Setting Up Payroll Tax Tables

This chapter provides an overview of payroll tax tables and discusses how to:

• (USA) View federal and state tax information.

• (USA) Update local tax information.

• (USA) Work with tax reciprocity.

• (USA) Update the Taxable Gross Definition table.

• (USA) Enter state marital status codes.

• (CAN) View Canadian tax information.

• (USA) Establish company state taxes.

• (USA) Establish company local taxes.

• (USF) Set up state and locality tax routing.

• Establish tax types for accounts payable integration.

• (USA) Define tax locations.

• Define tax forms.

• (E&G) Establish 1042 processing for non-resident aliens.

• (USA) Establish UI report codes.

• (USA) Establish standard occupational classifications for Alaska.

• (USA) Specify voluntary disability insurance plan location and contact information.

• (USA) Specify parameters for quarterly tax reporting.

• (CAN) Define Canadian tax information.

• (CAN) Define Canadian WCB assessment reporting.

Understanding Payroll Tax Tables

This section discusses how to:

• Find instructions on year-end processing.

• Work with payroll tax tables.

• (USA) Work with U.S. Tax tables.

• (CAN) Work with Canadian Tax tables.

Finding Instructions on Year-End Processing

Since year-end processing information changes regularly, PeopleSoft posts the most up-to-date in the current year-end tax update documentation, posted on Customer Connection

See Accessing Year-End Processing Instructions.

Working with Payroll Tax Tables

The PeopleSoft Enterprise Payroll for North America tax tables store tax information that the system requires to calculate and report taxes. PeopleSoft provides and maintains most of the payroll tax tables.

PeopleSoft Payroll for North America delivers tax data for all federal and state or provincial taxing entities and almost all localities. Should you need a locality that PeopleSoft does not yet support, you can add and maintain entries using the tax pages. If you need to make a change or addition to the standard tax information delivered with the system, you are responsible for maintaining the change until it is incorporated into PeopleSoft-maintained tax tables. After you notify us of the missing locality, PeopleSoft will add it to our standard system and maintain it for you in subsequent versions.

You are responsible for completing the tax tables that contain data specific to your company.

Note. The pages for Federal/State Tax, Taxable Gross Definition, and Canadian Tax tables reference more than one table.

PeopleSoft Enterprise Payroll Interface does not calculate taxes. The third-party payroll system performs all gross-to-net calculations. However, you can use Payroll Interface to maintain tax withholding data and to export employee-level tax codes to the third-party payroll system.

See Setting Up Tax Data.

(USA) Working with U.S. Tax Tables

Some U.S. tax tables are maintained by PeopleSoft, others are maintained by the employers.

PeopleSoft-Maintained Tables

These are the PeopleSoft-maintained tables for U.S. employers:

• Federal/State Tax and Local Tax tables, which contain rates and other constants used in the calculation of most forms of taxes for U.S. federal, state, and local taxing entities.

• State and Local Tax Reciprocity tables, which define reciprocal taxing rules between states and localities, and other rules for determining tax liabilities for multiple jurisdictions.

• Taxable Gross Definition table, which identifies differences between states or localities and the federal government in the definition of taxable wages.

• SWT Marital Status table, which defines the valid tax marital status codes for each state.

Employer-Maintained Tables

U.S. employers must define and maintain the following tables:

• Tax Location table, which contains the work locations for which you process payroll and taxes.

• Company State Tax and Company Local Tax tables, which store tax identification numbers, unemployment and disability experience rates, and general ledger codes for the states and localities for which your company collects and pays taxes.

• Tax Reporting Parameters table, which controls the execution of many of your quarterly and annual tax reports and specifies data needed for magnetic media filing.

(CAN) Working with Canadian Tax Tables

Some Canadian. tax tables are maintained by PeopleSoft, others are maintained by the employers.

PeopleSoft-Maintained Tables

Canadian Tax tables, which contain rates and other constants used in the calculation of all forms of federal, provincial, and Quebec taxes.

Employer-Maintained Tables

Canadian employers must define and maintain the following tables:

• The Canadian Wage Loss Plan table, which identifies your organization's valid wage loss replacement plans and general ledger account numbers.

• The Canadian Company Tax table, which defines the Prescribed Interest rate, Provincial Premium Tax rate, and Health Insurance rate override.

• Canadian Tax Reporting Parameters table, which controls the execution of many quarterly and annual tax reports and specifies data needed for magnetic media filing.

(USA) Viewing Federal and State Tax Information

To view federal and state tax information, use the Tax Table component (STATE_TAX_TABLE).

This section provides overviews of federal and state tax information and supplemental tax calculations and discuss how to:

• View standard deductions, allowance amounts, and supplemental taxes.

• View special tax amounts.

• View wage bracket tax rate information.

• View additional wage rates information.

Understanding Federal and State Tax Information

Use the Federal/State Tax Table pages to view the tax data PeopleSoft Payroll for North America uses to calculate U.S. federal, state, and certain local taxes. These pages supply the following information:

• Identify the general type of withholding tax calculation employed by each jurisdiction and provide all the constants needed by the calculation routines for income tax withholding and unemployment and disability taxes.

• Contain the wage bracket tax rate data used by the taxing authorities for implementing graduated taxes.

Special State Codes for Localities Using Graduated Tax Tables

In addition to the rules for state withholding, the rates for calculating federal withholding, FICA, and federal unemployment are defined on this table, primarily because the method of calculation is similar. Localities that use graduated tax tables are also included. These entries are identified by special state codes such as Z1 and Z2. Here are some of these special codes:

Understanding Supplemental Tax Calculations

PeopleSoft Payroll for North America tax processing supports the various tax calculation methods required by some states for supplemental earnings, including the use of aggregate tax methods.

The methods used for calculating withholding tax on supplemental payments may differ depending on the following criteria specified on the Federal Tax Table — General page:

PeopleSoft delivers the required value in these fields. The possible values are:

• Aggregate − No Annualize

• Aggregate

• Aggregate − No Tax else Percent

• Percent of Taxable Gross

• Special Table with Exemptions

• Special Table

• Non-Resident Supplemental

This section provides an explanation and examples of each of these methods.

Note. PeopleSoft uses the term “normal wages” to mean the employee’s pay from regular (REG) earnings taxed using the annualized tax method.

Aggregate − No Annualize

This method is valid only for Delaware and is used only for supplemental wages paid separately from normal wages.

Normal wages are annualized, but supplemental wages are not annualized, as follows:

• Annualize the employee’s normal wages and compute tax on this amount.

• Annualize normal wages, add in the supplemental wages, and compute tax on the total.

• Subtract the difference in the tax amounts. The remainder is the withholding on the supplemental wages.

Example:

A Delaware employee, single with one allowance, earning $500 per week, is paid a $5000 bonus as a separate check.

Aggregate

For supplemental wages paid with normal wages, calculate withholding (using the annualized method) as if the aggregate of supplemental and normal wages were a single wage payment for the normal payroll period.

Example for Payment with Regular Wages:

A Maine employee, single with one allowance, is paid a $1000 bonus on the same paycheck as his normal weekly earnings of $500:

For supplemental wages paid separately from normal wages, calculate withholding by aggregating supplemental wages with normal wages from the current payroll, if any, or from any preceding on-cycle confirmed payroll in the same calendar year. Using the annualized method, compute the tax on the combined total. Subtract the annualized tax on the normal wages. The deannualized remainder is the withholding on the supplemental wages.

Example for Separate Payment:

A Maine employee, single with one allowance, is paid a $1000 bonus as a separate check. No normal wages are paid in the current payroll. The employee’s last previous on-cycle confirmed paycheck in the current year was for normal weekly earnings of $500:

Aggregate − No Tax else Percent

When supplemental wages are paid separately from normal wages, withholding depends on whether tax was withheld on the employee’s current payment of normal wages, if any, or on previous on-cycle payments (in the same pay group).

If no tax was withheld on either condition, calculate tax on supplemental wages using the Aggregate Method described previously for supplemental wages paid separately.

If tax was withheld on either condition, calculate tax using a flat percent rate as specified by the state, without regard for marital status or allowances.

Example:

A Connecticut employee, single with one allowance, is paid a $1000 bonus as a separate check. The employee’s last previous on-cycle normal paycheck in the current year was for normal weekly earnings of $500, from which $10.92 Connecticut tax was withheld. Using the flat rate of 4.5 percent specified by Connecticut, calculate the Connecticut tax to be withheld on the bonus:

4.5% X $1000 = $45

Percent of Taxable Gross

Calculate the tax to be withheld on supplemental wages by using the special flat rate specified by the state, without regard for marital status or allowances. For some states such as Arizona, this method uses a Percent of Federal Tax Withheld instead of a Percent of Taxable Gross.

This method may apply both to supplemental wages paid with normal wages and to supplemental wages paid separately.

Examples:

An employee subject to Indiana withholding is to be paid a $4000 bonus. Using the flat rate of 3.4 percent specified by Indiana for supplemental wages, calculate the Indiana tax to be withheld on the bonus:

3.4% X $4000 = $136

As an example of a calculation using a Percent of Federal Tax Withheld instead of a Percent of Taxable Gross, an Arizona employee electing an Arizona withholding rate of 32 percent is paid a $3000 bonus on which $600 Federal tax is withheld. Calculate the Arizona tax to be withheld:

32% X $600 = $192

Note. For Arizona, the system uses Percent of FWT method, even though the value selected for Supplemental Method is Percent of Taxable Gross.

Non-resident Supplemental

When supplemental wages are paid separately from normal wages to a non-resident employee, calculate tax using a flat percent rate specified for non-residents, without regard for marital status or allowances.

Example:

A non-resident of Yonkers employed in Yonkers and subject to Yonkers tax is to be paid a $2000 bonus as a separate payment. Using the flat rate of .5 percent specified by Yonkers for non-residents, calculate the Yonkers tax to be withheld on the bonus:

0.5% X $2000 = $10

Special Table

For Georgia and West Virginia only. The system uses the annual rate computed from the job record.

Pages Used to View Federal and State Tax Information

Viewing Standard Deductions, Allowance Amounts, and Supplemental Taxes

Access the Federal/State Tax Table - General page.

Note. You shouldn’t need to modify this table, but if you must, you can make changes if you have the appropriate security authorization. This applies to all pages in this component.

Supplemental Method

Details of the values available for selection in this group box and examples of calculations are provided in the overview of this section.

See Also

Understanding Supplemental Tax Calculations

Viewing Special Tax Amounts

Access the Federal/State Tax Table - Special Tax Amts page.

Special Tax Amount	This field is used to store parameters or values used in state withholding tax calculations.
State Statutory Minimum Hourly	The system uses this field to calculate tip credit to pay overtime for tipped employees. The minimum hourly rate required by that state appears here.
Report Neg Wages	Options are include or separate.
State Tips W/H Threshold	This field appears if the value in the State field is $U. This field is used in conjunction with state regulations for delaying the withholding of taxes on tips until the employee reports monthly tips in the amount equal to the threshold amount. This field displays the monthly threshold amount from the federal regulations and as of now all states use that threshold amount. For states that allow you to delay withholding on tips, you can specify by Pay Group whether you delay withholding on tips.
Tax Reporting	Options include Annual, Monthly, or Quarterly.
Delay Withholding for Tips	On this page, this check box refers to state income tax. For each state, PeopleSoft selects or clears this check box, depending on whether the state allows employers to delay withholding on tip income until the monthly threshold amount is reached. For states that allow you to delay withholding on tips, you can specify by Pay Group whether you'll delay withholding on tips.
Employee Detail Required	This field is informational only and indicates whether a state requires the quarterly reporting of individual employee wage data. All states currently require such reporting.

Viewing Wage Bracket Rate Information

Access the Federal/State Tax Table - Rates page.

Tax Status	The appropriate Federal/State tax status (Married, Single, and so on).
Low Gross	The minimum taxable gross for the bracket.
Low Tax	The tax to be withheld on the corresponding minimum gross.
Tax Rate	The rate to be applied until the next bracket is reached.
Credit Amount	Not currently used by PeopleSoft Payroll for North America.

Viewing Additional Rates Information

Access the Federal/State Tax Table - Additional Rates page.

Tax Class	Tax classes identify different taxes that share certain characteristics. Occ Priv represents Occupational Privilege Tax (OPT) for Pennsylvania employees. See Understanding Federal and State Tax Information.
Calculation Type	Options are % Tax Grs, %ER Wage, and N/A.
Tax Base	Options are Disability, Unemployment, and Withholding.
Tax Rate	The tax rate for employer unemployment or disability contributions is blank on this page. The rate used during payroll calculations comes from the Company State Tax table.
Max Gross	If a tax applies only to a portion of an employee’s annual wages up to a specified limit, such as employer unemployment taxes, that limit amount appears in this field. An entry of all 9s, as with Medicare taxes, indicates a tax without limit.
Period Maximum	If selected, this option indicates that the tax is calculated for a period other than annual. Two examples of this are SDI in New York and Hawaii, both of which have weekly maximums.
Delay W/H for Tips	On this page, this check box is selected or cleared for each additional tax the state may impose. For each state, PeopleSoft selects or clears this check box, depending on whether the state allows employers to delay withholding on tip income until the monthly threshold amount is reached. For states that allow you to delay withholding on tips, you can specify by Pay Group whether you'll delay withholding on tips.
Self Adjust (self-adjusting)	This check box is for information only.
Max Tax (maximum tax)	If there is an annual limit on a particular type of tax, such as Pennsylvania’s occupational privilege taxes, enter that limit amount here.
EE/ER Both	This field indicates whether a tax is paid by the employee, paid by the employer, or paid in equal matching amounts by both.

Pennsylvania Limit on Occupational Privilege Tax

On the Federal/State Tax Table - Additional Rates page, the Tax Class Occ Priv represents Occupational Privilege Tax (OPT) for Pennsylvania employees. The state of Pennsylvania requires an employer to deduct this tax class only one time annually. If an employee moves from one locality to another midyear, the employee should not be taxed an additional OPT tax amount in the new locality until the next year. To keep track of how much Pennsylvania OPT tax an employee has paid, there exists a state level Pennsylvania OPT Memo tax record. The sole purpose of this tax record is to keep track of how much Pennsylvania tax an employee has paid for the year regardless of the Pennsylvania locality. During the OPT tax calculation, a check is made against this state Memo tax balance before the local OPT tax is computed.

Note. Pennsylvania’s OPT is withheld as an annual fixed amount. When you hire an employee who has already paid OPT for the current tax year, you should adjust the employee’s tax balance for the tax year. This prevents the system from withholding OPT from that employee’s pay twice in one year.

The Payroll calculation process determines the Pennsylvania OPT limit by Employee ID. Adjust an employee’s memo balance for PA OPT, select on the Adjust Tax Balance pages.

See (USA) Reviewing and Adjusting U.S. Tax Balances.

Voluntary Disability Plans

Of the states that provide disability insurance plans (currently California, Hawaii, New Jersey, New York, Rhode Island, plus Puerto Rico) all but Rhode Island allow employers to provide voluntary disability plans in place of the state plan. PeopleSoft maintains the Tax Class rows on the Federal/State Tax Table - Additional Rates page for the Employer and Employee paid tax for voluntary disability plans for each of these states.

Note. If you implement a voluntary disability plan for California, Hawaii, New Jersey, New York, or Puerto Rico, you must set up the appropriate tax rates on the Company State Tax table and the VDI Administrator table.

State Unemployment Insurance (SUI) Tax

You must make sure that the unemployment insurance taxable gross and tax balances transferred during the conversion process are consistent with the unemployment tax rates that have been entered for each quarter on the Company State Tax Table page.

Warning! If these amounts are not consistent and in balance, the system will either charge or refund additional unemployment tax amounts to account for the difference in the quarterly unemployment insurance tax balances.

See Also

Defining States Where You Collect or Pay Taxes

(USA) Updating Local Tax Information

To update local tax information, use the local Tax Table component (LOCAL_TAX_TABLE).

This section provides an overview of locality codes and discusses how to:

• View local tax jurisdiction information associated with a locality code.

• View the method used to calculate local withholding rates.

• Enter a locality’s tax reporting requirements.

Understanding Locality Codes

The local Tax Table component (LOCAL_TAX_TABLE) displays information used when the system calculates local withholding tax. In this table, each locality is assigned a code of up to ten characters. Typically this is how these codes are assigned:

• For Pennsylvania municipalities and school districts: an eight or nine character code based on codes assigned in the official Pennsylvania local tax register.

• For municipalities in states other than Pennsylvania: a five-character Federal Information Processing Standards (FIPS) code.

• For counties: a three-digit county number.

• For Ohio school districts: a four-digit district number.

Pennsylvania Localities

The State of Pennsylvania provides a registry of tax rates for all cities, counties, political subdivisions, school districts, and so on located in Pennsylvania. For each municipality and overlying school district, the registry lists effective tax rates for both Earned Income Tax (EIT) and Occupational Privilege Tax (OPT) for residents and, where applicable, non-residents.

The following is the definition of the eight or nine character Pennsylvania code:

• The letter in the first position refers to the type of tax:

  • I - income tax.

  • O - occupational privilege tax.

• The next six digits are the numerical code assigned to the municipality by the state of Pennsylvania.

• The alphabetic code in the eighth position signifies the tax rate:

  • C - combined municipality and school district tax rate.

  • M - municipality tax rate.

  • S - school district tax rate.

• A numerical digit in the last position indicates that the municipality overlaps with all or portions of multiple school districts.

  Refer to the School District Code field on the Local Tax Table 1 page to determine which locality code applies to which school district, and then choose the appropriate entry for the employee's location.

For each municipality and overlying school district, PeopleSoft delivers the following locality types:

Maintaining Tax Localities

For each locality that PeopleSoft supports, we maintain the entries for that locality in the following tables:

• local Tax Table.

• Local Tax Reciprocity table (if applicable).

• Taxable Gross Definition table (GTL, 401k, 125, TIP, and DPB only) (if applicable).

Pages Used to Update Local Tax Information

Viewing Local Tax Jurisdiction Information Associated with a Locality Code

Access the Local Tax Table 1 page.

Maintenance Responsibility	All entries that we supply are marked as the maintenance responsibility of PeopleSoft. However, if you add a locality to this table, the system marks it as your maintenance responsibility.
Local Jurisdiction	Reserved for future use.
Partial District Indicator (PA Only)	This check box is selected to indicate a Pennsylvania municipality that is co-terminus with multiple school districts, meaning the boundary of the municipality overlaps the boundaries of multiple school districts. For example, in Westmoreland County, the City of Greensburg is co-terminus with both the Greensburg Salem School District and the Hempfield Area School District. Be sure to use the Local Tax Table entry that represents the correct municipality/school district combination.
Locality Name	The municipality name from the register (except for school district entries, which are school district name). Combined jurisdictions have the appendage M+SD.
Other Locality Name	For Pennsylvania localities, combined entries display the school district name.
School District Code (PA Only)	For Pennsylvanian localities, the appropriate school district code appears here.

See Also

Understanding Locality Codes

Viewing the Method to Calculate Local Withholding Taxes

Access the Local Tax Table 2 page.

Local Tax Calculation Type	Indicates the calculation method used to determine the amount of local income tax withheld.
Withhold On Work Locality Only	When this check box is selected for a locality, only wages earned in that locality are considered taxable for residents of the locality. No resident tax is withheld from wages paid for work performed outside of the locality.
Graduated Tax Table Code	This option takes effect if the locality requires that tax tables be referenced during calculation, as do New York City, Yonkers, and Maryland counties. In this case, the graduated tax table code entered here links the record to the appropriate entry in the PeopleSoft Federal/State Tax table where the graduated tax rates are stored.

Tax Rate

Entering a Locality’s Tax Reporting Requirements

Access the Local Tax Table 3 page.

Tax Reporting

Displays the interval required by the locality for tax reporting, Monthly, Quarterly, or Annual.

Important! If you add a locality, you are responsible for maintaining the entries on these tables for the new locality until PeopleSoft incorporates it into a tax update. Contact your Global Support Center if you discover any localities not listed or any errors so we can include the addition or correction in the next PeopleSoft Payroll Tax Update.

See Also

Accessing Year-End Processing Instructions

(USA) Working with Tax Reciprocity

To work with tax reciprocity, use the State Tax Reciprocity Table component (STATE_TX_RECIP_TBL), local Tax Reciprocity Table component (LOCL_TAX_RECIP_TBL), and the Work Locality Reciprocity component (LCLTX_WK_RECIP_TBL).

This section discusses how to:

• View state tax reciprocity withholding liability rules.

• View local tax reciprocity rules.

• Define reciprocal agreements between work localities.

Pages Used with State Tax Reciprocity

Viewing State Tax Reciprocity Withholding Liability Rules

Access the State Tax Reciprocity Table page.

SUT Credit when employee transfers to residence state

When selected, this check box indicates that, for unemployment tax purposes, the (residence) state allows credit against its state unemployment taxable wage base for wages paid to an employee in another state.

Reciprocity Rule

This field displays the rule applied to the residence/ employment state combination. Although the employee's residence state may require withholding on all wages paid to the employee, many states provide credit for taxes paid by their residents to another state. Many other examples of reciprocity agreements also exist between states. Under these agreements, wages earned in a work state that has an agreement with the residence state are taxed by, and taxes withheld are submitted to, the employee’s residence state. This table doesn’t identify every state-to-state combination individually because most states have a single rule for dealing with residents who earn taxable wages in other states. The default reciprocity rule between a state of residence and all other states of employment is the one in which the State of Employment field is blank. If you need to modify these table entries, consult the PeopleSoft Global Support Center.

Note. If you’re a multi-state employer, review the rules in this table, particularly if you can be considered a non-resident employer for certain employees. For example, Alabama requires that resident employers withhold Alabama tax on wages earned both inside and outside the state by Alabama residents. Non-resident employers must withhold on only those wages earned in Alabama, regardless of where the employee resides. The entries in the State Tax Reciprocity table—as delivered by PeopleSoft—assume that you are a resident employer in each state.

Viewing Local Tax Reciprocity Rules

Access the Local Tax Reciprocity Table page.

When the residence locality differs from the employment locality, the system calculates both taxes and applies the reciprocity rule from this table to produce the correct net withholding for the employee in each locality.

Defining Reciprocal Agreements Between Work Localities

Access the Local Work Reciprocity Table page.

State of Other Jurisdiction	The state of other jurisdiction for each record represents the state of the primary local tax jurisdiction. That is, the state of the local tax jurisdiction whose tax must be withheld in full.
Locality of Other Jurisdiction	This represents the primary tax jurisdiction. That is, the jurisdiction whose tax must be withheld in full.
Reduce Percent	Where allowed, this represents a percent of other jurisdiction withholding to be credited toward the withholding amount required by the locality of employment. This is not always 100%. PeopleSoft displays the percent of credit reduction allowed.
Reciprocity Rule	This field displays the rule applied to the residence/ employment locality combination.

See Also

Maintaining Payroll Data

(USA) Updating the Taxable Gross Definition Table

To update the Taxable Gross Definition Table, use the Taxable Gross Definition Table component (TAXGR_DEFIN_TBL).

This section provides an overview of the Taxable Gross Definition table and discusses how to set up a taxable gross definition.

Understanding the Taxable Gross Definition Table

Taxing jurisdictions may have different rules as to whether a given type of earnings or deduction should be taxed, and whether or not the tax should be withheld at the time of payment. The Taxable Gross Definition table defines the taxability for specific earnings or deduction types that must be treated differently at the state or local level than at the federal tax level. It also enables you to specify whether the state and local income tax withholding follows the same rules as federal withholding.

This section discusses:

• Taxability.

• Withholding.

• Delivered entries on the Taxable Gross Definition table.

• Example of setting up an earning with state tax withholding but without federal tax withholding.

• Reference table of taxability and withholding setup.

Taxability

PeopleSoft Payroll for North America tracks these differences in taxability by documenting where the taxable wage definition of a particular jurisdiction differs from a standard definition for the following basic payroll tax types:

• Withholding

• Unemployment

• Disability

For each of these tax types, certain earnings and deductions are taxable at the state or local level, while others are not. What is taxable differs for each tax, so we have a separate standard definition for each type. Because most states and localities follow federal guidelines for taxing earnings, we use Federal income tax withholding, Federal unemployment, and FICA as the standard taxes from which to develop these rules.

The system automatically maintains federal taxable grosses, FWT, FICA, and FUT, based on entries in the Earnings table and Deduction table:

Normally, the system calculates state and local taxes using the following taxable grosses:

PeopleSoft uses the FUT gross as the starting point for SDI because most states do not publish any separate definition of subject wages for SDI. Instead, states treat the definition of wages for SDI purposes as the same as the definition of wages for SUI purposes. Since SUI wages are based on FUT wages, and SDI subject wages are the same as SUI wages, FUT is the starting point for determining both SUI and SDI wages.

You can override or establish exceptions to the federal definitions of taxable gross for the following taxable grosses:

• State withholding

• State unemployment

• State disability

• Local withholding

When a state or locality declares that taxability of a certain earnings or deduction is different from one of these federal standards, a rule must be placed in the Taxable Gross Definition table indicating the deviation. The system uses the rules stored in the Taxable Gross Definition table to adjust the taxable gross for the states and localities that deviate from the federal norm.

For each of these taxable gross definitions, identify a Taxable Gross Component ID and assign it to the various states or localities affected.

Withholding

When you set up earnings and taxable benefits that are federally taxable, you specify whether or not that amount should also be subject to federal income tax withholding using:

• The Subject to FWT field on the Earnings Table - Taxes page.

• The Withhold FWT field on the Deduction Table – Tax Effect page.

Use the Withholding Follows Fed Rules (withholding follows federal rules) field on the Taxable Gross Definition Tbl page (TAXGR_DEFIN_TBL) to specify whether the state and local income tax withholding follows the same rules as federal withholding.

Note. You must create a Taxable Gross Definition table entry when you want to stop state or local income tax withholding on a particular earnings or taxable benefit. This is true regardless of whether or not the state or locality follows the federal rule for including the amount in taxable income, and regardless of whether or not you have selected to withhold federal income tax on the earnings or taxable benefit.

Delivered Entries on the Taxable Gross Definition Table

PeopleSoft delivers sample entries on the Taxable Gross Definition table for 401(k), Section 125, TIP, DPB, and group-term life taxable gross definitions. These sample entries are intended as examples and are delivered with the Plan Type element blank and the Deduction Code set to $DFLT. You must review these entries and update them with the specific values for your implementation. You maintain any taxable gross definitions that you add.

For Section 125 cafeteria plans, the taxable gross definitions are for employee deductions only. You may have to set up your own entries to process specific parts of your plan. In some states, the taxability of deductions depends on whether the employee has the option of receiving cash.

Review the definitions in this table carefully with regard to your particular 125 plans.

How Taxable Gross Definitions Affect Earnings and Deductions

The standard definition of taxability of an earnings or deduction type is determined by entries on the Earnings and Deduction tables. When establishing an entry on these tables, you specify if the earning or deduction is to be taxed for FWT, FUT, and FICA. Any earnings and deductions you marked as taxable are totaled during payroll processing to determine an employee’s taxable gross for each of the standard tax types. For earnings or deduction types that increase or decrease the state or local taxable grosses compared to the federal taxable gross, enter a taxable gross component ID that identifies which rules on the Taxable Gross Definition table to use.

For example, Pennsylvania considers employee before-tax 401(k) contributions taxable for state withholding, whereas they are not taxed at the federal level. Therefore, you must have a Taxable Gross Definition for 401(k) deductions that indicate to the payroll calculation programs that when taxable gross for withholding is determined, 401(k) deductions should be included as earnings for Pennsylvania (but not for federal) withholding purposes.

Example of Setting Up an Earning with State Tax Withholding but Without Federal Tax Withholding

Take a hypothetical example of moving expenses in the state of Pennsylvania. This example assumes the following:

• Certain types of moving expense reimbursement payments that you make to Pennsylvania employees are includable in taxable gross at both the federal and state level.

• Federal regulations do not require that federal income tax be withheld from these moving expense reimbursement payments.

• Pennsylvania regulations do require that Pennsylvania income tax be withheld from these amounts at the time of payment.

In this case, state withholding does not follow the federal rules.

The following table illustrates these assumptions:

To define the moving expense earnings with the proper tax and withholding effects:

1. Define a Taxable Gross Component ID (here named MOV) to identify these moving expense reimbursement payments that require different tax treatments at the federal and state levels.

   This table shows the relevant page elements and values on the Taxable Gross Definition Table page:

   Page Element	Value	Explanation
   Taxable Gross	Withholding
   Base Gross	FWT
   Taxable Gross Component ID	MOV
   Withholding Follows Fed Rules	Clear the check box.	You do not want state tax withholding to follow the selection you will make for the Subject to FWT check box on the Earnings Table - Taxes page for these moving expense reimbursement amounts. You do not want federal income tax withheld on this earnings type, but you do want Pennsylvania income tax withheld.
   Tax Gross Effect	No Effect	The earnings type is to be included in both the federal and Pennsylvania taxable grosses.

