March 28, 2011 PeopleSoft Payroll for North America Tax Update 11-B – Release 9
PeopleSoft Payroll for North AmericaTax Update 11-BTax Update Notes - Release 9
PeopleSoft Payroll for North America Tax Update 11-B includes updates to U.S. tax and garnishment 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:
UPD860365_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 document 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 11-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 My Oracle Support.
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Updating Your Tables
Tax Update 11-B includes the following files for updating the tables in your PeopleSoft system.
File / Contentsupd860365_01.dat
upd860365_01.dms
/ U.S. tax table updates
upd860365_02.dat
upd860365_02.dms
/ Garnishment table updates
upd860365_03.dat
upd860365_03.dms
(U.S. only)
/ Tax Form Print Parameters Table (for Puerto Rico)
The Control Number field on the table entries for Forms W-2PR and
W-2PRL is expanded from 8 to 9 positions.
(Report ID 11648851)
upd860365_04.dms / Delete obsolete Pennsylvania entries from Local Tax Table and
Local Tax Reciprocity Table
(There is no .dat file associated with this .dms file.)
(Report ID 11819226)
upd860365_05.dms
/ Database stamp
(There is no .dat file associated with this .dms file.)
upd860365_06.dat
upd860365_06.dms
/ Redeliver complete contents of PS_CNTRY_1042_TBL
Tax Update 11-B redelivers PS_CNTRY_1042_TBL to include the new field HP_STATS_LOC_CD_NW, as well as a complete updated set of Country codes, to ensure that the table structure and data match for HR and Payroll customers. For customers who are current on HR bundles, the new field HP_STATS_LOC_CD_NW will already exist in the database, but all customers should run this script to ensure that all table entries contain the most current content.
(Report ID 11574597)
upd860365_msg.dat
upd860365_msg_i.dms
/ Message catalog
Both U.S. and Canadian customers should apply the garnishment, database stamp, PS_CNTRY_1042_TBL, 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 My Oracle Support.
Special Notes – U.S.
California Quarterly Reporting
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 California. Beginning with file submissions for the quarter ending March 31, 2011, California will accept only electronic filing.
For details on the new California quarterly reporting requirements, see the description of modifications made to programs TAX810CA.SQR and T810CAHP.SQR in the later section of this document listing the U.S. SQRs Delivered with Tax Update 11-B.
Run Control page BEFORE Tax Update 11-B changes:
Run Control page AFTER Tax Update 11-B changes:
(Report ID 11630795)
Deduction Table –Tax Effect Page
The Deduction Table – Tax Effect Page is modified to make the Taxable Gross Comp ID field accessible when Deduction Classification = Nontaxable Benefit. Previously, the Taxable Gross Comp ID field was gray-out and not accessible when Deduction Classification = Nontaxable Benefit.
Deduction Table – Tax Effect page BEFORE Tax Update 11-B change:
Deduction Table – Tax Effect page AFTER Tax Update 11-B change:
(Report ID 11648074)
Rhode Island State Tax Data
Effective January 1, 2011, Rhode Island no longer requires that an employee claim the same tax marital status and number of withholding allowances for both U.S. Federal and Rhode Island withholding tax purposes.
Tax Update 11-B modifies PeopleCode to comply with this change so that the error message which previously prevented saving an Employee Tax Data record when the employee’s U.S. Federal and Rhode Island tax marital status and withholding allowances data did not match (shown on the following page) is no longer generated.
PeopleCode is also modified to permit an employee to save a Federal Tax Data change in employee self-service which results in the Federal Tax Data tax marital status and withholding allowances not matching the existing tax marital status and withholding allowances values in Rhode Island State Tax Data.
BEFORE Tax Update 11-B, an error message prevented saving Employee Tax Data if the Rhode Island State Tax Data values for Tax Marital Status and Withholding Allowances did not match the Federal Tax Data values.
AFTER Tax Update 11-B, the Employee Tax Data shown below can be successfully saved even though the Rhode Island State Tax Data values for Tax Marital Status and Withholding Allowances do not match the Federal Tax Data values. The error message shown on the previous page is no longer generated.
