April 3, 2006PeopleSoft Payroll Tax Update 06-B – Release 8.81
PeopleSoft PayrollTax Update 06-BTax Update NotesRelease 8.81
PeopleSoft Payroll’s Tax Update 06-B includes updates to U.S. garnishment and tax tables, U.S. and Canadian 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 8.81, the tax update package also includes the following documentation files:
Resolution_642275.xls / List of object changes delivered with Tax Update 06-B
PRE844_UPD642275_INSTALL.doc / PeopleSoft Application Update Installation Instructions Using
PeopleTools 8.43 or Earlier
UPD642275_CODECHANGES.rtf / PS Print Project Report for Release 8.81
You must follow the instructions in the UPDxxxxxx_INSTALL.docdocument 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 06-B, 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 Updates & Fixes on Customer Connection.
The Canadian French translated version of this tax update is scheduled for posting to Customer Connection on
April 10, 2006.
Updating Your Tables
Tax Update 06-B includes the following files for updating the tables in your PeopleSoft Payroll system.
File / Contentsupd642275_01.dat
upd642275_01.dms
/ U.S. tax table updates
Note: When this script is opened in Data Mover, a message will be displayed stating "File too large to open for edit. Opening for display only." The script can be run after bypassing this message.
upd642275_02.dat
upd642275_02.dms
/ Garnishment table updates
upd642275_03.dat
upd642275_03.dms
/ strings table
upd642275_04.dms
/ database stamp
(there is no .dat file associated with this .dms file)
upd642275_msg.dat
upd642275_msg_i.dms
/ message catalog
Both U.S. and Canadian customers should apply the garnishment, database stamp, strings table, and message catalog table 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 Updates & Fixes on PeopleSoft Customer Connection.
Special Notes for Canada
New Version of Standard 006 Canadian Cheque Specifications
New cheque specifications have been set out by the Canadian Payments Association in preparation for the transition to image-based clearing. These new specifications are necessary to ensure that high quality cheque images can be captured, both for clearing purposes and for delivery to the clients, and to enhance processing efficiency.
PeopleSoft Payroll for North America is delivering system modifications with this tax update to comply with the new cheque specifications. Banking institutions and cheque suppliers are aware of the impending changes as all Canadian business cheques must conform to the new specifications as outlined in CPA Standard 006, Part A by December 31, 2006. As a reminder, you will be required to use cheque stock that conforms to the new specifications for image-based cheque clearing.
For further information, please refer to the Canadian Payments Association website at
(Report ID 1213672000)
New Tax Types for Quebec Parental Insurance Plan
New Canadian Tax Types of Quebec Parental Insurance – EE for employee premiums and Quebec Parental Insurance – ER for employer premiums have been added to the One-Time Taxes page of the paysheets to process one-time QPIP deductions.
(Report ID 1443675000)
6% Tax Reduction for Employment Income in Quebec
The 6% income reduction in Quebec resulted in a reduced taxable income for Quebec employees. With this tax update, the reference to the tax reduction code (QC Dedn) in the Taxes page of the Review Paycheque component has been removed; however, the system does continue to maintain the balances in the employee Tax Balances pages.
(Report ID 1452144000)
Employee Tax Data Page Pages – YTD Balances from Previous Company Group Box
The fields located within the YTD Balances from Prev Company group boxes on the Canadian Income Tax Data and Quebec Income Tax Data pages have been modified to correctly display all fields and labels.
Canadian Income Tax Data Page
Quebec Income Tax Data Page
(Report ID 1453865000)
U.S. Changes
Federal / State Tax Table
State / Effective Date of Table Entry/ Table Update Description
HI / 01/01/1999 / The Maximum Gross amount subject to the Voluntary Disability premium calculation is corrected from $31,980 to $32,659 on the table entry effective-dated 01/01/1999. This table entry is corrected for purposes of historical accuracy only and has no effect on current year payroll processing.
(Report ID 1444384000)
IA / 01/01/2006 / The table entry effective-dated 01/01/2006 is corrected to reflect the state withholding tax rates in effect for wages paid up to and including March 31, 2006. Resolution 659105 (temporarily posted to Customer Connection and subsequently withdrawn) had erroneously updated the table entry effective-dated 01/01/2006 with the state withholding tax rates that correctly become effective April 1, 2006.
