Peoplesoft Payroll for North America 9 and 9.1

Year End Processing for 2010: U.S., Puerto Rico, and U. S. Territories – Tax Update 10-E – October 2010PeopleSoft Payroll for North America 9 and 9.1

PeopleSoft 9 and 9.1

Payroll Tax Update 10-E

October 2010

PeopleSoft 9 and 9.1 Payroll Tax Update 10-EYear End Processing 2010: U.S., Puerto Rico, and U. S. Territories

This document provides the information you need for using PeopleSoft Payroll for North America to complete 2010 year-end payroll processing. Please feel free to contact the Oracle Global Customer Support for help with any questions you may have on the year-end programs. The telephone number is 800/477-5738.

The pages shown in this document are from Release 9.1. Although the corresponding Release 9 pages differ in their style of design and appearance, the navigation path and content of each page is identical in Release 9 to the Release 9.1 page illustrations shown in this document.

Electronic Self Service Forms W-2 and W-2c in PeopleSoft 9 and 9.1

PeopleSoft Payroll for North America (Releases 9 and 9.1) delivers functionality to enable Payroll for North America and ePay employers to use XML Publisher (XMLP) to produce Forms W-2 and W-2c in PDF format for U.S. and U.S. Territory employees. This functionality creates online as well as paper forms in PDF format, and provides employees with access to an electronic version of their W-2 and W-2c forms through Self Service. The system creates and stores data in XML format and builds the PDF file for display on demand using XMLP templates. Employees are then able to view or print the W-2 andW-2c forms.

The system also provides a Payroll Administrator view, whereby the administrator can access employees’ forms for verification or reprint purposes. The payroll administrator is able to view forms for all employees, including forms for employees who have not consented to receiving their forms electronically. To assist with the process of obtaining employee consent for online forms, new pages, workflows, notifications, and reports are provided.
To create Forms W-2 and W-2c in PDF format using XML Publisher and deploy them for employee Self Service access, you must complete the setup of the employee consent tables as described in this guide and in the ePay 9 and ePay 9.1 PeopleBooks. In addition, you must secure employee consent before you can substitute self-service viewing and printing of electronic year-end forms in place of printed forms. All employees who do not have a valid consent on file at the time you generate the year-end forms must be provided with their W-2/W-2c in paper format.
Steps related to this year-end processing functionality are included throughout this guide, usually with the reference “Using XMLP”.
Note: The XML Publisher (XMLP) option may also be used to create and print Forms W-2 and
W-2c that can be mailed to employees without providing employee access to the electronic version of the forms through Self Service. Select the self mailer XMLP format to print W-2 formson blank, perforated forms which can be mailed to employees. Preprinted forms are no longer necessary.

The Programs (which include both the software and documentation) contain proprietary information; they are provided under a license agreement containing restrictions on use and disclosure and are also protected by copyright, patent, and other intellectual and industrial property laws. Reverse engineering, disassembly, or decompilation of the Programs, except to the extent required to obtain interoperability with other independently created software or as specified by law, is prohibited.

The information contained in this document is subject to change without notice. If you find any problems in the documentation, please report them to us in writing. This document is not warranted to be error-free. Except as may be expressly permitted in your license agreement for these Programs, no part of these Programs may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose.

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, use, duplication, disclosure, modification, and adaptation of the Programs, including documentation and technical data, shall be subject to the licensing restrictions set forth in the applicable Oracle license agreement, and, to the extent applicable, the additional rights set forth in FAR 52.227-19, Commercial Computer Software--Restricted Rights (June 1987). Oracle Corporation, 500 Oracle Parkway, Redwood City, CA94065.

The Programs are not intended for use in any nuclear, aviation, mass transit, medical, or other inherently dangerous applications. It shall be the licensee's responsibility to take all appropriate fail-safe, backup, redundancy and other measures to ensure the safe use of such applications if the Programs are used for such purposes, and we disclaim liability for any damages caused by such use of the Programs.