(Report ID 11734368)
Inactive Pennsylvania Table Entries Deleted from Local Tax Table
and Local Tax Reciprocity Table
Tax Update 11-B deletes inactive Local Tax Table entries (and related inactive Local Tax Reciprocity Table entries) for Pennsylvania which have not been maintained or supported with tax rate changes since Release 7. Support for Release 7 was discontinued in 2002, and the final tax update delivered for Release 7 which included tax rate changes for these table entries was Tax Update 02-D in June 2002. No current PeopleSoft Payroll for North America customers should have Employee Local Tax Data records which use these inactive table entries. The deleted Locality codes are highlighted in red below and are in a format consisting of six characters with either a number or the letter “P” in the first position. These inactive table entries are being deleted at this time to prepare for the delivery of a new set of Locality codes for Pennsylvania in Tax Update 11-C which will be used in the implementation of Pennsylvania Act 32.
The current valid Locality code format for Pennsylvania localities (highlighted in green below, with either the letter “I” or “O” in the first position) was first introduced in Release 7.5 in 1998, and will continue to be supported during the transition to Act 32 processing.
(Report ID 11819226)
U.S. Changes
Federal / State Tax Table
State / Effective Date of Table Entry/ Table Update Description
IL / 01/01/2011 / The table entry effective-dated 01/01/2011 which was delivered with Tax Update 10-F
is updated to include the January 1, 2011, increase in the Illinois withholding tax rate from 3.0 % to 5.0 %.
http://tax.illinois.gov/Publications/Bulletins/2011/FY-2011-08.pdf
(Report ID 11663560)
MA / 01/02/2011 / A new table entry effective-dated 01/02/2011 includes the January 1, 2011, increase in the Massachusetts Unemployment Health Insurance employer tax rate from 0.24 % to 0.36 %. The table entry is dated 01/02/2011 to preserve the value in the existing table entry dated 01/01/2011 (from which the earlier 0.24 % tax rate had already been used in the calculation of 2011 payrolls) for audit history purposes.
http://www.mass.gov/Elwd/docs/dua/quest/2011_ui_rate_letter.pdf
(Report ID 11823552)
OR / 01/02/2011 / The table entry effective-dated 01/02/2011 which was delivered with Tax Update 10-F
is updated to include Oregon 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 had already been used in the calculation of 2011 payrolls) for audit history purposes.
Note: COBOL program modifications required to implement the 2011 Oregon withholding tax changes are also delivered in this tax update. See the entry for Report ID 11645931 in the later “COBOL and Store Statement Changes” section of this document for detailed information.
http://www.oregon.gov/DOR/forms/business/withholding_formulas_150-206-436_2011.pdf
(Report ID 11645931; posted to My Oracle Support by 08 February 2011.)
PR / 01/01/2011 / A new table entry dated 01/01/2011 is added to deliver Puerto Rico withholding tax changes effective January 1, 2011, as published (in Spanish only) by the Puerto Rico Departamento de Hacienda in Boletín Informativo de Rentas Internas Núm. 10-15, dated December 21, 2010.
Update Employee Tax Data for Employees Claiming Head of Household
Puerto Rico has indicated that effective January 1, 2011, “Head of Household” is no longer a valid Personal Exemption status for purposes of calculating Puerto Rico withholding tax, and that beginning January 1, 2011, the same annual Personal Exemption amount of $3,500 used for “Individual Taxpayer” should also be used for employees formerly claiming the “Head of Household” status.
To ensure that Puerto Rico withholding tax is correctly calculated for these employees, for any employee whose SWT Marital/Tax Status = H (Head of Household) prior to January 1, 2011, insert a new employee State Tax Data entry with Effective Date = 01/01/2011 and set SWT Marital/Tax Status = S (Single). Failure to change SWT Marital/Tax Status from H (Head of Household) to S (Single) will cause two errors to occur in the employee’s Puerto Rico withholding tax calculation:
- An incorrect Personal Exemption amount of $7,000 will be used, instead of the correct Personal Exemption amount of $3,500; and
- The number of allowances will be incorrectly reduced by 1.
Automatic Method vs. Optional Method
On Puerto Rico Form 499 R-4.1 Rev. 02.08 (“Withholding Exemption Certificate”), an employee may choose either the Automatic Method or Optional Method for determining the Allowance Based on Deductions used in the Puerto Rico withholding tax calculation.
The State Tax Table update for Puerto Rico delivered in this tax update supports 2011 Puerto Rico withholding tax calculations for the Automatic Method only. Any additional changes necessary to support 2011 Puerto Rico withholding tax calculations using the Optional Method cannot be determined until Puerto Rico has issued (1) a new revision of Form 499 R-4.1 that reflects the 2011 withholding tax changes, and (2) complete information on the 2011 withholding tax changes in a revision of the Instructions to Employers publication. To ensure more accurate withholding in the interim period, employers may wish to advise employees currently choosing the Optional Method to instead select the Automatic Method.
(Report ID 11648236)
VI / 01/01/2011 / A new table entry dated 01/01/2011 is delivered for the increase in the U.S. Virgin Islands unemployment insurance taxable wage base from $22,200 to $22,600 for tax year 2011.
(Report ID 11819787)
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
NJ / 08/19/2010 / A new table entry is added to indicate that both employee (Taxable Gross Component ID “HSA”) and employer (Taxable Gross Component ID “HSR”) contributions to employee Health Savings Accounts are now included in the definition of wages subject to New Jersey state income tax. The new table entry dated 08/19/2010 includes the following two Adjustment to Base Gross entries:
Taxable Gross = WithholdingTaxable Gross = Withholding
Taxable Gross Component ID = HSATaxable Gross Component ID = HSR
Tax Gross Effect = Adds ToTax Gross Effect = Adds To
Withholding Follows Fed Rules = YesWithholding Follows Fed Rules = Yes
The table entry is effective-dated 08/19/2010 based on the date this information was published in New Jersey State Tax News Volume 39, Number 2 (Summer 2010).
(Report ID 11796357)
WI / 01/01/2011 / A new table entry is added to indicate that effective January 1, 2011, both employee (Taxable Gross Component ID “HSA”) and employer (Taxable Gross Component ID “HSR”) contributions to employee Health Savings Accounts are no longer included in the definition of wages subject to Wisconsin state income tax. The new table entry dated 01/01/2011 no longer includes the following two Adjustment to Base Gross entries which were part of the previous table entry dated 01/01/2004:
Taxable Gross = WithholdingTaxable Gross = Withholding
Taxable Gross Component ID = HSATaxable Gross Component ID = HSR
Tax Gross Effect = Adds ToTax Gross Effect = Adds To
Withholding Follows Fed Rules = YesWithholding Follows Fed Rules = Yes
http://www.revenue.wi.gov/taxpro/news/110222.html
(Report ID 11691949)
Local Tax Table
State / Locality / Locality Name / OLD Rate/Amt / NEW Rate/Amt / Effective DateOH / 02204 / Antwerp
(Report ID 11846044) / The Effective Date on the table entry delivered in Tax Update 11-A is corrected to 01/01/2011. / Taxing Entity Code = 031
W2 Reporting Agency = RITA
(as delivered in
Tax Update 11-A)
/ 01/01/2011
84196 / West Salem Village
(Report ID 11813420) / 0.007500 / Resident
0.007500 / Nonresident / 0.010000 / Resident
0.010000 / Nonresident
/ 10/01/2010
8607 / Stryker Local S.D.
(Report ID 11790762) / W2 Print Name = BLANK
Taxing Entity Code = BLANK / W2 Print Name = 8607
Taxing Entity Code = 8607 / Correcting entry
WV / 62140 / Parkersburg
(Report ID 11780607)
/ New entry / Amount per period (annualization based on $2.50 per week specified in city ordinance)
130.00 / Resident
130.00 / Nonresident
/ 03/01/2011
Local Tax Reciprocity Table
A new table entry is delivered for residents of Ontario, Ohio, working in other Ohio localities, per information obtained by telephone from the Ontario, Ohio, income tax administrator (419) 529-3045.
Residence
/
Locality of Employment /
Effective Date /
Credit Reduction Percent
/
Credit
Limit
Rate
/
Action: New table entry
Reciprocity Rule:
OH
58520
Ontario
/ OH
$DFLT
/ 01/01/2010 / 100.00
/ 0.005000 / Withhold 100% of calculated work locality withholding on work locality wages. Then calculate residence locality withholding by the applicable method (depending on whether residence locality tax rate exceeds work locality tax rate).
(Report ID 11650562)
Local Tax Table – Pennsylvania Local Earned Income Tax
Tax Update 11-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 01/01/2011.
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:
PA11BEIT.docWord document
PA11BEIT.xlsExcel spreadsheet