Table of Contents
- US BENEFIT TYPES
- Overview
- Symmetry Supported Benefit Types
- Pre-defined Benefit Types
- Federal Benefit Pay Component Usages
- State Benefit Pay Component Usages
- Custom Benefit Types
- Custom Benefit Types
- Custom Benefit Type Pay Component Usages
- Benefit PC Usages – Legacy User Set Up
- Benefit PC Usages – Symmetry User Set Up
- Federal Level – 9 Pre-defined Benefits
- State Level – 9 Pre-defined Benefits
- Benefit PC Usages – IPPC Pre-Tax Criteria Override
- Benefit Element – for All States
- Benefit Element - Varies by States
- Benefit Element – IPPE Pre-Tax Criteria Override
- Notes
US BENEFIT TYPES#
Overview#
This section describes the benefit types supported by the Symmetry Tax Engine (STE) software which may impact employee taxable wages.Audience
All users who are responsible to do the Payroll Tax Calculation in the Pay cycle process.
Prerequisites
All users must have a thorough understanding of the Payroll Pay Cycle UPCALC process.
Symmetry Supported Benefit Types#
Pre-defined Benefit Types#
The Symmetry Tax Engine supports nine pre-defined benefit types and ten custom benefit types which may affect taxable earnings.
The SymmetryTaxEngine will determine the Pre-Tax status of the nine predefined benefit types for each of the taxes calculated.
The nine supported predefined benefit types are:
- 125
- 401K
- 403b
- 457
- Roth401K
- Roth403b
- FSA
- HSA
- Simple IRA
These benefit types each have their own PC Usage as described below for federal and state level taxation.
Federal Benefit Pay Component Usages#
| PC Usage | Tax Level | Suggested Element | Usage Description | Released in Version |
|---|---|---|---|---|
| 7901 | Fed | UFWT125 | 125 plan contributions exempt from Federal Regular Withholding Tax Mandatory if 125 is applicable Pay Component must be set up IPPC Store Results - optional | 4.10 |
| 7902 | Fed | UFWT401K | 401K plan contributions exempt from Federal Withholding Tax | 4.10 |
| 7903 | Fed | UFWT403B | 403B plan contributions exempt from Federal Regular Withholding Tax | 4.10 |
| 7904 | Fed | UFWT457 | 457 plan contributions exempt from Federal Regular Withholding Tax | 4.10 |
| 7905 | Fed | UFWTROTH401 | Roth 401K plan contributions exempt from Federal Regular Withholding Tax | 4.10 |
| 7906 | Fed | UFWTROTH403 | Roth 403B plan contributions exempt from Federal Regular Withholding Tax | 4.10 |
| 7907 | Fed | UFWTFSA | FSA plan contributions exempt from Federal Regular Withholding Tax | 4.10 |
| 7908 | Fed | UFWTHSA | HSA plan contributions exempt from Federal Regular Withholding Tax | 4.10 |
| 7909 | Fed | UFWTIRA | Simple IRA plan contributions exempt from Federal Regular Withholding Tax | 4.10 |
| 7921 | Fed | UFSP125 | 125 plan contributions exempt from Federal Supplemental Tax Mandatory if 125 is applicable Pay Component must be set up IPPC Store Results - optional | 4.10 |
| 7922 | Fed | UFSP401K | 401K plan contributions exempt from Federal Supplemental Tax | 4.10 |
| 7923 | Fed | UFSP403B | 403B plan contributions exempt from Federal Supplemental Tax | 4.10 |
| 7924 | Fed | UFSP457 | 457 plan contributions exempt from Federal Supplemental Tax | 4.10 |
| 7925 | Fed | UFSPROTH401 | Roth 401K plan contributions exempt from Federal Supplemental Tax | 4.10 |