The Programs may provide links to Web sites and access to content, products, and services from third parties. Oracle is not responsible for the availability of, or any content provided on, third-party Web sites. You bear all risks associated with the use of such content. If you choose to purchase any products or services from a third party, the relationship is directly between you and the third party. Oracle is not responsible for: (a) the quality of third-party products or services; or (b) fulfilling any of the terms of the agreement with the third party, including delivery of products or services and warranty obligations related to purchased products or services. Oracle is not responsible for any loss or damage of any sort that you may incur from dealing with any third party.

Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.

Contents

Preparing for 2010 Year-End Processing......

Setting Up Tax Reporting Tables......

Controlling W-2 Printing......

Using XMLP: Setting Up Year End Form Text......

Using XMLP: Employee Consent Status......

Data Sources for W-2 Forms......

Preparing Tax Data and Year-End Forms......

Overview of Preparing Tax Data and W-2 Forms......

Common Run Control Parameters for Processing W-2 Forms......

Updating the Retirement Plan and Third-party Sick Pay Check Boxes on Form W-2......

Reporting Nonqualified Deferred Compensation Items to Pennsylvania on Form W-2......

Listing and Resolving TAX900 Error Conditions in Your Database......

Determining W-2 Wages for Part-Year New York City Residents......

Loading and Reviewing Year-End Records......

Overview of Reconciliation and Balancing......

Reconciling Year-End Totals for U.S. and Territories......

Reconciling Year-End Totals for Puerto Rico......

Filing W-2 Data with the Social Security Administration......

Filing W-2PR Data with Puerto Rico......

Filing State W-2 Data Electronically or on Magnetic Media......

Reporting Local W-2 Data (Paper)......

Filing Local W-2 Data Electronically or on Magnetic Media......

Printing W-2 Forms......

Using XMLP: Procedures for Creating W-2 Forms......

Preparing Form 940......

Reporting Form 1099-R Data......

W-2c Processing......

Overview of W-2c Processing......

Preparing W-2c Data......

Generating the W-2c Data Audit Report......

Processing the Form W-2c Print File......

Using XMLP: Procedures for Creating W-2c Forms

Filing W-2c Data with the Social Security Administration......

Using XMLP: Administrator View of W-2 and W-2c

(E&G) Year-End 1042 Processing (U.S.)......

Overview of Year-End 1042 Processing......

Reviewing Table Setup......

Updating Employee Data......

Preparing Forms 1042-S and 1042......

Appendix A: Year-End Programs......

Appendix B: Year-End Reporting Issues and Mid-Year Payroll Conversions......

Appendix C: Using XMLP - Year End Form Text Examples

Appendix D: Expanded Dollar Amount Fields (Release 9.1 only)

Preparing for 2010 Year-End Processing

This chapter explains how to:

Set up tax reporting tables.
Control W-2 printing.
Implement employee consent when using XMLP.
Identify data sources for W-2 forms.

Setting Up Tax Reporting Tables

Follow these steps to set up tax reporting tables for tax year 2010:

CreateTax Form Definitions.

First time users only. Run the DataMover script (upd805005_04.dms for Release 9 or 505005_04.dms for Release 9.1) provided in Tax Update 10-D to add 2009 entries to the Tax Form Definitions table.
All users must follow these remaining steps:
Follow these instructions in the tax update notes document delivered with Tax Update 10-E to add Tax Form Definitions table entries for 2010.
IMPORTANT: You must complete this manual step before proceeding to use Change Assistant to apply thefollowing DataMover scripts delivered with Tax Update 10-E.
Enter the Tax Form Identification W-2 and the Effective Date of 01/01/2009 on the Tax Form Definitions search page and select Search. Add a new row in the table that duplicates all of the 2009 entries by selecting the Add (+) button in the “Effective Date” Group Box. Change the Effective Date for this newly inserted row to 01/01/2010. Save this new entry. Then follow this same procedure for Tax Form Identifications W-2c, W-2AS, W-2cAS, W-2GU, W-2cGU, W-2PR, W-2cPR, W-2VI, and W-2cVI. Save these new entries.

Update 2010 Tax Form Definitions table entries with any new earnings or deductions required for 2010 year-end processing.
To update your Tax Form Definitions table for 2010 Form 940 reporting, enter the Tax Form Identification 940 and the Effective Date of 01/01/2009 on the Tax Form Definitions 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 01/01/2010. Enter information for any earnings or deductions that should be defined as FUTA-exempt for 2010 FUTA Form 940 reporting. Save this new entry.

Update and reviewTax Form Print Parameters and Tax Form Definitions.

Run the DataMover script (upd813279_03.dms for Release 9or upd813280_03.dms for Release 9.1)provided in Tax Update 10-E. This script will add 2010 entries to the Tax Form Definitions table and Tax Form Print Parameters table for W-2 box 12CC (HIRE Act exempt wages and tips) and W-2 box 14I (Wisconsin Advance EIC payments).

Run TAX710 to print a listing of 2010 Tax Form Definitions table entries and review for accuracy.
Update the 2010 Tax Form Print Parameters table entries to print any items of data you have added to the 2010 Tax Form Definitionstable entries for any year end forms. (You must always update Tax Form Print Parameters table entries for any non-PeopleSoft delivered items you have added to the Tax Form Definitionstable.)
Run TAX712 to verify that 2010 entries have been added to the Tax Form Print Parameters table.

Update the W-2 Company table with entries for calendar year 2010.
Run the DataMover script (upd813279_06.dms for Release 9 or upd813280_06.dmsfor Release 9.1)to update the Tax Form XMLP Options Table with2010U.S. year-end form PDF templates for XMLP processing.
Update the Year End Form Options Table by manually adding a new row for Tax Year 2010 for each W-2 Reporting Company.
Review and update data on the Annual Tax Reporting Parameters page(s) for year-end reporting.

Select the tax year in the Balances for Year field.
Enter the Company ID of the company that will be transmitting W-2 data electronically in the Transmitter ID field.
Select the appropriate entries in the Organization Type and Type of Employment fields.

Review the Tax Report Type field on the Company Table-Tax Details page and update for 2010 year-end reporting if necessary.

Pages Used to Set Up Tax Reporting Tables

Page Name / Component Name / Navigation / Usage
Tax Form Definitions / TAXFORM_DEFN_TBL / Payroll for North America, U.S. Annual Processing, Define Annual Tax Reporting, Tax Form Definitions / Enter additional earnings or deductions for year-end processing.
Tax Form Definitions Report / RUNCTL_TAX710 / Payroll for North America, U.S. Annual Processing, Audit and Error Reports, Tax Form Definitions / Run TAX710 to print a listing of 2010 Tax Form Definitions table entries and review for accuracy.
Tax Form Print Parameters / TAXFORM_PRT_PARMS / Payroll for North America, U.S. Annual Processing, Define Annual Tax Reporting, Tax Form Print Parameters / Define the Tax Form Print Parameters for any user-defined box entries.
Tax Form Print Parameters Report / RUNCTL_TAX712 / Payroll for North America, U.S. Annual Processing, Audit and Error Reports, Tax Form Print Parameters / Run TAX712 to verify that 2010 entries have been added to the Tax Form Print Parameters table.
Annual Tax Reporting Parms1 / TAX_RPT_PARAM_ANN
/ Payroll for North America, U.S. Annual Processing, Define Annual Tax Reporting, Tax Reporting Parameters / Update tax reporting parameters for year-end reporting.
Annual Tax Reporting Parms2 / TAX_RPT_PARAM_ANN2 / Payroll for North America, U.S. Annual Processing, Define Annual Tax Reporting, Tax Reporting Parameters / Update Kentucky Economic Development Finance Authority Program codes and corresponding Locality Codes from Local Tax Table entries.
Tax Details / COMP_TBL8USA_SEC / Set Up HRMS, Foundation Tables, Organization, Company, Default Settings
Click the Tax Details link in the Payroll for North America group box. / Review the Tax Report Type field for each Company and update if necessary.
W-2 Company Data / W2_COMPANY / Payroll for North America, U.S. Annual Processing, Define Annual Tax Reporting, W-2 Company Data / Update W-2 Company table with entries for calendar year 2010. (Year end records will not be loaded for any Company for which the W-2 Company table has not been updated/added for 2010.)

