edu4167y

8/11/2019 EDU4167Y

1/31

Maintaining Employee TaxInformation (U.S.)

Overview

Copyright Oracle, 2007. All rights reserved.

Maintaining Employee Tax n!ormation "#.$.% 2&&2'(&)7.docE!!ective 07*))*07 +age ) o! ) -ev )

8/11/2019 EDU4167Y

2/31

Maintaining Employee 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.


Maintaining Employee Tax n!ormation "#.$.% 2&&2'(&)7.docE!!ective 07*))*07 +age 2 o! ) -ev )

8/11/2019 EDU4167Y

3/31

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


Maintaining Employee Tax n!ormation "#.$.% 2&&2'(&)7.docE!!ective 07*))*07 +age o! ) -ev )

8/11/2019 EDU4167Y

4/31

Overvie


Maintaining Employee Tax n!ormation "#.$.% 2&&2'(&)7.docE!!ective 07*))*07 +age & o! ) -ev )

8/11/2019 EDU4167Y

5/31

$etting #p Employee Tax n!ormation

Setting Up Employee Tax Information

You create &e$ault ta" in$ormation automatically 'hen you hire a ne' employee. You can thenenter $e&eral( state an& local ta" in$ormation usin% the )+ Ta" ,n$ormation 'in&o'. ,$ youha-e ta" o-erri&es to enter( you also use the )+ Ta" ,n$ormation 'in&o'.

Note that the &e$ault %eneration o$ ta" in$ormation &epen&s on the employee a&&ress. Theremust be a primary a&&ress to in&icate the state( county an& city in 'hich the employee isnormally resi&ent. There must also be a -ali& assi%nment location $or the 'or state( countyan& city. ,t &oes not matter i$ the ta"ation a&&ress is &i$$erent $rom the primary a&&ress /0racle 1ayroll still %enerates the &e$ault ta" in$ormation.

Tae care to speci$y each le-el o$ employee ta" in$ormation correctly. The payroll run uses the

in$ormation that you enter to calculate the employee ta" 'ithhol&in% correctly.2e$er toPracticeEntering Federal Tax Rules for an Employee [LAB28C!"

2e$er toPracticeEntering #tate Tax Rules for an Employee [LAB28C$!"

2e$er toPracticeEntering Local Tax Rules for an Employee[LAB28C%!"


Maintaining Employee Tax n!ormation "#.$.% 2&&2'(&)7.docE!!ective 07*))*07 +age / o! ) -ev )

8/11/2019 EDU4167Y

6/31

Overvie o! ederal Tax n!ormation !or an Employee Assignment

Overview of #e$eral Tax Information for an Employee %ssignment

The 3e&eral ta" in$ormation that you are re4uire& to supply $or an employee assi%nment can becate%ori5e& as $ollo's6

7 e$ault in$ormation. You can $in& &e$ault in$ormation $or an employee $rom the Ta",n$ormation button on the 8ssi%nment 'in&o'. ,$ you 'ant to enter 3e&eral ta" rules $oran employee( note that the 2esi&ent in$ormation &e$aults $rom your entry o$ theemployee9s primary a&&ress. The )or in$ormation &e$aults $rom your entry o$ theemployee9s 'or location a&&ress. S!, in$ormation also &e$aults( $rom the 'or state.:o'e-er( 'here the 'or state &i$$ers $rom the place o$ employment( you can select analternati-e S!, 'or state. You may $in& that a ta" recor& is not a-ailable $or the ne'

state. ,$ so( select the ne' state in the State Ta" 2ules 'in&o' an& sa-e the &e$aultrecor&. Then( select this state 'hen you complete the S!, State $iel& on the employee9sta" recor&.

7 0-erri&es. You can speci$y ta" o-erri&es at 3e&eral le-el. ;Thou%h a&&itionally( at statean& local le-els too

8/11/2019 EDU4167Y

7/31

- Enter a &ollar amount in the 2e%ular 8mount $iel& to 'ithhol& a $i"e& amount each

perio&.