| 7926 | Fed | UFSPROTH403 | Roth 403B plan contributions exempt from Federal Supplemental Tax | 4.10 |
| 7927 | Fed | UFSPFSA | FSA plan contributions exempt from Federal Supplemental Tax | 4.10 |
| 7928 | Fed | UFSPHSA | HSA plan contributions exempt from Federal Supplemental Tax | 4.10 |
| 7929 | Fed | UFSPIRA | Simple IRA plan contributions exempt from Federal Supplemental Tax | 4.10 |
State Benefit Pay Component Usages#
| PC Usage | Tax Level | Suggested Element | Usage Description | Released in Version |
|---|---|---|---|---|
| 7951 | State | USTT125 | 125 plan contributions exempt from State Regular Withholding Tax Mandatory if 125 is applicable Pay Component must be set up IPPC Store Results - optional | 4.10 |
| 7952 | State | USTT401K | 401K plan contributions exempt from State Regular Withholding Tax | 4.10 |
| 7953 | State | USTT403B | 403B plan contributions exempt from State Regular Withholding Tax | 4.10 |
| 7954 | State | USTT457 | 457 plan contributions exempt from State Regular Withholding Tax | 4.10 |
| 7955 | State | USTTROTH401 | Roth 401K plan contributions exempt from State Regular Withholding Tax | 4.10 |
| 7956 | State | USTTROTH403 | Roth 403B plan contributions exempt from State Regular Withholding Tax | 4.10 |
| 7957 | State | USTTFSA | FSA plan contributions exempt from State Regular Withholding Tax | 4.10 |
| 7958 | State | USTTHSA | HSA plan contributions exempt from State Regular Withholding Tax | 4.10 |
| 7959 | State | USTTIRA | Simple IRA plan contributions exempt from State Regular Withholding Tax | 4.10 |
| 7971 | State | USTS125 | 125 plan contributions exempt from State Supplemental Tax Mandatory if 125 is applicable Pay Component must be set up IPPC Store Results - optional | 4.10 |
| 7972 | State | USTS401K | 401K plan contributions exempt from State Supplemental Tax | 4.10 |
| 7973 | State | USTS403B | 403B plan contributions exempt from State Supplemental Tax | 4.10 |
| 7974 | State | USTS457 | 457 plan contributions exempt from State Supplemental Tax | 4.10 |
| 7975 | State | USTSROTH401 | Roth 401K plan contributions exempt from State Supplemental Tax | 4.10 |
| 7976 | State | USTSROTH403 | Roth 403B plan contributions exempt from State Supplemental Tax | 4.10 |
| 7977 | State | USTSFSA | FSA plan contributions exempt from State Supplemental Tax | 4.10 |
| 7978 | State | USTSHSA | HSA plan contributions exempt from State Supplemental Tax | 4.10 |
| 7979 | State | USTSIRA | Simple IRA plan contributions exempt from State Supplemental Tax | 4.10 |
Custom Benefit Types #
Custom Benefit Types#
If a client has benefit plans other than the nine pre-defined benefit types listed in the previous chapter whose deductions affect employee taxable wages, the custom benefit types may be set up. You can define up to ten different custom benefit types.
You must configure the Pre-Tax criteria for Federal, State, Local level taxation on IPPC. (This may also be entered on IPCU by a PC Usage with the same Pre-Tax criteria of the defined pay component).
Custom benefit types may be:
- Pension
- PERS
- Group Term Life (GTL)
The IPPC element that made up the Benefit Pre-Tax Amounts can be varied by State. These will be described in the next chapter.
