Business Process Guide – HCM – Release 8.9 Payroll – FICA Flip

BUSINESS PROCESS GUIDE

PEOPLESOFT

HUMAN CAPITAL MANAGEMENT

Release 8.9

For OHR Payroll Employees

FICA Process

March 2009

TABLE OF CONTENTS

OVERVIEW

FICA Flip Process (ASU_PYM0001) - View Reports

Empls_Processing.csv

Processing_errors.csv

Job_ci_errors.csv

Verifying FICA Status

View Student Employee’s Job Information

View Student Credit Hours

View Student Academic Career and Enrollment Status

View Student Employee’s Visa Data

Appendix A Semester Calendar

Appendix A Semester Calendar

Appendix B Non Resident Alien Information

Appendix C – FICA Requirements

Fall Semester - First Time Student

Fall Semester – Continuing Student

Fall Semester – Non Resident Alien

Winter Break

Winter Semester – First Time Student

Spring Semester – First Time Student

Spring Semester – Continuing Students

Spring Semester – Non Resident Aliens

Spring/Summer Break

Summer Sessions

Summer 5W1 - First Time Students

Summer 5W1 - Continuing Students

Summer 5W1 – Non Resident Alien

Summer 5W2 – First Time Students

Summer 5W2 – Continuing Students

Summer 5W2 – Non Resident Aliens

Summer 8W1 – First Time Students

Summer 8W1 – Continuing Students

Summer 8W1 – Non Resident Alien

Summer/Fall Break

OVERVIEW

This process determines a student employee’s FICA eligibility and inserts an effective dated row into their Job data that designates whether they are “Subject To” or “Exempt” from paying taxes

If a student worker (undergraduate or graduate), RA or TA (Research Asst/Assoc or Teaching Asst/Assoc) maintains a certain number enrollment hours and an FTE that corresponds to the semester in question, they will be exempt from paying OASDI/Medicare taxes. If this criteria is not met, they are subject to paying OASDI/Medicare taxes. The specific requirements for each semester are listed in Appendix C.

Student workers in the pay groups STU and GRD are evaluated based on certain criteria, primarily enrollment, and are “flipped” to the appropriate FICA (OASDI and Medicare) status of “Exempt” or “Subject to” the FICA taxes in job data.

The FICA process is run 1/ pay period by OHR operations. There is a separate business process guide with instructions for running the FICA process.

The process is run on Wednesday before pay sheets are created. On Thursday morning, the FICA process coordinator will review the process and determine if the process need to be re-run by operations.
FICA Flip Process (ASU_PYM0001) - View Reports

The Application Engine program is run by production support each pay period with the operid PRCHRPY and the Run Control ID HRPY_PYM0001_FICA_FLIP_ON. The process runs on the Wednesday night before pay sheets are created and on Thursday of an non-pay week.

After each run, there are four reports that must be reviewed. If errors are found, then adjustments to the student employee’s records are made. Instructions for making those adjustments are in the next section of this guide.

There four reports are:

  1. Empls_Processed.csv
  2. Processing_errors.csv
  3. Job_ci_errors.csv
  4. Message.log

To see these reports, you must use the process monitor to retrieve them from the last run of the process. Here is the procedure:

Navigation: PeopleTools > Process Scheduler > Process Monitor

Navigate to the process monitor using the navigation above.

Delete the User ID and select the PSUNX server from the server field. Click Refresh.

A list of all of the processes that have run will display. (you can make the search quicker by putting “ASU_PYM0001) in the “Name” field) .

Click on the “Detail” link in the row for the process ASU_PMY0001

The Message Log link will show you data about any person’s data that needs further attention. The other three reports are listed under the “View / Log Trace” link.

This is what the message log looks like. The message you want to look for are line items that state that employees don’t have a date of entry into the country. For each of those employees, follow the section titled “View Student Employee’s Visa Data” later in this document to fix those situations.

When you click on the “View/Trace Log” link from the “Process Detail” screen, you will see this screen. On this screen will be links to the other three reports: Empls_Processed.csv, Processing_errors.csv and Job_ci_errors.csv

Empls_Processing.csv

For student employees with a “Job had no future dated row”, use the ????

Processing_errors.csv

The processing_errors.csv has the same columns as the Emple_processing.csv, but it only displays the rows where an error was generated.