- Enter a percenta%e in the Supplemental 2ate to o-erri&e the supplemental $latpercenta%e rate use& in 3e&eral supplemental 'ithhol&in% calculations. ,t is alsoimportant to ensure that your payroll run is Supplemental( that the 2E has a $latpercenta%e o-erri&e set up as the calculation metho&( an& that there is a non5ero

o-erri&e rate $or the supplemental rate $iel& on the employee9s ta" 'in&o'.7 E"emptions. ,$ an employer hires an employee 'ho is resi&ent in any state or city in

'hich the employer is not re%istere& as an employer( then the employer nee& not'ithhol& state or local resi&ence ta"es. Statutory employees( that is( those employees 'ho%o-ern their o'n con&itions o$ 'or are also e"empt $rom 'ithhol&in% $or 3,T( an&potentially e"empt $rom >e&icare( SS an& 3!T8.

7 8llo'ances. You recor& the number o$ allo'ances that an employee claims. You mustalso supply an 8llo'ances 2eject ate $or those situations 'here an employee 'hore4uests more than )+ allo'ances has some o$ them rejecte& by the ,2S. Yourallo'ances reject &ate is the &ate $rom 'hich the re&uce& number o$ allo'ances comesinto e$$ect. 8n employee may also be entitle& to Earne& ,ncome Cre&its ;E,C

8/11/2019 EDU4167Y

8/31

Overvie o! $tate Tax n!ormation !or an Employee Assignment

Overview of State Tax Information for an Employee %ssignment

The state ta" in$ormation that you are re4uire& to supply $or an employee assi%nment can becate%ori5e& as $ollo's6

7 e$ault in$ormation. You can enter -ie' the &e$ault resi&ent an& 'or state in$ormationon the 3e&eral Ta" 2ules 'in&o' ;State Ta" button

8/11/2019 EDU4167Y

9/31

apply the &e$ault metho& o$ 'ithhol&in% $or this state. Enter D i$ you 'ant to applya supplemental ta" o-erri&e at state le-el.

7 E"emptions. There are se-eral 'ays in 'hich e"emptions can arise. You can &e$ine ane"emption6

- 8t the 2E le-el.

- ,n the ta" e"emptions re%ion o$ the state( county( or local ta" rules 'in&o' $or an

in&i-i&ual employee.

- The in&i-i&ual employee is a nonresi&ent( as in&icate& in the Nonresi&ent

Certi$icate chec bo" on the State Ta" 2ules 'in&o'.

:o'e-er( you cannot apply a state ta" e"emption to any employee 'ho has a primarya&&ress in the same state as their 'or location nor can you apply a local ta"e"emption to any employee 'ho has a primary a&&ress in the same city or county astheir 'or location.

7 8llo'ances. You recor& the number o$ allo'ances that an employee claims. You mustalso supply an 8llo'ances 2eject ate $or those situations 'here an employee 'hore4uests more than )+ allo'ances has some o$ them rejecte& by the ,2S. Your

allo'ances reject &ate is the &ate $rom 'hich the re&uce& number o$ allo'ances comesinto e$$ect.


Maintaining Employee Tax n!ormation "#.$.% 2&&2'(&)7.docE!!ective 07*))*07 +age ' o! ) -ev )

8/11/2019 EDU4167Y

10/31

Overvie o! Conty Tax n!ormation !or an Employee Assignment

Overview of &o!nty Tax Information for an Employee %ssignment

The County ta" in$ormation that you are re4uire& to supply $or an employee assi%nment can becate%ori5e& as $ollo's6

7 e$ault in$ormation. You can -ie' the &e$ault county ta" in$ormation on the State Ta"2ules 'in&o' ;County Ta" button

8/11/2019 EDU4167Y

11/31

Overvie o! City Tax n!ormation !or an Employee Assignment

Overview of &ity Tax Information for an Employee %ssignment

To calculate city ta" $or an employee assi%nment you re4uire this &e$ault in$ormation6

7 State ;&e$aults $rom the State 'in&o'

8/11/2019 EDU4167Y

12/31

3estion4 5hy Override6

Instr!ctor 'ote

!se this as an intro&uction to the o-erri&es topic. 8s $or su%%estions o$ business situations in'hich employees mi%ht re4uest an o-erri&e o$ ta" in$ormation.


Maintaining Employee Tax n!ormation "#.$.% 2&&2'(&)7.docE!!ective 07*))*07 +age )2 o! ) -ev )

8/11/2019 EDU4167Y

13/31

Overriding Employee Tax n!ormation

Overri$ing Employee Tax Information

You can o-erri&e &e$ault ta" in$ormation at $e&eral( state an& local le-el. 3or e"ample6

7 8 hi%hlycompensate& employee coul& re4uest a percenta%e or &ollar assessment amountrather than basin% assessment on ,2S tables.

7 ,n anticipation o$ $uture payments( an employee coul& a%ree to pay a lar%er percenta%e o$assessment on a current bonus.

7 8n employer not re%istere& as a business in a locality coul& arran%e not to 'ithhol& stateor local resi&ence ta"es.

3or $urther &etails( see Supplemental Ta" 0-erri&e in the online help.

2e$er toPracticeEntering an &'erride for Employee Tax ( Federal and #tate Tax[LAB28C8!"

2e$er toPracticeEntering an &'erride for Employee Tax ( Local Tax[LAB28C)!"


Maintaining Employee Tax n!ormation "#.$.% 2&&2'(&)7.docE!!ective 07*))*07 +age ) o! ) -ev )

8/11/2019 EDU4167Y

14/31

$etting #p 52 n!ormation

Setting Up * Information

,t is important to set up your )D in$ormation correctly. )hat you set up here &etermines theentries that subse4uently appear on your )D reports at en& o$ perio&. 3or e"ample( thein$ormation in bo"es to H usually appears on all )D reports 'hereas in$ormation $or otherbo"es only &isplays i$ entries are not 5ero.

3or &etaile& in$ormation on Settin% !p )D in$ormation( see the topic 3orm )D Io",n$ormation in the online help6

,n this course topic ho'e-er( 'e $ocus on bo"es D an& + only.

Balances for W-2 Box 12

&o$e % Uncollecte$ social sec!rity tax on tips.

A 8alance !or Code A incldes the amont o! social secrity tax on an employees tipsthat cold not 8e collected 8ecase o! ins!!icient !nds.

Code B - Uncollected Medicare tax on tips

8 balance $or Co&e I inclu&es the amount o$ >e&icare ta" on an employees tips that coul& notbe collecte& because o$ insu$$icient employee $un&s.

Code C - Value of group-term life insurance coverage over $50000


Maintaining Employee Tax n!ormation "#.$.% 2&&2'(&)7.docE!!ective 07*))*07 +age )& o! ) -ev )

8/11/2019 EDU4167Y

15/31

8 balance $or Co&e C inclu&es the -alue o$ employerpro-i&e& %roupterm li$e insuranceco-era%e o-er KB( minus the employees a$terta" contributions.

Code ! - "ection #01%& contri'utions

8 balance $or Co&e inclu&es the employees total electi-e &e$errals to a +;< cash or&e$erre& arran%ement( e-en i$ the employee e"cee&s the annual electi-e &e$erral limit.

Code ( - "ection #0)'& contri'utions

8 balance $or Co&e E inclu&es the employees total electi-e &e$errals to a +L;b< salaryre&uction a%reement to purchase an annuity contract( e-en i$ the employee e"cee&s the annualelecti-e &e$erral limit.

Code * - "ection #0+%&,& contri'utions

8 balance $or Co&e 3 inclu&es the employees total electi-e &e$errals to a +M;

8/11/2019 EDU4167Y

16/31

8 balance $or Co&e 1 inclu&es the amount o$ mo-in% e"pense reimbursements pai& toemployees ;or thir& parties on behal$ o$ employees< that 'ere not inclu&e& in the employeesincome because they 'ere pai& $or 4uali$ie& mo-in% e"penses.

Code 8 - Militar emploee 'asic 9uarters su'sistence and com'at pa

8 balance $or Co&e O inclu&es the -alue o$ employee basic 4uarters( subsistence( an& combatpay.

Code : - (mploer contri'utions to our medical savings account

8 balance $or Co&e 2 inclu&es employer contributions to your me&ical sa-in%s account ;>S8alances

1iewing Employee Tax +alances

)hen you ha-e processe& your payroll you can -ie' the employee balances to chec $or errorsan& &iscrepancies.

