PEOPLESOFT PAYROLL FOR NORTH AMERICA TAX UPDATE 09-E TAX UPDATE NOTES - RELEASE 9 PeopleSoft Payroll’s Tax Update 09-E includes updates to U.S. tax and garnishment tables, 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 9, the tax update package also includes the following documentation files: UPD766836_INSTALL.htm Resolution_766836.xls UPD766836_CODECHANGES.rtf “PeopleSoft Application Update Installation Instructions” List of object changes delivered with Tax Update 09-E 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-E, 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. PEOPLESOFT PROPRIETARY AND CONFIDENTIAL T A X 09E900 - N O T E S . D O C - 1 PEOPLESOFT PAYROLL TAX UPDATE 09-E - RELEASE 9 OCTOBER 26, 2009 Copyright © 2009, Oracle. All rights reserved. The Programs (which include both the software and documentation) contain proprietary information; they are provided under a license agreement containing restrictions on use and disclosure and are also protected by copyright, patent, and other intellectual and industrial property laws. Reverse engineering, disassembly, or decompilation of the Programs, except to the extent required to obtain interoperability with other independently created software or as specified by law, is prohibited. The information contained in this document is subject to change without notice. If you find any problems in the documentation, please report them to us in writing. 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Oracle is not responsible for: (a) the quality of third-party products or services; or (b) fulfilling any of the terms of the agreement with the third party, including delivery of products or services and warranty obligations related to purchased products or services. Oracle is not responsible for any loss or damage of any sort that you may incur from dealing with any third party. Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners. 2 – T A X 09E900 - N O T E S . D O C PEOPLESOFT PROPRIETARY AND CONFIDENTIAL OCTOBER 26, 2009 PEOPLESOFT PAYROLL TAX UPDATE 09-E – RELEASE 9 Updating Your Tables Tax Update 09-E includes the following files for updating the tables in your PeopleSoft Payroll system. File Contents upd766836_01.dat upd766836_01.dms U.S. tax table updates upd766836_02.dat upd766836_02.dms Tax Form Definition Table and Tax Form Print Parameters Table (Report ID 1904935000) (U.S. only) upd766836_03.dms Database stamp (There is no .dat file associated with this .dms file.) upd766836_04.dat upd766836_04.dms 2009 U.S. Year End Forms PDF Templates for XMLP (Report ID 1863164000, 1904942000, and 1905901000) upd766836_05.dat upd766836_05.dms Garnishment table updates upd766836_msg.dat upd766836_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 MetaLink 3. PEOPLESOFT PROPRIETARY AND CONFIDENTIAL T A X 09E900- N O T E S . D O C - 3 PEOPLESOFT PAYROLL TAX UPDATE 09-E - RELEASE 9 OCTOBER 26, 2009 Special Notes – 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 Report ID 1868095000. This information has also been posted as an announcement on MetaLink 3 under Document ID 815937.1. 4 – T A X 09E900 - N O T E S . D O C PEOPLESOFT PROPRIETARY AND CONFIDENTIAL OCTOBER 26, 2009 PEOPLESOFT PAYROLL TAX UPDATE 09-E – RELEASE 9 Special Notes – North America (Cont’d) International ACH Transactions U.S. Direct Deposit Error Messages Product modifications were delivered in Tax Update 09-D to create IAT records in the example given as Scenario F-3 on pages 96-97 of the International ACH Transactions (IAT) Survival Guide, which describes payments by direct deposit to a U.S. bank to a person who resides outside of the United States, by an employer who does not know whether or not the funds will be ultimately transferred to a financial institution outside the United States. To setup an employee’s direct deposit record to flag an International ACH Transaction if funds may ultimately be transferred to a financial institution outside the jurisdiction of the United States, you must: 1. Select a Country Code of “USA”. 2. Either select a valid Bank ID (Routing Number) from the look-up list or use the “Add New Bank” option. Free-form entry in the Bank ID field is not permitted when the International ACH Bank checkbox is selected. 3. Turn on the International ACH Bank checkbox. Direct Deposit Page (Administrator View) PEOPLESOFT PROPRIETARY AND CONFIDENTIAL T A X 09E900- N O T E S . D O C - 5 PEOPLESOFT PAYROLL TAX UPDATE 09-E - RELEASE 9 OCTOBER 26, 2009 A new error message (2000,824) will be displayed if a Country Code other than “USA” is selected: Modified error message (2002,449) will be displayed if a U.S. Bank ID is not selected from the list of valid values provided by the look-up list: The existing error message (2000,370) applies to Canadian direct deposit entries only. It will no longer be displayed when entering data into the U.S. direct deposit component: (Report ID 1923460000) 6 – T A X 09E900 - N O T E S . D O C PEOPLESOFT PROPRIETARY AND CONFIDENTIAL OCTOBER 26, 2009 PEOPLESOFT PAYROLL TAX UPDATE 09-E – RELEASE 9 Source Bank Table Page Modification The Source Bank Table was modified to hide the International ACH Bank checkbox as it is not required to support IAT Scenario F3. Before Changes: After Changes: (Report ID 1914381000 Posted to MetaLink 3 by 01 September 2009) PEOPLESOFT PROPRIETARY AND CONFIDENTIAL