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MAINTAINING US TAX FILING INFORMATION#

The Maintain US Tax Filing Information screen contain the individual pay factors and rules that are required to calculate all legislated deductions and contributions required for each employee, by effective date.

U.S. pay rules are completed according to the W-4 form submitted by employees and are maintained on the Maintain US Tax Filing Information (IPRLU) form.

You may access this feature under the Screens/Forms menu: Payroll > Maintain US Tax Filing Information

U.S. Federal, State and Local Tax rules are also known as W4 information.

A module called Vertex, which is directly linked into the UPCALC program, performs U.S. Taxation calculations. When calculating U.S. taxation, the tax methods for each employee are defined in the pay rules. Then depending on the pay category of each timesheet, the U.S. pay category form for that timesheet may override the default employee’s tax methods on the U.S. pay rule file. You should refer to both the pay category file and pay rule file to determine the actual tax methods being used for tax calculation.

You must set up the federal, and, if applicable, state and local tax methods for each employee on this form by employment.

IPRLU must have a default record for the employee, which will remain static unless the employee produces a new, changed W4.

This default record should have a blank jurisdiction. This means that the jurisdiction in which the employee works or lives will use the corresponding set of pay rules. The only reason to add a second record (not a new effective date record) is if the employee works in more than one jurisdiction and requests to have different tax rules for that other jurisdiction.

1. Do NOT create records for every possible jurisdiction the employee may work in unless their filing status changes from jurisdiction to jurisdiction, in which case they still need a one default record.

2. Do NOT create 3 records, one each for federal, state, and local taxes. All three levels of government are defined in a single IPRLU record (one row in the header area).

3. Do NOT create new records if the employee wants to be taxed based on where they live rather than work (i.e. employee works in Ohio but lives in Pennsylvania, and wants to pay tax based on Pennsylvania). This situation is covered in the default record in the “State Reciprocation" field, where you may indicate "Calc Res Tax only" or "Non-Residency Certificate Filed"

‘Maintain U.S. Pay Rules’ Usage and Examples

U.S. Pay Rules data is stored in the P2K_PR_US_TAX_AREAS and P2K_PR_US_PAY_RULES tables.

Jurisdiction
This field shows the Geo code of work tax jurisdiction. Jurisdiction from P2K_CM_TAX_JURISDICTIONS is a 16-character alphanumeric optional field you may manually enter or select from the LOV (F9).
Description
The reason why these taxation rules are being maintained is shown in this field. (i.e. Default Tax rules). Users may wish to enter "Default W4", "Default" or similar description for the first blank jurisdiction record. Description is a mandatory 50 character alphanumeric field you must manually enter or set as a preference.
There must be one blank jurisdiction record.

Maintain US Tax Filing Information (IPRLU) - Federal#

Filing Status
The Federal Filing Status indicates whether an employee is filing as:
UFED_Filing_Status is a fixed lexicon (X_UFED_FILING_STATUS) that you may use to look up the value.
Tax Method
This field specifies the federal tax method for this employee:
For employees with multiple assignments who are paid with multiple time sheets in one pay period.
UFED_Tax_Method is an optional fixed lexicon (X_UFED_TAX_METHOD) that you may use to look up the value.
Suppl. Tax Method
This field specifies the Federal supplemental tax method for this employee:
UFED_Suppl_Tax_Method is an optional fixed lexicon (X_UFED_SUPPL_METHOD) that you may use to look up the value.
FICA Method
This field specifies the calculation method for FICA:
UFED_FICA_Method is an optional fixed lexicon (X_UFED_FICA_METHOD) that you may use to look up the value.
Medicare Method
This field specifies the calculation method for the Medicare portion of the FICA:
UFED_Medicare_Method is an optional fixed lexicon (X_UFED_MEDICARE_METHOD) that you may use to look up the value.
FUTA Method
This field specifies the calculation method for FUTA:
UFED_FUTA_Method is an optional fixed lexicon (X_UFED_FUTA_METHOD) that you may use to look up the value.
EIC Method
This field specifies the calculation method for employee Earned Income Credit:
UFED_EIC_Method is an optional fixed lexicon (X_UFED_EIC_METHOD) that you may use to look up the value.
Number of Exemptions
This field specifies the number of exemptions the employee claims. UFED_Num_Exemptions is an optional numeric field that you must manually enter.
Annual Exemption
This field displays the annual exemption amount being claimed. UFED_Ann_Exemption is an optional 18 digit numeric field that you must manually enter.
Add’l Exemption
This field specifies any additional exemption amount the employee claims. UFED_Add_Exemption is an optional 18 digit numeric field that you must manually enter.
Add’l Tax Per Period
This field shows the amount of additional tax to be taken each pay period. If the employee does not have enough taxable earnings this amount will only be taken if the additional tax option is set to 'always’ in the Payroll Information form and the pay is a ‘Regular Pay’ pay category.
If Federal Tax Method = Annualized + %, then this field contains the percentage that will be apply to federal earnings and treats as additional tax. (e.g. 5%, enter as 5).
If Federal Tax Method = Annualized + Amount, then this field contains a per pay period additional tax amount.
UFED_Add_Tax_Per_Period is an optional 18 digit numeric field that you must manually enter.
Tax Amount
This field contains the flat tax amount that has been pre-calculated by you to be taken for the pay.
It will be used when Federal Tax Method = Flat Amount Method.
UFED_Tax_Amount is an optional 18 digit numeric field that you must manually enter.
Tax %
This field contains the federal tax percentage applicable to this employee.
If the percentage is greater than zero, it will be used whenever the FED-TAX-METHOD or FED-SUP-METHOD specifies to use %.
Otherwise the percentage from GOVTREG file (IDGV) will be used.
UFED_Tax_Percent is an optional 5 digit numeric field that you must manually enter.

Maintain US Tax Filing Information (IPRLU) - State#

Filing Status
Valid filing status for state tax calculation:
UST_Filing_Status is a fixed lexicon (X_UST_FILING_STATUS) that you may use to look up the value.
Tax Method
This field specifies the State tax method for the employee:
For employees with multiple assignments who are paid with multiple time sheets in one pay period
UST_Tax_Method is a fixed lexicon (X_UST_TAX_METHOD) that you may use to look up the value.
Suppl. Tax Method
Specifies the state supplemental tax method for the employee:
UST_Suppl_Tax_Method is a fixed lexicon (X_UST_SUPPL_METHOD) that you may use to look up the value.
Alternate Tax Method
Specifies the alternate State tax method. Only used by a few states. If a state supports the
Alternate State Tax method, it will be specified in the Vertex manual, ‘Current Information’ for the state. Please refer to Vertex manual prior to using the Alternate State method.
Alt St Tax Method 00 – 09
UST_Alt_Tax_Method is a fixed lexicon (X_UST_ALT_TAX_METHOD) that you may use to look up the value.
SUI Employee Method
This field specifies the employee’s calculation method for State Unemployment Insurance:
UST_SUI_EE_Method is a fixed lexicon (X_UST_SUI_METHOD) that you may use to look up the value.
SUI Employer Method
This field specifies the employer’s calculation method for State Unemployment Insurance:
UST_SUI_ER_Method is a fixed lexicon (X_UST_SUI_METHOD) that you may use to look up the value.
SDI Employee Method
This field specifies the employee’s calculation method for State Disability Insurance:
;UST_SDI_EE_Method is a fixed lexicon (X_UST_SDI_METHOD) that you may use to look up the value.
SDI Employer Method
This field specifies the Employer’s calculation method for State Disability Insurance:
UST_SDI_ER_Method is a fixed lexicon (X_UST_SDI_METHOD) that you may use to look up the value.
WCB Method
This field specifies the calculation method for Workers’ Compensation:
UST_WCB_Method is a fixed lexicon (X_UST_WCB_METHOD) that you may use to look up the value.
Reciprocity Agreement
This field indicates if the employee has filed a ‘Non-Residency Certificate’ with the
employer and therefore the state tax is to be calculated by the certificate.
UST_Reciprocation is a fixed lexicon (X_UST_RECIPROCATION) that you may use to look up the value.
# of Exemptions 1
This field specifies the number of primary exemptions for the employee (e.g. spouse, dependants etc.). In most cases this will be the only number of exemptions claims. UST_Num_Exemption_1 is an optional 5 digit numeric field that you must manually enter.
# of Exemptions 2
This field specifies the number of secondary exemptions for the employee. This is used in some states for blind or over-65 dependants. UST_Num_Exemption_2 is an optional 5 digit numeric field that you must manually enter.
Tax Percent
This field contains the state tax percentage applicable to this employee. If the percentage is greater than zero, it will be used whenever UST_TAX_METHOD or UST_SUPPL_TAX_METHOD specifies to use %. Otherwise, the percentage from
GOVTREG file (IDGV) will be used. UST_Tax_Percent is an optional 5 digit numeric field that you must manually enter.
Annual Exemption
This field specifies an overridden annual exemption amount for the state tax calculation. UST_Ann_Exemption is an optional 18 digit numeric field that you must manually enter.
Add’l Exemption
This field specifies any additional exemption amount the employee claims. UST_Add_Exemption is an optional 18 digit numeric field that you must manually enter.
Add’l Tax Per Period
This field indicates the amount of additional tax to be taken each pay period. If the employee does not have enough taxable earnings this amount will only be taken if the additional tax option is set to 'always’ in the Payroll Information form and the pay is a ‘Regular Pay’ pay category. If State Tax Method = Annualized +%, then this field contains the percentage that will be apply to federal earnings and treats as additional tax. (e.g. 5%, enter as 5). If State Tax Method = Annualized + Amount, then this field contains a per pay period additional tax amount. UST_Add_Tax_Per_Period is an optional 18 digit numeric field that you must manually enter.
Add’l Tax for Res.
This field indicates whether the additional tax per period is for Residence State tax:
UST_Add_Tax_Res is a fixed lexicon (X_UST_ADD_TAX_RES) that you may use to look up the value.
Add’l Tax for Work
This field indicates whether the additional tax per period is for Work State tax:
UST_Add_Tax_Work is a fixed lexicon (X_UST_ADD_TAX_WORK) that you may use to look up the value.
Tax Amount
This field contains the flat tax amount that has been pre-calculated by you to be taken for the pay.
This field will be used when State Tax Method = Flat Amount method. UST_Tax_Amount is an optional 18 digit numeric field that you must manually enter.

Maintain US Tax Filing Information (IPRLU) - Local#

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