Self Adjust Tax Method for Symmetry Tax Engine#
Set Up#
IPRLU – US Tax Filing Set Up#
IPRLU or IPRLUS – Federal Tab#
At Federal Level, the following Tax Types can be set up with ‘Self-Adjust Method’ or ‘No Self-Adjust Method’
- FICA employee and employer calculation - Medicare employee and employer calculation - FUTA employer calculation
- Railroad Tier1 and Tier 2 RRTA employee and employer calculation - Railroad Tier1 Medicare employee and employer calculation - Railroad RUIA employer calculation
IPRLU or IPRLUS – State Tab#
At State Level, the following Tax Types can be set up with ‘Self-Adjust Method’ or ‘No Self-Adjust Method’- SUI EE employee calculation - SUI ER employer calculation, this is also called ER SUTA calculation in Symmetry - SDI EE employee calculation - SDI ER employer calculation
When ER SUTA Tax Method = ‘Self Adjust’, then if a State has ER_SUTA_SC surcharge entries on IPUTR for that State, since the ER_SUTA and ER_SUTA_SC earnings are using the same Subject Earnings, the ER_SUTA_SC surcharge will also be ‘Self Adjust’
IPUTR – US Tax Rates Set Up#
- IPUTR must specify the Tax Rate or Override Tax Rate to be used for both the ‘Self-Adjust method’ and ‘No Self-Adjust method’ at the Federal level, and for all applicable States that will be paid by the company at the State level- UPUTR loads in all applicable default Tax Rates, user may enter the Override Tax Rates if applicable
- if the Override Tax Rate is specified, this rate will be used, otherwise the default Tax Rate will be used
- if the Override Tax Rate is specified as 0.00, then the tax amount will be used with rate of 0.00, therefore it will result with zero tax for the entire calendar year
- for FUTA and SUTA, user must manually specify the Override Tax Rate because the government provides each company with their FUTA and SUTA tax rate, Symmetry will not use the default Tax Rate
- if the Wage Base or Override Wage Base is specified, then the annual earnings will be capped at this Wage Base
- if the Tax Limit Amount is not loaded by UPUTR, and if the Wage Base or Override Wage Base are not zero, then the Annual Tax Limit will be derived from the Wage Base or Override Wage Base multiply by the Tax Rate or Override Tax Rate, the annual tax amount will be capped at this Tax Limit Amount
IDGV – Government Rates Set Up#
- on IDGV, user may specify the Override Tax Rate by IDGR Government Registration to override the IPUTR Tax Rate set up
- this provides capability for users to set up different Tax Rates for each IDGR Registration
3 Purpose of Self Adjust#
‘Self Adjust’ and ‘No Self Adjust’ definition#
‘Self Adjust’ Definition- The ‘Self-Adjust’ method evaluates the YTD Earnings and YTD tax amounts every pay to ensure they are consistent and correct at each pay with a given tax rate until all Subject Earnings reach the Annual Maximum Earnings. This facilitates the accurate tax information for the monthly, quarterly reporting and the annual year-end report of W2
- at each pay, when user is verifying the Pay Register’s Subject Earnings, the Subject Earnings is derived from current pay’s earnings less taxable benefits
- at each pay, when user is verifying the Pay Register’s tax result, the tax amount is the result of the current pay’s Subject Earnings multiply by rate and the adjusted YTD tax amount
- therefore user must verify from both the YTD value and CTD value, it is not just Subject Earnings * Rate
‘No Self Adjust’ Definition
- The ‘No Self-Adjust’ method does not evaluate the YTD Earnings and YTD tax amounts every pay, it takes the CTD Subject Earnings multiply by the rate until all Subject Earnings reaches the Annual Maximum Earnings. This ensures the Annual Maximum Earnings and Deductions are capped and allowing multiple rates to be used for a tax type. This facilitates the accurate tax information for the monthly, quarterly reporting and the annual year-end report of W2
- at each pay, when user is verifying the Pay Register’s Subject Earnings, the Subject Earnings is derived from current pay’s earnings less taxable benefits
- at each pay, when user is verifying the Pay Register’s tax result, the tax amount is the result of the current pay’s Subject Earnings multiply by rate