Updating and Reviewing the Tax Form Definitions

Tax Form Definitions associates amounts stored in tax, earnings, and deduction records with the various boxes on the tax form.

Access the Tax Form Definitions page.

Tax Form Definitions

Box

This group box refers to the Box identifier printed on the tax form you’re setting up.

Taxes

PeopleSoft provides much of the information that defines the W-2 forms. We strongly advise you not to change the information in the Taxes group box unless you have some compelling reason to do so.

Jurisdiction Type / Select Federal, State, or Local. State or Locality further specifies the jurisdiction.
Tax Class / The value relates the box to a specific tax balance record.
Amount Type / Indicates whether the amount in the box is Gross (taxable gross), Minus Tax, NL Gross (no limit gross),or Tax.

Deductions and Earnings

After updating the table entries with new rows for the current tax year, you can view the values entered for the various boxes on W-2 forms and add any additional earnings or deductions that you need to report on the form. You are likely to use this method to define amounts that should appear in box 12 and box 14 of the W-2 form.

Note: To update the Tax Form Definitions table with a new earnings or deduction, the Effective Date of the Earnings Table or Deductions Table entry must match the Effective Date of the Tax Form Definitions table entry you are updating. For example, if you are updating a Tax Form Definitions table entry dated 01/01/2010, then the Effective Date on the Earnings Table or Deduction Table entry of the earnings or deduction being added to the Tax Form Definitions table entry must also be 01/01/2010. If necessary, in Correction mode, temporarily change the Effective Date of the Earnings Table or Deduction Table entry to match the Effective Date of the Tax Form Definitions table entry, update the Tax Form Definitions table entry with the earnings or deduction and save the change, and then, again in Correction mode, return the Effective Date of the Earnings Table or Deduction Table entry to its original date.

Printing the Tax Form Definitions Table

Run TAX710 to print this table and review it for accuracy.

Defining Parameters for Yearly Tax Reporting

Access the Annual Tax Reporting Parms 1 page.

Annual Tax Reporting Parms 1

Balances for Year / The value you enter here defines the reporting period.
Transmitter ID / Enter the Company ID of the company transmitting year-end forms for tax reporting. This is used in a multi-company environment when a single company acts as the transmitter for all companies in the organization.
Organization Type / Select Government or Other.
Type of Employment / Select Agriculture, Form 944, Household, Medicare Qualified Government Employee, Military, Railroad,or Regular (All Others).
Recording Code / Select ASCII or EBCDIC.
Alignment Pages / Determines how many pages filled with alignment characters will print prior to the first live form.
W-2 Form ID / The identifier for a form defined on the Tax Form Print Parameters page. Check and update this value before each printing run. Note: To create Form W-2 in PDF format, the W-2 Form ID must be XMLP.
Employees/Page (employees per page) / Indicate whether the system should:

Fill each page with copies of the same W-2 form for an individual (enter 1).

Print a new W-2 on each form on the page (For example, enter 4 if you’re using forms that have four W-2s per page). This option is useful for printing employer copies (Copy D) of laser W-2s for future reference.

If you’re using a laser printer, you will probably perform multiple print runs: some for employee copies (with Employees/Page set to 1), and others for state, locality, or employer copies (with Employees/Page equal to the number of forms per page).
Form W-2PR only: If you’re using an impact printer and forms with built-in carbons, set Employees/Page equal to the number of forms per page: the carbon copies will provide you with all the copies you need.
Leave this field blank if W-2 Form ID is XMLP.

Note: Be sure to set Employees per Page to 1 when printing the pressure-seal self-mailer Form W-2, since all four copies of Form W-2 on the page will be mailed as a packet to one employee.