March 30, 2009 PeopleSoft Payroll Tax Update 09-B – Release 9
PeopleSoft Payroll for North AmericaTax Update 09-BTax Update Notes - Release 9
PeopleSoft Payroll’s Tax Update 09-B includes updates to U.S. and Canadian tax tables, 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 9, the tax update package also includes the following documentation files:
Resolution_766648.xls / List of object changes delivered with Tax Update 09-B
UPD766648_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 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 09-B, 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 MetaLink 3.
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Updating Your Tables
Tax Update 09-B includes the following files for updating the tables in your PeopleSoft Payroll system.
File / Contentsupd766648_01.dat
upd766648_01.dms
/ U.S. tax table updates
upd766648_02.dat
upd766648_02.dms
/ Canadian tax table updates
upd766648_03.dat
upd766648_03.dms
/ Garnishment table updates
upd766648_04.dms / Database stamp
(There is no .dat file associated with this .dms file.)
upd766648_05.dat
upd766648_05.dms
/ Strings table
upd766648_msg.dat
upd766648_msg_i.dms
/ Message catalog
Both U.S. and Canadian customers should apply the garnishment, database stamp, strings table, 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.
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 MetaLink 3.
Special Note – LouisianaState Tax Withholding
Tax Update 09-B delivers a modification to the State Tax Data page to allow the user to specify an amount per pay period by which an employee’s calculated Louisiana withholding tax is to be decreased.
State Tax Data page for State = LA before the change:
State Tax Data page for State = LA after the change:
Louisiana Form L-4 “Employee’s Withholding Allowance Certificate”
Line 8 of Louisiana Form L-4 permits an employee to request either an increase or a decrease in the amount of Louisiana tax to be withheld each pay period.
Line 9 of Form L-4 permits an employee to request an additional temporary reduction (valid only through June 30, 2009) in the amount of Louisiana tax to be withheld each pay period.
In the Additional Amount field on the State Tax Data page, enter as a positive number the combined net sum of the amounts shown on Lines 8 and 9 of Louisiana Form L-4. If this combined net sum is negative (i.e., representing a net decrease in withholding), then select the Decrease radio button.
In this example, on Line 8 of Form L-4 the employee has requested a $78 increase in withholding each pay period, and on Line 9 the employee has requested a $40 temporary reduction in withholding each pay period. The combined net value of these two entries is +$78 - $40 = - $38. Enter 38.00 in the Additional Amount field and select the Decrease radio button as shown below.
Note that language printed on Louisiana Form L-4 states that a temporary withholding reduction requested on Line 9 of Louisiana Form L-4 is valid only through June 30, 2009.
For any employee who specifies a temporary withholding reduction on Line 9, employers will need to obtain a new Louisiana Form L-4 for purposes of withholding Louisiana tax from wages to be paid on or after July 1, 2009.
For an employee who does not submit an updated Form L-4 for wages paid on or after July 1, 2009, the employer will need to update the Additional Amount field on the State Tax Data page for Louisiana effective 07/01/2009to show only the amount from Line 8 of the employee’s existing Form L-4, disregarding the temporary withholding reduction amount which the employee had entered on Line 9.
Also note that on the State Tax Data Page, a decrease in Louisiana withholding tax may only be specified as a dollar amount and entered in the Additional Amount field, and not as a percentage entered in the Additional Percentage field.
An error message will be generated if the user attempts to designate a value in the Additional Percentage field as a Decrease.
In conjunction with the product changes made to permit a decrease in Louisiana withholding, the wording of error message 2000,613 is updated as shown below to remove the specific reference to Connecticut, which previously had been the only state to allow a decrease in withholding.
Previous wording of warning message 2000,613:
New wording of warning message 2000,613:
(Report ID 1842275000)
Special Note – U.S. - Year End Tax Forms
Beginning with year end reporting for tax year 2009, PeopleSoft Payroll for North America will discontinue support for the continuous-feed impact printer version of each of the tax forms listed below.
