October 31, 2005PeopleSoft Payroll Tax Update 05-E – Release 8.81
PeopleSoft PayrollTax Update 05-ETax Update NotesRelease 8.81
PeopleSoft Payroll’s Tax Update 05-E includes updates to U.S. tax tables, U.S. and Canadian COBOL program and store statement changes, and re-delivered SQRs for U.S. and Canadian payroll reporting. These tax update notes include:
- Instructions for updating your system’s tables and a summary of the table changes
- A list of COBOL program and store statement changes
- A summary of the SQRs delivered with this tax update
- An appendix of object changes delivered with this tax update
For Release 8.81, the tax update package also includes the following documentation files:
PRE844_UPD621656_INSTALL.doc / PeopleSoft Application Update Installation Instructions Using PeopleTools 8.43 or Earlier
Resolution_621656.xls / List of object changes delivered with Tax Update 05-E
UPD621656_CODECHANGES.rtf / PS Print Project Report for Release 8.81
You must follow the instructions in the UPDxxxxxx_INSTALL.docdocument to apply the object changes listed in the Resolution_xxxxxx.xls spreadsheet before applying the COBOL and store statement changes, running the DataMover scripts, or using the SQRs delivered in this tax update. Before applying Tax Update 05-E, you must apply all previous tax updates.
Unless otherwise indicated by a specific posting date, Report IDs referenced in these tax update notes have not been posted to Updates & Fixes on Customer Connection.
The Canadian French translated version of this tax update is scheduled for posting to Customer Connection on November 7, 2005.
Updating Your Tables
Tax Update 05-E includes the following files for updating the tables in your PeopleSoft Payroll system.
File / Contentsupd621656_01.dat
upd621656_01.dms
/ U.S. tax table updates
Note: When this script is opened in Data Mover, a message will be displayed stating "File too large to open for edit. Opening for display only." The script can be run after bypassing this message.
upd621656_02.dat
upd621656_02.dms
/ pay messages
upd621656_03.dat
upd621656_03.dms
/ strings table
upd621656_04.dat
upd621656_04.dms
/ 2005 Tax Form Definition Table entries (U.S. only)
(Report ID 1319020000)
upd621656_05.dat
upd621656_05.dms
/ 2005 Tax Form Print Parameters Table entries for Forms W-2 and W-2c (U.S. only)
(Report ID 1319020000)
upd621656_06.dat
upd621656_06.dms
/ Tax Form Definition and Tax Form Print Parameters Table entries for Form W-2c for Tax Year 2004
(U.S. only)
(Report ID 1211260000)
upd621656_07.dms
/ database stamp
(there is no .dat file associated with this .dms file)
upd621656_msg.dat
upd621656_msg_i.dms
/ message catalog
Both U.S. and Canadian customers should apply the database stamp, pay messages, strings table, and message catalog table updates.
The DataMover script (.dms) files identify the input data file (.dat) as well as the output log message file. The directory where DataMover looks for the input data file and the log file is specified in your Configuration Manager.
Any new-insert DataMover entries in these tax update scripts which have key values matching rows already in your database will not be applied. This condition could occur if you have already added any of the new table entries included in this tax update script on your own, such as a tax change, which was posted to Updates & Fixes on PeopleSoft Customer Connection.
Special Note – Preparing for U.S. Year End Reporting 2005
After you have followed the instructions in the “PeopleSoft Application Update Installation Instructions” to apply the object changes delivered in this tax update, you are ready to update your Tax Form Definition Table and Tax Form Print Parameters Table with entries for 2005 U.S. year-end wage and tax reporting.
New Users Processing Year End in PeopleSoft Payroll for the First Time in 2005
1)If you have not already done so, run the DataMover script upd609534_04.dms (delivered in the previous Tax Update 05-D) to add 2004 entries to the Tax Form Definition Table.
2)Enter the Tax Form Identification W-2 and the Effective Date of 01/01/2004 on the Tax Form Definition search page and select Search. Add a new row in the table that duplicates all of the 2004 entries by selecting the Add (+) button in the “Effective Date” Group Box. Change the effective-date for this newly inserted row to 01/01/2005. Save this new entry. Then follow this same procedure for Tax Form Identifications W-2c, W-2AS, W-2GU, W-2PR, W-2VI, W-2cAS, W-2cGU, W-2cPR, and W-2cVI. Save these new entries.
