadelphia tax is a percentage of gross wages, no school district tax.

41.8 PA – Pittsburgh Payroll Expense Tax example

Work GEO: 42-003-1214818 Pittsburgh

The Pittsburgh Payroll Expense Tax is calculated.