August 22, 2011 PeopleSoft Payroll for North America Tax Update 11-D – Release 9.0

PeopleSoft Payroll for North AmericaTax Update 11-DTax Update Notes - Release 9.0

PeopleSoft Payroll for North America Tax Update 11-D includes updates to U.S. tax andgarnishment tables, COBOL program and store statementchanges, 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 statementchanges
  • A summary of the SQRs delivered with this tax update
  • An appendix of object changes delivered with this tax update

For Release 9.0, the tax update package also includes the following documentation files:

UPD860812_INSTALL.htm / “PeopleSoft Application Update Installation Instructions”
UPD860812_CODECHANGES.rtf / PS Print Project Report for Release 9.0


You must follow the instructions in the UPDxxxxxx_INSTALL.htm document to apply the object changes listed in the appendix of this documentbefore applying the COBOL and store statement changes, running the DataMover scripts, or using the SQRs delivered in this tax update. Before applying Tax Update 11-D, 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 My Oracle Support.

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Updating Your Tables

Tax Update 11-D includes the following files for updating the tables in your PeopleSoft system.

File / Contents
upd860812_01.dat
upd860812_01.dms
/ U.S. tax table updates
upd860812_02.dat
upd860812_02.dms
/ Garnishment table updates
upd860812_03.dms
/ Database stamp
(There is no .dat file associated with this .dms file.)
upd860812_04.dat
upd860812_04.dms
/ Update the Special Accumulator Table with the new
Special Accumulator Code CTS
(Report ID 12578641)
upd860812_05.dat
upd860812_05.dms
/ Strings table
upd860812_msg.dat
upd860812_msg_i.dms
/ Message catalog

Both U.S. and Canadian customers should apply thegarnishment, database stamp, special accumulator table, strings table,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.

Special Notes – Canada

Amending, Cancelling and Reprinting T4A Slips for Tax Reporting Years Prior to 2010

The Canada Revenue Agency (CRA) redesigned the T4A form for 2010 tax reporting. Significant changes to the 2010 form included 1) the redesign of box codes from two digits to three digits, and 2) the elimination and replacement of footnote codes with “Other Information” boxes.

As a result of these form changes, the T4A slip information from prior years was available for viewing, but could not be amended or reprinted. With this tax update, product modifications are being delivered to allow for T4A slips to be amended, cancelled and reprinted for tax years prior to 2010.

Amending a T4A Slip for 2009 or Prior

The T4A amendment process has been modified to retrieve the list of box codes defined on the Tax Form Definition table that corresponds to the tax year of the slip that is being amended. If the amended T4A slip is for tax year 2009 or prior, the pre-2010 two-digit box codes will be used. Otherwise, the current year’s three-digit box codes will be used.

In the following example, a T4A slip will be amended for “Calendar Year” 2009. When the “Box” field is prompted on the Amend/Cancel T4A Slip page, the pre-2010 two-digit box codes applicable to 2009 tax reporting are provided for selection.

In contrast, following is an example of the 3-digit box codes that will be provided for amending the T4A slip for tax reporting year 2010 or later.

Creating and Printing an Amended T4A Slip for 2009 or Prior

The “Processing Type” options provided on the Create T4A PDF Slips and Print T4A Slips run control pages will be controlled by the tax year identified in the “Balances for Year” field on the Tax Reporting Parameters table.

If the year specified on the Tax Reporting Parameters table is 2010 or later, all existing “Processing Type” options will be available for selection.

If the year specified is 2009 or prior, all options except the options to print original or reissued slips will be available.

The same “Processing Type” options will be available on the Print T4A Slips run control page.

If the year specified on the Tax Reporting Parameters table is 2010 or later, all existing “Processing Type” options will be available for selection. If the year specified is 2009 or prior, all options except the options to print original or reissued slips will be available as illustrated below:

Refer to the section titled “Canadian SQRs delivered with Tax Update 11-D” for a complete list of the SQR programs that have been modified to support these changes.