Payroll for North America
Form ID
/ R R Donnelly
Form Number
W-2
/
Wage and Tax Statement /
IMP01 /
PS2114M
W-2c
/
Corrected Wage and Tax Statement /
IMP01 /
PS8606862-A
1099-R
/
Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
/
2VERTICAL /
PS9923M
Support for the continuous-feed impact printer version of Form 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding) was discontinued beginning with year end reporting for tax year 2008.
Special Note for Canada
Cross-Province Taxation: Display Both Provinces of Taxation and Residence
For cross-province employees, the Paycheque Taxes page of the Review Paycheque component now displays both the employee’s province of taxation and the province of residence. Prior to this tax update, only the employee’s province of taxation was displayed.
Review Paycheque Taxes Page - Before the Change
Review Paycheque Taxes Page - After the Change
(Report ID 1835466000)
U.S. Changes
Federal / State Tax Table
State / Effective Date of Table Entry/ Table Update Description
$E
/ 02/17/2009 / Advance Earned Income Credit calculation changes effective with the February 17, 2009, enactment of the American Recovery and Reinvestment Act of 2009, per original publication in IRS Notice 1036 and subsequent publication in IRS Pub 15-T.
(Report ID 1848661000 posted to MetaLink 3 by 26 Feb 2009, and Report ID 1857444000)
$U / 02/17/2009 / U.S. Federal withholding tax changes (including an increase in the amount to be added to a nonresident alien employee’s wages for withholding tax calculation purposes only) effective with the February 17, 2009, enactment of the American Recovery and Reinvestment Act of 2009, per original publication in IRS Notice 1036 and subsequent publication in IRS Pub 15-T.
(Report ID 1848661000 posted to MetaLink 3 by 26 Feb 2009, and Report ID 1852537000)
CO / 01/01/2009 / The existing table entry dated 01/01/2009 is updated to include Colorado state withholding tax changes effective January 1, 2009, as published by the Colorado Department of Revenue in Publication Dr 1098 (01/28/09).
(Report ID 1855791000)
IN / 01/01/2009 / A table entry effective-dated 01/01/2009 is delivered for the increase in the Indiana state advance earned income credit rate from 6% to 9% of the U.S. Federal earned income credit amount as required by Indiana law HEA 1001-2008 as published in Information Bulletin # 92 (June 2008) by the Indiana Department of Revenue.
(Report ID 1841124000)
LA / 01/01/2009 / A table entry effective-dated 01/01/2009 is delivered with the value of the “Allow Withholding Reduction” checkbox changed from unselected to selected, to comply with Louisiana Form L-4, which permits an employee to request a decrease in the amount of Louisiana state tax calculated to be withheld each pay period.
Note: Also see the earlier section of this document Special Note – Louisiana State Tax Withholding for additional product modifications delivered related to this issue.