Custom Benefit Type Pay Component Usages#
| PC Usage | Tax Level | Suggested Element | Usage Description | Released in Version |
|---|---|---|---|---|
| 7801 | Federal and State | TX-BEN-01 | User Defined Benefit contributions to be exempt from Regular Federal and State Withholding tax if this is to be used, Pay Component must be set up with this PC Usage IPPC Store Results – optional on IPPC Header block, click ‘Show User Fields’ and specify Pretax criteria user can also enter the same Pretax criteria on IPCU Pay Component block by clicking ‘Show User Fields’ | 4.10 |
| 7802 | TX-BEN-02 | Same as Usage 7801 | 4.10 | |
| 7803 | TX-BEN-03 | Same as Usage 7801 | 4.10 | |
| 7804 | TX-BEN-04 | Same as Usage 7801 | 4.10 | |
| 7805 | TX-BEN-05 | Same as Usage 7801 | 4.10 | |
| 7806 | TX-BEN-06 | Same as Usage 7801 | 4.10 | |
| 7807 | TX-BEN-07 | Same as Usage 7801 | 4.10 | |
| 7808 | TX-BEN-08 | Same as Usage 7801 | 4.10 | |
| 7809 | TX-BEN-09 | Same as Usage 7801 | 4.10 | |
| 7810 | TX-BEN-10 | Same as Usage 7801 | 4.10 | |
| 7821 | Federal and State | TX-BENSUP-01 Optional | User Defined Benefit contributions to be exempt from Supplemental Federal and State Withholding tax This usage works in conjunction with usage 7801 except this is for Suppl Earnings IPPC Element (e.g. TX-BENSUP-01) are made up with list of Benefit pay components that are calculated based on Supplemental Earnings If this usage is not set up, Usage 7801 amount will be prorated with the Regular and Supplemental Earnings to derive the Suppl Benefit amount If this usage has an empty Element (i.e. Element amount = 0), then no proration between Reg / Sup Earnings | 4.10 |
| 7822 | TX-BENSUP-02 | Same as Usage 7821 | 4.10 | |
| 7823 | TX-BENSUP-03 | Same as Usage 7821 | 4.10 | |
| 7824 | TX-BENSUP-04 | Same as Usage 7821 | 4.10 | |
| 7825 | TX-BENSUP-05 | Same as Usage 7821 | 4.10 | |
| 7826 | TX-BENSUP-06 | Same as Usage 7821 | 4.10 | |
| 7827 | TX-BENSUP-07 | Same as Usage 7821 | 4.10 | |
| 7828 | TX-BENSUP-08 | Same as Usage 7821 | 4.10 | |
| 7829 | TX-BENSUP-09 | Same as Usage 7821 | 4.10 | |
| 7830 | TX-BENSUP-10 | Same as Usage 7821 | 4.10 |
Benefit PC Usages – Legacy User Set Up#
For Vertex L Series users, the following PC usages are used:
| PC Usage | Tax Level | Suggested Element | Usage Description | Released in Version | Used by Symmetry |
|---|
For Vertex users who are converting to Symmetry, there are two options to set up Benefit PC Usages.
- Option 1
- Retain PC usages 6053 to 6657 as above to support 125 and 401K plan exemptions
UPCALC will use these PC Usages to calculate 125 and 401K exemptions for tax calculation.
- Option 2
- Set up Benefit PC Usages 7901 to 7979 for 125, 401K, 403B, 457 etc.
If the first Benefit PC Usage 7901 is set up, this means the entire set of PC Usages 7901 to 7979 will replace PC Usages 6053 to 6657
UPCALC will ignore the old PC Usages 6053 to 6657 set up.
If you continue to use the Vertex method and have an employee who has both a 401K and 457 for example, if the 401k element YTD reaches the annual contribution limit for 401K, the employee's Federal and State earnings will no longer be reduced by the 401k and 457 amounts as the system will think the employee has reached the 401K annual limit when in fact they haven't.
For Symmetry users or converted users, if a particular Benefit Type is to be used, you should set up a Pay Component on IPPC with the PC Usage as defined above.
If the Benefit Type is made up by an element, then specify the Element name. (e.g. 125 Regular - proration logic here.)
On IPPC, you can optionally turn ON the 'Store Results' toggle to store the amounts on 'Pay Amounts' tab. This pay component will be stored on IPPH 'Pay Jurisdiction' tab regardless of the 'Store Results' toggle.
