Adjustment Pays#
This document describes the set up and the UPCALC processing for Adjustment Pays for US Symmetry Taxation.
Set Up#
IMLN #
The lexicon X_PAY_CATEGORY_TYPE determines which type of category the pay will be calculated with.- 1 - Reversal
- 2 – Adjustment - this Category Type is used for Adjustment pays
- 3 - Regular Pay
- 4 - Future Pay
- 5 - Advance
- 6 - Bonus
- 7 - Retro
- 8 - Open Enrollment
IPPGU – Define US Pay Categories for Adjustment#
On IPPGU, user can enter one or more Pay Category Code with Pay Category Type = ‘Adjustment’.
The Pay Point Set is user definable and must be set up on IPPP screen
The IPPGU Federal, State, Local, Railroad Tax methods may be overridden to ‘Do Not Calculate’
For US Symmetry Taxation, it is recommended to leave these Tax methods as blank so that when the Symmetry Taxation is called, the Taxable Earnings can be adjusted for Adjustment pays
IPPP – Define Pay Points for Adjustment#
On IPPP screen, user can enter one or more Pay Point Set to be used for IPPGU for Adjustment pays.
(1) Some Adjustments are for YTD numeric corrections only and will not require additional processing, therefore one Pay Point Set can be set up for these kind of Adjustments, there is no need to set up the Pay Point Type entry
(2) Some Adjustments are for Earnings or Benefits corrections that may require additional processing by User Calc or to fix some Taxable Earnings, therefore a Pay Point Set can be set up for these kind of Adjustments, the Pay Point Type entries must be set up
UPCALC only processes the following Pay Point Type and Pay Point Task for Adjustment pays:
- Pay Point Type = 94 - Adjustment
- Pay Point Task = User Calculation (optional, used only if user calcs are needed)
- Pay Point Task = Legislative Calc
Multiple Pay Point Type entries can be set up for User Calc, but only one Pay Point Type entry can be set up for ‘Legislative Calc’ to perform Symmetry Taxation to adjust the Taxable Earnings
Adjustment Examples#
There are many scenarios users are required to perform Adjustments to correct the YTD amounts. Adjustment pay has no money involvement and does not affect the Net Pay, it is strictly to correct YTD amounts. Depending on the business scenarios, user may need to perform Adjustments in different manner by setting up User Calc or to perform Legislative Calculation. The followings are some examples of the Adjustment pays.
IPPH – Negative 125 / 401K Adjustment#
On IPPH, taxable benefits such as 125 / 401K amounts can be entered as negative amounts to refund from YTD, the 125 / 401K can also be generated from Usercalc with negative amount to refund from YTD
IPPH Category ADJUSTMENT points to a Pay Point Set with IPPP entry Pay Point Task = ‘Legislative Calc’, therefore UPCALC will perform Symmetry taxation with Pay Header’s Work and Home Jurisdiction
With the negative 125 plan / 401K amounts, Symmetry will reduce the Taxable Earnings with the negative amounts and returns all Subject Earnings that are topped up with the refunded benefit amounts according to the Work / Home Jurisdictions
UPCLOZ will update the YTD with these amounts, after UPCLOZ, when employee is paid with the next Regular pay, the ‘Self-Adjust’ method will adjust FICA, MEDI, FUTA, SUTA etc deductions according to these adjusted YTD Earnings
IPPH –Positive 125 / 401K Adjustment#
On IPPH, taxable benefits such as 125 / 401K amounts can be entered as positive amounts to be added to YTD, the 125 / 401K can also be generated from Usercalc with positive amount to be added to YTD
IPPH Category ADJUSTMENT points to a Pay Point Set with IPPP entry Pay Point Task = ‘Legislative Calc’, therefore UPCALC will perform Symmetry taxation with Pay Header’s Work and Home Jurisdiction
With the positive 125 plan / 401K amounts, Symmetry tries to reduce the Earnings with the positive benefit amounts, since there is no earnings in current pay, the positive benefit amounts will result in negative earnings, and Symmetry does not allow for negative earnings, therefore returns all Subject Earnings as zero
Symmetry will not adjust the Subject Earnings in this scenario, below is the result after Symmetry is called
