June 15, 2009 PeopleSoft Payroll Tax Update 09-C – Release 9
PeopleSoft Payroll for North AmericaTax Update 09-CTax Update Notes - Release 9
PeopleSoft Payroll’s Tax Update 09-C includes updates to U.S. and Canadian tax tables, COBOL program and store statement changes, and re-delivered SQRs for U.S. 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_766655.xls / List of object changes delivered with Tax Update 09-C
UPD766655_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-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 MetaLink 3.
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Updating Your Tables
Tax Update 09-C includes the following files for updating the tables in your PeopleSoft Payroll system.
File / Contentsupd766655_01.dat
upd766655_01.dms
/ U.S. tax table updates
upd766655_02.dat
upd766655_02.dms
/ Canadian tax table updates
upd766655_03.dms / Database stamp
(There is no .dat file associated with this .dms file.)
upd766655_msg.dat
upd766655_msg_i.dms
/ Message catalog
Both U.S. and Canadian customers should apply the database stamp 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 – North America
Potential Problem - Deleting Orphan File Attachments
A potential problem has been identified in Release 9.0 for Payroll for North America customers. The PeopleTools Utility delivered for deleting orphan file attachments will wipe out all file attachments used for generating W-2/W-2C and/or T4/T4A year-end forms.
The following information is from Enterprise PeopleTools 8.49 PeopleBook: System and Server Administration > Using PeopleTools Utilities:
Remove Orphan File Attachments from Database
An accumulation of file attachments can consume a significant chunk of disk space. On a regular basis, you should make sure that lingering, or orphaned, file attachments are deleted from the database. Click the Delete Orphan File Attachments button to complete this task. This button invokes the CleanAttachments PeopleCode function.
Navigation to this Utility is via PeopleTools > Utilities > Administration > Copy File Attachments
What do you need to do?
Do NOT use the Delete Orphan File Attachments pushbutton on the Copy File Archive page.
Development is working on providing guidance for those customers who have the need to use this functionality. We are tracking this issue under Bug 1868095000.
This information has also been posted as an announcement on MetaLink 3 under Document ID 815937.1.
Special Notes – U.S.
New York Quarterly Wage Reporting
The run control page for New York quarterly wage reporting is modified as shown below in conjunction with changes made to TAX810NY.SQR to comply with new quarterly wage reporting requirements mandated by New York. For detailed information on the new reporting requirements, see the discussion of the changes made to TAX810NY.SQR in the later section of this document.
BEFORE Tax Update 09-C change:
AFTER Tax Update 09-C change:
The Reporting Medium and Diskette Type fields are removed.
(Report ID 1844272000)
Arkansas Quarterly Wage Reporting
The run control page for Arkansas quarterly wage reporting is modified as shown below in conjunction with changes made to TAX810AR.SQR to comply with new quarterly wage reporting requirements mandated by Arkansas. For detailed information on the new reporting requirements, see the discussion of the changes made to TAX810AR.SQR in the later section of this document.
BEFORE Tax Update 09-C changes:
AFTER Tax Update 09-C changes:
1. The Reporting Medium and Diskette Type fields are removed.
2. The new field Out of State Excess Wages Amt is added in a new grid for entering this dollar amount for each Company.
(Report ID 1864731000)
New Form W-4 Prohibits Flat Amount or Percentage Withholding
Form W-4 as issued by the Internal Revenue Service for 2009 includes the following new wording in the instructions to employees:
http://www.irs.gov/pub/irs-pdf/fw4.pdf
“For regular wages, withholding must be based on allowances you claimed and may not be a flat amount or percentage of wages.”
To comply with this IRS requirement that employees may not request that their U.S. federal withholding tax be either a flat amount or a percentage of wages, the new warning message shown below is generated on the Federal Tax Data page if the user attempts to save the page when Special Withholding Tax Status = “Maintain Taxable Gross” and a value greater than zero is entered in either the Amount or Percentage fields under FWT Additional Amount.
The new warning message pictured above will be generated if the user attempts to save either of the data entry combinations shown below:
“Maintain Taxable Gross”
/
AND
/
FWT Additional Amount fields
Amount > $ 0.00
and / or
Percentage > 00.000
Note: This prohibition against claiming withholding as a flat amount or a flat percentage of wages is already currently enforced when employees are updating their Federal Tax Data using the employee self-service function.
