January 20, 2016 PeopleSoft Payroll for North America – Release 9.2 – Update Image 21 – Tax Update 17-A
PeopleSoft Payroll for North AmericaRelease 9.2 – PeopleSoft Update Image 21Tax Update 17-A Notes
This document describes the product modifications for PeopleSoft Payroll for North America Release 9.2 which are included in PeopleSoft Update Image 21for Tax Update 17-A.
Change Assistant will create an installation document. Follow the instructions in the installation document to apply this update.
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For Tax Update 17-A, PeopleSoft Update Image 21includes the documentation files listed below, which may be found on My Oracle Support:
PeopleSoft Update Manager Home Page (Document ID 1641843.2)
PeopleSoft Update Image Home Pages
HCM Update Image Home Page
Legislative, Regulatory, and Tax Updates
PeopleSoft HCM 9.2: Update Image Documentation (Document ID1917096.2)
Payroll for North America
Document Title
R92 Update Image 21Tax Update 17-A Notes.doc
/
PeopleSoft Payroll for North America Release 9.2 –
PeopleSoft Update Image 21Tax Update 17-A Notes(this document)
YE16CN92.doc
/ Year End Processing 2016: Canada
PA32EIT17A.doc /
Word document listing of changes to Pennsylvania Act 32 Local Earned Income Tax entries in the Local Tax Table
PA32EIT17A.xls /
Excel spreadsheet listing of changes to Pennsylvania Act 32 Local Earned Income Tax entries in the Local Tax Table
PA17ALST.doc /
Word document listing of changes to Pennsylvania Local Services Tax entries in the Local Tax Table
PA17ALST.xls /
Excel spreadsheet listing of changes to Pennsylvania Local Services Tax
entries in the Local Tax Table
Special Notes - Canada
Updating the Tax Form XMLP Options & Year End Form Options Tables for 2016
Follow these steps to update the Tax Form XMLP Options and Year End Form Options tables for the T4 and T4A forms for 2016:
- Apply Patch 24288931 which delivers a script to update the Tax Form XMLP Options page with 2016 year-end PDF form templates for T4 and T4A BI Publisher processing.
- Update the Year End Form Options Table for BI Publisher processing by manually adding a new row for Tax Year 2016 for each T4 and T4A reporting company.
(Patch 24288931)
Follow these steps to update the Tax Form XMLP Options and Year End Form Options tables for the RL-1 and RL-2 forms for 2016:
- Apply Patch 24288986 which delivers a script to update the Tax Form XMLP Options page with 2016 year-end PDF form templates for RL-1 and RL-2 BI Publisher processing.
- Update the Year End Form Options Table for BI Publisher processing by manually adding a new row for Tax Year 2016 for each RL-1 and RL-2 reporting company.
(Patch 24288986)
Refer to the chapter titled “Preparing for 2016 Year-End Processing: PDF Year-End Slips” in the “Year End Processing 2016: Canada” guide for further information regarding this functionality.
Year-End Reporting Changes for Québec
RQ Certification Numbers for Electronic Filing
The Revenu Québec certification numbers for 2016 tax reporting have been embedded into the electronic reporting programs CTX910RM.SQR and CTX910VM.SQR for online file transmission.
Type of Slip / Certification NumberRL-1 / RQ-16-01-133
RL-2 / RQ-16-02-055
(Patch 24289017)
RQ Authorization Numbers for Electronic RL-1 and RL-2 Slips
The Revenu Québec authorization number FS1601024has been embedded into the print program CTX910RP.SQR for printing onto the BI Publisher generated RL-1 slips in PDF format.
The Revenu Québec authorization number FS1602009has been embedded into the print program CTX910VP.SQR for printing onto the BI Publisher generated RL-2 slips in PDF format.
(Patch 24288986)
Special Note – Puerto Rico 2016 Year End Reporting
The product modifications for Puerto Rico 2016 year end reporting delivered in Tax Update 17-A and described below were previously posted to My Oracle Support as Patch 25064693. If you have already followed the instructions in the user documentation delivered with Patch 25064693 for applying theseproduct modifications for Puerto Rico year end reporting, you do not need to complete these steps again as part of applying Tax Update 17-A.
IMPORTANT: Before applying the product modifications delivered in Image 21 forTax Update 17-A, you must have completed steps 1 through 4 of the instructions for Preparing for Puerto Rico Year End Reporting 2016 described on pages 8-9 of the user documentation delivered with Image 20 for Tax Update 16-E.
After completing the instructions for Preparing for Puerto Rico Year End Reporting 2016 described on pages 8-9 of the user documentation delivered with Image 20 for Tax Update 16-E, complete the following steps to update the Tax Form Print Parameters tables for Puerto Rico year-end reporting for 2016:
- Apply the script delivered in Patch 25064693. This script adds 2016 entries to the Tax Form Print Parameters table for Form W-2PR. (A script to add 2016 entries to the Tax Form Print Parameters tablefor Form W-2cPR will be delivered in a future tax update.)
- Update the 2016 Tax Form Print Parameters table entries to print any items of data you have added to the 2016 Tax Form Definitions table entries for Form W-2PR. Save your changes. (You must always update Tax Form Print Parameters table entries for any non-PeopleSoft delivered items you have added to the Tax Form Definitions table.)
- Run TAX712 to verify that 2016 entries have been added to the Tax Form Print Parameters table.
After completing the above steps, proceed with year end processing for Puerto Rico by following the instructions included in the document delivered with Image 19 for Tax Update 16-D (“Year End Processing 2016: U.S., Puerto Rico, and U.S. Territories”).
After completing the Year End Data Record Load process, employee year end data can be reviewed on the Review/Update Year End Data and the Review Year End Data Combined pages.
As illustrated in the example on the following page, for employees who are issued Puerto Rico Form W-2PR, the Review/Update Year End Data and the Review Year End Data Combined pages are modified to report the employee’s Date of Birth when the employee’s year-end data includes a dollar amount for Exempt Salaries Code E (Box 1605 in Tax Form Box Detail). Employee date of birth information is loaded to PS_YE_DATA from PS_PERSON.
(The new Date of Birth field will be visible on these pages only for employees in Companies for which Tax Report Type = W-2PR. The Date of Birth field will not be visible on the Review/Update Year End Data and the Review Year End Data Combined pages for employees receiving Form W-2.)
Shown below is the Review/Update Year End Data page for a Puerto Rico employee who was paid a total
amount of $42,769.24 in wages in tax year 2016.
The first $40,000.00 paid to the employee qualified as a payment of Exempt Salaries under Puerto Rico Law No. 135-2014 (“Incentives and Funding for Young Entrepreneurs Act”), and was paid using the employer-defined Earnings Code PRX. This type of Exempt Salaries payment will be reported (in either box 16 or box 16A) onPuerto Rico Form W-2PR using Exempt Salaries Code E. Because the employee was paid Exempt Salaries under Puerto Rico Law No. 135-2014, the employee’s Date of Birth will be reported on Form W-2PR, and appears on the Review/Update Year End Data page, as shown above.
The remaining amount of $2,769.24 that was paid to the employee (in excess of the $40,000 maximum allowed under Law 135-2014)was taxable wages, and will be reported in box 7 on Form W-2PR.
In order for the $40,000.00 payment made under Law No. 135-2014 to be correctly reported on Puerto Rico
Form W-2PR using Exempt Salaries Code E, the employer-defined Earnings Code that was used to pay the $40,000.00 to the employee (Earnings Code PRX in this example) must be specified in the Earnings section of Box 1605 on the Tax Forms Definition Table entry, as shown on the following page.
Note: Customers who outsource the creation of the Puerto Rico electronic file and/or the printing of Form W-2PR to a third-party should be aware that the Exempt Salaries Codes required to be reported in boxes 16 and 16A of Form W-2PR are not stored values in the database. The Exempt Salaries Codes are system-derived by the programs that print the forms and create the electronic file, based on which Tax Form Definitions box number the associated Earnings code is specified for, as illustrated above and as indicated in the chart shown below.
Exempt Salaries Type / Form W-2PRTax Form Definitions Box / System-derived Exempt Salaries Code reported on the electronic file and printed on Form W-2PR
Public employees’ wages for overtime worked during emergency situations under Act 324-2004
/ 1601 / A
Income from overtime worked by a Puerto Rico Police member under Section 1031.02(a)(34) of the Code
/ 1602 / B
Stipends received by certain physicians during the internship period under Section 1031.02(a)(9) of the Code
/ 1603 / C
Compensation paid to an eligible researcher or scientist for services rendered under Section 1031.02(a)(26) of the Code
/ 1604 / D
Salary not over $40,000 per year under Act 135-2014 (Section 1031.02(a)(35) of the Code) (Employees between ages of 16 and 26)
/ 1605 / E
See the entry for Patch 25064693 in the later section of this documentPatch Inventory for PeopleSoft Update Image 21 (Tax Update 17-A) - Detail for additional information.
Special Notes – U.S.
Reporting W-2 Data to Oklahoma
Beginning with tax year 2016, Oklahoma requires employers to file Form W-2 wage statement information electronically with the Oklahoma Tax Commission (OTC), on or before the last day of February following the end of the tax year.
To support this new requirement, Tax Update 17-A redelivers program TAX960ST.SQR with modifications to create the electronic W-2 file for Oklahoma, and the Create State W-2 File run control page is redelivered with modifications to add Oklahoma as a valid reporting state for selection on the run control, as shown below.
See the entry for Patch 25232158 in the later section of this documentPatch Inventory for PeopleSoft Update Image 21 (Tax Update 17-A) - Detail for additional information on the new Oklahoma W-2 electronic filing requirement.
Create State W-2 File Run Control before Tax Update 17-A (Oklahoma is not a valid value):
Create State W-2 File Run Control after Tax Update 17-A:
(Patch 25232158)
Executive Order 13673 - FLSA Weekly Wage Detail Requirement
Tax Update 17-A delivers product modifications to support Section VII.A.4 of the final guidance for compliance with Executive Order 13673 (“Fair Pay and Safe Workplaces”), as published by the U.S. Department of Labor in the U.S. Federal Register on August 25, 2016.