T A X 09E900- N O T E S . D O C - 7 PEOPLESOFT PAYROLL TAX UPDATE 09-E - RELEASE 9 OCTOBER 26, 2009 Canadian Direct Deposit Page Modification The Canadian Direct Deposit administrator page was modified to remove the prompt from the Bank ID field to function as it did prior to the delivery of the U.S. NACHA changes with Tax Update 09-D. The Bank ID field for Canada is for free-form use only. Before Changes: After Changes: (Report ID 1914381000 Posted to MetaLink 3 by 01 September 2009) 8 – T A X 09E900 - N O T E S . D O C PEOPLESOFT PROPRIETARY AND CONFIDENTIAL OCTOBER 26, 2009 PEOPLESOFT PAYROLL TAX UPDATE 09-E – RELEASE 9 Special Note – Preparing for U.S. Year End Reporting 2009 After you have followed the instructions in the “PeopleSoft Application Update Installation Instructions” to apply the object changes delivered in this tax update, you are ready to update your year end tables for 2009 U.S. year-end wage and tax reporting. Refer to the separate document Year End Processing 2009: U.S., Puerto Rico, and U.S. Territories delivered with this tax update for detailed instructions on year-end processing with PeopleSoft Payroll for North America. Step 1 is for NEW PeopleSoft Payroll Users only (processing Year End in PeopleSoft Payroll for the first time in 2009) 1) If you have not already done so, run the DataMover script upd766829_05.dms (delivered in the previous Tax Update 09-D) to add 2008 entries to the Tax Form Definition Table. Steps 2 – 10 are for ALL PeopleSoft Payroll Users 2) IMPORTANT: You must complete this manual step before proceeding to use Change Assistant to apply the DataMover scripts upd766836_02.dms and upd766836_04.dms delivered with Tax Update 09-E. Enter the Tax Form Identification W-2 and the Effective Date of 01/01/2008 on the Tax Form Definition search page and select Search. Add a new row in the table that duplicates all of the 2008 entries by selecting the Add (+) button in the “Effective Date” Group Box. Change the effective-date for this newly inserted row to 01/01/2009. Save this new entry. Then follow this same procedure for Tax Form Identifications W-2c, W-2AS, W-2GU, W-2PR, W-2VI, W-2cAS, W-2cGU, W-2cPR, and W-2cVI. Save these new entries. 3) Update the new 2009 Tax Form Definition Table entries you have created with your specific earnings and deductions information for year-end reporting. Save your changes. To update the Tax Form Definition Table with a new earnings or deduction, the Effective Date of the Earnings Table or Deductions Table entry must match the Effective Date of the Tax Form Definition Table entry you are updating. For example, if you are updating a Tax Form Definition Table entry dated 01/01/2009, then the Effective Date on the Earnings Table or Deduction Table entry of the earnings or deduction being added to the Tax Form Definition Table entry must also be 01/01/2009. If necessary, in Correction mode, temporarily change the Effective Date of the Earnings Table or Deduction Table entry to match the Effective Date of the Tax Form Definition Table entry, update the Tax Form Definition Table entry with the earnings or deduction and save the change, and then, again in Correction mode, return the Effective Date of the Earnings Table or Deduction Table entry to its original date. 4) To update your Tax Form Definition Table for 2009 Form 940 reporting, enter the Tax Form Identification 940 and the Effective Date of 01/01/2008 on the Tax Form Definition search page and select Search. Add a new row in the table by selecting the Add (+) button in the “Effective Date” Group Box and change the Effective Date for this newly inserted row to 01/01/2009. Enter information for any earnings or deductions that should be defined as FUTAexempt for 2009 FUTA Form 940 reporting. Save this new entry. 5) Run the DataMover script upd766836_02.dms provided in Tax Update 09-E. This script will add 2009 entries to the Tax Form Definitions table (New Jersey Family Leave Insurance entries) and Tax Form Print Parameters table. 6) Run TAX710 to print a listing of 2009 Tax Form Definition table entries and review for accuracy. 7) Run TAX712 to verify that 2009 entries have been added to the Tax Form Print Parameters table. 8) Update W-2 Company table with entries for calendar year 2009. 9) Run the DataMover script upd766836_04.dms to update the Tax Form XMLP Options Table with 2009 U.S. yearend form PDF templates for XMLP processing. 10) Update the Year End Form Options Table for XMLP processing by manually adding a new row for Tax Year 2009 for each W-2 Reporting Company. PEOPLESOFT PROPRIETARY AND CONFIDENTIAL T A X 09E900- N O T E S . D O C - 9 PEOPLESOFT PAYROLL TAX UPDATE 09-E - RELEASE 9 OCTOBER 26, 2009 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. Tax Form Description Oracle/PeopleSoft 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 PS8606862-A (Discontinued with the delivery of Tax Update 09-D – see note below.) 