Benefit PC Usages – Symmetry User Set Up#
Federal Level – 9 Pre-defined Benefits#
At Federal level for the 9 pre-defined Benefit types, Usages 7901 to 7909 (suggested Element UFWT125 to UFWTIRA) must be set up with IPPC pay component for Regular Federal Withholding tax calculation if any of these PC usages are applicable For Supplemental Federal Withholding tax calculation, Usage 7921 to 7929 (suggested Element UFSP125 to UFSPIRA) may optionally be set up with IPPC pay component if these benefit amounts are based on list of Pay Components that are different than those elements in Usage 7901 to 7909 If Supplemental Usage 7921 to 7929 are not set up with IPPC pay components, then the Benefit amounts from Regular Usage 7901 to 7909 will be prorated among Regular Earnings and Supplemental Earnings If Usage 7921 to 7929 are set up and the IPPC pay component is with an EMPTY Element (or the Element value = 0), then the Benefit amounts from Usage 7901 to 7909 will NOT be prorated among Regular Earnings and Supplemental Earnings, this set up means the Supplemental Benefit exemptions are based on the Supplemental Element value, the Element value of zero means to suppress the benefit proration logic
State Level – 9 Pre-defined Benefits#
At State level for the 9 pre-defined Benefit types, Usages 7951 to 7959 (suggested Element USTT125 to USTTIRA) may be set up for Regular State Withholding tax calculation if any of these PC usages are applicable
If State Usage 7951 to 7959 are not set up, then Federal Usage 7901 to 7909 will be used
If State Supplemental Usage 7971 to 7979 are not set up, then Federal Supplemental Usage 7921 to 7929 will be used
Same benefit proration logic applies to the State level benefit usage set up
Benefit PC Usages – IPPC Pre-Tax Criteria Override#
IPCU PC Usages are supplied to users with UPCALC software release For each applicable Benefit PC Usage 7801 to 7979, user must define a pay component on IPPC screen and enter the PC Usage for this pay component, then enter the Element name that made up the Benefit amount for this Benefit Type pay component If user wants to specify or override the Pre-tax criteria for this Benefit Type Pay Component, click the ‘Show User Fields’ icon
If the 9 Pre-defined Benefit Types are defined with these user-defined Pre-Tax Criteria, this PC Usage is treated as a Custom Benefit Type, this Pre-Tax set up overrides the Pre-defined taxability of the benefit type For the 10 Custom Benefit Types, these Pre-tax criteria must be set up. After a Pay Component is defined on IPPC screen for a Benefit PC Usage, user can go into IPCU screen for that PC Usage to view the Pay Component set up. On IPCU screen Pay Component block, user can click the ‘Show User Fields’ icon to edit the same Pre-Tax criteria set up.
Benefit Element – for All States#
On IPPC screen for the Pay Component of each Benefit PC Usage, user must specify an Element that made up the Benefit Amount.
e.g. 401K Usage 7902 IPPC Element Name: ‘TX-401K’, Custom Benefit Usage 7801 IPPC Element Name: ‘TX-BEN-01’
These Element names are used for all employees by UPCALC for all States
Benefit Element - Varies by States#
Some States require different Benefit Amounts to be varied for some Benefit Types. UPCALC provides capability to define different Benefit Element for each Benefit Type to be varied by State. On IPPC screen for the Pay Component of the Benefit Usage, a generic Benefit Element name must be set up, this Element is used for all States. For States that have a different Benefit amount, set up a different Benefit Element name on IPPE screen that is made up from the generic Element Name concatenated with a hyphen and the State code as the suffix e.g. IPPE Generic Element Name: ‘TX-BEN-01’ IPPE Specific State Element Name for New Jersey ‘TX-BEN-01-NJ’ IPPE Specific State Element Name for New York ‘TX-BEN-01-NY’
UPCALC will append the State Code with a hyphen to the generic Element name to retrieve the specific Element with the Pay Header ‘s Work State, if Element does not exist for the Work State, then IPPC generic Benefit Element name will be used This functionality is applicable to all Benefit Types including the 9 Pre-defined Benefit Types and 10 custom Benefit Types.
Benefit Element – IPPE Pre-Tax Criteria Override#
Some States require different Pre-tax taxability for some Benefit Types. UPCALC provides capability to define different Benefit Pre-tax criteria by State specific Elements. After the State Element is defined with the State code suffix, user can define the Pre-Tax criteria on IPPE screen for this State Element e.g. IPPE Generic Element Name: ‘TX-BEN-01’ IPPE Specific State Element Name for New Jersey ‘TX-BEN-01-NJ’ IPPE Specific State Element Name for New York ‘TX-BEN-01-NY’
On IPPE screen, click the ‘Show User Fields’ icon
The IPPE Pre-Tax criteria set up overrides the IPPC Pre-tax criteria set up of each Benefit Type.