Job_ci_errors.csv

Verifying FICA Status

When the FICA program generates flags a student as having an error, you can check various screens in PeopleSoft to see what is set incorrectly. We list the screens in the order that the requirements are listed in Appendix C.

View Student Employee’s Job Information

Navigation:Workforce Administration > Job Information > Job Data

The program will look at the Job Code located on the Job Information tab.

For RAs and TAs, the program will also look at the FTE on the Job Information tab.

A row with Action/Reason Data Chg/FICA Status Change will be inserted only the student’s status has changed that results in the FICA field changing

If the employee does not have any job rows that are future dated (beyond the pay period begin date), the program will insert the row with the effective date as the pay period begin date.

If the employee doeshave a job row that is future dated (beyond the pay period begin date), it will not insert a job row, but will produce an exception in the processing_errors.scv file. If this happens, a manual change by payroll is necessary.

You can find the Pay group on the “Payroll” tab of the job information screen.

View Student Credit Hours

Navigation: Records and Enrollment>Student Term Information>Term History.

The program looks at the Term Statistics tab Units Taken for Progress field.

You can also see the Academic Career for the student.

View Student Academic Career and Enrollment Status

Navigation: Records and EnrollmentCareer and Program InformationStudent Program/Plan

The program looks at the Student Degrees tabDegree Checkout Stat. field for continuing students that do not meet the hour requirements. If the field is any of the below it will process:

AG – Applied for Graduation

AP – Approved for Graduation

IR – In Review

PN – Pending

It will not process for the following:

AW – Awarded

DN – Denied

WD – Withdrawn

The program will also look at the Academic Career.

View Student Employee’s Visa Data

Navigation:ASU Customization > ASU HCM Custom > ASU Payroll > ASU NRA/Glacier Data/Permit Data tab.

The program will look at the “Type”, “Expiration Date”, and “Date of Entry into Country”.

If the “Date of Entry into Country” field is blank and a new job row is added to make the student employee subject to FICA taxes, a message will appear in the message log when the process runs.

Appendix ASemester Calendar

Semester calendars can be found at

The beginning of the semester is listed as “First Day of Classes.” The end of the semester is listed as “Commencement” for the regular semester and “Last Day of Classes” for the summer semester. The process should be run to capture the pay periods between those two dates.

Examples:

For Fall 2007, the pay period that covers 8/13-8/26 is the first pay period in which the FICA process should be run. The pay period that covers 12/3-12/16 is the last pay period the process should be run before the semester break. It is important to ensure that the process is run prior to the end of the semester date to capture to correct semester to evaluate in the process. In this case, the process will be run on 12/12.

For Spring 2008, the process should be restarted for the pay period covering 1/14-1/27/08. The last time the process should be run for the semester is for the pay period converting 4/21-5/4/08.

For Summer 2008, the process should restart for pay period covering 6/2-6/15/08. The last time the process should be run for the semester is for the pay period covering 7/28-8/10/08.

The process runs 26 times a year (1 for each pay period). The requires are the same for regular (spring and Fall) Semesters with exceptions of dates.

Semester Break requirements are different from regular (Spring and Fall) semesters. Summer 5 week 1 and 8 week differ from Summer 5 week 2 semesters.

Appendix B Non Resident Alien Information

Are NRAs automatically exempt from FICA taxes?

No. Your visa type determines what taxes you must pay:

VISA TYPES / FICA
F-1 / Exempt for the first 5 years from January 1 of the year of thedate of entry.
J-1 Students / Exempt for the first 5 years from January 1of the year of the date of entry.
J-1 Scholars, Researchers / Exempt for either the first 2 calendar years in the US, or 2 out of the first 6 calendar years in the US regardless of visa status
H-1B, O-1 / Must pay FICA.
J-2, H-2 / Must pay FICA.

Am I limited in how long I may work?

Non-Resident Alien students may work a maximum of 20 hours per week while school is in session. When school is not in session (i.e. winter break, Summer if not enrolled) an NRA student may work any number of hours. Working in excess of 20 hours per week while school is in session is prohibited by the U.S. Department of Justice, and could endanger your visa status.

Appendix C – FICA Requirements

These are the FICA requirements for students per semester.

Determine if the employee is in an active payroll status for processing all semesters/semester breaks.