(Report ID 11724643)


The creation of the XML file for submission to the CRA (CTX910XM.SQR) and the electronic audit program (CTX912X.SQR) will use the current year’s schema and report format to conform to the CRA’s requirements.

Special Note – Preparing for U.S. Year End Reporting 2011

If 2011 will be your first year producing Form W-2 using PeopleSoft Payroll for North America . . .

If 2011 will be your first year producing Form W-2 for U.S. employees using PeopleSoft Payroll for North America, you must contact Oracle Software Support to request the special script described inSolution Document ID 635458.1. You must run this special script to prepare your Tax Form Definition Table for 2011 year-end processing. Running this script will ensure that your Tax Form Definition Table is current up through 2010 year-end changes and ready for upcoming 2011 year-end changes to be delivered in future tax updates.

If you produced Form W-2 for 2010 using PeopleSoft Payroll for North America . . .

Employers who completed year end processing and produced Form W-2 for tax year 2010 using PeopleSoft Payroll for North Americamust notrun the special script described above and should not request it from Oracle Software Support.

Ordering W-2 Forms for Tax Year 2011

RR Donnelley has updated their website with information on year-end tax forms for 2011:

In preparingto order W-2 forms for tax year 2011, 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 12 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 12 characters.States that are currently known to issue Employer Identification Numbers that exceed 12 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 12 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.

Special Notes – U.S.

Connecticut Withholding Tax Changes

For the August 1, 2011, Connecticut withholding tax changes, the COBOL programs delivered in Tax Update 11-D are the latest and most complete versions and include updates to resolve additional issues related to the new Special Accumulator “CTS” which were reported after the two individual special postings described in the separate document delivered with this tax update (Connecticut Withholding Tax Changes August 1, 2011). Customers who have found that the Special Accumulator “CTS” balance is not being correctly updated for certain employees should find the problem resolved after applying Tax Update 11-D and re-testing.
(Report ID 12831873)

Overflow Wage Statement Pages

Tax Update 11-D delivers new functionalityto create overflow wage statement pages in order to print complete earnings detail information when the number of lines of earnings detail information exceeds the space available on a single page wage statement. This new functionality is available only when using XMLP to create checks and advices.
A new Overflow Statements checkbox is added to the Paycheck Options Table as shown below.
To create overflow wage statement pages, you must (1) select the Overflow Statements checkbox, and (2) use the new Report Definitions PRTOFCHK and PRTOFADV for printing, and the new Report Definitions SSPOFCHK and SSPOFADV for employee self-service, as illustrated in the Paycheck Options Table below.


When the new overflow wage statements function is selected, additional wage statement pages will be generated whenever an employee’s number of earnings detail lines (all earnings with eithera current pay period amountora YTD balance greater than zero) exceeds 13, which is the maximum number that can be printed on the first wage statement page. Using the overflow wage statement feature, a maximum of 60 earnings detail lines can be printed – 13 on the first wage statement page, and 47 additional lines on the overflow wage statement page.
Note: Once an employee has more than 13 different earnings with YTD balances greater than zero, overflow wage statement pages will continue to be produced for the employee for each payroll processed for the remainder of the calendar year. You will need to take this factor into consideration in determining whether you may need to order increased quantities of form stock for printing checks and advices.
Blank check/advice stock must be used; preprinted stock cannot be used. The new overflow wage statement functionality was tested on two different blank check/advice forms stock from R R Donnelley. Contact R R Donnelley directly at 1-877-526-3885 with inquiries regarding compatible blank forms stock.

If you selectOverflow Statements checkbox without also selectingthe new Report Definitions (PRTOFCHK and PRTOFADV for printing andSSPOFCHK and SSPOFADV for employee self-service), an error message will be generated when you try to save the entry, as shown below.


If you specify the new Report Definitions for overflow wage statements(PRTOFCHK and PRTOFADV for printing andSSPOFCHK and SSPOFADV for employee self-service) but do notalso select the new Overflow Statements checkbox, you may save the entry, but no overflow wage statement pages will be produced. If there are more than 13 earnings detail lines,detail will not be printed for the thirteenth and subsequent earnings, for which instead dollar amounts will roll-up into a total for “Other” earnings as shown below.




