June 14, 2010 PeopleSoft Payroll Tax Update 10-C – Release 9
PeopleSoft Payroll for North AmericaTax Update 10-CTax Update Notes - Release 9
PeopleSoft Payroll’s Tax Update 10-C includes updates to U.S. and Canadian tax tables, updates to U.S. 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:
Resolution_804998.xls / List of object changes delivered with Tax Update 10-C
UPD804998_CODECHANGES.rtf / PS Print Project Report for Release 9
AZ SWT-10C.doc / Arizona Withholding Tax Changes Effective July 1, 2010
HIRE Act-10C.doc / 2010 HIRE Act – Employer Payroll Tax Exemption
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 10-C, 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 MyOracle Support.
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Updating Your Tables
Tax Update 10-C includes the following files for updating the tables in your PeopleSoft Payroll system.
File / Contentsupd804998_01.dat
upd804998_01.dms
/ U.S. tax table updates
upd804998_02.dat
upd804998_02.dms
/ Canadian tax table updates
upd804998_03.dms
/ Database stamp
(There is no .dat file associated with this .dms file.)
upd804998_04.dat
upd804998_04.dms
/ Garnishment table updates
upd804998_05.dat
upd804998_05.dms
/ Pay message
upd804998_msg.dat
upd804998_msg_i.dms
/ Message catalog
Both U.S. and Canadian customers should apply the garnishment, database stamp, pay message, 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 MyOracle Support.
Special Notes – U.S.
Hiring Incentive to Restore Employment (HIRE) Act – Employer Payroll Tax Exemption
The Hiring Incentives to Restore Employment (HIRE) Act, which became law on March 18, 2010, includes a provision exempting employers from paying the 6.2 % employer share of Social Security (OASDI) tax on wages paid after March 18, 2010, to qualified employees hired after February 3, 2010 and before January 1, 2011. Employers must still withhold the employee 6.2 % share of Social Security taxes from wages, and both the employer and employee shares of Medicare taxes continue to apply to the wages paid to these employees. The product modifications delivered in Tax Update 10-C to support the employer payroll tax exemption provision of the HIRE Act are described in the separate document HIRE Act-10C.doc.
(Report ID 1968137000)
Arizona Withholding Tax Changes effective July 1, 2010
Arizona Senate Bill 1185 enacted in 2009 required the Arizona Department of Revenue to implement a new formula for the calculation of Arizona tax to be withheld from employee wages beginning with wages paid after June 30, 2010. To comply with the requirements of Arizona S.B. 1185, the Arizona Department of Revenue has published a new Arizona withholding calculation method which changes Arizona withholding tax from being calculated as a percentage of an employee’s U.S. federal withholding tax to being calculated as a percentage of an employee’s gross taxable wages. The product modifications delivered in Tax Update 10-C to support the new Arizona withholding tax calculation are described in the separate document
AZ SWT-10C.doc.
(Report ID 1975601000)
Payroll Purchase Program for Paper U.S. Savings Bonds to be Discontinued
The U.S. Department of the Treasury has announced that it will stop issuing paper U.S. savings bonds through the traditional payroll savings bond purchase program as of January 1, 2011 (as of October 1, 2010 for U.S. Federal Government employees).
Product modifications will be delivered in Tax Update 10-E which will inactivate the current U.S. savings bond processing functionality. More information about the modifications to be delivered in Tax Update 10-E will be included in the Tax Update 10-D documentation.
Employers are urged to begin shutting down their existing bond purchase programs and refunding any remaining funds to employees as soon as possible, in advance of the bond purchase program ending dates of October 1, 2010 (U.S. Federal Government employees)and January 1, 2011 (all other employees).
Detailed information is available on the Federal Reserve Bank Services website:
Included is: “Checklist: Discontinuing Your Paper Payroll Savings Plan”
Employees will still have the opportunity to purchase savings bonds by authorizing a deduction/net-pay allocation via automated bank-transfer through the TreasuryDirect program. More information is available on the TreasuryDirect website:
Ordering W-2 Forms for Tax Year 2010
In preparing to order W-2 forms for tax year 2010, employers should consider the following issues:
Employers who will be reporting W-2 data to any state where their state Employer Identification Number (EIN) is greater than 13 characters in length should not order Form ID LSR02A (the “four-corner” format which prints four W-2s per page at the four corners of the page). W-2 Form ID LSR02A does not provide sufficient space in box 15 to print State EINs that exceed 13 characters.
States that are currently known to issue Employer Identification Numbers that exceed 13 characters include Kansas, Utah, and Wisconsin.
Employers who are considering ordering W-2 Form ID LSR02A should first review all of their state EINs to confirm that none of them exceed 13 characters in length.
* * * * * * * * * * * * * * * * * * * * * * * * * *
Employers who report W-2 data to New Jersey should be aware that, because of the unusually large number of data items that New Jersey requires to be separately printed on Form W-2, there is a very high incidence of data overflow that results in the printing of a second New Jersey W-2 form for each employee with New Jersey reportable data. With the new requirement in tax year 2009 to print the amount deducted for New Jersey Family Leave Insurance (in addition to the amounts deducted for disability insurance and the various components of the New Jersey unemployment insurance program), the problem of data overflow for New Jersey W-2 reporting affected even more employees.
To avoid running short of W-2 forms, in determining the quantity of forms to order, it is suggested that employers anticipate that two forms will be needed for each instance of an employee with W-2 data to be reported to New Jersey.
New Direct Deposit File Run Control Options
Tax Update 10-C adds two new checkboxes to the Create Direct Deposit File run control page to provide additional user options for batching domestic (PPD) vs. international (IAT) transactions, and for including or excluding debit offset records in the direct deposit files created by the DDP001.SQR program:
- Create Separate Files for IAT
Select this checkbox to report domestic (PPD) and international (IAT) transactions in separatedirect deposit files. Some banks cannot process both domestic and international transactions together in a single file. When this checkbox is selected, the program DDP001.SQR will create separate direct deposit files for domestic vs. international transactions.
- Exclude Debit Offset Records
Select this checkbox to exclude debit offset records from the direct deposit files created by DDP001.SQR. Some banks require that employers submit “unbalanced” files, meaning files that contain only the credit transactions which are depositing funds to their employees’ accounts, without any corresponding offsetting debit transaction(s) against the employers’ account(s). Selecting this checkbox will permit employers to create files that contain no debit offset transactions.
Create Direct Deposit File run control page BEFORE the changes delivered in Tax Update 10-C:
Create Direct Deposit File run control page AFTER the changes delivered in Tax Update 10-C:
For additional information on the changes to program DDP001.SQR delivered in Tax Update 10-C, see the entry for DDP001.SQR in the later section of this document U.S. SQRs Delivered in Tax Update 10-C/Other SQRs.
(Report ID 1941787000)
State Quarterly Wage Reporting – California
Beginning with data reported for the quarter ending September 30, 2010, California will accept only the following two types of magnetic media for the submission of California DE 6 Quarterly Wage and Withholding
Report information:
- CD-R (Compact Disc-Recordable)
- 3 1/2-inch diskette
California will no longer accept tape or cartridge submissions.
The run control page for the California quarterly wage reporting program (TAX810CA.SQR) currently offers only these four standard reporting medium options: Cartridge, Diskette, Electronic*, and Tape.
CD-R is not currently an available option for Reporting Medium. However, since the CD-R reporting format is identical to the Tape reporting format, employers can select Reporting Medium = Tape to create a file which can be submitted to California on a CD-R.
No modifications to TAX810CA.SQR or the run control page are delivered in Tax Update 10-C.
*Note: “Electronic” is not currently a supported Reporting Medium for California quarterly wage reporting. If “Electronic” is selected as the Reporting Medium, the following warning message is generated: “Electronic is not a valid reporting medium for this state.” (2000,682)
Changes to State Quarterly Wage Reporting Run Control Pages
As illustrated on the following pages, Tax Update 10-C delivers changes to the State Quarterly Wage Reporting run control pages for the states listed below. For information on the changes made to each of the quarterly wage reporting programs, see the later section of this document Quarterly Reporting SQRs under U.S. SQRs Delivered in Tax Update 10-C.
Hawaii / The Hawaii run control page is removed.The Hawaii quarterly wage reporting program (TAX810HI.SQR) is now executed from the “Others” tab on the run control page.
Louisiana / The Louisiana run control page is removed.
The Louisiana quarterly wage reporting program (TAX860LA.SQR) is now executed from the “Others” tab on the run control page.
Mississippi / The Mississippi run control page is removed.
The Mississippi quarterly wage reporting program (TAX810MS.SQR) is now executed from the “Others” tab on the run control page.
Nevada / The fields “Reporting Medium” and “Diskette Type” are removed from the Nevada run control page.
North Carolina / The fields “Reporting Medium” and “Diskette Type” are removed from the North Carolina run control page.
North Dakota / The fields “Reporting Medium” and “Diskette Type” are removed from the North Dakota run control page.
Oklahoma / A new Oklahoma run control page is delivered.
The Oklahoma quarterly wage reporting program (TAX810OK.SQR) is no longer executed from the “Others” tab on the run control page.
(Report ID 1965993000)
Oregon / The fields “Reporting Medium” and “Diskette Type” are removed from the Oregon run control page.
Pennsylvania / The Pennsylvania run control page is removed.
The Pennsylvania quarterly wage reporting program (TAX810PA.SQR) is now executed from the “Others” tab on the run control page.
Texas / The fields “Reporting Medium” and “Diskette Type” are removed from the Texas run control page.
(Report ID 1917714000 except as noted above for Oklahoma.)
State Quarterly Wage Reporting – Hawaii
Hawaii Run control page BEFORE Tax Update 10-C:
Tax Update 10-C removes the Hawaii run control page. The Hawaii quarterly wage reporting program (TAX810HI.SQR) will now be executed from the “Others” tab on the run control page:
State Quarterly Wage Reporting – Louisiana
Louisiana run control page BEFORE Tax Update 10-C:
Tax Update 10-C removes the Louisiana run control page. The Louisiana quarterly wage reporting program (TAX860LA.SQR) will now be executed from the “Others” tab on the run control page:
State Quarterly Wage Reporting – Mississippi
Mississippi run control page BEFORE Tax Update 10-C:
Tax Update 10-C removes the Mississippi run control page. The Mississippi quarterly wage reporting program (TAX810MS.SQR) will now be executed from the “Others” tab on the run control page:
State Quarterly Wage Reporting – Nevada
Nevada run control page BEFORE the changes delivered in Tax Update 10-C:
Nevada run control page AFTER the changes delivered in Tax Update 10-C:
State Quarterly Wage Reporting – North Carolina
North Carolina run control page BEFORE the changes delivered in Tax Update 10-C:
North Carolina run control page AFTER the changes delivered in Tax Update 10-C:
State Quarterly Wage Reporting – North Dakota
North Dakota run control page BEFORE the changes delivered in Tax Update 10-C:
North Dakota run control page AFTER the changes delivered in Tax Update 10-C:
State Quarterly Wage Reporting – Oklahoma
BEFORE Tax Update 10-C, the Oklahoma quarterly wage reporting program (TAX810OK.SQR) was executed from the “Others” tab on the run control page:
Tax Update 10-C delivers a new run control page for specifically for Oklahoma:
State Quarterly Wage Reporting – Oregon
Oregon run control page BEFORE the changes delivered in Tax Update 10-C:
Oregon run control page AFTER the changes delivered in Tax Update 10-C:
State Quarterly Wage Reporting – Pennsylvania
Pennsylvania run control page BEFORE Tax Update 10-C: