US Symmetry Taxation - 2020 W4 Processing#

Set Up#

Government Website #

For full instructions and information about the 2020 W-4, please refer to the most recent draft of Publication 15-T, Federal Income Tax Withholding Methods at: https://www.irs.gov/pub/irs-dft/p15t--dft.pdf

For a PDF of the 2020 W-4 Preview, visit: https://www.irs.gov/pub/irs-dft/fw4--dft.pdf

The following is a list of the processes that are used to set up the Federal W4 Forms:

UPUTR - Load US Tax Rates and Miscellaneous Tax Parameters#

Users must run the UPUTR process with the following parameters and filters defined as follows:

UPUTR ParametersDefine As
Load Effective Date01-Jan-2020
Remove Old Tax RatesNo
Load Tax RatesYes
Load State Misc ParmsYes
Load Tax District TypeLeave blank
TrialNo
Print Load DetailNo
Exception Level0 - Exceptions Only
User CommentsEnter data as needed

UPUTR FiltersDefine As
CountryUSA
StateFederal, USA
Load All JurisdictionsYes
Load Only JurisdictionLeave blank
  • UPUTR will call the Symmetry Tax Engine to generate all Federal Miscellaneous Tax Parameters for the 2020 W4 Form on IPUTP
  • Symmetry provides the list of Federal Miscellaneous Tax Parameters that the Symmetry Tax Engine (STE) requires in order to calculate the Federal Tax Calculation, based on the 2020 W4 Form
  • These Federal Miscellaneous Tax Parameters are inserted into IPRLUS by UPRLU, then retrieved by UPCALC to pass to the Symmetry Tax Engine.

IPUTP – Maintain US Tax Parameters#

After UPUTR is run, IPUTP is populated with the list of Federal Miscellaneous Tax Parameters

IMCT – Define Custom Tables#

In each Symmetry Release, a SEED data script is provided that creates the IMCT values.

The 'UPRLU MAPPING' code, containing the list of Miscellaneous Tax Parameter entries, with the default values according to the existing IPRLUS set up, are created.

For 5.05 or later release, please login as MASTER to view IMCT ‘UPRLU MAPPING”. If the ‘Custom Data’ field is not displaying, please go to IMFDH for Function IMCT ‘Form Layout’ tab, click DATA, enter the Width = 900, Height = 100. Login with the site 'MASTER' user to view the values on this table. The defaults for this table can be viewed and/or updated on IPUTP for the State Name=Federal

IPUTP – Definition of Federal W4 Form Tax Parameters#

The Federal W4 Form tax parameters have the following definitions:

2020_W4

  • 2020_W4 determines whether the 2019 or 2020 W-4 calculations will be used.
  • 2020_W4 defaults to FALSE on IMCT
  • If set to FALSE, the Federal tax calculations will use the 2019 W4 FILINGSTATUS and TOTALALLOWANCES parameters.
  • When an employee has filed the 2020 W4 Form with the employer, this 2020_W4 tax parameter MUST be set to ‘TRUE’
  • When the employee is being paid with Pay Issue Date after January 1, 2020, UPCALC will pass these W4 Federal Misc. Tax Parameter to Symmetry
  • When employee is being paid prior to January 1, 2020, these tax parameters will not be passed to Symmetry

FILINGSTATUS

  • This tax parameter corresponds to Line 1(c) of the 2020 W-4 form, with an additional option for calculations for nonresident alien filing status.
  • FILINGSTATUS defaults to ufed_filing_status from IMCT as follows:
    decode (p2k_ppuprlu.k_ppru.ufed_filing_status,'01','S','02','M','03','H','04','S','05','NRA','S')

TWO_JOBS

  • This tax parameter corresponds to the checkbox in Line 2(c) of the 2020 W-4 form.
  • TWO_JOBS defaults to FALSE on IMCT

DEPENDENTS_AMT

  • This tax parameter corresponds to the total value for Line 3 of the 2020 W-4 form ("Claim Dependents").
  • DEPENDENTS_AMT defaults to 0 on IMCT

OTHER_INCOME

  • This tax parameter corresponds to Line 4(a) of the 2020 W-4 form ("Other income")
  • OTHER_INCOME defaults to 0 on IMCT

DEDUCTIONS

  • This tax parameter corresponds to Line 4(b) of the 2020 W-4 form ("Deductions")
  • DEDUCTIONS defaults to 0 on IMCT

TOTALALLOWANCES (for 2019 only)

  • This tax parameter is used for the 2019 W4 Form Tax calculation only
  • TOTALALLOWANCES defaults to ufed_num_exemptions from IMCT

UPRLU – Audit US Tax Filing Information #

Users must run UPRLU to generate the 2020 W4 Federal Miscellaneous Tax Parameters, as follows:
  • For all employees
  • Effective Jan-01-2020
  • With the UPRLU Parameters and Filters defined as:

UPRLU ParameterDefine As
As of Date01-Jan-2020
Create FileNo
Update MethodDefault
File NameLeave blank
TrialNo
Exception Level1 - User Trace
User CommentsEnter data as needed

