June 13, 2011 PeopleSoft Payroll for North America Tax Update 11-C – Release 9

PeopleSoft Payroll for North AmericaTax Update 11-CTax Update Notes - Release 9

PeopleSoft Payroll for North America Tax Update 11-C includes updates to U.S.and Canadian tax and U.S. garnishment tables, COBOL program and store statementchanges, 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 statementchanges
  • A summary of the SQRs delivered with this tax update
  • An appendix of object changes delivered with this tax update

For Release 9, the tax update package also includes the following documentation files:

UPD860805_INSTALL.htm / “PeopleSoft Application Update Installation Instructions”
UPD860805_CODECHANGES.rtf / PS Print Project Report for Release 9


You must follow the instructions in the UPDxxxxxx_INSTALL.htm document to apply the object changes listed in the appendix of this documentbefore applying the COBOL and store statement changes, running the DataMover scripts, or using the SQRs delivered in this tax update. Before applying Tax Update 11-C, 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 My Oracle Support.

Copyright © 2011, Oracle and/or its affiliates. All rights reserved.

This software and related documentation are provided under a license agreement containing restrictions on use and disclosure and are protected by intellectual property laws. Except as expressly permitted in your license agreement or allowed by law, you may not use, copy, reproduce, translate, broadcast, modify, license, transmit, distribute, exhibit, perform, publish, or display any part, in any form, or by any means. Reverse engineering, disassembly, or decompilation of this software, unless required by law for interoperability, is prohibited.

The information contained herein is subject to change without notice and is not warranted to be error-free. If you find any errors, please report them to us in writing.

If this is software or related documentation that is delivered to the U.S. Government or anyone licensing it on behalf of the U.S. Government, the following notice is applicable:

U.S. GOVERNMENT RIGHTS Programs, software, databases, and related documentation and technical data delivered to U.S. Government customers are "commercial computer software" or "commercial technical data" pursuant to the applicable Federal Acquisition Regulation and agency-specific supplemental regulations. As such, the use, duplication, disclosure, modification, and adaptation shall be subject to the restrictions and license terms set forth in the applicable Government contract, and, to the extent applicable by the terms of the Government contract, the additional rights set forth in FAR 52.227-19, Commercial Computer Software License (December 2007). Oracle America, Inc., 500 Oracle Parkway, Redwood City, CA 94065.

This software or hardware is developed for general use in a variety of information management applications. It is not developed or intended for use in any inherently dangerous applications, including applications that may create a risk of personal injury. If you use this software or hardware in dangerous applications, then you shall be responsible to take all appropriate fail-safe, backup, redundancy, and other measures to ensure its safe use. Oracle Corporation and its affiliates disclaim any liability for any damages caused by use of this software or hardware in dangerous applications.

Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

Intel and Intel Xeon are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks are used under license and are trademarks or registered trademarks of SPARC International, Inc. AMD, Opteron, the AMD logo, and the AMD Opteron logo are trademarks or registered trademarks of Advanced Micro Devices. UNIX is a registered trademark of The Open Group.

This software or hardware and documentation may provide access to or information on content, products, and services from third parties. Oracle Corporation and its affiliates are not responsible for and expressly disclaim all warranties of any kind with respect to third-party content, products, and services. Oracle Corporation and its affiliates will not be responsible for any loss, costs, or damages incurred due to your access to or use of third-party content, products, or services.

Updating Your Tables

Tax Update 11-C includes the following files for updating the tables in your PeopleSoft system.

File / Contents
upd860805_01.dat
upd860805_01.dms
/ U.S. tax table updates
upd860805_02.dat
upd860805_02.dms
/ Canadian tax table updates
upd860805_03.dat
upd860805_03.dms
/ Garnishment table updates
upd860805_04.dms
/ Database stamp
(There is no .dat file associated with this .dms file.)
upd860805_05.dat
upd860805_05.dms
/ Strings table
upd860805_06.dat
upd860805_06.dms
/ Add the new relationship “AC” (Adult Child) to PS_DEPBEN_TYPE_TBL
(Report ID 12427496)
upd860805_msg.dat
upd860805_msg_i.dms
/ Message catalog

Both U.S. and Canadian customers should apply thegarnishment, database stamp, strings table,PS_DEPBEN_TYPE_TBL update, and message catalog 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.

Special Note – North America

PeopleSoft Vulnerability – Unauthorized Access

A critical security update that was posted to Updates and Patches on My Oracle Support on April 19 is also being delivered with this tax update. For the protection of our customers, it is PeopleSoft policy not to provide detailed information on the location and nature of the incident and fix.

(Report ID 11805978 posted to My Oracle Support on 19 April 2011)

Special Notes – U.S.

Pennsylvania Act 32

Tax Update 11-C delivers product updates to assist employers impacted by Pennsylvania counties that require early implementation of the provisions of Pennsylvania Act 32. Pennsylvania Act 32, enacted in 2008, changes the way employers must withhold, remit, and report Pennsylvania local earned income taxes. Statewide implementation of Act 32 begins with wages paid on or after January 1, 2012, but the counties of Chester, Lebanon, and Wyoming have indicated that they will require employers to comply with Act 32 requirements in 2011.Details of the new product functionality are provided in the separate documentation file delivered with this tax update:PA Act 32-11C.doc(Report ID 11847440posted to My Oracle Support by 19 May 2011.)

State Taxation of Adult Child Healthcare Premiums

Tax Update 11-C delivers new product functionality to allow employers to comply with state-specific taxation requirements for healthcare premiums representing coverage provided to adult children, for states that do not conform to the Internal Revenue Code tax exemption of these premiums under the Patient Protection and Affordable Care Act (Public Law 111-149) and the Health Care and Education Reconciliation Act of 2010 (Public Law 111-152).Details of the new product functionality are provided in the separate documentation file delivered with this tax update:

Taxability_Adult_Child_Benefit_Non-Conforming_States_Rel90.pdf

(Payroll for North America Report ID 12427496)Note: Benefits Report ID 11649055 posted to My Oracle Support by 25 May 2011 delivered the same product modifications that are delivered in Payroll for North America Tax Update 11-C. Quarterly Reporting - Ohio

The Reporting Medium and Diskette Type fields are removed from the run control page for creating the file to report quarterly wage and tax data to Ohio. Only electronic filing will be supported. The following additional fields are also no longer required and are removed: Taxes Due, Previous Underpay, Interest Due, Penalty Due, Previous Credit, Total Payment Due, and Doc Control Nbr.
Added to the run control page is a new field “Third Party Admin ID” and a new “Out of State Wages Indicator” checkbox for each Company for which data will be reported on the file.
For details on the new Ohio quarterly reporting requirements, see the description of modifications made to TAX810OH.SQR in the later section of this document listing the U.S. SQRs Delivered with Tax Update 11-C.
Ohio Run Control pageBEFORE Tax Update 11-C changes:


Ohio Run Control pageAFTER Tax Update 11-C changes:

(Report ID 11925419)

New Error Message – Self-Service Direct Deposit

The new error message shown below is added to the Self Service Direct Deposit page.
The new error message is added to limit employees to one single completed self-service transaction of updating direct deposit data per day. An employee may add or edit information for multiple direct deposit accounts in a single self-service transaction, but once the transaction’s changes are entered and saved and the employee has navigated off the Self Service Direct Deposit page, the employee cannot make further additional changes in Self Service Direct Deposit on the same day.

This restriction is added to prevent an employee from making changes to Self Service Direct Deposit data that could cause an override of existing data on the DIRECT_DEPOSIT and DIR_DEP_DISTRIB records, which could result in the employee’s deposit information being excluded from the direct deposit file if changes were made after Payroll Confirm was processed but before the direct deposit file was created.
(Report ID 11711721)

New Wage Statement Data for New York and California Employees

Tax Update 11-C delivers product modifications to display additional items of required data on employee wage statements for New York and California employees.