Also in compliance with the new IRS instructions on Form W-4, the text of the label for one of the Special Withholding Tax Status selections is modified as shown below.
BEFORE Tax Update 09-C change:
Previous wording: “Maintain Taxable Gross; FWT zero unless specified in ‘Additional Withholding’ below.
AFTER Tax Update 09-C changes:
New wording: “Maintain Taxable Gross”
(Report ID 1856158000)
Arizona Withholding Tax Changes effective May 1, 2009
Arizona Senate Bill 1185 (signed into law on April 9, 2009) amends the amounts required to be withheld for Arizona state withholding tax as a percentage of an employee’s federal withholding tax. Information concerning this legislation is available on the website of the Arizona Department of Revenue.
http://www.azdor.gov/Newsroom/Releases/SB-1185-Withholding-Q-A.pdf
Arizona state tax is withheld as a percent of an employee’s federal income tax withholding. Effective May 1, 2009, the Arizona state tax withholding rates are increased as follows:
Old Rate (Percentage of FWT) New Rate (Percentage of FWT)
10% 11.5 %
19 % 21.9 %
23 % 26.5 %
25 % 28.8 %
31 % 35.7 %
37 % 42.6 %
Also effective May 1, 2009, the default percentage to be used to calculate Arizona withholding as a percentage of federal income tax withholding for an employee who does not complete Arizona Form A-4 is increased from 19 % to 21.9 %. (Employees with annual compensation less than $15,000 may use the lower 11.5 % rate.)
To implement the required May 1, 2009, Arizona withholding tax changes, this tax update delivers object changes and an updated version of the program TAX516AZ.SQR. (Note: These changes were also previously delivered in Report ID 1869753000 posted to MetaLink 3 by 27 April 2009.)
TAX516AZ.SQR is a special program designed to assist employers in implementing Arizona state withholding tax rate changes. The version of TAX516AZ.SQR delivered with this tax update includes modifications to update State Tax Data records for employees subject to Arizona withholding tax with new rates required by the Arizona Department of Revenue effective May 1, 2009.
TAX516AZ.SQR inserts new effective-dated Employee Tax Data records (or updates existing records) with the required new Arizona withholding percentages for employees subject to Arizona withholding tax. TAX516AZ.SQR will update Employee Tax Data records for employees who
1. Are currently subject to Arizona state withholding tax (i.e., have an active AZ row in EE State Tax Data); and
2. Are not terminated (PS_JOB.ACTION = TER) prior to the TAX516AZ.SQR run date; and
3. Have an Arizona withholding percentage rate that was valid prior to the May 1, 2009 Arizona withholding percentage rate changes.
TAX516AZ.SQR may be found under the Periodic Payroll Events USA or Periodic Payroll Events USF menus under Mass Employee Tax Data Updates.
The program can be run in audit mode or update mode.
The program executes using the current system date for the "as of" date. For all eligible employees who have valid Employee Tax Data records with an effective-date less than the current system date, TAX516AZ.SQR will create and insert a new row of Employee Tax Data records with an effective date of the current system date. This new row of Employee Tax Data records will copy-forward all of the existing information from the employee's most recent Employee Tax Data record with an effective-date less than the current system date (FED_TAX_DATA and any applicable STATE_TAX_DATA and LOCAL_TAX_DATA records).
If the employee has an Employee Tax Data record with an effective-date equal to the current system date, TAX516AZ.SQR will update the PERCENT_OF_FWT field with the new Arizona withholding percentages.
If the employee has future-dated records, the PERCENT_OF_FWT field will be updated with the new Arizona withholding percent on those future-dated records also. An employee who is not currently in Arizona, but has a future-dated row for Arizona will be edited and changed as appropriate.
An employee with an Action of “TER” (Terminated) as of or prior to the run date will not be changed. An employee with an Action of "TER” (Terminated) for a future date will have updates as appropriate for current and future rows.
TAX516AZ.SQR will also create a report. The report will list the EMPLID, Company, Name, the effective-date of the new Employee Tax Data record (if updated), Prior Percent of FWT, New Percent of FWT, and Comments (error conditions or informational messages). There are five possible entries in the Comments column: