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Maintaining Employer TaxInformation (U.S.)

Overview

Copyright Oracle, 2007. All rights reserved.

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Maintaining Employer Tax n!ormation "#.$.%

System References

None

Distri!tion

Job Title*

Owners"ip

The Job Title [[email protected]?Subject=E!"""""# is responsible $or ensurin% that this

&ocument is necessary an& that it re$lects actual practice.


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Maintaining Employer Tax n!ormation "#.$.%


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Overvie/


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Types o! #.$. Employer Taxation

Types of U.S Employer Taxation

This broa& ran%e o$ employer ta"ation &i'i&es into (e&eral an& State ta"ation.

(e&eral Ta"es )ayable by Employer

+ Social Security ,(-C / 0S-1

+ 2e&icare ,(-C / 3-1

+ (e&eral !nemployment -nsurance ,(!T1

State Ta"es )ayable by Employer

+ State !nemployment -nsurance / ,S!-1

+ State isability -nsurance / ,S-1

The pattern o$ employer ta"ation is comple". -t is important to recor& ta"ation &etails correctly4hen you con$i%ure your payrolls so that subse5uent payroll calculations pro&uce an accurate

statement o$ employer liabilities.

This in$ormation is not &ate trac6e& an& i$ it is chan%e& it becomes acti'e imme&iately on the

ne"t payroll processin%.


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$etting #p Employer Taxes

Instr!ctor #ote

7hene'er there are ta"ation chan%es arisin% $rom your 4or6 structures8 ta"ability rules8 or

employee in$ormation you must capture these chan%es as part o$ your payroll con$i%uration $or

employer ta"ation. ,0utline e"amples o$ chan%e in these areas1.

Setting Up Employer Taxes

-t is important to up&ate your employer ta" in$ormation 4hene'er any o$ these chan%es occurs

+ 7hen you set up ne4 enterprise 4or6 structures you shoul& also up&ate your $e&eral8

state an& local in$ormation $or each 9:E or le%al entity.

+ 7hen you &e$ine ne4 ta" cate%ories $or supplemental or impute& earnin%s8 or pre;ta"&e&uctions you shoul& also up&ate the ta"ability rules at $e&eral8 state an& local le'el.

+ 7hen there are chan%es to employee in$ormation that ha'e an impact on employer ta"es

you shoul& also ma6e sure that these chan%es are up&ate& on the employee assi%nment.



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Entering Tax n!ormation !or 1Es

$overnment Reporting Entities

Employer ta" in$ormation is re5uire& by the appropriate 9o'ernment :eportin% Entity ,9:E1.

You may also nee& to &e$ine one o$ your 9:Es as a transmitter $or ma%netic me&ia reports. -$

you operate multiple 4or6sites8 only one o$ your 9:Es can act as the transmitter. You typicallyinclu&e the $ollo4in% in$ormation $or each o$ these entities

+ 9o'ernment :eportin% Entities

- -&enti$ication numbers $or $e&eral8 state an& local a%encies

- Ta" rules $or sel$;a&just metho&s o$ ta"ation

- 7ithhol&in% calculation metho& ,$lat rate or percenta%e1

-

State le'el unemployment rates- (e&eral le'el supplemental an& ta" %roup in$ormation

+ Transmitters / i$ you sen& $e&eral or state returns each 5uarter or each year8 then you

must &e$ine transmitter &etails so that your can sen& your returns by ma%netic me&ia.This applies in each o$ these instances

- (e&eral le'el transmitter &etails $or 27S ,1

- 7;s an& :etirement )lan istribution ,ABB:1



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- State le'el transmitter &etails $or State uarterly 7a%e istin%s ,S71

+ 2ultiple 7or6sites / employers 4ho operate multiple 4or6sites must sen& 5uarterly

employment an& 4a%e reports to the bureau o$ abor Statistics. -n this case8 you supply

- 27S transmitter &etails $or the 9:E

- classi$ication o$ :eportin% Establishment $or your 27S transmitter

You enter most o$ the &etails $or 9:Es8 transmitters8 an& 27S transmitters in the0r%aniDation 4in&o48 but $or $ull &etails please see these &etails in online help

+ Enterin% (e&eral Ta" :ules $or a 9:E

+ Enterin% State Ta" :ules $or a 9:E

+ e$inin% the 2ultiple 7or6site :eportin% Transmitter 9:E


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Entering ederal, $tate and 3ocal Tax n!ormation !or a 1E

Instr!ctor #ote

This is just a hea&er sli&e. -t intro&uces the icons $or (e&eral -n$ormation8 State -n$ormation8

an& ocal -n$ormation.


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Entering ederal Tax n!ormation !or a 1E

Instr!ctor #ote

Emphasise the importance o$ enterin% an& maintainin% $e&eral8 state an& local in$ormation

correctly. ccurate employer ta" in$ormation is critically important $or the calculation o$ ta"es

on a pay chec6 an& employer liabilities.

Entering %e&eral Tax Information for a $RE

Ensure that your or%aniDation is a 9:E8 then enter these (e&eral ta" rules

+ The Sel$ &just 2etho& o$ 4ithhol&in% $or Social Security8 2e&icare an& (!T. This

metho& is more accurate. -t uses year;to;&ate earnin%s as the calculation basis.

+ The type o$ employment8 as on the Employee uarterly Ta" :eturn ,BA1.

+ The Ta" 9roup8 to associate se'eral 9:Es. o this 4hen employees trans$er bet4een9:Es. Your 4ithhol&in% $or Social Security an& (!T in the ol& 9:E then &isplays as a

cre&it in the ne4 9:E.

+ Select the Supplementary Calculation 2etho& $or the 9:E. This is either a%%re%ation8 or$lat percenta%e.

You enter most o$ these &etails in the 0r%aniDation 4in&o4. :e$er to Enterin% (e&eral Ta"

:ules $or a 9:E in the online help.


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Entering $tate Tax n!ormation !or a 1E

Entering State Tax Information for a $RE

ny in$ormation that you chan%e here becomes imme&iately e$$ecti'e on the ne"t payroll run.

Enter these state ta" rules $or each 9:E

+ The State Co&e. Your selection o$ a state co&e can also imply a&&itional chan%es / i$ so8

be sure to enter them correctly.

+ The 9:E i& number $or S!- an& S-T ,State -ncome Ta"1.

+ The Sel$ &just 2etho& $or S!- an& S-. 3o4e'er8 i$ S!- or S- rates chan%e in mi&;

year8 select No Sel$ &just $or the remain&er o$ the year8 then chan%e to Sel$ &just at the

be%innin% o$ the ne"t year.

+ The S!- E"perience :ate A to re$lect 4hat the state has assi%ne& to your or%aniDation. -$

you lea'e this rate blan68 it &e$aults to the ma"imum permitte& by that state. You can also

enter S!- E"perience :ate to account $or mi&;year chan%es. 3o4e'er8 0racle )ayrollal4ays uses S!- E"perience :ate A8 to calculate S!- liability8 e'en i$ S!- E"perience

:ate also has entries.

+ The (ilin% StatusFllo4ance :ate. -$ you select the $e&eral &e$ault then the employeeGs

$e&eral $ilin% status also becomes the state &e$ault. lternati'ely8 you can select a state&e$ault o$ sin%le status an& Dero allo4ances.


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You enter most o$ these &etails in the 0r%aniDation 4in&o4. (or $ull &etails re$er to Enterin%

State Ta" :ules $or a 9:E in the online help.



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Entering 4or5ers Compensation $tate Tax n!ormation !or a 1E

Entering 'orers ompensation State Tax Information for a $RE

-$ you are settin% up 7or6ers Compensation8 enter the $ollo4in% in$ormation $or your 9:E

+ The name o$ your carrier. You can ma6e this an e"ternal or%aniDation 4ith the

classi$ication o$ 7or6ers Compensation Carrier.

+ The e"perience mo&i$ication rate $or the 7or6ers Compensation premium calculation.The rate must be a positi'e number.

+ number to re$lect one o$ the t4o 4ays in 4hich a state can mo&i$y the 7or6ers Comp

premium. -$ the state uses an employerGs liability to apply a surchar%e o$ H8 then enter

A to re$lect this. lternati'ely8 i$ the state allo4s a premium &iscount o$ AH8 thenenter B to re$lect this. o not ma6e any entry i$ the state cannot mo&i$y the 7or6ers

Comp premium.

:e$er toPracticeEntering Tax Rules for a GRE[LAB28C2Y]


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Entering 3ocal Tax n!ormation !or a 1E

Entering *ocal Tax Information for a $RE

(or those localities 4here you 4ithhol& ta"es an& ma6e ta" payments8 enter the name o$ the

locality.


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$etting #p Transmitter n!ormation !or a 1E

Instr!ctor #ote

This is just a hea&er sli&e to intro&uce the icon $or Settin% !p Transmitter -n$ormation $or a

9:E.



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Overvie/ o! 1E Transmitter $et6p

Instr!ctor #ote

E"plain that these are the three main acti'ities in'ol'e& in settin% up a transmitter 9:E.

Overview of $RE Transmitter Set!p

-$ your 9:E uses ma%netic me&ia to submit $e&eral an& state ta" 4a%e reportin%8 your setup

acti'ities must inclu&e each o$ the $ollo4in%

+ -&enti$y the transmitter 9:E.

+ Capture employer an& employee &ata that must appear on a particular tape or &is6ette.

+ Speci$y 4hat e5uipment you are usin% to %enerate the $iles $or transmission.



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$etting #p Transmitter n!ormation !or Each eporting Area

Instr!ctor #ote

!se this sli&e as an o'er'ie4 o$ each o$ the main reportin% areas $or 4hich transmitter setup is

re5uire&. There are $urther sli&es to outline the particular setup re5uirements $or each o$ these

areas o$ reportin%.

Setting Up Transmitter Information for Eac" Reporting +rea

You must set up transmitter in$ormation $or each o$ these areas o$ reportin%

+ State uarterly 7a%e istin%s ,S7s1

+ 2ultiple 7or6 Site :eportin% ,1

+ 7a%e an& Ta" Statement ,7;1

+ :etirement )lan istribution ,ABB;:1



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$etting #p Transmitter n!ormation !or $43

Setting Up Transmitter Information for S,'*

The State uarterly 7a%e istin% process creates t4o $iles

+ $ile containin% 5uarterly state 4a%e listin%s to loa& on tape $or submission to the

correct state a%ency

+ secon& $ile that contains report totals an& other summary in$ormation $or entry onto thetape transmittal $orm.

3o4e'er8 be$ore you run the State uarterly 7a%e istin% process you must ensure that you

ha'e alrea&y set up %eneric transmitter &ata8 an& state transmitter &ata.

s in&icate& pre'iously8 your setup acti'ities in'ol'e

+ -&enti$yin% the transmitter+ Capturin% the &ata $or transmission

+ -&enti$yin% the e5uipment use& $or transmission.


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Transmitter denti!ication !or $43

Transmitter I&entification for S,'*

To i&enti$y the 9:E transmitter $or S78 enter the $ollo4in% in$ormation $or your S7

9eneric Transmitter :ules in the 0r%aniDation 4in&o4.

+ ABB: Transmitter ,Enter Yes1. Since you can only ha'e one transmitter 9:E8 all your

other 9:Es shoul& &isplay INo.

+ Transmitter contact name an& phone number

+ The authoriDation co&e or number that your state pro'i&es

You may $in& it help$ul to %roup to%ether any states that ha'e similar transmitter re5uirements.

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Transmitter 8ata !or $43

Transmitter Data for S,'*

S7 reportin% &ra4s on &ata $rom se'eral &i$$erent types o$ recor&. To ensure consistency

an& the security o$ your transmitte& &ata 8 you can use one o$ these the stan&ar& ma%netic

trans$er $ormats

+ The -CES stan&ar& $ormat ,-nterstate Con$erence o$ Employment Security %encies1.2ore than t4enty states ha'e alrea&y a&opte& this $ormat $or secure ma%netic trans$er.

+ The SS stan&ar& $ormat. ,Social Security &ministration1

Note8 ho4e'er8 that 4hen you are settin% up your transmitter8 you nee& only consi&er &ata $or

the an& < recor&s. You &o not nee& to inclu&e the &ata $or all recor& co&es. Some states &onot re5uire the $ull an& < recor&s8 but re5uire instea& some o$ the in$ormation that appears

on these recor&s.



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ecord Codes !or $43

Instr!ctor #ote

E"plain that this table contains the recor& co&es $or &i$$erent S7 &ata recor&s.

Recor& o&es for S,'*

This table &isplays the recor& co&es an& recor& names $or each S7 &ata recor&. The

$ollo4in% recor& co&es pro'i&e the necessary &ata $or your S7 transmitter setup

Co&e / Transmitter recor& ,!ni5uely i&enti$ies the 9:E that transmits your 4a%e listin% $iles

to a state1.

Co&e < / uthentication recor& ,-&enti$ies the e5uipment use& to create the $ile1.

None o$ the other co&es are necessary $or transmitter setup8 an& they appear $or re$erencepurposes only.


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Note8 ho4e'er8 that 4hen you are settin% up your transmitter8 you nee& only consi&er &ata $or

the an& < recor&s. You &o not nee& to inclu&e the &ata $or all recor& co&es. Some states &onot re5uire the $ull an& < recor&s8 but re5uire instea& some o$ the in$ormation that appears

on these recor&s.

-n a&&ition to enterin% %eneric &ata8 you may also nee& to enter state;speci$ic &ata $or certain

states.


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llinois: $et6p !or $43

Illinois Set!p for S,'*

(or -llinois8 select one o$ these $ilin% types in the S7 State Transmitter :ules 4in&o4

+ >.L &is6ette

+ L.L &is6ette

+ 2a%netic Cartri&%e

+ 2a%netic Tape

t 9:E e'el8 enter Employer A :ules $or E ,Employer :ecor&1 an& T ,Total :ecor&1 &ata.


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Misso6ri: $et6p !or $43

Misso!ri Set!p for S,'*

(or 2issouri8 enter the total remittance amount o$ 4a%es in the S7 State Transmitter :ules

4in&o4.

t the 9:E le'el8 enter Employer A :ules $or E ,Employer :ecor&1 an& T ,Total :ecor&1 &ata.



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Texas: $et6p !or $43

State-Specific Set!p for S,'*

(or Te"as enter the $ollo4in% in$ormation

+ -$ you are inclu&in% employee 4a%e recor&s ,S18 an& total recor&s ,T18 enter Yes in the

llocation ist.

+ Enter a B &i%it - number as the Ser'ice %ent -.

+ Enter a &ollar amount as the Total :emittance mount.

+ -$ you are reportin% ta" C;> &ata8 choose Yes in the C> &ata $iel&.

+ Enter the su$$i" co&e pro'i&e& by the Te"as Employment Commission.

lso8 at 9:E le'el8 enter the Employer :ules $or E ,Employer :ecor&1 an& T ,Total :ecor&1

&ata.


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lorida, ;ent6c5y, Montana: E and T 8ata !or $43

%lori&a2 /ent!cy an& Montana E an& T Data for S,'*

t 9:E le'el $or (lori&a8 Kentuc6y an& 2ontana8 enter Employer A :ules $or E ,Employer

:ecor&1 an& T ,Total :ecor&1 &ata.


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$ ecord 8ata !or $43

S Recor& Data for S,'*

(or the S recor& ,Employee 7a%e ata18 enter the $ollo4in% in$ormation at the employee le'el

un&er 9:Es an& 0ther ata

+ Select the 9:E $or the employee

+ -n&icate i$ the employee is a seasonal 4or6er.

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Transmitter E@6ipment !or $43

Transmitter E5!ipment for S,'*

To i&enti$y the transmitter e5uipment $or S78 enter the $ollo4in% in$ormation at 9:E le'el

on the ABB: 2a%netic :eport :ules 4in&o4

+ ABB: Transmitter ,Select yes8 or no1

+ Transmitter control co&e. ,This shoul& be the same co&e as the ABB: transmitter $or that9:E.1

+

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$etting #p Transmitter n!ormation !or ederal 4age and Tax$tatements

Instr!ctor #ote

This is just a hea&er sli&e.

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Transmitter n!ormation !or ederal 4age and Tax $tatements

Transmitter Information for %e&eral 'age an& Tax Statements

Select your 7; transmitter by na'i%atin% to the 7; :eportin% :ules 4in&o4 an& enterin% the

7; transmitter at the 9:E le'el. Select one o$ your 9:Es. Your remainin% 9:Es 4ill ha'e

INo entere&.



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$etting #p Transmitter n!ormation !or etirement +lans

Instr!ctor #ote

!se this as a hea&er sli&e to mar6 the transition $rom 7; transmitters to ABB: transmitters.

You can also a&& an intro&uctory e"planation to outline the en& o$ calen&ar year reportin%

re5uirements $or retirement plans.

Setting Up Transmitter Information for Retirement 1lans

Employers 4ho ma6e &istributions o$ retirement income are re5uire& to submit a ABB: report

at the en& o$ the calen&ar year. The ABB: pro'i&es a summary o$

+ :etirement &istributions $or the year

+ ny amounts 4ithhel& $or $e&eral income ta"

You normally submit these reports by ma%netic me&ia8 an& you there$ore ha'e to set up 9:Etransmission rules to enable correct submission o$ your ABB: in$ormation.



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Transmitter denti!ication !or etirement +lans

Transmitter I&entification for Retirement 1lans

To i&enti$y the 9:E transmitter $or retirement plans8 enter the the $ollo4in% in$ormation at

9:E le'el on the ABB: 2a%netic :eport :ules 4in&o4

+ ABB: Transmitter ,Select yes8 or no1

+ Transmitter control co&e. ,This shoul& be the same co&e as the ABB: transmitter $or that9:E.1

+

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Transmitter E@6ipment !or etirement +lans

Transmitter E5!ipment for Retirement 1lans

To i&enti$y the transmitter e5uipment $or retirement plans8 enter the the $ollo4in% in$ormation

at 9:E le'el on the ABB: 2a%netic :eport :ules 4in&o4

+ :ecor&in% mo&e ,Select SC-- or E8 ML8 C)-Gs1


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$etting #p M6ltiple 4or5site eporting !or a 1E

Instr!ctor #ote

This is just a hea&er sli&e to intro&uce the icon $or Settin% !p 2ultiple 7or6site :eportin% $or

a 9:E.


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Overvie/ o! M6ltiple 4or5site eporting !or a 1E

Overview of M!ltiple 'orsite Reporting for a $RE

2ultiple 7or6sites / employers 4ho operate multiple 4or6sites must sen& 5uarterly

employment an& 4a%e reports to the bureau o$ abor Statistics. -n this case8 you supply

- 27S transmitter &etails $or the 9:E

- classi$ication o$ :eportin% Establishment $or your 27S transmitter

You enter most o$ the &etails $or 9:Es8 transmitters8 an& 27S transmitters in the

0r%aniDation 4in&o48 but $or $ull &etails please see these &etails in online help

+ Enterin% (e&eral Ta" :ules $or a 9:E

+ Enterin% State Ta" :ules $or a 9:E

+ e$inin% the 2ultiple 7or6site :eportin% Transmitter 9:E


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Exemptions !rom M6ltiple 4or5site eporting

Exemptions from M!ltiple 'orsite Reporting

Some employers 4ho operate multiple 4or6site reportin% are e"empt $rom the re5uirement to

$ile 27S reports. (or e"ample

+ -n&ustries such as %as an& oil e"ploration8 construction an& contract lo%%in% are e"empt

$rom 27S reportin%.

+ Employers 4ho employ a total o$ $e4er than ten employees in their multiple 4or6site

locations are also e"empt.


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$tates /ith Mandatory eporting e@6irements !or M4$

States wit" Man&atory Reporting Re5!irements for M'S

These states ha'e man&atory reportin% re5uirements $or multiple 4or6site reportin%. )lease

re$er to the online help $or &etails.



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$etting #p Transmitter n!ormation !or an M4$ 1E

Instr!ctor #ote

This is just a hea&er sli&e to intro&uce the icon $or Settin% !p Transmitter -n$ormation $or a

9:E.


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$etting #p Transmitter n!ormation !or an M4$ 1E

Setting Up Transmitter Information for an M'S $RE

0nly one 9:E can be the the 27S transmitter.


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Transmitter denti!ication !or an M4$ 1E

Transmitter I&entification for an M'S $RE

To i&enti$y the 9:E transmitter $or 27S8 enter the $ollo4in% in$ormation $or your 2ultiple

7or6site :eportin% :ules 4in&o4 in the 0r%aniDation 4in&o4.

+ 27S Transmitter ,Enter Yes1. Since you can only ha'e one transmitter 9:E8 all your

other 9:Es shoul& &isplay INo.

+ Contact name. This is the name o$ the person creatin% the tape an& is re5uire&

in$ormation

+ Contact telephone number. This is the contact telephone number $or the person creatin%

the tape / a%ain re5uire& in$ormation.

+ Company Tra&e Name. This is the name o$ your company8 an& is re5uire& in$ormation.



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Transmitter E@6ipment !or M4$

Transmitter E5!ipment for M'S

To i&enti$y the transmitter e5uipment $or 27S8 enter the $ollo4in% in$ormation in the

0r%aniDation 4in&o4 $or the or%aniDation that you ha'e classi$ie& as your 9:EFle%al entity

+ Tape me&ium. Speci$y 4hether the &ata 4ill be on -nternet Trans$er ,(T)18 )C &is6ette8

uality Job )ro%ram tape8 :eel Tape or Tape Cartri&%e.

+ Tape &ensity. Speci$y the &ensity o$ the tape me&ium. ,(or e"ample8 AM8 >8 ML

or C)-1.

+ 3ea&erFabel. Select No abel8 Non;stan&ar&8 or Stan&ar& label.



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8e!ining ?o6r 4or5sites !or M4$

Defining 4o!r 'orsites for M'S

0nce you ha'e set up your transmitter 9:E you must then enable each 4or6site in your

reportin% chain. You &o this by settin% up 4or6site reportin% rules in the 0r%aniDation 4in&o4

o$ each or%aniDation that you ha'e classi$ie& as a reportin% establishment. The re5uire& actionsare

+ -&enti$y the )rimary :eportin% 7or6site 4ith an entry o$ Yes8 to &enote the o$$icial

a&&ress $or the 4or6site.

+ Enter the S!- account number. :emember that this is the same number as the 9:E o$ the4or6site.

+ Enter the :eportin% !nit Number. This number is %i'en by the state8 an& can also contain

alphabetical 'alues.

+ Enter the Tra&e Name to &enote the name o$ the 4or6site bein% reporte&.

+ Enter a 7or6site escription. This must be a uni5ue &escription $or this 4or6site.

(or $urther in$ormation8 althou%h not re5uire&8 you can also enter Comment Co&eA an&

Comment Co&e &etails. These co&es are use$ul i$ you 4ant to e"plain 4hy there are

substantial &i$$erences bet4een your current report an& a pre'ious se5uence o$ reports. (or



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e"ample8 un&er Comment Co&eA you can recor& &iscrepancies $or each o$ the $ollo4in%

cate%ories

+ > / Chan%e in hourly pay &ue to chan%e in 4or6

+ / ecrease in part;time 4or6ers

+ B / Establishment mer%er

+ LA ; (ire &isruption

!n&er Comment Co&e8 you can recor&

+ &&itional reasons $or chan%es to employment &ata not mentione& in Comment Co&eA

+ ar%e chan%es in employment or 4a%e &ata


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Taxaility 6les: Overvie/

Taxaility R!les

This is an o'er'ie4 topic to e"plain 4hat ta"ability rules are8 an& to intro&uce the i&ea that

ta"ability rules 'ary $or &i$$erent types o$ payment. Subse5uent sli&es e"plain ho4 rules &i$$er

in each case.

Ta"ability rules &etermine

+ 7hether a particular earnin% is liable $or ta"

+ 7hether a particular &e&uction 5uali$ies as a re&uction in the ta"able %ross pay

+ 7hether the ta" is payable in the current pay perio&8 or 4ithhel& $or payment until the

en& o$ the year

-n practice8 these 5uestions apply &o not apply to re%ular an& o'ertime earnin%s since these areal4ays subject to ta". 3o4e'er8 supplemental an& impute& income ,bonuses8 an& non;

monetary bene$its in 6in&1 &o re5uire the application o$ ta"ability rules to &etermine ta"able

status. )re;ta" &e&uctions also re5uire a ta"ability rule to &etermine ta"able status.

The ta"able status can be

Subject an& 7ithhol&able / this means that the earnin% is ta"able an& that payment shoul& be

ma&e in the current pay perio&.


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Subject an& Not;4ithhol&able / this means that the earnin% is ta"able but that payment shoul&

be ma&e at a later perio&8 typically at en& o$ year.



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Taxaility 6les: eg6lar

Taxaility R!les Reg!lar

The rules $or processin% re%ular an& o'ertime earnin%s are pre&e$ine& 4ith 0racle )ayroll.

:e%ular earnin%s are al4ays subject to ta"8 an& you cannot mo&i$y their ta"able status by

chan%in% ta"ability rules.



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Taxaility 6les: $6pplemental and mp6ted

Taxaility R!les S!pplemental an& Imp!te& Income

There are pre&e$ine& cate%ories $or supplemental an& impute& income8 but you can &e$ine

a&&itional cate%ories8 or ma6e a selection o$ the e"istin% cate%ories to &etermine 4hich rules

shoul& apply $or particular earnin%s.

You &e$ine ne4 ta" cate%ories 4ith these loo6up types

+ O!SOS!))E2ENTOE:N-N9S

+ O!SO-2)!TEOE:N-N9S

3o4e'er8 4e recommen& that you use a pre$i" $or any ne4 cate%ories that you create. This 4ill

&istin%uish them $rom the ta" cate%ories &eli'ere& by 0racle.

7hen you ha'e set up your ne4 ta" cate%ories you can select them 4hen you &e$ine eachearnin%s or &e&uctions type8 or 4hen you &e$ine the earnin%s or &e&uctions element.

7e also recommen& that you &o not chan%e any pre&e$ine& $e&eral an& state ta" rules. This is

because your chan%es 4ill be o'er4ritten at the ne"t payroll up%ra&e.



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Taxaility 6les: +re9tax 8ed6ctions

Taxaility R!les 1re-tax De&!ctions

There are $i'e pre&e$ine& cate%ories

+ e$erre& Comp A6

+ epen&ent Care AL

+ 3ealth Care AL

+ 3ealth Care >b

+ 3ealth Care LP

Ta"ability rules $or pre;ta" &e&uctions are $re5uently up&ate& at the local ta" le'els.



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3ocal Taxaility 6les

*ocal Taxaility R!les

You can only enter local ta"ability rules $or one country or city at a time.

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Entering and Calc6lating #TA Credits

Entering an& alc!lating %UT+ re&its

Employers use $orm B to &etermine

B (!T ,(e&eral !nemployment Ta"1 ta"able 4a%es $or the calen&ar year.

B (!T ta" liability on those 4a%es a$ter accountin% $or applicable state unemployment ta"cre&its an& (!T ta" &eposits ma&e &urin% the year.

3o4e'er8 in consi&eration o$ prompt payment8 or a particular le'el o$ contribution8 some

employers may be entitle& to claim (!T cre&its. These employers can choose to calculate

their cre&it accor&in% to

B Net mount 04e& ,Net (!T1

B State !nemployment -nsurance ,2a"imum (!T1. This is typically chosen byemployers base& in se'eral states8 as it applies the most a&'anta%eous stateunemployment ta" rate $or the employer.

Since (!T is al4ays calculate& $or the complete payroll year8 4e &o not recommen&

chan%in% bet4een these t4o metho&s in mi&;year.



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#sing the

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#sing Maxim6m #TA 3iaility

alc!lating Maxim!m %UT+ *iaility

(!T liability calculates at the stan&ar& Qerte" rateR the cre&it sho4s as a separate balance.

You enter the ma"imum (!T cre&it percenta%e $or each state ta"ability rule 4ithin a 9:E.

(or e"ample8 the -:S allo4s a ma"imum cre&it o$ L.H $or one o$ the states 4here you ha'eemployees 4or6in%. You enter the rate in the State Ta" :ules 4in&o4 ,rates 'ary $rom state to

state1.