(Report ID 1466843000; Posted to Customer Connection by 02 March 2006)
IA / 04/01/2006 / A new table entry is added for state withholding tax changes effective April 1, 2006.
(Report ID 1466843000; Posted to Customer Connection by 02 March 2006)
MD / 02/16/2006 / A new table entry is added for the increase in the Maryland hourly minimum wage to $6.15 per hour effective February 16, 2006.
(Report ID 1457406000)
NM / 01/01/2006 / The table entry effective-dated 01/01/2006 is corrected to show that the supplemental withholding method to be used to calculate state tax withheld on supplemental wages paid with regular wages is “Percent of Taxable Gross” instead of “Aggregate”, as per instructions in New Mexico Taxation and Revenue Department Publication FYI-104 revised 11/05 and effective January 1, 2006.
(Report ID 1464237000)
State / Effective Date of Table Entry
/ Table Update Description
RI / 03/01/2006 / A new table entry is added for the increase in the Rhode Island hourly minimum wage to $7.10 per hour effective March 1, 2006.
(Report ID 1463673000)
VT / 01/01/2006 / The table entry effective-dated 01/01/2006 is updated to show Special Tax Amount 1 with a value of 0.095000, to comply with the new Vermont requirement that on any supplemental payment which requires U.S. Federal tax to be withheld at the rate of 35 %, Vermont tax must be withheld at a rate of 9.5 % instead of the usual Vermont supplemental rate of 7.2 %.
(Report ID 1439089000)
Note: COBOL program modifications related to this requirement are also delivered with this tax update. See the entry for Report ID 1439089000 in the following section on “Tax Update 06-B COBOL Program Changes.”
WI / 06/01/2006 / A new table entry is added for the increase in the Wisconsin hourly minimum wage to $6.50 per hour effective June 1, 2006.
(Report ID 1465897000)
Local Tax Table
State / Locality / Locality Name / OLD Rate/Amt / NEW Rate/Amt / Effective DateAL / 51696B / Mountain Brook
(Report ID 1485516000) / 0.005000 / Resident
0.005000 / Nonresident / 0.000000 / Resident
0.000000 / Nonresident
tax repealed eff 01/01/2006
/ 01/01/2006
KY / 191 / PendletonCounty
(Report ID 1457651000)
/ New entry / 0.005000 / Resident
0.005000 / Nonresident / 01/01/2006
19882 / Danville
(Report ID 1469684000)
/ 0.010000 / Resident
0.010000 / Nonresident / 0.012000 / Resident
0.012000 / Nonresident / 07/01/2005
35866 / Henderson
(Report ID 1484180000)
/ Locality Short Name = blank / Locality Short Name = Henderson / 01/01/2006
MI / 70520 / Saginaw
(Report ID 1485473000) / Annual Exemption = $1,000 / Annual Exemption = $750 / 01/01/2006
OH / 36610 / Huber Heights
(Report ID 1468017000)
/ 0.019500 / Resident
0.019500 / Nonresident / 0.022500 / Resident
0.022500 / Nonresident / 01/01/2006
OH / 82726 / Wellston
(Report ID 1449473000) / 0.007500 / Resident
0.007500 / Nonresident
/ 0.010000 / Resident
0.010000 / Nonresident / 12/01/2005
OH / 83216 / West Elkton
(Report ID 1451996000)
/ New entry / 0.010000 / Resident
0.010000 / Nonresident / 01/01/2006
Local Tax Reciprocity Table
Locality ofResidence
/ Locality of Employment / Effective Date / Credit Reduction Percent / Credit Limit Rate
/ Reciprocity Rule
OH – 56336
(Report ID
1465798000)
/ OH - $DFLT / 01/01/2006 / n/a / n/a / Withhold on total wages in both localities.
Per letter from the city tax office, effective January 1, 2006, the City of North College Hill no longer allows any credit for tax paid to another municipality.
Local Tax Table – Pennsylvania
Tax Update 06-B includes updates to Pennsylvania entries in the Local Tax Table based on the latest data on the website maintained by the Commonwealth of Pennsylvania. Because Pennsylvania has not made effective-date information downloadable from its website, all updates to Pennsylvania entries in the Local Tax Table delivered in this tax update (other than those individually listed in above chart of Local Tax Table entries) are effective-dated 01/01/2006. These Pennsylvania local tax rate changes downloaded from the Pennsylvania website are documented separately in the file PA06BLOC.doc which is delivered with this tax update.
For each tax update, PeopleSoft scans the Pennsylvania local tax rate information on the official Pennsylvania website and delivers corrections and/or updates to any Local Tax Table entries for which tax rates do not match the most current information on the website.
To research tax rate data on the official Pennsylvania website for a particular local jurisdiction, follow this navigation path:
1. Go to
2. Select “Business”
3. Select “Department of Community and Economic Development”
4. Select “Local Government Services”
5. Select “Local Tax Information”
6. Select “Local Tax Register”
(Report ID 1478944000)
Garnishment Rules Table (U.S.)
State / Rule ID / Effective Date/ Action
IL / GEN-CALC B / 01/01/1998 / The detailed description of the rule is modified to read as follows:
”Exempt 85% of weekly gross earnings from garnishment. Use this rule in combination with IL-GEN-CALC A or IL-GENSTATEMW.”
(Report ID 1455960000)
IL / GENERAL / 09/01/1997 / The status of this table entry is set to “Inactive.”
(Report ID 1455960000)
IL / GENSTATEMW / 01/01/2006 / The 85% exemption option is deleted from this table entry because the 85% exemption option is separately established by using Rule ID
GEN-CALC B. The detailed description of the rule is modified to read as follows:
”For orders served on or after 1/1/2006 exempt federal DE up to 45 x state min wage or federal min wage or 85% whichever is higher. Use this rule in combination with IL- GEN-CALC B. (Illinois Public Act 094-0306)”
(Report ID 1455960000)
WI / NOEXEMPT / 01/01/1980 / A new table entry is added for a Wisconsin garnishment rule that exempts no portion of an employee’s wages from garnishment.
(Report ID 1463518000)
WI / TAX LEVY / 01/01/1980 / A new table entry is added for a Wisconsin state tax levy.
(Report ID 1463518000)
Tax Update 06-B COBOL Program Changes for Release 8.81
All payroll users must apply allCOBOL program changes included in Tax Update 06-B.
COBOL Program Changes
Changed Programs and Modules
Customers should incorporate the source programs into their source libraries and recompile and relink. For delivered copy members, any modules affected by the changed copy members must also be recompiled. For your installation, if you do not have a tool to determine which COBOL modules are affected by the changed copy member(s), we recommend that you recompile all modules.
Unless otherwise indicated by a specific posting date, Report IDs referenced in these tax update notes have not been posted to Updates & Fixes on PeopleSoft Customer Connection.
PSPCNFER.CBL
PSPCNTAX.CBL
PSPCPCAL.CBL
PSPDEDCT.CBL
PSPECALC.CBL
PSPGCALC.CBL
PSPONECT.CBL
PSPPARRY.CBL
PSPPYCAL.CBL
PSPPYNET.CBL
PSPRPERY.CBL
PSPRPEX1.CBL
PSPRPUPD.CBL
PSPTCALC.CBL
PSPUSTAX.CBL
PSPXCALC.CBL
PSPXUPDT.CBL
Changes have been made to copymembers
PSCCMPTT.CBL
PSCCTXDT.CBL
PSCEARRY.CBL
PSCEFLSA.CBL
PSCRFERY.CBL (NEW)
PSCTXLNC.CBL
PSCTMERY.CBL
PSCWKERY.CBL
PSCXARRY.CBL
Report IDs
COBOL changes for the following Report IDs are included in this tax update.
E&G = PeopleSoft Payroll for Education & Government
USF = PeopleSoft Payroll for U.S. Federal Government
Report ID/ Description
1241455000 / Report ID 1241455000 modifies PSPTCALC.CBL and PSPUSTAX.CBL to comply with IRS requirements related to the taxation of supplemental wages paid to employees claiming exemption from withholding on Form W-4. The first $1 million in supplemental wages paid annually to employees claiming exemption from withholding continue to not be subject to withholding. However, supplemental wages paid in excess of $1 million will be taxed at the mandatory rate of 35 %. Prior to the modifications, no tax was withheld from employees claiming exemption from withholding on Form W-4 on supplemental payments in excess of $ 1 million.
