January 15, 2010 PeopleSoft Payroll Tax Update 10-A – Release 9
PeopleSoft Payroll for North AmericaTax Update 10-ATax Update Notes - Release 9
PeopleSoft Payroll’s Tax Update 10-A includes updates to U.S. and Canadian tax and garnishment 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_804980.xls / List of object changes delivered with Tax Update 10-A
UPD804980_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 10-A, 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-A includes the following files for updating the tables in your PeopleSoft Payroll system.
File / Contentsupd804980_01.dat
upd804980_01.dms
/ U.S. tax table updates
This script also includes the update to W2C_DEF_CAL_YR on the table PS_YE_W2C_INSTALL.
(Report ID 1923592000)
You must apply the project containing the object changes delivered in this tax update BEFORE running this script.
upd804980_02.dat
upd804980_02.dms
/ Canadian tax table updates
upd804980_03.dat
upd804980_03.dms
/ Garnishment table updates
upd804980_04.dat
upd804980_04.dms
/ U.S. only
Tax Form Definition Table and Tax Form Print Parameters Table updates to support the reporting of Form W-2c corrections to New Jersey Family Leave Insurance deduction amounts
(Report ID 1913989000)
upd804980_05.dms / Database stamp
(There is no .dat file associated with this .dms file.)
upd804980_msg.dat
upd804980_msg_i.dms
/ Message catalog
Both U.S. and Canadian customers should apply the garnishment, 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 MyOracle Support.
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?
Upgrade to PeopleTools 8.50. This issue has been fixed in PT 8.50, ICE 1868095000.
If you are using PeopleTools 8.49, do NOT use the Delete Orphan File Attachments pushbutton on the Copy File Archive page.
This information has also been posted as an announcement on MyOracle Support under Document ID 815937.1.
Special Note – U.S. - Year End Tax Forms
Beginning with year end reporting for tax year 2009, PeopleSoft Payroll for North America will discontinue support for the continuous-feed impact printer version of each of the tax forms listed below.
Payroll for North America
Form ID
/ R R Donnelly
Form Number
W-2
/
Wage and Tax Statement /
IMP01 /
PS2114M
W-2c
/
Corrected Wage and Tax Statement /
IMP01
(Discontinued with the delivery of Tax Update 09-D – see note below.)
/
PS8606862-A
1099-R
/
Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
/
2VERTICAL /
PS9923M
Support for the continuous-feed impact printer version of Form 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding) was discontinued beginning with year end reporting for tax year 2008.
Note: Tax Update 09-D delivered product modifications to support the most recent Internal Revenue Service revision of Form W-2c (Rev. 2-2009).
Impact printer versions of the new Form W-2c are not supported. The new Form W-2c is supported for making only laser-print and XMLP Form W-2c corrections to U.S., American Samoa, Guam, and U.S. Virgin Islands W-2 forms.
Note: RR Donnelley has updated their website with information on year-end tax forms for 2009:
Special Notes – U.S.
New Nonresident Alien Employee Withholding Tax Calculation
This tax update delivers product modifications to implement U.S. Federal nonresident alien employee withholding tax changes effective January 1, 2010.
Effective January 1, 2010, the U.S. Internal Revenue Service requires that employers follow a new procedure for calculating the amount of income tax to withhold from the wages of nonresident alien employees performing services within the U.S., as documented in IRS Notice 1036 (Rev. November 2009).
Beginning with wages paid on or after January 1, 2010, employers must perform two special steps in addition to the regular withholding tax calculation in order to determine the amount of tax to be withheld from nonresident alien employees.
First, an amount must be added to the employee’s wages before determining the regular amount of withholding, in order to offset the standard deduction built into the regular withholding calculation, because nonresident alien employees are not eligible for the standard deduction.
This amount is stored as Special Tax Amount 5 on the Special Tax Amts page of the State Tax Table entry for State = $U, as shown below:
Second, an additional amount of withholding must be determined using a separate table applicable only to nonresident alien employees to offset the effect of the Making Work Pay Tax Credit that is built into the regular withholding calculation, because nonresident alien employees are not eligible for the credit.
The values for this new separate table are stored in a new NRA Adjustment page of the State Tax Table entry for State = $U (delivered in this tax update) as shown below. (Note that this new page will appear only when State = $U, and not on the State Tax Table entry for any other state.)
(Report ID 1939637000 posted to MyOracle Support by 27 December 2009)
State Tax Data Page Update for Indiana Form WH-4
The Indiana Form WH-4 line number references on the State Tax Data page are updated to match the line numbers on the current version of Form WH-4 as published on the website of the Indiana Department of Revenue.