Executive Order 13673 imposes various new requirements on federal contractors and subcontractors with respect to paying their employees. Section VII of the final guidance describes the “Paycheck Transparency” provisions of the order, which specify standard requirements for wage statements provided to employees who are subject to the Fair Labor Standards Act (FLSA).
Section VII.A.4 of the final guidance states that if an employee who is subject to FLSA is not provided with a wage statement on a weekly basis, and is instead provided with a wage statement on a frequency other than weekly (because the employee’s pay period is other than weekly), then “the hours worked and overtime hours contained in the wage statement shall be broken down to correspond to the period (which will almost always be weekly) for which overtime is calculated and paid.”
Tax Update 17-A modifies PAY003.SQR, DDP003.SQR, and online objects to print weekly FLSA wage detail information on overflow XMLP wage statements for employees subject to FLSA whose pay frequency is biweekly, semi-monthly, or monthly.
Important: This new functionality will be invoked only when all of the following conditions are met:
- The Pay Group is defined as an FLSA pay group on the Pay Group Table.
- Paychecks and/or pay advices must be created using the following run controls:
Create PDF Paychecks orCreate PDF Advice Forms - The Paycheck Options Table must be completed as follows:
The Overflow Statements checkbox must be selected.
The new Print FLSA Weekly wage Detail checkbox must be selected.
The following templates must be specified in Report Definitions for Printing and Viewing:
Pay Group Table – Calc Parameters: FLSA Required checkbox must be selected.
Paycheck Options Table showing the new Print FLSA Weekly Wage Detail checkbox:
Example: Wage statement for a monthly-paid employee who is subject to FLSA.
When the new Print FLSA Weekly Wage Detail checkbox is selected on the Paycheck Options Table (as shown in the illustration on the previous page), then separate earnings detail for each FLSA week is displayed on the wage statement for an employee whose pay period is monthly.
To use the new functionality to display FLSA weekly wage detail on the wage statement as shown in the above example, you must produce checks and deposit advices with the BI Publisher functionality, using the Create PDF Paycheck/Create PDF Advice Forms processes, and the following selections must be made in the Report Definitions section on the Paycheck Options Table page, as shown in the illustration of the Paycheck Options Table on the preceding page.
Viewing / Check Report ID = SSPOFCHK and Advice Report ID = SSPOFADV
Overflow Statements / Selected
Print FLSA Weekly Wage Detail / Selected
(Patch 24765524)
Form 1042-S Reporting for Tax Year 2016 (E&G)
To ensure that Form 1042-S records for tax year 2016 will be created correctly, you must use the updated version of TAX950.SQR which is delivered with Tax Update 17-A (and which was also previously posted to My Oracle Support as Patch 24825281 on 19 December 2016) to create the Form 1042-S print file and the Form 1042-S electronic file.
Patch Inventory for PeopleSoft Update Image 20(Tax Update 17-A) - Summary
E&G = PeopleSoft Payroll for North America for Education & Government
USF = PeopleSoft Payroll for North America for U.S. Federal Government
Patch Number /
Tracking Group – Tax Update /
Country /
Product /
COBOL Programs
and/or
Store Statements
/
SQR/SQC Programs /
Database Objects /
Scripts /
Other
1 / 22590423 / 17-A / US / X
2 / 23191656 / 17-A / US / X
3 / 23236360 / 17-A / US / X
4 / 23718057 / 17-A / US / X
5 / 24288931 / 17-A / CAN / X / X
6 / 24288986 / 17-A / CAN / X / X / X
7 / 24289017 / 17-A / CAN / X / X / X
8 / 24289053 / 17-A / CAN / X / X / X
9 / 24529077 / 17-A / US / X
10 / 24622650 / 17-A / US / X / X
11 / 24654261 / 17-A / US / X
12 / 24765524 / 17-A / US / X / X
13 / 24825281 / 17-A / E&G / X
14 / 24943926 / 17-A / US / X / X
15 / 25027427 / 17-A / CAN / X
16 / 25033983 / 17-A / US / X
17 / 25064693 / 17-A / US / X / X / X
18 / 25092599 / 17-A / US / X
19 / 25107065 / 17-A / N/A / X
20 / 25108963 / 17-A / US / X
21 / 25112410 / 17-A / CAN / X
22 / 25120695 / 17-A / US / X
23 / 25171648 / 17-A / US / X
24 / 25188421 / 17-A / US / X
25 / 25195662 / 17-A / US / X / X / X
26 / 25203712 / 17-A / US / X / X
27 / 25232158 / 17-A / US / X / X
28 / 25240276 / 17-A / US / X / X
29 / 25240301 / 17-A / CAN / X / X
30 / 25241635 / 17-A / US / X
31 / 25293905 / 17-A / US / X
32 / 25299604 / 17-A / US / X
33 / 25300273 / 17-A / US / X
34 / 25337340 / 17-A / US / X / X
Patch Inventory for PeopleSoft Update Image 20(Tax Update 17-A) - Detail
Entries in this section are sequenced by Release 9.2 Patch Number.