Setting Up State Payroll Tax Reporting

This chapter discusses how to:

Identify data for state payroll tax reporting.
Set up group pay entities.
Maintain and view payroll tax tables.
Report state payroll tax liabilities.

Note. The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Australia. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 8.9 PeopleBook.

Identifying Data for State Payroll Tax Reporting

Before you begin configuring Global Payroll to report payroll tax, you need to identify the earnings, deductions, benefits, and expenses that are subject to payroll tax. To do this, check with the state revenue office of each state in which the organization pays employees. After you have gathered this information, run the payroll routinely and process payroll tax.

Setting Up Group Pay Entities

To set up group pay entities, use the Group Pay Entities AUS (GPAU_GRP_ENT) component.

The various state revenue offices define group pay entities to prevent parent and subsidiary organizations from avoiding payroll tax by splitting. The PeopleSoft system does not determine groupings or membership of pay entities in groups. Some members of the group might be administered outside the PeopleSoft system.

To calculate payroll tax, you must define at least one group and make all appropriate pay entities members of that group—even if the organization consists of only a single pay entity.

Payroll tax has a deduction threshold that is payable if taxable earnings don't exceed the specified amounts in each state. Only one pay entity within a group can claim this deduction. You can, however, have the threshold apportioned equally between all the pay entities within the group that you define.

You create the mandatory State Payroll report by running by the Group Pay Entity process.

When you create a group pay entity, you select from the existing pay entities. The pay entity that becomes the group entity is a member of its own group.

This section discusses how to group pay entities.

Page Used to Set Up Group Pay Entities

Page Name	Object Name	Navigation	Usage
Group Entity	GPAU_GRP_ENT	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Taxes, Group Pay Entities AUS	Consolidate pay entities in a group pay entity; apportion the deduction threshold across all pay entities or designate one pay entity for the threshold

Grouping Pay Entities

Access the Group Entity page.

Apportion Deductions

Select to have the whole deduction threshold apportioned equally across all group members. If the Apportion Deductions check box is selected and there is no designated company for the threshold deduction, the system apportions the threshold deduction across all the states of each company.

Group Pay Entities

Pay Entity	Add the members of the group.
Designated SPT Pay Entity	Select one of the pay entities to receive the full deduction threshold. You can leave them all cleared and have the threshold apportioned equally between all members by selecting the Apportion Deductions check box. After you designate an SPT pay entity, the system clears the Apportion Deductions check box (if it was selected) and makes it display-only.

Maintaining and Viewing Payroll Tax Tables

To set up payroll tax data, use the Payroll Tax Elements AUS (GPAU_SPT_TAX_RATE) component.

Because each organization's earnings, benefits, deductions, and expenses can differ, the organization can control this information. Before you can accurately report on payroll tax liabilities for the organization, you need to enter various elements into the payroll tax rates tables.

This section lists the pages used to maintain and view payroll tax data.

Pages Used to Maintain and View Payroll Tax Data

Page Name	Object Name	Navigation	Usage
Trainee Rebate	GPAU_SPT_REBATE	Global Payroll & Absence Mgmt, Payee Data, Taxes, Specify Trainee Tax Rebate AUS	Reduce the payroll tax liability by the value of the rebates applicable to payees who are trainees or apprentices. Enter the amount of the rebate that you have calculated for each trainee or apprentice. The record is effective-dated, so you can set it to 0.00 when it no longer applies.
Non Tax Earnings	GPAU_SPT_ERNS	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Taxes, Payroll Tax Elements AUS, Non Tax Earnings	Enter nontaxable earnings by state. Some earnings, such as those that you defined for expense reimbursement, are typically not subject to payroll tax. Earnings not entered in this page are included in the tax calculation.
Taxable Deductions	GPAU_SPT_DEDS	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Taxes, Payroll Tax Elements AUS, Taxable Deductions	Enter taxable deductions by state. You need to identify benefits or deductions that are subject to payroll tax and enter them for inclusion in the SPT calculation. Identify deductions that are subject to FBT, upon which SPT is also payable.
Non Tax Deduction	GPAU_SPT_NTXDED	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Taxes, Payroll Tax Elements AUS, Non Tax Deductions	Enter nontaxable deductions by state.
Taxable Expenses	GPAU_SPT_EXPN	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Taxes, Payroll Tax Elements AUS, Taxable Expenses	Enter taxable expenses by state. Typically, these expenses are part of salary packaging.
State Tax Rates	GPAU_SPT_TAX_RATE	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Taxes, Review Payroll Tax Rates AUS	View the various limits, threshold percentages and amounts, multipliers, and divisors.