State Tax Data page before changes:
State Tax Data page after changes:
(Report ID 1939312000)
SSN Verification
This tax update delivers enhancements to the SSN Verification reporting process to comply with new Social Security Administration (SSA) requirements. The Social Security Number Verification Service (SSNVS) is one of the services offered as part of Social Security Administration's Business Services Online (BSO). It allows registered users (employers and certain third-party submitters) to verify the names and Social Security Numbers (SSNs) of employees against SSA records.
An updated version of the SSN Verification program (TAX109.SQR) is delivered in this tax update which creates an electronic file for submission to the Social Security Administration when verifying employee SSNs through SSNVS. SSA now mandates the use of electronic files. In addition to the electronic file, the program also generates an audit report in a readable format for research and audit history purposes.
As shown below, a re-designed run control page for the SSN Verification program is also delivered, with new error messages tailored to the various Processing Options which may be selected on the run control page.
SSN Verification run control page before changes:
As shown in the examples of the redesigned run control page on the following pages, these components have been removed from the page:
- Requester Identification Codeis removed. The mandatory value of this field (OEVS) is now hardcoded in the program.
- The Type of Processing selection box is removed. Each execution of the program will generate both a file for electronic submission to SSA as well as an audit report. Tape and diskette files are no longer supported.
- Diskette Type is removed since diskette files are no longer supported.
New SSN Verification run control page with Processing Option = Hire Dates
When “Hire Dates” is selected as the Processing Option, the following new error message will be generated if a date is not entered in both the From Date and End Date fields:
New SSN Verification run control page with Processing Option = Paygroups
When “Paygroups” is selected as the Processing Option, the following new error message will be generated if a value is not selected for bothCompany and Pay Group:
New SSN Verification run control page with Processing Option = Companies
When “Companies” is selected as the Processing Option, the following new error message will be generated if at least onevalue is not selected forCompany:
New SSN Verification run control page with Processing Option = Employees
When “Employees” is selected as the Processing Option, the following updated error message will be generated if at least onevalue is not selected forEmployee ID:
Previously, the text of this message was:
“Selected Employees Processing Type requires an entry of Employee IDs. (2000,583)”
(Report ID 1923087000)
U.S. Changes
Federal / State Tax Table
State / Effective Date of Table Entry/ Table Update Description
$U / 01/01/2010 / The table entry effective-dated 01/01/2010 which was delivered with Tax Update 09-F is updated to include new values required to calculate the U.S. Federal income tax to be withheld from nonresident alien employees:
On the Special Tax Amts page, the value of Special Tax Amount 5 is decreased from $7,180.00 to $2,050.00. This amount is added to the nonresident alien employee’s wages before determining the regular amount of withholding, in order to offset the standard deduction built into the regular withholding calculation.
A new NRA Adjustment page is added to store the values (from the new IRS separate table applicable only to nonresident alien employees) used to determine the additional amount of tax required to be withheld from nonresident alien employees to offset the effect of the Making Work Pay Tax Credit that is built into the regular withholding calculation.
Note: Also see the Special Notes – U.S. section earlier in this document, and the entry for Report ID 1939637000 in the later section of this document listing the COBOL program changes delivered in this tax update, for information on additional product modifications delivered in this tax update related to the new nonresident alien employee withholding tax calculation.
(Report ID 1939637000)
CA / 01/01/2010 / The table entry effective-dated 01/01/2010 which was delivered with Tax Update 09-F is updated to correct the Low Tax Amount from $2,298.54 to $2,988.54 in the row for Tax Status = Married, Low Gross = $73,350.00 on the Rates page.
(Report ID 1948126000)
CO / 01/01/2010 / A new table entry is delivered to include the January 1, 2010, decrease from $7.28 to $7.24 in the Colorado state hourly minimum wage amount.
(Report ID 1944933000)
ID / 01/01/2010 / The state unemployment insurance taxable wage base is increased to $33,300 for 2010.
(Report ID 1949124000)
KY / 01/01/2010 / For tax year 2010, the standard deduction amount used in Kentucky state withholding tax calculation is increased from $2,190 to $2,210.
(Report ID 1949136000)
MO / 01/02/2010 / A table entry dated 01/02/2010 is added to deliver Missouri withholding tax changes effective January 1, 2010. The table entry is effective-dated 01/02/2010 in order to preserve the existing entry dated 01/01/2009 delivered in Tax Update 09-F (which delivered only the 2010 Missouri state unemployment insurance taxable wage base) for audit history purposes.
(Report ID 1950726000)
OK / 01/01/2010 / The table entry effective-dated 01/01/2010 which was delivered with Tax Update 09-F is updated to include Oklahoma withholding tax changes effective January 1, 2010.