1099-R Distributions from Pensions, Annuities, Retirement or ProfitSharing 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: http://www.rrdonnelley.com/wwwPeopleSoft/home.asp 1 0 – T A X 09E900 - N O T E S . D O C PEOPLESOFT PROPRIETARY AND CONFIDENTIAL OCTOBER 26, 2009 PEOPLESOFT PAYROLL TAX UPDATE 09-E – RELEASE 9 U.S. Changes Federal / State Tax Table State Effective Date of Table Entry Table Update Description CA 11/01/2009 A table entry effective-dated 11/01/2009 is added to deliver revised California state withholding tax changes published by the California Employment Development Department which are effective beginning with wages paid on or after November 1, 2009, as required by the enactment of California ABX4 17 on July 28, 2009. http://www.edd.ca.gov/pdf_pub_ctr/09methb_novdec.pdf http://info.sen.ca.gov/pub/09-10/statute/ch_0001-0050/ch_15_st_2009_abx4_17 (Report ID 1912122000 posted to MetaLink 3 by 13 October 2009) CT 10/01/2009 A table entry effective-dated 10/01/2009 is added to deliver Connecticut withholding tax changes published in October 2009 by the Connecticut Department of Revenue Services. The State Tax Table entry for these Connecticut withholding tax changes is effective-dated 10/01/2009 because the changes were not published by Connecticut until October 2009 and will apply only to wages paid in the remainder of 2009 once the tax changes have been applied. However, while the revised tax rates were not published until October 2009, Connecticut advises that the higher tax rates apply retroactively to the employee's entire taxable wages for 2009. To determine the amount of additional tax to withhold each pay period for the remainder of 2009 in order to avoid being underwithheld for the year, employees who are subject to the revised tax rates should (1) calculate the total tax due for the annualized taxable income (including any supplemental compensation previously paid or anticipated to be paid before the end of the year), (2) subtract the tax already withheld, and (3) divide the balance due by the number of pay periods remaining in tax year 2009. The result is the amount of additional withholding that the employee should request on Line 2 of Connecticut Form CT-W4. The higher tax rates apply only to employees in the following classifications: Withholding Code: A, D, or F Higher rates apply if annualized taxable wage amount is greater than $500,000 Withholding Code B Higher rates apply if annualized taxable wage amount is greater than $800,000 Withholding Code C Higher rates apply if annualized taxable wage amount is greater than $1,000,000 All other employees are not impacted by the tax rate increase. http://www.ct.gov/drs/cwp/view.asp?a=1436&q=448186 http://www.ct.gov/drs/lib/drs/forms/2009withholding/2009calculationrules.pdf (Report ID 1920227000 posted to MetaLink 3 by 12 October 2009) PEOPLESOFT PROPRIETARY AND CONFIDENTIAL T A X 09E900- N O T E S . D O C - 11 PEOPLESOFT PAYROLL TAX UPDATE 09-E - RELEASE 9 OCTOBER 26, 2009 Local Tax Table State Locality Locality Name OLD Rate/Amt NEW Rate/Amt Eff Date AL 48376 Midfield New entry 0.010000 / Resident 0.010000 / Nonresident 12/01/2008 0.010000 / Resident 0.002500 / Nonresident 0.012500 / Resident 0.005000 / Nonresident 10/01/2009 0.015500 / Resident 0.004000 / Nonresident 0.014500 / Resident 0.004000 / Nonresident 10/01/2009 0.012500 / Resident 0.005000 / Nonresident 0.022500 / Resident 0.007500 / Nonresident 10/01/2009 0.011500 / Resident 0.004000 / Nonresident 0.012000 / Resident 0.004500 / Nonresident 10/01/2009 0.010000 / Resident 0.002500 / Nonresident 0.017500 / Resident 0.002500 / Nonresident 10/01/2009 0.010400 / Resident 0.002600 / Nonresident 0.010500 / Resident 0.002625 / Nonresident 10/01/2009 0.025500 / Resident 0.007500 / Nonresident 0.023000 / Resident 0.007500 / Nonresident 10/01/2009 0.004000 / Resident 0.001000 / Nonresident 0.010000 / Resident 0.006250 / Nonresident 10/01/2009 0.008000 / Resident 0.003500 / Nonresident 0.017500 / Resident 0.007375 / Nonresident 10/01/2009 0.029000 / Resident 0.007500 / Nonresident 0.028200 / Resident 0.007500 / Nonresident 10/01/2009 0.020000 / Resident 0.020000 / Nonresident 0.025000 / Resident 0.025000 / Nonresident 10/01/2009 (Report ID 1913856000) New Madison Village New entry 0.010000 / Resident 0.010000 / Nonresident 01/01/2008 0.003000 / Resident 0.003000 / Nonresident 0.005000 / Resident 0.005000 / Nonresident 01/01/2007 (Report ID 1921671000) IN 005 Bartholomew (Report ID 1927499000 *) 015 Carroll (Report ID 1927499000 *) 053 Grant (Report ID 1927499000 *) 059 Hancock (Report ID 1927499000 *) 093 Lawrence (Report ID 1927499000 *) 105 Monroe (Report ID 1927499000 *) 121 Parke (Report ID 1927499000 *) 129 Posey (Report ID 1927499000 *) 141 St. Joseph (Report ID 1927499000 *) 169 Wabash (Report ID 1927499000 *) OH 18000 54978 Columbus (Report ID 1915099000) OR 49450 South Clackamas Transportation District (Report ID 1927897000) * Report ID 1927499000 containing the Indiana county tax rate changes listed above was posted to MetaLink 3 by 13 October 2009. 