New York
To comply with the wage statement requirements of the New York Wage Theft Prevention Act, Tax Update 11-C delivers modifications to PAY003.SQR, DDP003.SQR, pages PY_IC_PI_DATA and PY_SSP_VIEW_DATA, work record PY_IC_PI_WRK, view PY_IC_PI_ERN_VW, PY_IC_PI_SUM_VW.OPRID(FieldFormula) PeopleCode, PY_IC_PI_DATA and PY_SSP_VIEW_DATA(Activate) PeopleCode, and changes to the PRTCAADV, PRTCACHK, SSPCAADV, and SSPCACHK XMLP templates. These product modifications provide for displaying these additional items of data on both printed wage statements and self-service paychecks for New York employees:

  1. Pay Period Begin and Pay Period End Date for prior period pay adjustments.
  2. Regular hours and hourly rates for salaried, non-exempt employees.
  3. Employer telephone number (the number entered as the “Main” telephone number on the Company Table).

California
To comply with the wage statement requirements of California Labor Code Sec. 226(a), Tax
Update 11-C delivers modifications to PAY003.SQR, DDP003.SQR, pages PY_IC_PI_DATA and PY_SSP_VIEW_DATA, work record PY_IC_PI_WRK, view PY_IC_PI_ERN_VW, PY_IC_PI_SUM_VW.OPRID(FieldFormula) PeopleCode, PY_IC_PI_DATA and PY_SSP_VIEW_DATA(Activate) PeopleCode, and changes to the PRTCAADV, PRTCACHK, SSPCAADV, SSPCACHK and XMLP templates. These product modifications provide for displaying this additional item of data on both printed wages statements and self-service paychecks for California employees:

Regular hours and hourly rates for salaried, non-exempt employees

The wage statement modifications described above are illustrated on the following page.

Wage Statement before Tax Update 11-C:


Wage Statement after Tax Update 11-C:


For Customers Using XMLP to Create Checks and Advices

Regardless of whether or not they are paying New York or California employees, all customers using XMLP to create checks and advices must use the Report Definitions PRTCAADV and PRTCACHK for printing, and the Report Definitions SSPCACHK and SSPCAADV for employee self-service, as shown in the Paycheck Options Table below. These are the only supported XMLP templates for U.S. paychecks and advices.
With the modifications delivered in Tax Update 11-C, the Descriptions of these Report Definitions are updated to reference the new modifications for “CA and NY” as shown in the final two screenshots below.


Before Tax Update 11-C:


As Delivered in Tax Update 11-C with modified Descriptions:


For Customers NotUsing XMLP to Create Checks and Advices

For customers not using XMLP to create checks and deposit advices, Tax Update 11-C redelivers updated versions of the programs PAY003.SQR (which prints checks) and DDP003.SQR (which prints deposit advices). Checks and advices produced by these programs will include the same new wage statement data items for New York and California employees that are described and illustrated on the preceding pages.

(Report IDs 11887703 and 11692749 posted together to My Oracle Support by 22 April 2011)

U.S. Changes

Federal / State Tax Table

State / Effective Date of Table Entry
/ Table Update Description
FL / 06/01/2011 / The Florida state minimum wage increase to $ 7.31 per hour effective June 1, 2011.

(Report ID 12534991)
ND / 01/02/2011 / North Dakota withholding tax changes effective January 1, 2011. The table entry is dated 01/02/2011 to preserve the values in the existing table entry dated 01/01/2011 (which have already been used in the calculation of 2011 payrolls) for audit history purposes.

(Report ID 12567259)
Z2
Yonkers
NY / 05/01/2011 / City of Yonkers withholding tax changes effective May 1, 2011.

Note: COBOL program changes delivered in this tax update are also required to implement the Yonkers withholding tax changes. See the entry for Report ID 12317380 in the later section of this documentdescribing COBOL and Store Statement Changes delivered in Tax Update 11-C.
(Report ID 12321962posted to My Oracle Support by 15April 2011.)

Note: On May 18, 2011, the Connecticut Department of Revenue Services published withholding tax changes which are effective August 1, 2011. Due to the complex nature of the changes, development and testing of the product modifications required to implement the changes could not be completed in time to include them in Tax Update 11-C. Product modifications for the August 1, 2011, Connecticut withholding tax changes will be posted separately to My Oracle Support once development and testing efforts are completed, and the modifications will also be delivered in Tax Update 11-D.Taxable Gross Definition Table

Note: Any user-defined entries you may have previously added to the Taxable Gross Definition Table entries for the jurisdictions listed below will need to be re-added after applying this tax update. User-defined entries are not carried forward when Taxable Gross Definition Table entries are re-delivered.