The following pages provide examples of overflow wage statement pages for a check, a deposit advice, and the self-service view.

Example 1. Shown below and on the following page is a check for an employee whose wage statement includes 17 lines of earnings detail: 16 earnings paid in the current pay period and 1 earnings (HOL) witha YTD balance only.



Example 2. Shown below and on the following page is a deposit advice for an employee whose wage statement includes 17 lines of earnings detail: 8 earnings paid in the current pay period and 9 earnings which have YTD balances only.
.

Example 3. Shown below and on the following page is the self-service view of thedeposit advice for the employee in Example 2 whose wage statement includes 17 lines of earnings detail: 8 earnings paid in the current pay period and 9 earnings which have YTD balances only. The format of the paycheck self-service view is identical to the self-service view of the deposit advice. The “NON-NEGOTIABLE” message does not appear in the self-service views, since they will not be printed on check stock.



(Report ID 11645969)

State Tax Data Error Messages

A new error message is added to prevent saving an employee State Data Record when Tax Marital Status is set to “X” (“Claiming exemption from withholding”) but Special Withholding Tax Status is not set to “Maintain table gross” as shown below.

The error message shown below is generated because in the above example, Tax Marital Status = “X” when Special Withholding Tax Status does not = “Maintain taxable gross”.

The three state-specific error messages shown below will no longer be displayed when the employee’s State Tax Marital Status does not match the employee’s Federal Tax Marital Status if the mismatch condition is a result of setting State Tax Marital Status to “X” (“Claiming exemption from withholding”).




(Report ID 11810998)

U.S. Changes

Federal / State Tax Table

State / Effective Date of Table Entry
/ Table Update Description
$U / 07/01/2011 / A new table entry effective-dated 07/01/2011 includes the reduction in the FUTA tax rate from 0.8 % to 0.6 % which is in effect for the period July 1 – December 31, 2011, per the July 28, 2011, revision of IRS Pub. 15 (Circular E):

Note: COBOL program changes which are required to implement the FUTA tax rate reduction are also delivered in this tax update. See the entry for Report ID 12675531 in the later COBOL and Store Statement Changes section of this document for detailed information.
(Report ID 12679903 posted for Release 9 to My Oracle Support by 1 July 2011)
CT / 08/01/2011 / A new table entry effective-dated 08/01/2011 includes the values needed to calculate Connecticut state withholding tax to be withheld from wages paid on or after
August 1, 2011.


Note: COBOL program, store statement, and object changes which are required to implement the Connecticut withholding tax changes are also delivered in this tax update. See the separate document delivered with this tax update Connecticut Withholding Tax Changes August 1, 2011.
(Report ID 12614617 posted for Release 9 to My Oracle Support by 25 July 2011)
Special Accumulator Table
Warning: If you pay employees subject to Connecticut withholding tax and are already currently using Special Accumulator Code CTS for another purpose, you must review Solution 1340537.1, and then contact Oracle Software Support for additional instructions before proceeding to apply the product modifications delivered in this report.If you do not pay employees subject to Connecticut withholding tax, but youare already currently using Special Accumulator Code CTS foranother purpose, then you must not run the script (updxxxxxx_04.dms) delivered in Tax Update 11-D which updates the Special Accumulator Table.
Special
Accumulator
Code / Effective Date of Table Entry
/ Table Update Description
CTS
/ 01/01/1900 / A new table entry establishes a new Special Accumulator Code CTS which is used to track the taxable portion of supplemental wage payments subject to Connecticut withholding tax. For detailed information on using this new Special Accumulator Code CTS, see the separate document delivered with this tax update
Connecticut Withholding Tax Changes August 1, 2011.
Description: CT Supplemental Earnings
Short Description: CT SUPPL
(Report ID 12614617 for Release 9 posted to My Oracle Support by 25 July 2011)

Taxable Gross Definition Table