This page (revision-16) was last changed on 26-Nov-2021 10:22 by kparrott

This page was created on 26-Nov-2021 10:22 by JEscott

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7 26-Nov-2021 10:22 12 KB rforbes to previous | to last VERTEX ==> Vertex.VERTEX
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U.S. TAXATION
U.S. TAXATION

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[{TableOfContents }]
!!!U.S. TAXATION
At line 74 added 60 lines
!SET UP
;IPRLU - Federal Tax Method
;:Federal Tax Method is from lexicon [X_UFED_TAX_METHOD], use one of the following values:
*10 - PTD Method
*11 - PTD Method +%
*12 - PTD Method + Amount
----
;IPRLU - State Tax Method
;:State Tax Method is from lexicon [X_UST_TAX_METHOD], use one of the following values:
*10 - PTD Method
*11 - PTD Method +%
*12 - PTD Method + Amount
----
;IPRLU - Local Tax Method
;:County and City Tax Method are from lexicon [X_ULOC_COUNTY_TAX_METHOD] and [X_ULOC_CITY_TAX_METHOD], use one of the following values:
*10 - PTD Method
*11 - PTD Method +%
*12 - PTD Method + Amount
----
;PTD TAX METHOD PROCESSING
;:The 'Period To Date' method is to calculate taxes based on the entire Pay Period Amounts regardless of the number of time sheets the employee is being paid. If an employee is paid with one time sheet for 80 hours, the tax results should be the same as if the employee is paid 2 time sheets for 40 hours each, for the same tax jurisdiction.
;:The following steps are used for this method:
__Step (1) - retrieve taxable earnings, tax deductions for this pay period__:
*retrieve CTD values of all US PC Usages for this pay
*retrieve PTD values of all US PC Usages for this pay period excluding this pay
*retrieve YTD values of all US PC Usages for this year
;:At federal level. CTD/PTD/YTD values are retrieved for all tax jurisdictions.
;:At State level, PTD/YTD values are retrieved for the Pay Header's Work State and Home State.
;:At Local level, PTD/YTD values are retrieved for the Pay Header's Work Jurisdiction and Home Jurisdiction.
;:At federal level, if PTD method is used, the 125 plan and 401K amounts are passed to Vertex as PTD amount, therefore FICA/MEDI/FUTA will automatically be calculated using the PTD method.
;:At State level, if PTD method is used, the 125 plan and 401K amounts are passed to Vertex as PTD amount, therefore SUI/SDI will automatically be calculated using the PTD method.
;:At Local level, if PTD method is used, the 125 plan and 401K amounts are passed to Vertex as PTD amount, therefore School district tax will automatically be calculated using the PTD method.
__Step (2) - accumulate all taxable earnings, tax deductions for this pay period__:
*add PTD values to CTD values, these become the new CTD values to call Vertex
*subtract PTD values from YTD values, because PTD are included in CTD, no need to be included in YTD for Vertex
__Step (3) - calculate taxes for the entire period__:
*call Vertex to calculate tax amounts for the newly adjusted CTD amount for the entire period
*Vertex returns all tax amounts for the entire period
__Step (4) - store taxes for current pay__ :
*from Vertex tax results, UPCALC subtracts the PTD amounts of the previous pays to obtain the current pay's tax amount
*store the difference between Vertex tax results and PTD amounts in current pay
\\
----
;IPRLU - EIC Tax Method
;:EIC Tax Method is from lexicon X_UFED_EIC_METHOD, use one of the following values:
*11 - Single (EAS wage)
*12 - Married (EAS wage)
*13 - Married, No Spouse (EAS wage)
;:These EIC methods will pass the employee's prime assignment annual wage to Vertex so that Vertex will calculate EIC base on prime assignment annual wage instead of deriving from the Current gross being passed.
\\
----
;VERTEX CUMULATIVE TAX CALCUATION
;:Vertex supports the cumulative tax calculation at Federal level. For State and Local level, the user should use 'PTD' method.
;:Vertex Cumulative Averaging method accumulates past + current gross and then averages it according to the number of periods so far in current year. If an employee has not been paid at beginning of year or the employee is not paid consecutively, the estimated annual income based on past income will be low. For new hired in middle of year, this method will not project the income accurately.
;:However, if the user prefers this Cumulative Averaging Method of annualizing income for Federal calculation, please use this method.
This page (revision-16) was last changed on 26-Nov-2021 10:22 by kparrottTop