State/
Locality / Effective Date of Table Entry / Table Update Description
IL / 06/01/2011 / A new table entry is added to indicate that, beginning June 1, 2011, benefits provided to an employee’s civil-union partner are excluded from the definition of wages subject to Illinois state income tax, as per Illinois S.B. 1716 signed into law on February 1, 2011.
Taxable Gross = Withholding
Base Gross = FWT
Taxable Gross Component ID = DPB
Tax Gross Effect = Subtr From

(Report ID 11874252)
PA
510101
Philadelphia
/ 01/01/2011 / A new table entry isdelivered to duplicate existing Taxable Gross Definition Table functionality for Philadelphia referencing the Locality code on the new Local Tax Table entry based on the Act 32 PSD code.
Taxable Gross = Withholding
Taxable Gross Component ID = GTL
Tax Gross Effect = No Effect
Withholding Follows Fed Rules = No
Taxable Gross = Withholding
Taxable Gross Component ID = 125
Tax Gross Effect = Adds To
Withholding Follows Fed Rules = No
Taxable Gross = Withholding
Taxable Gross Component ID = 401K
Tax Gross Effect = Adds To
Withholding Follows Fed Rules = No
See the separate documentation file PA Act 32-11C.doc for complete information on the product updates delivered in this tax update for Pennsylvania Act 32.
(Report ID 11847440posted to My Oracle Support by 19 May 2011.)
WI / 01/01/2011 / A new table entry is added to indicate that the cost of healthcare benefits provided to an employee’s adult child who does not qualify as a dependent for income tax purposes is included in the definition of wages subject to Wisconsin state income tax, per the Wisconsin Department of Revenue.
Taxable Gross = Withholding
Base Gross = FWT
Taxable Gross Component ID = ACT
Tax Gross Effect = Adds To

See the entry for Report ID 12427496 in the later section of this document describing COBOL and Store Statement Changes delivered in Tax Update 11-C, and the entries for PAY705A.SQR and PAYGL01.SQR in the later section of this documentU.S. SQRs Delivered with Tax Update 11-C for information on related program modifications. Also see the separate documentation file provided with this tax update for complete information on the product modifications delivered in this tax update related to this new functionality:
Taxability_Adult_Child_Benefit_Non-Conforming_States_Rel90.pdf
(Report ID 11650604)
WV
39460
Huntington / 07/01/2011 / A new table entry is added to indicate that employee before-tax deductions for benefits offered in a Sec. 125 cafeteria plan are included in the definition of wages subject to the new municipal occupation tax imposed by the City of Huntington, West Virginia, beginning on July 1, 2011.
Taxable Gross = Withholding
Base Gross = FWT
Taxable Gross Component ID = 125
Tax Gross Effect = Adds To

(Report ID 11633396)

Local Tax Table

State / Locality / Locality Name / OLD Rate/Amt / NEW Rate/Amt / Effective Date
AL / 073 / Jefferson County
(Report ID 12347215)
/ 0.004500 / Resident
0.004500 / Nonresident / 0.000000 / Resident
0.000000 / Nonresident / 01/01/2010
The Jefferson County Revenue Department instructs employers to stop withholding the Jefferson County occupational tax which was ruled unconstitutional by the Supreme Court of Alabama.

IL / 14000 / Chicago
(Report ID 12535932)
/ Low Gross = $900.00 / Low Gross = $4,300.00 / 07/01/2011
The Employers Expense Tax Ordinance was amended to increase the salary threshold from $900 per calendar quarter to $4,300 per calendar quarter.