1 2 – T A X 09E900 - N O T E S . D O C PEOPLESOFT PROPRIETARY AND CONFIDENTIAL OCTOBER 26, 2009 PEOPLESOFT PAYROLL TAX UPDATE 09-E – RELEASE 9 Local Tax Table – Pennsylvania Earned Income Tax Tax Update 09-E includes updates to Pennsylvania Local Earned Income Tax entries in the Local Tax Table based on data downloaded from the “Real-time Register” on the website maintained by the Commonwealth of Pennsylvania. Table updates are delivered for Local Tax Table entries for local Earned Income Taxes for which withholding tax rates do not match the current information downloaded from the “Real-time Register” on the website. All updates to Pennsylvania entries in the Local Tax Table delivered in this tax update are effective-dated 01/01/2009. These Pennsylvania Local Earned Income Tax rate changes downloaded from the Real-time Register on Pennsylvania website are documented separately in these files delivered with this tax update: Word document Excel spreadsheet PA09EEIT.doc PA09EEIT.xls http://munstatspa.dced.state.pa.us/registers.aspx (Report ID 1929413000) PEOPLESOFT PROPRIETARY AND CONFIDENTIAL T A X 09E900- N O T E S . D O C - 13 PEOPLESOFT PAYROLL TAX UPDATE 09-E - RELEASE 9 OCTOBER 26, 2009 Garnishment Rules Table (U.S.) State Rule ID Effective Date Action AZ LEVY/B LEVY/B/ADD LEVY/H LEVY/H/ADD LEVY/M LEVY/M/ADD LEVY/S LEVY/S/ADD 01/01/2008 Values used to calculate the amounts exempt from Arizona tax levies in the year 2008 are added to the Garnishment Rules Table. LEVY/B LEVY/B/ADD LEVY/H LEVY/H/ADD LEVY/M LEVY/M/ADD LEVY/S LEVY/S/ADD 01/01/2009 AZ 1 4 – T A X 09E900 - N O T E S . D O C (Report ID 1925802000) Values used to calculate the amounts exempt from Arizona tax levies in the year 2009 are added to the Garnishment Rules Table. (Report ID 1925802000) PEOPLESOFT PROPRIETARY AND CONFIDENTIAL OCTOBER 26, 2009 PEOPLESOFT PAYROLL TAX UPDATE 09-E – RELEASE 9 Tax Update 09-E - COBOL and Store Statement Changes for Release 9 All payroll users must apply all COBOL and store statement changes included in Tax Update 09-E. Changed COBOL Modules This tax update includes the modified COBOL programs and copy members listed below. 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. Changed Store Statements This tax update includes the modified store statements listed below. They are located in the COBOL directory. Replace your current version and rerun your store statements using DataMover. For Release 9 Changes are made to COBOL programs: PSPMFLSA.CBL PSPONETM.CBL PSPTARRY.CBL PSPTAXDT.CBL PSPTCALC.CBL PSPUSTAX.CBL Changes are made to copy members: PSCPFLSA.CBL Changes are made to store statements: PSPTAXDT.DMS PEOPLESOFT PROPRIETARY AND CONFIDENTIAL T A X 09E900- N O T E S . D O C - 15 PEOPLESOFT PAYROLL TAX UPDATE 09-E - RELEASE 9 OCTOBER 26, 2009 Report IDs COBOL and Store Statement changes for the following Report IDs are included in this tax update. Unless otherwise indicated by a specific posting date, Report IDs referenced in these tax update notes have not been posted to MetaLink 3. E&G = PeopleSoft Payroll for Education & Government USF = PeopleSoft Payroll for U.S. Federal Government Report ID Description 1835509000 Report ID 1835509000 modifies PSPMFLSA.CBL and copymember PSCPFLSA.CBL to correctly recalculate overtime earnings using the contractual rate when the number of hours worked is subsequently adjusted to less than the 40 hours per week threshold which had originally required use of the FLSA rate in the overtime earnings calculation. Prior to the modifications, the program did not correctly recalculate the overtime earnings using the contractual hourly rate when the regular hours worked were reduced to less than 40 per week and the overtime earnings had previously been calculated and paid using the FLSA rate. 1904884000 Report ID 1904884000 modifies PSPTCALC.CBL to correctly calculate federal withholding tax when processing an off-cycle supplemental gross-up payment that is attached to the next pay period. Prior to the modifications, when the off-cycle payment was tied to a future on-cycle pay calendar that had not been calculated and confirmed, even though federal tax was withheld from regular pay in a previous pay period, the program incorrectly applied the aggregate tax method instead of the flat percentage supplemental tax rate when calculating the tax to be withheld from the supplemental wage payment. Posted to MetaLink 3 by 03 September 2009 1904897000 Report ID 1904897000 modifies PSPONETM.CBL to correctly process one-time deductions when Pay Calculation is processed for an Off-Cycle payroll using the right side of the Run Control page. Prior to the modifications, an employee’s one-time deduction was not processed in the following scenario: 1. 2. 3. Employee #1: one-time deduction refund entered on page 1, Payline 1, and earnings entered on page 1, Payline 3 Employee #2: one-time deduction refund entered on page 1, Payline 2 (i.e., this entry is “sandwiched” between the two entries for Employee #1) Pay Calculation processed with parameters specified on the right side of the Run Control page (Company, Pay Group, Pay Period End Date, Off-Cycle Indicator and Page) In this specific scenario, Employee #1 was calculated correctly but the deduction refund was not processed for Employee #2. If Pay Calculation was processed with the parameters specified on the left side of the Run Control page (Run ID and Off-Cycle), then both employees were calculated correctly. 