(Report ID 1948189000)
VI / 01/01/2010 / The unemployment insurance taxable wage base is increased to $22,200 for 2010, per information obtained on the website of the American Payroll Association.
(Report ID 1950889000)
VT / 01/01/2010 / The table entry effective-dated 01/01/2010 which was delivered with Tax Update 09-F is updated to include Vermont withholding tax changes effective January 1, 2010.
(Report ID 1944915000)
VT / 01/02/2010 / A table entry dated 01/02/2010 is added to deliver changes to the values shown below to comply with Vermont instructions to calculate withholding tax on supplemental wages at 27% of the U.S. Federal withholding tax:
Supplemental Wage Rate changed from 0.072000 to 0.067500 (0.27 x 0.25)
Special Tax Amount 1 changed from 0.095000 to 0.094500 (0.27 x 0.35)
This changes are delivered on a separate table entry dated 01/02/2010 to preserve audit history, because Vermont published its new supplemental withholding instructions later than their previously published changes to the annualized tax method for 2010.
(Report ID 1949069000)
Note: District of Columbia withholding tax changes for 2010 were published too late for delivery in Tax Update 10-A; they will be posted to MyOracle Support as well as delivered in Tax Update 10-B.
Summary of State UI Taxable Wage Base Limits for 2010
State / 2009State UI Taxable Wage Base Limit / 2010
State UI Taxable Wage Base Limit /
Change Delivered in Tax Update
Alabama / 8,000 / 8,000 / Unchanged
Alaska / 32,700 / 34,100 / 09-F
Arizona / 7,000 / 7,000 / Unchanged
Arkansas / 10,000 / 12,000 / 09-F
California / 7,000 / 7,000 / Unchanged
Colorado / 10,000 / 10,000 / Unchanged
Connecticut / 15,000 / 15,000 / Unchanged
Delaware / 10,500 / 10,500 / Unchanged
District of Columbia / 9,000 / 9,000 / Unchanged
Florida / 7,000 / 8,500 / 09-F
Georgia / 8,500 / 8,500 / Unchanged
Hawaii / 13,000 / 38,800 / 09-F
Idaho / 33,200 / 33,300 / 10-A
Illinois / 12,300 / 12,520 / 09-F
Indiana / 7,000 / 9,500 / 09-F
Iowa / 23,700 / 24,500 / 09-F
Kansas / 8,000 / 8,000 / Unchanged
Kentucky / 8,000 / 8,000 / Unchanged
Louisiana / 7,000 / 7,700 / 09-F
Maine / 12,000 / 12,000 / Unchanged
Maryland / 8,500 / 8,500 / Unchanged
Massachusetts / 14,000 / 14,000 / Unchanged
Michigan / 9,000 / 9,000 / Unchanged
Minnesota / 26,000 / 27,000 / 09-F
Mississippi / 7,000 / 7,000 / Unchanged
Missouri / 12,500 / 13,000 / 09-F
Montana / 25,100 / 26,000 / 09-F
Nebraska / 9,000 / 9,000 / Unchanged
Nevada / 26,600 / 27,000 / 09-F
New Hampshire / 8,000 / 10,000 / 09-F
New Jersey / 28,900 / 29,700 / 09-F
New Mexico(decrease) / 20,900 / 20,800 / 09-F
New York / 8,500 / 8,500 / Unchanged
North Carolina / 19,300 / 19,700 / 09-F
North Dakota / 23,700 / 24,700 / 09-F
Ohio / 9,000 / 9,000 / Unchanged
Oklahoma / 14,200 / 14,900 / 09-F
Oregon / 31,300 / 32,100 / 09-F
Pennsylvania / 8,000 / 8,000 / Unchanged
Puerto Rico / 7,000 / 7,000 / Unchanged
Rhode Island / 18,000 / 19,000 / 09-F
South Carolina / 7,000 / 7,000 / Unchanged
South Dakota / 9,500 / 10,000 / 09-F
Tennessee / 9,000 / 9,000 / Unchanged
Texas / 9,000 / 9,000 / Unchanged
Utah / 27,800 / 28,300 / 09-F
State / 2009
State UI Taxable Wage Base Limit / 2010
State UI Taxable Wage Base Limit /
Change Delivered in Tax Update
Vermont / 8,000 / 10,000 / 09-F
Virgin Islands / 22,100 / 22,200 / 10-A *
Virginia / 8,000 / 8,000 / Unchanged
Washington / 35,700 / 36,800 / 09-F
West Virginia / 12,000 / 12,000 / Unchanged
Wisconsin / 12,000 / 12,000 / Unchanged
Wyoming / 21,500 / 22,800 / 09-F
* (Report ID 1950889000)