KY / 015A / Boone County
(Report ID 11932266) / Maximum tax = $423.94 / Maximum tax = $429.18 / 01/01/2011
13492 / Cave City
(Report ID 11932266)
/ 0.015000 / Resident
0.015000 / Nonresident / 0.020000 / Resident
0.020000 / Nonresident / 01/01/2008
191 / Pendleton County
(Report ID 11932266)
/ 0.015000 / Resident
0.015000 / Nonresident / 0.005000 / Resident
0.005000 / Nonresident / 01/01/2011
215 / Spencer County
(Report ID 11932266)
/ 0.010000 / Resident
0.010000 / Nonresident
/ 0.008000 / Resident
0.008000 / Nonresident / 01/01/2011
231 / Wayne County
(Report ID 11932266)
/ 0.010000 / Resident
0.010000 / Nonresident
/ 0.009000 / Resident
0.009000 / Nonresident / 10/01/2007
25300 / Erlanger
(Report ID 11932266)
/ 0.010000 / Resident
0.010000 / Nonresident
/ 0.015000 / Resident
0.015000 / Nonresident / 07/01/2010
37918 / Hopkinsville
(Report ID 11932266)
/ 0.020000 / Resident
0.020000 / Nonresident / 0.019500 / Resident
0.019500 / Nonresident / 01/01/2011
39952 / Jackson
(Report ID 11932266)
/ 0.010000 / Resident
0.010000 / Nonresident
/ 0.020000 / Resident
0.020000 / Nonresident / 03/03/2011
KY / 59268 / Park Hills
(Report ID 11932266)
/ 0.010000 / Resident
0.010000 / Nonresident
Maximum tax = $ 0.00
/ 0.015000 / Resident
0.015000 / Nonresident
Maximum tax = $750.00 / 10/01/2010
OH / 00198 / Ada
(Report ID 12609929)
/ 0.011500 / Resident
0.011500 / Nonresident / 0.016500 / Resident
0.016500 / Nonresident / 07/01/2011
28476 / Franklin
(Report ID 12609929)
/ 0.015000 / Resident
0.015000 / Nonresident / 0.020000 / Resident
0.020000 / Nonresident / 07/01/2011
69526 / Saint Clairsville
(Report ID 11892898)
/ New entry / 0.007500 / Resident
0.007500 / Nonresident
Taxing Entity Code = 701
W2 Reporting Agency = RITA
/ 04/01/2011
76876 / Tipp City
(Report ID 12609929)
/ 0.012500 / Resident
0.012500 / Nonresident / 0.015000 / Resident
0.015000 / Nonresident / 07/01/2011
82642 / Wellington Village
(Report ID 12544655)
/ New entry / 0.010000 / Resident
0.010000 / Nonresident
/ 01/01/2002
The new Local Tax Table entry for Locality OH-82642 (Wellington Village) is delivered to replace the existing Local Tax Table entry for Locality OH-82656 (Wellington) which was delivered in error. 82656 is the code for Wellington Township, which does not impose a tax. 82642 is the correct code for Wellington Village, which does impose a tax. Any employees subject to taxation by Wellington Village who are currently setup with Locality OH-82656 should be re-assigned to the correct Locality OH-82642 no later than before the first payment of wages on or after January 1, 2012. Tax Update 11-F will deactivate the erroneous table entry for Locality OH-82656 effective December 31, 2011.
WV / 39460 / Huntington
(Report ID 11633396)
/ Local Tax Calculation Type = Amount per period
($3.00 per week annualized)
156.00 / Resident
156.00 / Nonresident
Maximum Tax = $156.00 / Local Tax Calculation Type =
Rate x Taxable Gross
0.010000 / Resident
0.010000 / Nonresident
Maximum Tax = $1,250.00
/ 07/01/2011
Beginning July 1, 2011, the City of Huntington tax is calculated as 1.0 % of taxable wages instead of as a flat rate of $3.00 per week.


Local Tax Table – Pennsylvania

Tax Update 11-C includes updates to Pennsylvania Local Earned Income Tax entries in the Local Tax Table based on data downloaded from the “Real-time Register” on the website maintained by the Commonwealth of Pennsylvania. Table updates are delivered for Local Tax Table entries for local Earned Income Taxes for which withholding tax rates do not match the current information downloaded from the “Real-time Register” on the website. All updates to Pennsylvania entries in the Local Tax Table delivered in this tax update are effective-dated 01/01/2011.