  • Use JOB max effective date and max seq row <= pay period begin date (from run control page) to determine FICA status
  • JOB:HR_STATUS = A (active)
  • JOB:EMPL_STATUS = ALPSD (death), R (retired), and T (terminated)

The following applies to all semesters:

Student employee with multiple active JOB records (JOB:EMPL_RCD >0, and EMPL_STATUS = A) - If one job meets FICA exempt, all jobs are FICA exempt, If one job meets FICA Subject, all jobs are FICA Subject ’ - this includes all active employee records regardless of pay group.

  • Students with duel enrollment (STDNT_CAREER: ACAD_CAREER = GRD or UGRD)
  • Look at student’s Academic career - STDNT_CAREER: ACAD_CAREER, (i.e., if grad student, STDNT_CAREER: ACAD_CAREER = GRAD, is taking undergraduate classes, the graduate rules are applied )

Fall Semester - First Time Student

(use semester from run control page)

  • FIRST TIME STUDENT (DOES NOT HAVE A BENEFIT ELIGIBLE JOB – BEN_PROG_PARTIC:BENEFIT_PROGRAM = BEN)
  • JOB:PAYGROUP = STU or GRD
  • STDNT_CAREER: ACAD_CAREER = UGRD (Undergraduate student)
  • JOB:PAYGROUP = STU
  • JOB:JOBCODE = 998888, 981000, 982000, 983000, 984000, 985000
  • JOB:FTE – N/A (No FTE criteria)
  • STDNT_CAR_TERM:UNT_INPROG_GPA Undergraduate – enrolled in 6 or more hours
  • STDNT_CAREER: ACAD_CAREER = GRAD (Graduate student)
  • JOB:PAYGROUP = GRD
  • JOB:JOBCODE = 997777, 989003, 989004
  • JOB:FTE – N/A
  • STDNT_CAR_TERM:UNT_INPROG_GPA Graduate – enrolled in 5 or more hours
  • STDNT_CAREER: ACAD_CAREER = GRAD (RA/TA)
  • JOB:PAYGROUP = GRD
  • JOB:JOBCODE = 989001, 989002, 989556, 989557
  • Combine all FTE from active jobs for RA/TA to derive total FTE determination
  • JOB:FTE = <= .50
  • STDNT_CAR_TERM:UNT_INPROG_GPA RA/TA enrolled in 3 or more hours

FICA STATUS

If student does not meet the requirements listed above, employee FICA Status is “Subject ” – JOB:FICA_STATUS_EE = N

If student meets the requirements listed above, employee FICA Status is “Exempt” – JOB:FICA_STATUS_EE = E

Fall Semester – Continuing Student

(use semester from run control page)

  • CONTINUING STUDENTS - (DOES NOT HAVE A BENEFIT ELIGIBLE JOB, BEN_PROG_PARTIC:BENEFIT_PROGRAM = BEN)
  • JOB:PAYGROUP = STU or GRD
  • STDNT_CAREER: ACAD_CAREER = UGRD (Undergraduate student)
  • JOB:PAYGROUP = STU
  • JOB:JOBCODE = 998888, 981000, 982000, 983000, 984000, 985000
  • JOB:FTE = N/A (No FTE criteria)
  • STDNT_CAR_TERM:UNT_INPROG_GPA Undergraduate – enrolled in 6 or more hours
  • STDNT_CAREER: ACAD_CAREER = GRAD (Graduate student)
  • JOB:PAYGROUP = GRD
  • JOB:JOBCODE = 997777, 989003, 989004 job codes
  • JOB:FTE = N/A (No FTE criteria)
  • STDNT_CAR_TERM:UNT_INPROG_GPA Graduate – enrolled in 5 or more hours
  • RA/TA
  • JOB:PAYGROUP = GRD
  • JOB:JOBCODE = 989001, 989002, 989556, 989557
  • Combine all FTE from active jobs for RA/TA to derive total FTE determination
  • JOB:FTE = <= .50
  • STDNT_CAR_TERM:UNT_INPROG_GPA RA/TA enrolled in 3 or more hours

FICA STATUS

If student does not meet the requirements listed above, employee FICA Status is “Subject ” – JOB:FICA_STATUS_EE = N

If student meets the requirements listed above, employee FICA Status is “Exempt” – JOB:FICA_STATUS_EE = E

(This applies to under graduates, graduates and RA/TA)

For students who are graduating and are in their last semester, review the following to determine if the student has applied for graduation:

  • ACAD_PROG:DEEGR_CHKOUT_STAT
  • Values:

AG = Applied for Graduation

AP = Approved

AW = Awarded

IR = Program In Review

PN = Needs to Finish Pending Work

Enrollment hours and FTE are waived – Students are FICA exempt (JOB:FICA_STATUS_EE = E)

Fall Semester – Non Resident Alien

  • NRA (BOTH FIRST TIME AND CONTINUING STUDENTS)
  • J1 or F1 student (whether GRD/STU paygroup) and Visa expiration date is > pay period end date
  • F1 (along with above visa expiration statement), Visa Permit Table Entry date must not be greater than 5 years.- enrollment hours are waived. Once the F1 student has been here for 5 years (365/year) student will be ‘subject’ to FICA regardless of student status.
  • J1 (along with above visa expiration statement) visa Permit Table entry date must not be greater than 2 years. Once the J1 student has been here for 2 years (365/year) student will be ‘subject’ to FICA regardless of student status.

Enrollment hours are waived

ASU_VISA_PM_DAT:VISA_PERMIT_TYPE = F1

ASU_VISA_PM_DAT:VISA_WRKPMT_STATUS = G (Granted) – Anything other than G – add to report with Message – VISA not granted

ASU_VISA_PM_DAT:ENTRY_DT < 5 YEARS of pay period end date

ASU_VISA_PM_DAT:EXPIRATN_DT > pay period end date

ASU_VISA_PM_DAT:VISA_PERMIT_TYPE = J1

ASU_VISA_PM_DAT:VISA_WRKPMT_STATUS = G (Granted) – Anything other than G – add to report with Message – VISA not granted

ASU_VISA_PM_DAT:ENTRY_DT < 2 YEARS of pay period end date

ASU_VISA_PM_DAT:EXPIRATN_DT > pay period end date

FICA STATUS

If student does not meet the requirements listed above, employee FICA Status is “Subject ” – JOB:FICA_STATUS_EE = N

If student meets the requirements listed above, employee FICA Status is “Exempt” – JOB:FICA_STATUS_EE = E

Winter Break

During the winter break – student FICA status remains as fall semester. (Winter = use the day after the fall semester end date – day before spring semester starts)

Winter Semester – First Time Student

  • New Student –Use summer session rules?
  • (DOES NOT HAVE A BENEFIT ELIGIBLE JOB, BEN_PROG_PARTIC:BENEFIT_PROGRAM = BEN)
  • JOB:PAYGROUP = STU AND GRD
  • STDNT_CAREER: ACAD_CAREER = UGRD (Undergraduate student)
  • JOB:PAYGROUP = STU
  • JOB:JOBCODE = 998888, 981000, 982000, 983000, 984000, 985000
  • JOB:FTE – N/A (No FTE criteria)
  • STDNT_CAR_TERM:UNT_INPROG_GPA Undergraduate – enrolled in 2 or more hours
  • STDNT_CAREER: ACAD_CAREER = GRAD (Graduate)
  • JOB:PAYGROUP = GRD
  • JOB:JOBCODE = 997777, 989003, 989004
  • JOB:FTE = N/A (No FTE criteria)
  • STDNT_CAR_TERM:UNT_INPROG_GPA Graduate – enrolled in 2 or more hours
  • STDNT_CAREER: ACAD_CAREER = GRAD (Graduate) - RA/TA
  • JOB:PAYGROUP = GRD
  • JOB:JOBCODE = 989001, 989002, 989556, 989557
  • Combine all FTE from active jobs for RA/TA to derive total FTE determination
  • JOB:FTE = < 1
  • STDNT_CAR_TERM:UNT_INPROG_GPA = RA/TA enrolled in 1 or more hours

Continuing Student (including NRA) – if a student is enrolled in the winter session, look at previous fall semester and if the student was enrolled use that Fall Semester FICA status (JOB:FICA_STATUS_EE) – no new row is needed

Spring Semester – First Time Student

  • FIRST TIME STUDENTS (DOES NOT HAVE A BENEFIT ELIGIBLE JOB, BEN_PROG_PARTIC:BENEFIT_PROGRAM = BEN)
  • JOB:PAYGROUP = STU AND GRD
  • STDNT_CAREER: ACAD_CAREER = UGRD (Undergraduate student)
  • JOB:PAYGROUP = STU
  • JOB:JOBCODE = 998888, 981000, 982000, 983000, 984000, 985000
  • JOB:FTE – N/A (No FTE criteria)
  • STDNT_CAR_TERM:UNT_INPROG_GPA Undergraduate – enrolled in 6 or more hours
  • STDNT_CAREER: ACAD_CAREER = GRAD (Graduate)
  • JOB:PAYGROUP = GRD
  • JOB:JOBCODE = 997777, 989003, 989004
  • JOB:FTE = N/A (No FTE criteria)
  • STDNT_CAR_TERM:UNT_INPROG_GPA Graduate – enrolled in 5 or more hours
  • STDNT_CAREER: ACAD_CAREER = GRAD (Graduate) - RA/TA
  • JOB:PAYGROUP = GRD
  • JOB:JOBCODE = 989001, 989002, 989556, 989557
  • Combine all FTE from active jobs for RA/TA to derive total FTE determination
  • JOB:FTE = <= .50
  • STDNT_CAR_TERM:UNT_INPROG_GPA = RA/TA enrolled in 3 or more hours

FICA STATUS

If student does not meet the requirements listed above, employee FICA Status is “Subject ” – JOB:FICA_STATUS_EE = N

If student meets the requirements listed above, employee FICA Status is “Exempt” – JOB:FICA_STATUS_EE = E

Spring Semester – Continuing Students

(DOES NOT HAVE A BENEFIT ELIGIBLE JOB, BEN_PROG_PARTIC:BENEFIT_PROGRAM = BEN)

  • JOB:PAYGROUP = STU AND GRD
  • STDNT_CAREER: ACAD_CAREER = UGRD (Undergraduate student)
  • JOB:PAYGROUP = STU
  • JOB:JOBCODE = 998888, 981000, 982000, 983000, 984000, 985000
  • JOB:FTE – N/A (No FTE criteria)
  • STDNT_CAR_TERM:UNT_INPROG_GPA Undergraduate – enrolled in 6 or more hours
  • STDNT_CAREER: ACAD_CAREER = GRAD (Graduate)
  • JOB:PAYGROUP = GRD
  • JOB:JOBCODE = 997777, 989003, 989004
  • JOB:FTE = N/A (No FTE criteria)
  • STDNT_CAR_TERM:UNT_INPROG_GPA Graduate – enrolled in 5 or more hours
  • STDNT_CAREER: ACAD_CAREER = GRAD (Graduate) - RA/TA
  • JOB:PAYGROUP = GRD
  • JOB:JOBCODE = 989001, 989002, 989556, 989557
  • Combine all FTE from active jobs for RA/TA to derive total FTE determination
  • JOB:FTE = <= .50
  • STDNT_CAR_TERM:UNT_INPROG_GPA = RA/TA enrolled in 3 or more hours

(This applies to under graduates, graduates and RA/TA)

For students who are graduating and are in their last semester, review the following to determine if the student has applied for graduation:

  • ACAD_PROG:DEEGR_CHKOUT_STAT
  • Values:

AG = Applied for Graduation

AP = Approved

AW = Awarded

IR = Program In Review

PN = Needs to Finish Pending Work

Enrollment hours and FTE are waived – Students are FICA exempt (JOB:FICA_STATUS_EE = E)

FICA STATUS

If student does not meet the requirements listed above, employee FICA Status is “Subject ” – JOB:FICA_STATUS_EE = N

If student meets the requirements listed above, employee FICA Status is “Exempt” – JOB:FICA_STATUS_EE = E

Spring Semester – Non Resident Aliens

NRA (BOTH FIRST TIME AND CONTINUING STUDENTS)

  • J1 or F1 student (whether GRD/STU paygroup) and Visa expiration date is > pay period end date
  • F1 (along with above visa expiration statement), Visa Permit Table Entry date must not be greater than 5 years.- enrollment hours are waived. Once the F1 student has been here for 5 years (365/year) student will be ‘subject’ to FICA regardless of student status.
  • J1 (along with above visa expiration statement) visa Permit Table entry date must not be greater than 2 years. Once the J1 student has been here for 2 years (365/year) student will be ‘subject’ to FICA regardless of student status.

Enrollment hours are waived

ASU_VISA_PM_DAT:VISA_PERMIT_TYPE = F1

ASU_VISA_PM_DAT:VISA_WRKPMT_STATUS = G (Granted) – Anything other than G – add to report with Message – VISA not granted