(Report ID 1842275000)
Local Tax Table
State / Locality / Locality Name / OLD Rate/Amt / NEW Rate/Amt / Effective DateAL / 32560 / Hackleburg
(Report ID 1840804000) / County = Hackleburg / County = Marion / 03/01/2001Correcting entry
IN / 015 / Carroll
(Report ID 1841124000) / 0.011500 / Resident
0.004000 / Nonresident
/ 0.015500 / Resident
0.004000 / Nonresident
/ 01/01/2009
023 / Clinton
(Report ID 1841124000) / 0.015000 / Resident
0.007500 / Nonresident
/ 0.020000 / Resident
0.007500 / Nonresident
/ 01/01/2009
049 / Fulton
(Report ID 1841124000) / 0.014300 / Resident
0.006800 / Nonresident
/ 0.019300 / Resident
0.006800 / Nonresident
/ 01/01/2009
097 / Marion (decrease)
(Report ID 1841124000) / 0.016500 / Resident
0.004125 / Nonresident
/ 0.016200 / Resident
0.004050 / Nonresident
/ 01/01/2009
151 / Steuben
(Report ID 1841124000) / 0.012900 / Resident
0.005400 / Nonresident
/ 0.017900 / Resident
0.005400 / Nonresident
/ 01/01/2009
KY / 37918 / Hopkinsville
(Report ID 1857350000) / 0.020000 / Resident
0.020000 / Nonresident
/ 0.018500 / Resident
0.018500 / Nonresident / 07/01/2009
79734 / Vine Grove
(Report ID 1857350000) / New entry / 0.010000 / Resident
0.010000 / Nonresident
/ 01/01/2009
OH / 13358 / ChagrinFalls
(Report ID 1840804000) / County = Geauga / County = Cuyahoga / 01/01/1900Correcting entry
15588 / ClayCenter
(Report ID 1840804000) / County = Ottowa / County = Ottawa / 01/01/1900Correcting entry
Local Tax Table – Pennsylvania Earned Income Tax
Tax Update 09-B 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 01/01/2009.These Pennsylvania Local Earned Income Tax rate changes downloaded from the Real-time Register on Pennsylvania website are documented separately in these files delivered with this tax update:PA09BEIT.docWord documentPA09BEIT.xlsExcel spreadsheet
(Report ID 1859453000)
Local Tax Reciprocity Table
Effective January 1, 2009, with the increase in the Westerville, Ohio, tax rate to 2.0 %, Westerville now allows residents a credit of the actual amount of tax withheld and paid to the employee’s locality of employment, limited to the 2.0 % Westerville tax rate.
The two table entries listed below are updated to reflect this change:
Locality ofResidence
/ Locality of Employment / Effective Date / Credit Reduction Percent / Credit Limit Rate
/ Action
OH
83342
Westerville
/ OH
$DFLT
/ 01/01/2009 / 100.00
/ 0.020000 / Credit Reduction Percent unchanged.
Credit Limit Rate changed from 0.009500 to 0.020000.
OH
83342
Westerville
/ OH
18000
Columbus / 01/01/2009 / 100.00 / 0.020000
/ Credit Reduction Percent changed from 76.00 to 100.00.
Credit Limit Rate changed from 0.000000 to 0.020000.
The reciprocity rule used in each of the above table entries is unchanged:
“If residence locality tax rate exceeds work locality tax rate, calculate residence locality withholding on total wages, then reduce residence locality withholding by percentage of work locality withholding. OR if work locality tax rate exceeds residence locality tax rate, calculate residence locality withholding on total wages, then reduce withholding by percentage of residence locality withholding.”
(Report ID 1843086000)
(1042) Treaty NR Alien Table
Country / Treaty ID / Effective Date / Table UpdateBGR - Bulgaria / TIAS / 01/01/2009 / A table entry is added for Bulgaria per IRS Announcement 2009-5 published in Internal Revenue Bulletin 2009-8: “The United States recently exchanged instruments of ratification for a new income tax treaty with Bulgaria.”
(Report ID 1851882000)
Garnishment Rules Table (U.S.)
State / Rule ID / Effective Date/ Action
NY / GEN - DE / 01/01/2009 / A table entry is added to base the calculation of the amount of disposable earnings exempt from a writ of garnishment on a comparison between the state and federal minimum wage amounts, in compliance with New York’s requirement that “No amount shall be withheld or any week unless the disposable earnings exceeds the greater of 30 times the federal minimum wage or 30 times the state minimum hourly wage.”
(Report ID 1839131000)
NE / LEVY / 01/01/2005 / A table entry is added to update the values used in calculating the amounts exempt from Nebraska state tax levies, as per the Nebraska "Notice of Levy - Instructions for Taxpayer Exemptions" and confirmed by the Nebraska Department of Revenue as being effective January 1, 2005.