For further information see Internal Revenue Bulletin 2005-6 at
1283314000 / Report ID 1283314000 modifies PSPPYNET.CBL to correctly calculate tax withheld on supplemental wage payments in excess of $1 million annually for employees paid in multiple Companies. With the program modifications, the determination of whether an employee’s annual supplemental wage payments have exceeded $1 million will consider wages paid to the employee in all Companies, independently of whether or not Common Paymaster functionality has been invoked among the Companies. So long as Companies share the same Calendar Year Balance_ID, the YTD earnings balances for any and all Companies will be evaluated to determine which federal supplemental rate should be applied. Prior to the modifications, the correct federal supplemental tax rate was not correctly applied for employees paid in multiple Companies (regardless of whether Common Paymaster functionality was invoked).
1314062000 / Report ID 1314062000 modifies PSPTCALC.CBL to correctly calculate state withholding tax for employees in two specific situations.
A. All of the following conditions are present:
- An annualized earnings is paid that is not subject to FWT but is subject to SWT; and
- A supplemental earnings is paid on the same Paysheet
- The Supplemental Methods on the State Tax Table are set to either
- Paid with Regular Wages = Percent of Taxable Gross
Separate Payment = Percent of Taxable Gross; or - Paid with Regular Wages = Aggregate-No Tax else Percent
Separate Payment = Aggregate-No Tax else Percent
- An annualized earnings is paid that is not subject to FWT but is subject to SWT; and
- A supplemental earnings that is subject to FWT is paid on the same Paysheet; and
- The employee is not paid any regular earnings; and
- The Supplemental Methods on the State Tax Table are set to
- Paid with Regular Wages = Aggregate
- Separate Payment = Aggregate
- An annualized earnings is paid that is not subject to FWT but is subject to SWT and LWT; and
- On the same Paysheet, a supplemental earnings is paid that also is not subject to FWT but is subject to SWT and LWT; and
- The employee is not paid any regular earnings.
FWT = Federal Withholding Tax
SWT = State Withholding Tax
LWT = Local Withholding Tax
1364480000 / Report ID 1364480000 modifies PSPRPEX1.CBL, PSPRPERY.CBL, PSPRPUPD.CBL and PSPECALC.CBL to correctly calculate retro Other Earnings when there is a retroactive payrate change. Prior to the modifications, the calculated retro amount was incorrect in cases such as the following:
- An employee is set up with multiple tax distributions and is paid Other Earnings based on hours. A mid-pay period rate change is applied. Prior to the modifications, the retro pay amount was over-calculated because the amount was based on total hours instead of distributed hours.
- An employee is set up with a single tax distribution and is paid Other Earnings based on hours. A pay rate change is applied effective at the beginning of a pay period.
1368918000 / Report ID 1368918000 modifies PSPPARRY.CBLto correctly calculate the pay for a salaried employee who is transferred to a different department midway through a pay period. Prior to the modifications, in some cases an employee in this situation was overpaid $0.01 due to a rounding error.
1372829000 / Report ID 1372829000 delivers new copymember PSCRFERY.CBL and modifies PSPRPERY.CBL, PSPECALC.CBL, PSPRPUPD.CBL, and copymember PSCEARRY.CBL. In addition, modifications are made to comments only in the following copymembers: PSCEFLSA.CBL, PSCTMERY.CBL, and PSCWKERY.CBL.
The retro calculation process will now calculate new earnings amounts correctly taking into account all retro pay rate changes within the pay period. The modules are also changed to call the FLSA calculation process one time only, once all the hours and earnings for the entire pay period have been accumulated. Prior to the modifications, the FLSA calculation process was called for every Job change, using incomplete hours and earnings information each time, resulting in incorrect calculations.
1375438000 / Report ID 1375438000 modifies PSPTCALC.CBL and PSPPYNET.CBL to correctly evaluate whether additional federal and/or state withholding taxes should be withheld when an employee has elected these options. The changes will adjust the taxable gross amount for SWT by using the Taxable Gross Component ID provided on the Earnings Table entry, to enable the system to be consistent in calculating the additional withholding taxes, whether an amount or a percentage, across the Federal, State, and Local levels. The changes will also exclude any after-tax deduction refund(s) from being used to offset taxes.
1386692000 / Report ID 1386692000 modifies PSPRPERY.CBL and PSPRPUPD.CBL for retro processing to compare the accumulated prorated hours with the hours originally paid and take the following actions:
- If the difference is less than 0.03 of an hour, hours will be set back to the original hours.
- If the pay rate has not changed, the new earnings amount will be set back to the originally paid amount. If the pay rate has changed, a new earnings amount will be calculated.