You ha-e a choice o$ -ie'in% at6

7 3e&eral( state or local le-el.

7 8ssi%nment le-el to see the results $or a sin%le employee or at person le-el to see allassi%nments $or a person 'ho has multiple assi%nments

7 Ialance &imension / $or e"ample 4uarterto&ate ;OT

8/11/2019 EDU4167Y

26/31

5hen to Ad?st Employee Tax >alances6

Instr!ctor 'ote

Emphasise that there is no nee& to lea-e a&justment o$ balances until the en& o$ the year. ,$ youmae interim a&justments throu%hout the year( there is a better chance that the $inal a&justmento$ the year 'ill not in-ol-e major chan%es.



8/11/2019 EDU4167Y

27/31

Comparing >alance Ad?stment Methods

Instr!ctor 'ote

Emphasi5e that the 8&just Ta" Ialances 'in&o' an& 8&just Ialance 'in&o' are notinterchan%eable alternati-es. They each ha-e a speci$ic purpose.

1oint the stu&ents to the &ocumentation on Ialance 8&justments $oun& on >etain( or onlinehelp in$ormation $or a more &etaile& e"planation.

&omparing +alance %$2!stment Met"o$s

There are t'o balance a&justment 'in&o's in 0racle 1ayroll6

7 The 8&just Ta" Ialance 'in&o'

7 The 8&just Ialance 'in&o'

This sli&e sho's the &i$$erences bet'een the &i$$erent metho&s $rom a costin% an& -ali&ationperspecti-e. Notice there is no &i$$erence bet'een the 8&just Ialance )in&o' an& the 1ayrollprocess. The &i$$erence bet'een those t'o is that i$ you nee& to re$un& or collect a&&itionalta"es you run the payroll process. ,$ you ha-e collecte& or re$un&e& ta"es throu%h anotherapplication( then you 'oul& not 'ant to run the a&justments throu%h payroll.

See 8&just Ta" Ialance an& 8&just Ialance 3orms in the online help.



8/11/2019 EDU4167Y

28/31

Ad?st Tax >alance 5indo

%$2!st Tax +alance in$ow

8s pre-iously note&( you can cost any a&justments that you mae $rom this 'in&o'( but thereare no o-erri&e capabilities. 8ny chan%es that you mae $rom the 8&just Ta" Ialance 'in&o'only a$$ect the 'or location that is in e$$ect at the time o$ the a&justment.


Maintaining Employee Tax n!ormation "#.$.% 2&&2'(&)7.docE!!ective 07*))*07 +age 2( o! ) -ev )

8/11/2019 EDU4167Y

29/31

Ad?st >alances 5indo

Instr!ctor 'ote

atetracin% is e"tremely important. You must &atetrac to the appropriate month( 4uarter oryear. ,$ you mae a prior perio& a&justment( you may ha-e to $ile an amen&e& return. 8l'ayscommunicate 'ith your ta" &epartment re%ar&in% ta" a&justments.

0racle &oes not allo' ne%ati-e employee balances in a 4uarter. ,$ there is a ne%ati-e balance(the state 4uarterly 'a%e listin% process aborts. To assist you in i&enti$yin% this situation(0racle has pro-i&e& &ia%nostic reports.

%$2!st +alance in$ow

You can cost the a&justments that you mae $rom this 'in&o'( an& you can also apply ano-erri&e. Note that because the 8&just Ialance 'in&o' &oes not supply -ali&ation( it is

possible to ina&-ertently a&just ta"able balances in e"cess o$ the %o-ernment re%ulate& limits.


Maintaining Employee Tax n!ormation "#.$.% 2&&2'(&)7.docE!!ective 07*))*07 +age 2' o! ) -ev )

8/11/2019 EDU4167Y

30/31

Create Ad?stment Elements

&reate %$2!stment Elements

The 3,T a&justment element only allo's a&justment to the 'ithhel& amount. ,$ you nee& toa&just 'a%es( you 'ill nee& to use the appropriate earnin%s element.



8/11/2019 EDU4167Y

31/31

$mmary

edu4167y

Documents