1 6 – T A X 09E900 - N O T E S . D O C PEOPLESOFT PROPRIETARY AND CONFIDENTIAL OCTOBER 26, 2009 PEOPLESOFT PAYROLL TAX UPDATE 09-E – RELEASE 9 Report ID Description 1907321000 Report ID 1907321000 modifies PSPTAXDT.CBL and PSPTAXDT.DMS to correctly determine if a non-resident alien employee is subject to SDI, VDI, FLI, or VOL FLI taxes based on UI jurisdiction state. Prior to the modifications, the program evaluated the employee’s residence state in determining whether the employee was subject to these taxes, and if the nonresident alien employee did not have a residence state specified on State Tax Data, these taxes were not calculated. Posted to MetaLink 3 by 02 September 2009 1910471000 Report ID 1910471000 modifies PSPUSTAX.CBL and PSPTARRY.CBL to correctly prioritize and withhold taxes for employees processed with tipped earnings. Prior to the modifications, if a tipped employee was paid insufficient earnings to cover all tax obligations (specifically the self-adjusting taxes such as OASDI, Medicare, or SDI), then on a subsequent paycheck federal withholding tax was incorrectly withheld before the OASDI, Medicare, or SDI taxes associated with the tipped earnings. Additionally, in some cases the OASDI and Medicare tax amounts were inflated for an employee paid for the first time if the previously processed employee had tipped earnings, because the accumulators for collecting prior period taxes were not cleared properly. PEOPLESOFT PROPRIETARY AND CONFIDENTIAL T A X 09E900- N O T E S . D O C - 17 PEOPLESOFT PAYROLL TAX UPDATE 09-E - RELEASE 9 OCTOBER 26, 2009 U.S. SQRs delivered with Tax Update 09-E for Release 9 Descriptions of SQR modifications are followed by the Report ID. Unless otherwise indicated by a specific posting date, Report IDs referenced in these tax update notes have not been posted to MetaLink 3. Annual Reporting SQRs Note: For tax year 2009 there are no record format changes to either the EFW2 Electronic Filing Specifications for Filing W-2 Information or the EFW2C Electronic Filing Specifications for Filing W-2c Information with the Social Security Administration. http://www.ssa.gov/employer/efw/09efw2.pdf http://www.ssa.gov/employer/efw/09efw2c.pdf SQR Description TAX910LD.SQR TAX910LD.SQR loads data to year-end records. The program is redelivered with modifications to comply with the New Jersey requirement to separately report on Form W-2 the amount of the employee deduction for the New Jersey Family Leave Insurance (FLI) or Voluntary Plan Family Leave Insurance (VPFLI), beginning with tax year 2009. In the year-end records, New Jersey Family Leave Insurance (FLI) will load in box 14C and Voluntary Plan Family Leave Insurance will load in box 14H. The New Jersey FLI and VPFLI tax amounts will print in W-2 box 19 and the literal “FLI” will print in W-2 box 20, using the alternative W-2 print format approved by New Jersey. For Voluntary Plan Family Leave Insurance, the literal "FLI PP #" will print in W-2 box 17 and the voluntary FLI private plan number will print in W-2 box 18. For Form ID LSR02A, due to space limitations, both the literal “FLI PP #” and the voluntary FLI private plan number will print in box 17. http://www.state.nj.us/treasury/taxation/pdf/other_forms/git-er/m6025_2009.pdf http://lwd.dol.state.nj.us/labor/fli/content/fli_faq.html (Report ID 1822056000) TAX916LC.SQR TAX916LC.SQR produces the Local W-2 Tax Totals Report. The program is modified to add Company Total and Grand Total by W-2 Reporting Company to the report to assist employers in completing boxes 18 (Local wages) and 19 (Local income tax) on Form W-3 (Transmittal of Wage and Tax Statements), which is submitted for each Federal Employer Identification Number (FEIN). Prior to the modifications, these totals were not provided in the report. (Report ID 1840189000) 1 8 – T A X 09E900 - N O T E S . D O C PEOPLESOFT PROPRIETARY AND CONFIDENTIAL OCTOBER 26, 2009 PEOPLESOFT PAYROLL TAX UPDATE 09-E – RELEASE 9 SQR Description TAX916ST.SQR TAX916ST.SQR produces the State W-2 Tax Totals Report. The program is modified to add Company Total and Grand Total by W-2 Reporting Company to the report to assist employers in completing boxes 16 (State wages) and 17 (State income tax) of Form W-3 (Transmittal of Wage and Tax Statements), which is submitted for each Federal Employer Identification Number (FEIN). Prior to the modifications, these totals were not provided in the report. (Report ID 1840189000) TAX930PM.SQR TAX930PM.SQR reports Form 1099-R data to the Internal Revenue Service. The program creates a file for printing data on paper forms as well as a file for reporting data electronically. The program is modified to comply with reporting requirements for tax year 2009 published in IRS Publication 1220, “Specifications for Filing Forms 1098, 1099, 3921, 3922, 5498, 8935 and W-2G Electronically.” The program is modified to add Distribution Code U to the list of valid Distribution Codes. Distribution Code “U” is valid beginning in tax year 2009 for distributions under IRC 404(k). Previously omitted valid Distribution Codes B, N, and T are also added to the program and/or the run control page. http://www.irs.gov/pub/irs-pdf/p1220.pdf (Report ID 1922320000) TAX950.SQR E&G TAX950.SQR reports Form 1042-S data to the Internal Revenue Service. The program creates a file for reporting data electronically. The program is modified to evaluate and report an employee’s address based on the first two non-blank address fields. Prior to the modifications, if a country was set up to only use ADDRESS3 from the PERSON_ADDRESS data (e.g. NLD and BEL), the employee address information was incorrectly omitted from the file. (Report ID 1837715000) The program is also modified to report zeros for an employee’s taxable gross and/or associated taxes withheld if either of these values is negative. Prior to the modifications, because negative amounts were not evaluated they were incorrectly included on the file. IRS Publication 1187 includes the instruction “Do not report negative amounts in any amount field." http://www.irs.gov/pub/irs-pdf/p1187.pdf (Report ID 1917877000) PEOPLESOFT PROPRIETARY AND CONFIDENTIAL T A X 09E900- N O T E S . D O C - 19 PEOPLESOFT PAYROLL TAX UPDATE 09-E - RELEASE 9 OCTOBER 26, 2009 SQR Description TAX960FD.SQR TAX960FD.SQR reports W-2 wage and tax data for the U.S., Puerto Rico, and the U.S. Territories to the Social Security Administration using the EFW2 format. The program is modified to suppress the creation of company RE and RT records if there are no associated RW (employee federal wage) records for that W2 Reporting Company. The log file will also now include the following message in this scenario: “No Federal W-2 file created. No federal data to report”. Prior to the modifications, if an employee only had state and/or local reportable tax data (RS Records) but no federal reportable tax data (RW Records), a federal W-2 file was incorrectly created with RE and RT records. This type of submission failed to pass SSA AccuWage edits and was rejected with the error message “RW record must follow RE record”. (Report ID 1858171000) TAX960US.SQR W2BOX.SQC TAX960US.SQR produces the W-2 Print File for reporting annual wage and tax data on Form W-2 for U.S. employees. W2BOX.SQC consolidates the collection of dollar amounts for all W-2 reportable items for the U.S. and U.S. Territories. The programs are redelivered with modifications to comply with the New Jersey requirement to separately report on Form W-2 the amount of the employee deduction for the New Jersey Family Leave Insurance (FLI) or Voluntary Plan Family Leave Insurance (VPFLI), beginning with tax year 2009. The New Jersey FLI and VPFLI tax amounts will print in W-2 box 19 and the literal “FLI” will print in W-2 box 20, using the alternative W-2 print format approved by New Jersey. For Voluntary Plan Family Leave Insurance, the literal "FLI PP #" will print in W-2 box 17 and the voluntary FLI private plan number will print in W-2 box 18. For Form ID LSR02A, due to space limitations, both the literal “FLI PP #” and the voluntary FLI private plan number will print in box 17. http://www.state.nj.us/treasury/taxation/pdf/other_forms/git-er/m6025_2009.pdf http://lwd.dol.state.nj.us/labor/fli/content/fli_faq.html (Report ID 1822056000) The Create W-2 PDF Form process is modified to print the employee's name for W-2 XMLP templates prior to 2008. Prior to the modifications, the employee’s name could not be printed on prior year W-2 forms in the PDF format. (Report ID 1839209000) The Create W-2 PDF Form process is also modified to correctly print the employee name suffix when the employee has a very long first and last name. The name suffix will not be printed at all if there is insufficient room to include the employee’s last name and first and middle initials. When a W-2 form is created, only the first initials of the first and middle names are printed, and as much of the long last name is printed as space permits. Prior to the modifications, the suffix was incorrectly repeated an additional time on each subsequent form. (Report ID 1926134000) 2 0 – T A X 09E900 - N O T E S . D O C PEOPLESOFT PROPRIETARY AND CONFIDENTIAL OCTOBER 26, 2009 PEOPLESOFT PAYROLL TAX UPDATE 09-E – RELEASE 9 SQR Description VALIDEIN.SQC VALIDEIN.SQC validates the State Employer Identification Number (EIN) in the W-2 Record Error Report (TAX910ER.SQR), the State EFW2 File (TAX960ST.SQR), and the Local EFW2 File (TAX960LC.SQR). The program is modified to validate the correct formats for the Oregon and Wisconsin state employer account numbers. The Wisconsin EIN must be reported as 15 digits except newly registered employers can report “036APPLIEDFOR01”. When TAX960ST.SQR is processed for Wisconsin, the EIN will be reported in the RS Record as left-justified and blank-filled in location 248-267 (the last 5 positions 263-267 will always be blanks). Prior to the modifications, the Wisconsin EIN was a 6-digit or 7-digit number. The Oregon EIN is validated to be numeric. Prior to the modifications, there were no edits for Oregon because EFW2 reporting was not required for tax years prior to 2009. The Oregon EIN or BIN of 1234567-8 should be entered on the Company State Tax Table as 12345678 (with the hyphen removed). When TAX960ST.SQR is processed for Oregon, the BIN will be reported in the RS Record as right-justified and zero-filled in positions 248-267. (Report ID 1828251000) PEOPLESOFT PROPRIETARY AND CONFIDENTIAL T A X 09E900- N O T E S . D O C - 21 PEOPLESOFT PAYROLL TAX UPDATE 09-E - RELEASE 9 OCTOBER 26, 2009 Other U.S. SQRs SQR Description DDP001.SQR DDP002.SQR DDP001.SQR creates the Direct Deposit Transmittal files. DDP002.SQR produces the Direct Deposit Register. The programs are modified to process and report the correct number of transaction records when the direct deposit attributes are the same, but the priorities are different. Prior to the modifications, if an employee had multiple U.S. direct deposit distribution records with the same attributes but different priorities, duplicate transaction records were included in the direct deposit file, and the same transactions were reported twice on the direct deposit register. (Report ID 1919117000 posted to MetaLink 3 by 14 Sept 2009) Note: Additional modifications to program DDP001.SQR are currently in development to correct issues related to batch header records and the grouping of domestic vs. international transactions within the direct deposit file. As soon as these latest program modifications have successfully passed financial system edits, an updated version of program DDP001.SQR will be made available by a special posting to MetaLink 3 as Report ID 1919103000, as well as delivered in Tax Update 09-F. TAX010ST.SQR TAX010ST.SQR produces the State Tax Summary Report either by quarter or pay period depending on the Run Control Page selection. The program is modified to correctly accumulate the State and Locality Withholding Company Totals in the specific scenario where a state only has reportable local tax withholding information but no reportable state tax withholding information. Prior to the modifications, in this scenario, under the Company Total Section, the Local Withholding Tax Totals were incorrectly included in the State Withholding Tax Totals. For example, if an employee had reportable New York state tax withholding and reportable Pennsylvania local tax withholding information (but no Pennsylvania state tax withholding), under the Company Totals section, the Pennsylvania local withholding data was incorrectly included in the New York state withholding tax totals. With the modifications, the Pennsylvania local withholding data is now correctly included in the Locality Withholding Company Totals instead of in the State Withholding Tax Totals. (Report ID 1901087000) 2 2 – T A X 09E900 - N O T E S . D O C PEOPLESOFT PROPRIETARY AND CONFIDENTIAL OCTOBER 26, 2009 PEOPLESOFT PAYROLL TAX UPDATE 09-E – RELEASE 9 Canadian SQRs delivered with Tax Update 09-E for Release 9 Descriptions of SQR modifications are followed by the Report ID. 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. SQR Description PAY102CN.SQR PAY102CN.SQR produces the Workers Compensation report that lists by province the number of employees, their total earnings, assessable earnings, and any limits that apply. We modified the program to report all assessable earnings and to retrieve the WCB classification code using the cheque date, instead of the pay end date. This is now consistent with the retrieval of the earnings. Prior to the modifications, in certain scenarios the report was understating assessable earnings and displaying the message “Classification Not Found”. (Report ID 1866950000) PEOPLESOFT PROPRIETARY AND CONFIDENTIAL T A X 09E900- N O T E S . D O C - 23 PEOPLESOFT PAYROLL TAX UPDATE 09-E - RELEASE 9 OCTOBER 26, 2009 Previous Updates Tax Update 09-D U.S. – State withholding tax changes for Hawaii, New Jersey, and Wisconsin; state minimum wage changes for Alaska, District of Columbia, Florida, Missouri, New Jersey, Tennessee, Wisconsin, and Wyoming; Tennessee state unemployment insurance taxable wage base increase; Taxable Gross Definition Table updates for Auburn (Alabama), District of Columbia, Maine, and the New York MTA payroll tax; local tax changes for Kentucky, Ohio, and Pennsylvania; garnishment changes for Alaska, Florida, Maine, Massachusetts, New Hampshire, North Dakota, Pennsylvania, South Dakota, Vermont, Virginia, and Wisconsin; state withholding tax reciprocity calculation change for Connecticut residents; modifications to support International ACH Transactions in employee direct deposits; redelivery of SQR programs. Canada – Redelivery of SQR programs. Tax Update 09-C U.S. – U.S. Federal and state minimum wage increases; state withholding tax changes for California, Louisiana, New York (including Yonkers), and North Dakota; an increase in the West Virginia 2009 state UI taxable wage base; correction to the State Tax Reciprocity Table entry for Iowa residents working in other states; Taxable Gross Definition Table entries related to health savings accounts and Iowa tax exemption of benefits for same-sex spouses; local tax rate changes for Kentucky, Ohio, Pennsylvania, and West Virginia; redelivery of SQR programs. Canada – Provincial tax changes for New Brunswick and Newfoundland; temporary Quebec tax credit increase for the purchase of shares issued by Fondaction. Tax Update 09-B U.S. – U.S. Federal tax withholding and Advance Earned Income Credit changes required by the American Recovery and Reinvestment Act of 2009; state withholding tax changes for Colorado, Louisiana, Missouri, Local Tax Table changes for Alabama, Indiana, Kentucky, Ohio, Pennsylvania; Ohio local tax reciprocity changes; treaty table update for Bulgaria; garnishment rules table changes for New York and Nebraska, redelivery of SQR programs. Canada – Provincial tax changes for New Brunswick and Newfoundland. Tax Update 09-A U.S. – 2009 state withholding tax changes for District of Columbia, Kentucky, Missouri, North Dakota, Ohio, Oklahoma, Oregon, Vermont; 2009 state disability update for Hawaii; 2009 state unemployment insurance taxable wage base for U.S. Virgin Islands; Local Tax Table changes for Alabama, Kentucky, Maryland, Michigan, Ohio, Pennsylvania; Garnishment Rules Table update for Arizona state tax levies; redelivery of SQR reporting programs; updated aggregate method taxation of supplemental wage payments. Canada – Provincial tax changes for Ontario and Yukon Territory; redelivery of year-end SQR programs. 