UPCALC COMBINE SEPARATE MULTIPLE EMPLOYMENTS
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UPCALC - HOW TO COMBINE OR SEPARATE MULTIPLE EMPLOYMENTS FOR TAX CALCULATION #

Overview#

This section illustrates the option to handle multiple federal government registrations and multiple employments for legislative purpose. This is mostly for capping or restarting of annual wage base maximums, annual maximum deductions and limits.

Set Up#



IMST – Site Preference – GOVT REGIST RULE#

On IMST Preferences tab, a site preference for ‘GOVT REGIST RULE’ may be added.

There is no page called 'GOVT REGIST RULE'. Would you like to create it?

The following values are used for ‘GOVT REGIST RULE’, if this is not set up, the default value ‘01’ is used.

Null, 00Default (use Rule 01)
01Across 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.
02Across 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.
03Combine 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.
04Combine All

Always combine federal registration across multiple employments and groups.

Govt Regist Rules#



Multiple Employments and Multiple Groups#

Each company must be registered with the federal government. The company may receive one or multiple Government Registration Numbers depending on the nature of their business.

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:

  1. An employee may work for two or more different assignments (IEAS) that point to a different group (IDGR), the group may be reporting to a different Federal Registration Number
  2. An employee may change employments with a new Hire Date, the new assignment may point to a different group (IDGR) that is reporting to a different Federal Registration Number


Employee Example#

An employee has two employments with the following Hire Dates and is being paid with different groups.
Employment (1) has been paid with one group
Hire Date: 15-Aug-2005
GroupFederal NumberPay ComponentAmount
Part-Time-SecretaryFed#: 111122222PC 1000 Gross$3000
Employment (2) has been paid with three groups
Hire Date: 01-Jan-2009
GroupFederal NumberPay ComponentAmount
Part-Time-TeacherFed#: 111122222PC 1000 Gross$1000
Part-Time-DriverFed#: 999988888PC 1000 Gross$5555
Part-Time-MusicFed#: 111122222PC 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.


UPCALC - GOVT REGIST RULE = ‘01’ (Default Rule)#

IMST - GOVT REGIST RULE = 01

For the example above:

When paying for Employment (1)
Hire Date: 15-Aug-2005
GroupFederal NumberPay ComponentAmount
Part-Time-SecretaryIDGV Fed# = 111122222PC 1000Gross YTD amount = $3000 + $1000 + $4000 = $8000
When paying for Employment (2)
Hire Date: 01-Jan-2009
GroupFederal NumberPay ComponentAmount
Part-Time-TeacherIDGV Fed# = 111122222PC 1000Gross YTD amount = $3000 + $1000 + $4000 = $8000.
Part-Time-DriverIDGV Fed# = 999988888PC 1000Gross YTD amount = $5555
Part-Time-Music IDGV Fed# = 111122222PC 1000Gross YTD amount = $3000 + $1000 + $4000 = $8000.
Canada Taxation
For Canada taxation, the CPP/QPP and EI annual maximum deductions are respected which will help to avoid the employee being over-deducted and the company will not over pay their Employer portion of CPP/QPP, EI.

For Federal / Provincial / Quebec tax calculation, the employee’s YTD amounts are combined together such that the employee’s annual taxable income reflects the total income of the employee for the year for that Federal Registration number. This will avoid the employee’s tax being under deducted when the employee is filing their income tax return.
US Taxation
For US taxation, the FICA, MEDI, FUTA annual maximum wage base and deductions are respected, all other annual maximum amounts are respected.


UPCALC - GOVT REGIST RULE = ‘02’#

IMST - GOVT REGIST RULE = 02

For the example above:

When paying for Employment (1)
Hire Date: 15-Aug-2005
GroupFederal NumberPay ComponentAmount
Part-Time-SecretaryIDGV Fed# = 111122222PC 1000 Gross YTD amount = $3000
When paying for Employment (2)
Hire Date: 01-Jan-2009
GroupFederal NumberPay ComponentAmount
Part-Time-TeacherIDGV Fed# = 111122222PC 1000Gross YTD amount = $1000 + $4000 = $5000.
Part-Time-DriverIDGV Fed# = 999988888PC 1000Gross YTD amount = $5555
Part-Time-MusicIDGV Fed# = 111122222PC 1000Gross 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.



UPCALC - GOVT REGIST RULE = ‘03’#

IMST - GOVT REGIST RULE = 03

For the example above:

When paying for Employment (1)
Hire Date: 15-Aug-2005
GroupFederal NumberPay ComponentAmount
Part-Time-SecretaryIDGV Fed# = 111122222PC 1000Gross YTD amount = $3000
When paying for Employment (2)
Hire Date: 01-Jan-2009
GroupFederal NumberPay ComponentAmount
Part-Time-TeacherIDGV Fed# = 111122222PC 1000Gross YTD amount = $1000 + $5555 + $4000 = $10555.
Part-Time-DriverIDGV Fed# = 999988888PC 1000Gross YTD amount = $1000 + $5555 + $4000 = $10555.
Part-Time-MusicIDGV Fed# = 111122222PC 1000Gross YTD amount = $1000 + $5555 + $4000 = $10555.


UPCALC - GOVT REGIST RULE = ‘04’#

IMST - GOVT REGIST RULE = 04

For the example above:

When paying for Employment (1)
Hire Date: 15-Aug-2005
GroupFederal NumberPay ComponentAmount
Part-Time-SecretaryIDGV Fed# = 111122222PC 1000Gross YTD amount = $3000 + $1000 + $5555 + $4000 = $13555.

When paying for Employment (2) Hire Date: 01-Jan-2009

GroupFederal NumberPay ComponentAmount
Part-Time-TeacherIDGV Fed# = 111122222PC 1000Gross YTD amount = $3000 + $1000 + $5555 + $4000 = $13555.
Part-Time-DriverIDGV Fed# = 999988888PC 1000Gross YTD amount = $3000 + $1000 + $5555 + $4000 = $13555.
Part-Time-MusicIDGV Fed# = 111122222PC 1000Gross YTD amount = $3000 + $1000 + $5555 + $4000 = $13555.

This is when only reporting under one Federal Government Registrations for one entity.


UPCALC – Additional Scenarios#



When to Define a New Employment#


Notes #

Click to create a new notes page