3)Run the DataMover scriptupd621656_06.dms(delivered in this tax update). This script will update the Tax Form Definition Table and Tax Form Print Parameters Table with entries for tax year 2004 for items reported in Box 12 and Box 14 of the following forms: W 2c, W-2cAS, W-2cGU and W-2cVI.
4)Run the DataMover script upd621656_04.dms (delivered in this tax update). This script will (1) update the W2C_DEF_CAL_YR field in the PS_YE_W2C_INSTALL table to set the default year for W-2c processing to 2005, and (2) update the 2005 Tax Form Definition Table entries you created in Step 2 with the following modifications:
- Table entries for Forms W-2, W-2AS, W-2GU, and W-2VI are updated for new W-2 box 12Q, to report nontaxable combat pay amounts. IRS Instructions for Form W-2 for 2005 state “If you are a military employer, report any nontaxable combat pay in box 12.”
- Table entries for Forms W-2, W-2AS, W-2GU, and W-2VI are updated for new W-2 box 12Y to report deferrals under a section 409A nonqualified deferred compensation plan. IRS Instructions for Form W-2 for 2005 state “Include current year deferrals under a section 409A nonqualified deferred compensation plan. Any earnings during the year on current year and prior year deferrals must also be reported here.”
- Table entries for Forms W-2, W-2AS, W-2GU, and W-2VI are updated for new W-2 box 12Z to report income under section 409A on a nonqualified deferred compensation plan. IRS Instructions for Form W-2 for 2005 state “Show any income under section 409A on a nonqualified deferred compensation plan that was included in box 1. This income is also subject to an additional tax reported on the employee’s Form 1040.”
- Table entries for Forms W-2c, W-2cAS, W-2cGU, and W-2cVI are updated with entries for items reported in Box 12 and Box 14 of these forms.
For more detailed information on using the new codes Q, Y, and Z in W-2 box 12 for 2005, see the complete IRS Instructions for Forms W-2 and W-3 at .
This script also updates the Tax Form Definition Table with entries for Puerto Rico Form W-2PR for tax year 2005.
5)Update the new 2005 Tax Form Definition Table entries you have created with your specific earnings and deductions information for year-end reporting. Save your changes.
6)To update your Tax Form Definition Table for 2005 Form 940 reporting, enter the Tax Form Identification 940 and the Effective Date of 01/01/2004 on the Tax Form Definition search page and select Search. Add a new row in the table by selecting the Add (+) button in the “Effective Date” Group Box and change the Effective Date for this newly inserted row to 01/01/2005. Enter information for any earnings or deductions that should be defined as FUTA-exempt for 2005 FUTA Form 940 reporting. Save your changes.
7)Run TAX710.SQR to print a listing of 2005 Tax Form Definition Table entries and review it for accuracy.
Ongoing PeopleSoft Payroll Users
1)If you have not already added rows for 2005 year-end reporting earlier in the year to your Tax Form Definition Table, then add these rows now. Enter the Tax Form Identification W-2 and the Effective Date of 01/01/2004 on the Tax Form Definition search page and select Search. Add a new row in the table that duplicates all of the 2004 entries by selecting the Add (+) button in the “Effective Date” Group Box. Change the effective-date for this newly inserted row to 01/01/2005. Save this new entry. Then follow this same procedure for Tax Form Identifications W-2c, W-2AS, W-2GU, W-2PR, W-2VI, W-2cAS, W-2cGU, W-2cPR, and W-2cVI. Save these new entries.
2)Run the DataMover scriptupd621656_06.dms(delivered in this tax update). This script will update the Tax Form Definition Table and Tax Form Print Parameters Table with entries for tax year 2004 for items reported in Box 12 and Box 14 of the following forms: W 2c, W-2cAS, W-2cGU and W-2cVI.
3)Run the DataMover script upd621656_04.dms (delivered in this tax update). This script will (1) update the W2C_DEF_CAL_YR field in the PS_YE_W2C_INSTALL table to set the default year for W-2c processing to 2005, and (2) update the 2005 Tax Form Definition Table entries you have created with the following modifications:
- Table entries for Forms W-2, W-2AS, W-2GU, and W-2VI are updated for new W-2 box 12Q, to report nontaxable combat pay amounts. IRS Instructions for Form W-2 for 2005 state “If you are a military employer, report any nontaxable combat pay in box 12.”
- Table entries for Forms W-2, W-2AS, W-2GU, and W-2VI are updated for new W-2 box 12Y to report deferrals under a section 409A nonqualified deferred compensation plan. IRS Instructions for Form W-2 for 2005 state “Include current year deferrals under a section 409A nonqualified deferred compensation plan. Any earnings during the year on current year and prior year deferrals must also be reported here.”
- Table entries for Forms W-2, W-2AS, W-2GU, and W-2VI are updated for new W-2 box 12Z to report income under section 409A on a nonqualified deferred compensation plan. IRS Instructions for Form W-2 for 2005 state “Show any income under section 409A on a nonqualified deferred compensation plan that was included in box 1. This income is also subject to an additional tax reported on the employee’s Form 1040.”
- Table entries for Forms W-2c, W-2cAS, W-2cGU, and W-2cVI are updated with entries for items reported in Box 12 and Box 14 of these forms.
For more detailed information on using the new codes Q, Y, and Z in W-2 box 12 for 2005, see the complete IRS Instructions for Forms W-2 and W-3 at
This script also updates the Tax Form Definition Table with entries for Puerto Rico Form W-2PR for tax year 2005.
4)Update the new 2005 Tax Form Definition Table entries you have created with your specific earnings and deductions information for year-end reporting.
Note: Because W-2PR box identifications and their definitions have changed for tax year 2005, you will need to enter (or re-enter) any specific earnings and deductions information for the following Puerto Rico reportable items in the Tax Form Definition Table entry for Form W-2PR effective-dated 01/01/2005, as indicated in the “2005” column in the following table:
W-2PR box 7 / Cost of pension or annuity / W-2PR box 6
W-2PR box 9 / Commissions / W-2PR box 8
W-2PR box 10 / Allowances / W-2PR box 9
W-2PR box 11 / Tips / W-2PR box 10
W-2PR box 13 / Reimbursed expenses / W-2PR box 12
W-2PR box 15 / Retirement fund / W-2PR box 14
W-2PR box 16 / Contribution to CODA plans / W-2PR box 15
n/a / Salaries under Act No. 324 of 2004 / W-2PR box 16 (new for 2005)
Save your changes.
5)To update your Tax Form Definition Table for 2005 Form 940 reporting, enter the Tax Form Identification 940 and the Effective Date of 01/01/2004 on the Tax Form Definition search page and select Search. Add a new row in the table by selecting the Add (+) button in the “Effective Date” Group Box and change the Effective Date for this newly inserted row to 01/01/2005. Any earnings or deductions that you had defined as FUTA-exempt for 2004 will be brought forward in your new table entry for 2005. If necessary, add or delete any earnings or deductions to reflect any changes for 2005 Form 940 FUTA reporting. Save your changes.
6)Run TAX710.SQR to print a listing of 2005 Tax Form Definition Table entries and review it for accuracy.
Updating the Tax Form Print Parameters Table for 2005 Year End Forms Reporting (all users)
After you have completed the steps outlined in the previous section of this document for updating your Tax Form Definition Table for 2005, you are ready to update your Tax Form Print Parameters Table for 2005 year-end processing.
Run the DataMover script upd621656_05.dms to update your Tax Form Print Parameters Table with table entries to support the printing of Forms W-2, W-2AS, W-2GU, W-2PR, W-2VI, W-2c, W-2cAS,
W-2cGU, W-2cPR and W-2cVI for 2005.
Refer to the guide Year End Processing 2005: U.S., Puerto Rico, and U.S. Territories delivered with this tax update for more information on printing year-end tax forms.
Special Note for North America
Error Message Replaced With Warning When Effective Date on General Deduction Data Precedes Hire Date
The system will generate the following warning message when the Effective Date on the General Deduction Data page precedes the employee’s most recent Hire Date. Prior to the modifications, the message was issued as a hardstop error.
(Report ID 1324700000)
Special Notes for Canada
RL Slip Data Magnetic Media Files In New XML Format
Beginning December 1, 2005, RL-slip data filed with Revenu Québec on magnetic media must be in XML format and filed on diskette, CD-ROM or DVD. Revenu Québec will no longer accept the existing ASCII filing format or media option of cartridge. This decision was made to ensure uniformity with the Canada Revenue Agency. As a result, the only filing format that will be supported by PeopleSoft for 2005 RL-1 and RL-2 reporting is XML.
With this Tax Update 05-E, the ‘Reporting Medium’ of ‘Cartridge’ has been removed from the RL-1 Magnetic Media Reporting and RL-2 Magnetic Media Reporting pages. Further information will be provided with the Year-End Processing Guide for Canada delivered with Tax Update 05-F.
Also, please refer to the documents pertaining to the filing of RL slip data on the Revenu Québec website at
(Report ID 1195088000)
T4 Slips for 2005 Filings
The Canada Revenue Agency (CRA) has confirmed that the T4 slip for the 2005 filing year has not changed. There is a sample of the new T4 slip to accommodate the Quebec Parental Insurance Plan (QPIP) on the CRA website, however, that new version of the slip will not be used for 2005 filings. As a result, PeopleSoft will only support the current version of the form for this year-end.
New Version of Standard 006 Canadian Cheque Specifications
New cheque specifications have been set out by the Canadian Payments Association in preparation for the transition to image-based clearing. These new specifications are necessary to ensure that high quality cheque images can be captured, both for clearing purposes and for delivery to the clients, and to enhance processing efficiency. PeopleSoft Payroll for North America will be delivering system modifications to comply with the new cheque specifications with Tax Update 06-B on April 4, 2006. Banking institutions and cheque suppliers are aware of the impending changes as all Canadian business cheques must conform to the new specifications as outlined in CPA Standard 006, Part A by December 31, 2006. Please ensure that you and your banking institutions are prepared to facilitate these upcoming changes.
For further information, please refer to the Canadian Payments Association website at
Special Note for U.S.
Modifications to MMREF Reporting Parameters page
Reporting Medium and Diskette Type fields have been removed from the MMREF Parameters page as shown below. Users navigate to this page for both U.S. Annual Processing and U.S. Quarterly Processing. Values previously indicated in these fields, when applicable, are now indicated on the various individual run control pages for specific annual and quarterly reporting programs.
(Report ID 1324221000)
North American Payroll / Quarterly Processing / MMREF ParametersNorth American Payroll / Annual Processing / MMREF ParametersNew MMREF Parameters page after changes:
U.S. Changes
Federal / State Tax Table
State / Effective Date of Table Entry / Table Update DescriptionME / 10/01/2005 / Effective October 1, 2005, the Maine minimum wage is increased to $6.50 per hour.
(Report ID 1353892000)
Local Tax Table
State / Locality / Locality Name / OLD Rate/Amt / NEW Rate/Amt / Effective DateIN / 139 / RushCounty
(Report ID 1351729000)
/ 0.0125000 / Resident
0.0050000 / Nonresident / 0.0150000 / Resident
0.0075000 / Nonresident / 07/01/2005
KY / 109 / JacksonCounty
(Report ID 1369544000)
/ New entry * / 0.010000 / Resident
0.010000 / Nonresident / 07/01/2005
111 / JeffersonCounty
(all-inclusive)
(Report ID 1218548000)
/ W2 Mag Media Code = blank
W2 Reporting Agency = blank / W2 Mag Media Code = LJCKY
W2 Reporting Agency = LJCKY / 01/01/1900
correcting entry
111A / JeffersonCounty
(excl school district)
(Report ID 1218548000)
/ W2 Mag Media Code = blank
W2 Reporting Agency = blank / W2 Mag Media Code = LJCKY
W2 Reporting Agency = LJCKY / 01/01/1900
correcting entry
111B / JeffersonCounty
School District (only)
(Report ID 1218548000)
/ W2 Mag Media Code = blank
W2 Reporting Agency = blank / W2 Mag Media Code = LJCKY
W2 Reporting Agency = LJCKY / 01/01/1900
correcting entry
111C / JeffersonCounty
(excl school district and transit tax)
(Report ID 1218548000)
/ W2 Mag Media Code = blank
W2 Reporting Agency = blank / W2 Mag Media Code = LJCKY
W2 Reporting Agency = LJCKY / 01/01/1900
correcting entry
111D / JeffersonCounty
(transit tax only)
(Report ID 1218548000)
/ W2 Mag Media Code = blank
W2 Reporting Agency = blank / W2 Mag Media Code = LJCKY
W2 Reporting Agency = LJCKY / 01/01/1900
correcting entry
29566 / Fulton
(Report ID 1355927000)
/ 0.015000 / Resident
0.015000 / Nonresident / 0.020000 / Resident
0.020000 / Nonresident / 10/01/2005
48000 / Louisville Metro
(Report ID 1218548000)
/ W2 Mag Media Code = blank
W2 Reporting Agency = blank / W2 Mag Media Code = LJCKY
W2 Reporting Agency = LJCKY / 01/01/1900
correcting entry
48000A / Louisville
(excl school district)
(Report ID 1218548000)
/ W2 Mag Media Code = blank
W2 Reporting Agency = blank / W2 Mag Media Code = LJCKY
W2 Reporting Agency = LJCKY / 01/01/1900
correcting entry
48000B / Louisville
(excl school district and transit tax)
(Report ID 1218548000)
/ W2 Mag Media Code = blank
W2 Reporting Agency = blank / W2 Mag Media Code = LJCKY
W2 Reporting Agency = LJCKY / 01/01/1900
correcting entry
MI / 34000 / Grand Rapids
(Report ID 1341781000)
/ Annual Exemption = $1,000 / Annual Exemption = $750 / 01/01/2005
NJ / 51000 / Newark
(Report ID 1341386000)
/ “Withhold on Work Locality Only” = unchecked / “Withhold on Work Locality Only” = checked / 01/01/1900
correcting entry
OH / 32340 / Greenville
(Report ID 1350159000)
/ 0.010000 / Resident
0.010000 / Nonresident / 0.015000 / Resident
0.015000 / Nonresident / 01/01/2005
39360 / Johnstown
(Report ID 1324592000)
/ W2 Mag Media Code = blank
W2 Reporting Agency = blank / W2 Mag Media Code = JOHNS
W2 Reporting Agency = JOHNS / 01/01/1900
correcting entry
52010 / Moraine
(Report ID 1309399000)
/ W2 Mag Media Code = blank
W2 Reporting Agency = blank / W2 Mag Media Code = MORAI
W2 Reporting Agency = MORAI / 01/01/2005
correcting entry
54562 / New Franklin
(Report ID 1365665000) / New entry * / 0.010000 / Resident
0.010000 / Nonresident
W2 Mag Media Code = 537
W2 Reporting Agency = CCA
/ 09/01/2005
83342 / Westerville
(Report ID 1251914000)
/ W2 Mag Media Code = blank
W2 Reporting Agency = blank / W2 Mag Media Code = WSTRV
W2 Reporting Agency = WSTRV / 01/01/1999
correcting entry
PA / O023394C
O023394M
/ Upper St. Clair Twp EMST
(Report ID 1350013000)
/ Low Gross = 0.00 / Low Gross = $3,200.00 / 01/01/2005
correcting entry
O380485C
O380485M
/ North Lebanon Twp EMST
(Report ID 1364553000) / Low Gross = 0.00 / Low Gross = $5,000.00 / 01/01/1980
correcting entry
* Users who need to update fields on the Local Tax Table 3 page (such as Locality Short Name or
W-2 Print Name) for these new Local Tax Table entries should update Local Tax Table 3 with a new entry effective-dated at least one day later than the effective-date of the new Local Tax Table entry delivered in this tax update.