(Report ID 1842133000)
Canadian Changes
Canadian Tax Table Changes
Page / Province / Field / OldAmount / New
Amount / Effective
Date
Tax Rates, Credits and Other / Federal Basic Personal Amount / $10,100.00 / $10,375.00 / 01 Apr 2009
Tax Rates, Credits and Other / Annual Taxable Income (A) / $38,832.00 / $41,200.00 / 01 Apr 2009
Tax Rates, Credits and Other / Annual Taxable Income (A) / $77,664.00 / $82,399.00 / 01 Apr 2009
Tax Rates, Credits and Other / Federal Constant (K) / $2,718.00 / $2,884.00 / 01 Apr 2009
Tax Rates, Credits and Other / Federal Constant (K) / $5,825.00 / $6,180.00 / 01 Apr 2009
Tax Rates, Credits and Other / Federal Constant (K) / $9,613.000 / $9,968.000 / 01 Apr 2009
Provincial Rates / YT / Annual Taxable Income (A) / $38,832.00 / $41,200.00 / 01 Apr 2009
Provincial Rates / YT / Annual Taxable Income (A) / $77,664.00 / $82,399.00 / 01 Apr 2009
Provincial Rates / YT / Prov Constant (KP) / $1,025.00 / $1,088.00 / 01 Apr 2009
Provincial Rates / YT / Prov Constant (KP) / $2,392.00 / $2,538.00 / 01 Apr 2009
Provincial Rates / YT / Prov Constant (KP) / $4,059.00 / $4,205.00 / 01 Apr 2009
(Report ID 1845183000; Posted to MetaLink 3 by 27 February 2009)
Tax Update 09-B - COBOL and Store Statement Changes for Release 9
All payroll users must apply allCOBOL and store statement changes included in Tax Update 09-B.
Changed COBOL Modules
This tax update includes the modified COBOL programs and copy members listed below. Customers should incorporate the source programs into their source libraries and recompile and relink. For delivered copy members, any modules affected by the changed copy members must also be recompiled. For your installation, if you do not have a tool to determine which COBOL modules are affected by the changed copy member(s), we recommend that you recompile all modules.
Changed Store Statements
This tax update includes the modified store statements listed below. They are located in the COBOL directory. Replace your current version and rerun your store statements using DataMover.
PSPCNTAX.CBL
PSPCPCAL.CBL
PSPECALC.CBL
PSPMFLSA.CBL
PSPPYNET.CBL
PSPRPERY.CBL
PSPRPUPD.CBL
PSPSHUPD.CBL
PSPTCALC.CBL
PSPUSTAX.CBL
Changes are made to copy members:
PSCEARRY.CBL
PSCEFLSA.CBL
PSCPFLSA.CBL
PSCRFERY.CBL
PSCTMERY.CBL
PSCWKERY.CBL
Changes are made to store statements:
PSPECALC.DMS
PSPTCALC.DMS
PSPUSTAX.DMS
Report IDs
COBOL and Store Statement changes for the following Report IDs are included in this tax update.
Unless otherwise indicated by a specific posting date, Report IDs referenced in these tax update notes have not been posted to MetaLink 3.
E&G = PeopleSoft Payroll for Education & Government
USF = PeopleSoft Payroll for U.S. Federal Government
Report ID/ Description
1794019000 / Report ID 1794019000 modifies PSPRPERY.CBL, PSPRPUPD.CBL, and copy members PSCEARRY.CBL, PSCEFLSA.CBL, PSCRFERY.CBL, PSCTMERY.CBL, and PSCWKERY.CBL to correctly and successfully calculate Retropay when the Regular or Overtime earnings codes used in the upper section of the Paysheet are also separately entered in the lower Other Earnings section, and the employee receives a mid-pay period rate change invoking proration. Prior to the modifications, incorrect or negative retropay amounts were created in this scenario. In addition, in some cases the Retro Pay Calculation program abended but no detail was provided in the Retro Pay Messages. An additional indicator has been added to the programs to access the correct earnings array indexes to prevent this issue from occurring.