UPRLU Filters
Select the values in the filters as needed

UPRLU Processing Logic

  • UPRLU reads IMCT ‘UPRLU MAPPING’ to generate the Miscellaneous Tax Parameters on IPRLUS with the default set up
  • IMCT ‘UPRLU MAPPING’ contains the list of Tax Parameters according to IPUTP that are defined with ‘Identifier Usage’ at the employee level only, therefore,
  • If the IPUTP Tax Parameter does not exist on IMCT, this IPUTP tax parameter will not be inserted on IPRLUS,
  • The IPUTP tax parameter is for UPCALC internal use only
  • The UPRLU ‘As of Date’ parameter is used to retrieve the IPRLUS record that is Effective for this As of Date.
    Example: UPRLU will retrieve the IPRLUS record with the ‘As of Date’ that falls between the IPRLUS Effective and Expiry date, then UPRLU will insert the IMCT Misc. Tax Parameters for this IPRLUS record
  • UPRLU will not generate new effective date entries for IPRLUS with this As of Date because the UPRLU process can be run as often as each monthly release for many State Misc. Tax Parameters, due to the volume of data with better UPCALC performance; UPCALC does not need new effective records for the Misc. Tax Parameters
  • When UPRLU is run with the ‘Exception Level’ set to ‘0-Exceptions only’, UPRLU displays the report with statistics only:
  • When UPRLU is run with the ‘Exception Level’ set to ‘1-User Trace’, UPRLU displays the report with Tax Parameters:

UPRLU – SQL script to remove Tax Parameters
During testing of UPRLU, users can re-run UPRLU to re-test. An SQL script is delivered to help users to delete the IPRLUS Tax Parameters for SYSDATE in order to re-test.

In SQL+, login to the database and execute:

>@DELETE_IPRLUS_TAX_PARM.sql

IPRLU / IPRLUS / WEPRUS – Maintain US Tax Filing Information #

  • on the IPLRU / IPRLUS / WEPRUS screens, during Insert/Update mode, the process calls the PPRLU logic to create the new Federal Miscellaneous Tax Parameters, according to the IMCT ‘UPRLU MAPPING’ Code, if these tax parameters do not exist
  • on the IPRLU / IPRLUS / WEPRUS screens, employees can optionally enter the 2020 W4 Form values, if these Miscellaneous Tax Parameter values are not already defined from previous year's W4 set up
  • This means employees only need to enter any new W4 Form values, otherwise the previous W4 Form values are carried forward to the new 2020 W4 Form.

UPCALC / Trial Calc Processing#

Trial Calc#

  • If the Federal Miscellaneous Tax Parameters do not exist on IPRLUS, Trial Calc calls the PPRLU logic to create the new Federal Miscellaneous Tax Parameters for the Trial Calculation, and the Miscellaneous Tax Parameters are rolled back

UPCALC#

  • If the Federal Miscellaneous Tax Parameters do not exist on IPRLUS, Trial Calc calls the PPRLU logic to create the new Federal Miscellaneous Tax Parameters for the Federal Tax Calculation. The Federal Miscellaneous Tax Parameters are committed on the IPRLUS screen
  • When the Pay Header’s Pay Issue Date is after Jan-01-2020, UPCALC retrieves the IPRLUS Federal Miscellaneous Tax Parameters to pass to Symmetry for the Federal tax calculation
  • When the Pay Issue Date is prior to Jan-01-2020, UPCALC will not retrieve the IPRLUS Federal Miscellaneous Tax Parameters to pass to Symmetry for the Federal tax calculation
  • The IPRLUS Misc Parm '2020-W4' from Symmetry should be set to 'TRUE' or 'FALSE' to define which option of the W4 Form is used
  • UPCALC calculates the Federal tax based on how the Symmetry Tax Engine uses the IPRLUS Federal W4 Form parameters.
  • The IPRLU / IPRLUS / WEPRLUS process automatically generates the Federal W4 Form parameters by calling the PPRLU logic:
    • For employees who submit the new W4 form, the W4 Form parameters should be manually entered on the IPRLU / IPRLUS / WEPRLUS screen
    • For employees using the previous W4 form, the system will default the W4 Form values for Symmetry
    • These are fully built into the UPRLU / IMCT / UPCALC logic
    • For existing employees, run UPRLU to create the new Federal W4 parameters for IPRLUS
    • For newly hired employees, users should enter information on IPLRU / IPRLUS / WEPRLUS as usual
    • During IPRLU / IPRLUS / WEPRLUS Insert/Update mode the process calls PPRLU to generate the Federal W4 Form Miscellaneous Parameters automatically

US Taxation Examples#

IPPH Trial Calc Example#

Example: Empl: 6015, FilingStatus: M, Total Allowance = 2
  • From 2020 W4 Line 3, employee claims 2 dependents under age 17, therefore $2000 x 2 = $4000
  • Therefore, enter IPRLUS DEPENDENTS_AMT = 4000

Trial Calc – 2020_W4 = ‘FALSE’#

Test (1) Trial Calc: Testing 2020_W4 = FALSE, this means the employee has not filed the 2020 W4 Form
  • FIT Tax = $477.83
  • From STE log file, Federal Tax Parameters are passed with locationCode = ’00-000-0000’
2020_W4 = ‘FALSE’, TOTALALLOWANCES = 2 are used.

Trial Calc – 2020_W4 = ‘TRUE’#

Test (2) Trial Calc: Testing 2020_W4 = TRUE, this means the employee has filed the 2020 W4 Form
  • FIT Tax = $515.06
  • From the STE log file, Federal Tax Parameters are passed with locationCode = ’00-000-0000’
2020_W4 = ‘TRUE’, DEPENDENTS_AMT = 4000 are used.

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Notes#

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This page (revision-4) was last changed on 13-Nov-2023 14:28 by Karen ParrottTop