(or $ull &etails see the (!T Cre&it an& Enterin% a (!T Cre&it topics in online help.

:e$er toPracticeEntering #$TA Tax Rates[LAB28C%Y]



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6estion: 4hat Ao6t the 3atest #pdates

Instr!ctor #ote

!se this sli&e as an opportunity to prepare the stu&ents $or the Qerte" e"planation on the ne"t

sli&e8 but also e"plore their un&erstan&in% o$ ho4 0racle )ayroll an& Qerte" 4or6 in

association to supply the latest ta"ation up&ates as soon as they are nee&e&. 3ere are somesample 5uestions to prompt the &iscussion

0racle )ayroll supplies a patch 4ith all the latest ta" tables $or the !nite& States?

You can choose $rom a recommen&e& list o$ thir& party 'en&ors 4ho 4ill supply you 4ith

the latest &ata?

Qerte" 4ill supply the &ata as it becomes a'ailable once you ha'e purchase& 0racle)ayroll?

lternati'ely8 i$ you $eel that stu&ents are su$$iciently $amiliar 4ith this area8 &ispense 4ith the

&iscussion an& just use this sli&e as a 'isual intro&uction to the ne"t one.


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Dertex and the 3atest #pdates

Instr!ctor #ote

s6 the stu&ents i$ they are clear about the up&ates that Qerte" pro'i&es as oppose& to the

up&ates that 0racle )ayroll pro'i&es.

6ertex an& t"e *atest Up&ates

You must obtain a Qerte" licence to %et access to the latest ta" up&ates. Qerte" is anin&epen&ent thir& party pro'i&er o$ ta" tables $or $e&eral8 state an& local ta"es. Sample Qerte"

&ata is pro'i&e& by your $irst installation o$ 0racle )ayroll. 3o4e'er8 this sample &ata is $or

test purposes only. You shoul& still apply $or a licence imme&iately.

You shoul& also lin6 the Qerte" element to all payrolls. This lin6 enables e'ery ne4 hire toautomatically recei'e the Qerte" element 4hen you assi%n them to a payroll. !p&ates to 7 $or

e"istin% employees also re%ister on the Qerte" element. -$ an employee &oes not ha'e theQerte" element8 you cannot calculate ta"es $or that employee. -n a&&ition to the Qerte" up&ates80racle )ayroll supplies pre&e$ine& ta" rules $or the $ollo4in% !nite& States ta"es

+ Ta" &e&uctions / (-T8 (!T8 SS8 2e&icare8 S-T8 S!-8 S-8 7C8 City8 County8 School

istrict an& 3ea& Ta"es.

+ Ta" cre&its / E-C

+ Employer ta"es / SS8 2e&icare8 7C8 S!-8 S-


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6estion: Mandatory +atches

Instr!ctor #ote

!se this sli&e to emphasise the importance o$ the !S )ayroll man&atory patches. You can

either as6 the stu&ents to i&enti$y these patches8 or %o &irectly to the ne"t sli&e on 4hich the

man&atory patches are liste&.



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Mandatory +atches

Man&atory 1atc"es

0racle )ayroll releases these man&atory patches

+ A Statutory !p&ates / en& o$ 2arch

+ Statutory !p&ates / en& o$ June

+ > Statutory !p&ates / en& o$ September

+ Statutory !p&ates / en& o$ ecember

These statutory up&ate patches contain so$t4are up&ates8 an& re'ise& ta" in$ormation $or State

uarterly 7a%e istin%s.There is also a J-TF%eoco&e annual cleanup patch8 %enerally release&

aroun& the en& o$ July.

Note that the Year En& patch is release& in t4o phases ,September an& ecember18 an& theYear

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-n a&&ition8 remember that there is an 0racle 3:2S $amily pac6 release each July. You shoul&

chec6 the bout &ocument $or the July (amily )ac68 an& subse5uent up&ates to Northmerican )ayroll 2an&atory )atches ,2etain6 note AAABB.A1 to establish ho4 the $amily

pac6 relates to each o$ the payroll man&atory patches. (or e"ample8 you may $in& that the Year

En& )hase A patch re5uires the 3:2S July (amily )ac6 4hereas the > Statutory !p&ate &oes

not.



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$6mmary

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