The following values are used for ‘GOVT REGIST RULE’, if this is not set up, the default value ‘01’ is used.
Null, 00 | - Default (use Rule 01) |
01 | Across Multi Group and Multi EEM By federal registration across multiple Groups and Employments This rule means regardless if the employee has worked for multiple Groups or Employments, as long as the Group Federal Registration numbers are the same on IDGV, the YTD amounts are combined |
02 | Across Multi Group, Each EEM By federal registration across multiple Groups for one Employment at a time This rule means if the employee has worked for multiple Groups within one Employment, as long as the Group Federal Registration numbers are the same on IDGV, the YTD amounts are combined If the employee has worked for a different Employment, each Employment will be evaluated on its own |
03 | Combine Group, each EEM Combine federal registration for multiple Groups for one Employments at a time This is same as Rule 02 except the Groups are combined under each Employment |
04 | Combine All Always combine federal registration across multiple Employments and Groups |
An employee may work for one or multiple Employments that must be reported under one or multiple Government Registration Numbers. The following situations may occur:
An employee has two Employments with the following Hire Dates and is being paid with different groups.
Group | Federal Number | Pay Component | Amount |
---|---|---|---|
Part-Time-Secretary | Fed#: 111122222 | PC 1000 Gross | $3000 |
Group | Federal Number | Pay Component | Amount |
---|---|---|---|
Part-Time-Teacher | Fed#: 111122222 | PC 1000 Gross | $1000 |
Part-Time-Driver | Fed#: 999988888 | PC 1000 Gross | $5555 |
Part-Time-Music | Fed#: 111122222 | PC 1000 Gross | $4000 |
The employee will be paid under one of these Employments via IPPH with each Pay Header pointing to one Employment.
Below are results of the YTD values derived depending on the IMST ‘GOVT REGIST RULE’ setting.
For the example above:
When paying for Employment (1)
Group | Federal Number | Pay Component | Amount |
---|---|---|---|
Part-Time-Secretary | IDGV Fed# = 111122222 | PC 1000 | Gross YTD amount = $3000 + $1000 + $4000 = $8000 |
When paying for Employment (2)
Group | Federal Number | Pay Component | Amount |
---|---|---|---|
Part-Time-Teacher | IDGV Fed# = 111122222 | PC 1000 | Gross YTD amount = $3000 + $1000 + $4000 = $8000. |
When paying for Employment (2) Hire Date: 01-Jan-2009
Group | Federal Number | Pay Component | Amount |
---|---|---|---|
Part-Time-Driver | IDGV Fed# = 999988888 | PC 1000 | Gross YTD amount = $5555 |
Part-Time-Music IDGV | Fed# = 111122222 | PC 1000 | Gross YTD amount = $3000 + $1000 + $4000 = $8000. |
For the example above:
When paying for Employment (1) Hire Date: 15-Aug-2005
Group | Federal Number | Pay Component | Amount |
---|---|---|---|
Part-Time-Secretary | IDGV Fed# = 111122222 | PC 1000 Gross YTD amount = $3000 |
When paying for Employment (2) Hire Date: 01-Jan-2009
Group | Federal Number | Pay Component | Amount |
---|---|---|---|
Part-Time-Teacher | IDGV Fed# = 111122222 | PC 1000 | Gross YTD amount = $1000 + $4000 = $5000. |
When paying for Employment (2) Hire Date: 01-Jan-2009
Group | Federal Number | Pay Component | Amount |
---|---|---|---|
Part-Time-Driver | IDGV Fed# = 999988888 | PC 1000 | Gross YTD amount = $5555 |
Part-Time-Music | IDGV Fed# = 111122222 | PC 1000 | Gross YTD amount = $1000 + $4000 = $5000. |
This is useful for when a new employment is treated as a company on its own and within each Employment, the employee can work for different Groups that can be reported by different registrations.
The following business scenario is an example of a company who does not need to combine employments for taxation purpose.
Example: A Service Bureau company may set up one Headquarter Entity on IDEN and use a group IDGR to identity many different Federal Registrations (EIN numbers). In this way, each group may actually represent one legal company registration with the government,
For the example above:
When paying for Employment (1) Hire Date: 15-Aug-2005, Group: Part-Time-Secretary IDGV Fed# = 111122222 PC 1000 Gross YTD amount = $3000
When paying for Employment (2) Hire Date: 01-Jan-2009
Group | Federal Number | Pay Component | Amount |
---|
When paying for Employment (2) Hire Date: 01-Jan-2009
Group | Federal Number | Pay Component | Amount |
---|---|---|---|
Part-Time-Driver | IDGV Fed# = 999988888 | PC 1000 | Gross YTD amount = $1000 + $5555 + $4000 = $10555. |
Part-Time-Music | IDGV Fed# = 111122222 | PC 1000 | Gross YTD amount = $1000 + $5555 + $4000 = $10555. |
For the example above:
When paying for Employment (1) Hire Date: 15-Aug-2005, Group: Part-Time-Secretary IDGV Fed# = 111122222 PC 1000 Gross YTD amount = $3000 + $1000 + $5555 + $4000 = $13555.
When paying for Employment (2) Hire Date: 01-Jan-2009, Group: Part-Time-Teacher IDGV Fed# = 111122222 PC 1000 Gross YTD amount = $3000 + $1000 + $5555 + $4000 = $13555.
When paying for Employment (2) Hire Date: 01-Jan-2009, Group: Part-Time-Driver IDGV Fed# = 999988888 PC 1000 Gross YTD amount = $3000 + $1000 + $5555 + $4000 = $13555.
When paying for Employment (2) Hire Date: 01-Jan-2009, Group: Part-Time-Music IDGV Fed# = 111122222 PC 1000 Gross YTD amount = $3000 + $1000 + $5555 + $4000 = $13555.
This is useful for Companies who only report under one Federal Government Registrations for one Entity
- if an employee belongs to one Group (e.g. Part-Time Secretary with IDGV = 11112222) and this employee is terminated, then later on the employee is rehired in the same taxation year into the same Group, the employee’s YTD should be accumulated for taxation purpose
- in this case, if the employee is rehired into the same Employment, then Rule 01, 02, 03, 04 would accumulate the YTD
- in this case, if the employee is rehired under a new Employment, then Rule 01, 04 would accumulate the YTD
- at Site Level (IMST screen), during installation time when defining rules for the Payroll system, the user should define how they would start a new Employment for their employees
- a new Employment should be for a new Hire Date, then the employee will be set up for the Assignments under this employment, each Assignment will point to a Group that reports to a Fed#
- the user must evaluate how they should report multiple groups by Fed#, how to report one or multiple Employments
- most users should use the default GOVT REGIST RULE 01 for taxation purpose
- for some common Payroll Masters, Service Bureau or Agencies, each Entity on IDEN or each Group on IDGR may represent a different Company or a client of their own, sometimes one Employment of an employee may represent this employee is working for a different Company, therefore they must set up IMST ‘GOVT REGIST RULE’ to handle the taxation according to their needs
- the definition of a new Employment, a new Group, or a new Entity is dependent upon the user’s nature of business
- by default, UPCALC will accumulate and withheld according to the legislative requirement, if the client would like to switch the rule during one Taxation year, the YTD amounts that have already been updated so far may not reflect the correct YTD amounts according to the rule, the user may need to do manual YTD adjustment
- however in most cases, at the end of the year when the employee is filing their income tax return, the employee will be refunded with any excess contribution
- for the Company portion contribution, the company may do manual YTD adjustment depending on if the Company is over-contributed or under-contributed
Screen captures are meant to be indicative of the concept being presented and may not reflect the current screen design.
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