2 4 – T A X 09E900 - N O T E S . D O C PEOPLESOFT PROPRIETARY AND CONFIDENTIAL OCTOBER 26, 2009 PEOPLESOFT PAYROLL TAX UPDATE 09-E – RELEASE 9 Appendix: Object Changes delivered in Tax Update 09-E Message Catalog: Message Set Message Number Number Description 2000 439 Report ID 1922320000 Modified message text. 2000 824 Report ID 1923460000 Added new message. 2002 449 Report ID 1923460000 Modified message description. 801 831 881 890 900 Pages: Name Description DIRECT_DEPOSIT Report ID 1923460000 Modified tab order. DIRECT_DEPOSIT_CAN Report ID 1914381000 Removed Prompt from Bank ID field. GP_SS_EE_BANK_DET Report ID 1922737000 Modified Page Activate PeopleCode. PY_IC_DD_DATA Report ID 1914381000 Removed Bank address fields and modified layout. RUNCTL_TAX930PM1 Report ID 1922320000 Modified group box title. PEOPLESOFT PROPRIETARY AND CONFIDENTIAL 801 831 881 890 900 T A X 09E900- N O T E S . D O C - 25 PEOPLESOFT PAYROLL TAX UPDATE 09-E - RELEASE 9 OCTOBER 26, 2009 Records: Name Field Description ADDL_PAY_DATA EMPLID Report ID 1913031000 Modified SaveEdit PeopleCode. Create 801 831 881 890 900 /Alter APPBANK_TEO1 Report ID 1914381000 Alter Added new field to subrecord that is in this record. APPBANK_TEO2 Report ID 1914381000 Alter Added new field to subrecord that is in this record. APPBANK_TEO3 Report ID 1914381000 Alter Added new field to subrecord that is in this record. APP_BANKACCT Report ID 1914381000 Alter Added new field to subrecord that is in this record. BANKACCT_SBR COUNTRY_CD Report ID 1914381000 Modified FieldChange and FieldFormula PeopleCode. DERIVED_GP_NPD DISTRIB_AMT Report ID 1914381000 Added field, FieldChange and RowInit PeopleCode. DIR_DEP_DISTRIB PY_IC_DD_DTA_VW Report ID 1923460000 ACCOUNT_TYPE Modified SaveEdit PeopleCode. COUNTRY_CD Added FieldChange PeopleCode. BANK_CD PY_IC_W4_FTX_VW RC_US_YE 2 6 – T A X 09E900 - N O T E S . D O C Report ID 1914381000 Modified RowInit, FieldChange and SaveEdit PeopleCode. Report ID 1903577000 EMPLID Modified SaveEdit PeopleCode. SPECIAL_FWT_STATUS Modified FieldEdit PeopleCode. DISTRIB_CODE Report ID 1922320000 Modified FieldChange and SaveEdit PeopleCode. PEOPLESOFT PROPRIETARY AND CONFIDENTIAL OCTOBER 26, 2009 PEOPLESOFT PAYROLL TAX UPDATE 09-E – RELEASE 9 XMLP Data Definition: Data Source ID Description PYW209 Report ID 1904942000 Added W-2 PDF Form for 2009. PYW2AS09 Report ID 1904942000 Added W-2AS PDF Form for 2009. PYW2GU09 Report ID 1904942000 Added W-2GU PDF Form for 2009. PYW2VI09 Report ID 1904942000 Added W-2VI PDF Form for 2009. 900 XMLP Report Definition: Report Name Description PYW209N_CO Report ID 1904942000 Added W-2 Company Print Form 2009. PYW209N_EE Report ID 1904942000 Added W-2 Employee Print Form 2009. PYW209N_GVT Report ID 1904942000 Added W-2 Government Print Form 2009. PYW209N_SM Report ID 1904942000 Added W-2 Employee Self-Mailer Form 2009. PYW209S_EE Report ID 1904942000 Added W-2 Employee Self-Service Form 2009. PYW2AS09N_CO Report ID 1904942000 Added W-2AS Company Print Form 2009. PYW2AS09N_EE Report ID 1904942000 Added W-2AS Employee Print Form 2009. PYW2AS09N_GV Report ID 1904942000 Added W-2AS Government Print Form 2009. PYW2AS09S_EE Report ID 1904942000 Added W-2AS Employee Self-Service Form 2009. PYW2GU09N_CO Report ID 1904942000 Added W-2GU Company Print Form 2009. PYW2GU09N_EE Report ID 1904942000 Added W-2GU Employee Print Form 2009. PYW2GU09N_GV Report ID 1904942000 Added W-2GU Government Print Form 2009. PYW2GU09S_EE Report ID 1904942000 Added W-2GU Employee Self-Service Form 2009. PYW2VI09N_CO Report ID 1904942000 Added W-2VI Company Print Form 2009. PYW2VI09N_EE Report ID 1904942000 Added W-2VI Employee Print Form 2009. PYW2VI09N_GV Report ID 1904942000 Added W-2VI Government Print Form 2009. PYW2VI09S_EE Report ID 1904942000 Added W-2VI Employee Self-Service Form 2009. PEOPLESOFT PROPRIETARY AND CONFIDENTIAL 900 T A X 09E900- N O T E S . D O C - 27 PEOPLESOFT PAYROLL TAX UPDATE 09-E - RELEASE 9 OCTOBER 26, 2009 XMLP Template Definition: Template ID Description PYW209N_CO_1 Report ID 1904942000 Added W-2 Company Print Form 2009. PYW209N_EE_1 Report ID 1904942000 Added W-2 Employee Print Form 2009. PYW209N_GVT_1 Report ID 1904942000 Added W-2 Government Print Form 2009. PYW209N_SM_1 Report ID 1904942000 Added W-2 Employee Self-Mailer Form 2009. PYW209S_EE_1 Report ID 1904942000 Added W-2 Employee Self-Service Form 2009 PYW2AS09N_CO_1 Report ID 1904942000 Added W-2AS Company Print Form 2009. PYW2AS09N_EE_1 Report ID 1904942000 Added W-2AS Employee Print Form 2009. PYW2AS09N_GV_1 Report ID 1904942000 Added W-2AS Government Print Form 2009. PYW2AS09S_EE_1 Report ID 1904942000 Added W-2AS Employee Self-Service Form 2009. PYW2GU09N_CO_1 Report ID 1904942000 Added W-2GU Company Print Form 2009. PYW2GU09N_EE_1 Report ID 1904942000 Added W-2GU Employee Print Form 2009. PYW2GU09N_GV_1 Report ID 1904942000 Added W-2GU Government Print Form 2009. PYW2GU09S_EE_1 Report ID 1904942000 Added W-2GU Employee Self-Service Form 2009. PYW2VI09N_CO_1 Report ID 1904942000 Added W-2VI Company Print Form 2009. PYW2VI09N_EE_1 Report ID 1904942000 Added W-2VI Employee Print Form 2009. PYW2VI09N_GV_1 Report ID 1904942000 Added W-2VI Government Print Form 2009. PYW2VI09S_EE_1 Report ID 1904942000 Added W-2VI Employee Self-Service Form 2009. 2 8 – T A X 09E900 - N O T E S . D O C 900 PEOPLESOFT PROPRIETARY AND CONFIDENTIAL