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 2010 PeopleSoft 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 and W-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 forms on blank, perforated forms which can be mailed to employees. Preprinted forms are no longer necessary.

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Contents

Preparing for 2010 Year-End Processing 4

Setting Up Tax Reporting Tables 4

Controlling W-2 Printing 12

Using XMLP: Setting Up Year End Form Text 21

Using XMLP: Employee Consent Status 23

Data Sources for W-2 Forms 30

Preparing Tax Data and Year-End Forms 40

Overview of Preparing Tax Data and W-2 Forms 41

Common Run Control Parameters for Processing W-2 Forms 42

Updating the Retirement Plan and Third-party Sick Pay Check Boxes on Form W-2 43

Reporting Nonqualified Deferred Compensation Items to Pennsylvania on Form W-2 46

Listing and Resolving TAX900 Error Conditions in Your Database 47

Determining W-2 Wages for Part-Year New York City Residents 48

Loading and Reviewing Year-End Records 49

Overview of Reconciliation and Balancing 58

Reconciling Year-End Totals for U.S. and Territories 59

Reconciling Year-End Totals for Puerto Rico 61

Filing W-2 Data with the Social Security Administration 63

Filing W-2PR Data with Puerto Rico 66

Filing State W-2 Data Electronically or on Magnetic Media 68

Reporting Local W-2 Data (Paper) 72

Filing Local W-2 Data Electronically or on Magnetic Media 73

Printing W-2 Forms 78

Using XMLP: Procedures for Creating W-2 Forms 83

Preparing Form 940 91

Reporting Form 1099-R Data 93

W-2c Processing 102

Overview of W-2c Processing 102

Preparing W-2c Data 103

Generating the W-2c Data Audit Report 108

Processing the Form W-2c Print File 110

Using XMLP: Procedures for Creating W-2c Forms 113

Filing W-2c Data with the Social Security Administration 118

Using XMLP: Administrator View of W-2 and W-2c 122

(E&G) Year-End 1042 Processing (U.S.) 124

Overview of Year-End 1042 Processing 124

Reviewing Table Setup 125

Updating Employee Data 127

Preparing Forms 1042-S and 1042 133

Appendix A: Year-End Programs 138

Appendix B: Year-End Reporting Issues and Mid-Year Payroll Conversions 145

Appendix C: Using XMLP - Year End Form Text Examples 147

Appendix D: Expanded Dollar Amount Fields (Release 9.1 only) 149

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:

Create Tax Form Definitions.

a. 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:

b. 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 the following 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.

c. Update 2010 Tax Form Definitions table entries with any new earnings or deductions required for 2010 year-end processing.

d. 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 review Tax Form Print Parameters and Tax Form Definitions.

a. Run the DataMover script (upd813279_03.dms for Release 9 or 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).

b. Run TAX710 to print a listing of 2010 Tax Form Definitions table entries and review for accuracy.

c. Update the 2010 Tax Form Print Parameters table entries to print any items of data you have added to the 2010 Tax Form Definitions table 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 Definitions table.)

d. 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.dms for Release 9.1) to update the Tax Form XMLP Options Table with 2010 U.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 Parms 1 / 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 Parms 2 / 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.