2. Enter the Taxable Gross Component ID when you set up the earnings on the Earnings Table - Taxes page.

   This table shows the relevant page elements and values for setting up this moving expense reimbursement earning on the Earnings Table - Taxes page:

   Page Element	Value	Explanation
   Earnings Type	MOV
   Earnings Description	Mov Exp Reimb – No Fed W/H	Moving expense reimbursement without federal withholding
   Tax Method	Annualized
   Subject to FWT	Selected
   Taxable Gross Component ID	MOV	You must set up the taxable gross component ID before you can select it on this page.
   Add to Gross Pay	Selected
   Maintain Earnings Balances	Selected

Reference Table of Taxability and Withholding Setup

Use the table below to look up the table entries for any combination of federal and state/local taxing options that you might need for a particular earnings or taxable benefit. The table lists the correct values in the relevant fields on the Earnings table, Deduction table, and Taxable Gross Definition table.

Row 6 contains the setup values for the MOV earnings described in the example.

See Also

Defining Earnings Codes and Earnings Programs

Defining Deductions

Pages Used to Update the Taxable Gross Definition Table

Setting Up a Taxable Gross Definition

Access the Taxable Gross Definition Tbl page.

Taxable Gross

Adjustment to Base Gross

This scroll area lists the specific components for which adjustments are necessary.

See Also

Defining Deductions

(USA) Entering State Marital Status Codes

To enter state marital status codes, use the SWT Marital Status Table component (SWT_MAR_STATUS_TBL).

This section discusses how to define a state's marital status codes.

Pages Used to Enter a State’s Marital Status Codes

Defining a State’s Marital Status Codes

Access the SWT Marital Status Table page.

(CAN) Viewing Canadian Tax Information

To view Canadian tax information, use the Canadian Tax Table component (CAN_TAX_TABLE).

This section provides an overview Canadian tax tables and discusses how to:

• View the wage thresholds and rates for calculating Canadian federal surtax.

• View the rates, thresholds, and constants to determine withholding of Canadian provincial taxes.

Understanding Canadian Tax Tables

The Canadian Tax tables are used during payroll calculation to compute all federal, provincial, and Quebec taxes. Because these tables are maintained largely by PeopleSoft and updated based on the standards outlined in the Canada Revenue Agency (CRA) publication Payroll Deductions Formulas for Computer Programs and the Revenu Quebec publication Guide for Employers: Source Deductions and Contributions, you shouldn’t need to modify them. However, you can make changes using the Canadian Tax Table pages if you have the appropriate security authorization.

Pages Used to View Canadian Tax Information

Viewing the Wage Thresholds and Rates for Calculating Canadian Federal Surtax

Access the Tax Credits, Rates, and Other page.

Other Rates

Labor Sponsored Funds (LCF)

Viewing the Rates, Thresholds, and Constants to Determine Withholding of Canadian Provincial Taxes

Access the Provincial Rates page.

Maximum LCP Credit	For provinces where provincial labor-sponsored venture tax credits are available, you maintain the maximum LCP credit amount to be applied for that province on this table. This applies to employee purchases of shares in Labour Sponsored Venture Capital Corporations (LSVCC).
LCP Rate	For provinces where provincial labor-sponsored venture tax credits are available, you maintain the LCP rate to be applied for that province on this table. This applies to employee purchases of shares in Labour Sponsored Venture Capital Corporations (LSVCC).
Health Insurance Rate	You override the default health insurance rate on the Canadian Company Tax table.

See Also

Defining Canadian Company Tax Information

(USA) Establishing Company State Taxes

To establish company state taxes, use the Company State Tax Table component (CO_STATE_TAX_TBL) or Agency State Tax Table USF component (CO_STATE_TAX_TBL) and Tax Collector Table component (TAX_COLLECTOR_TBL).

This section discusses how to:

• Define states where you collect or pay taxes.

• Establish the voluntary disability plans.

• Enter general ledger account numbers for state taxes.

• Maintain the Tax Collector table for Pennsylvania.

Pages Used to Establish Company State Taxes

Defining States Where You Collect or Pay Taxes

Access the Company State Tax Table - General page.

The State field in State Tax Data 1 and Local Tax Data is edited against this table. You must create entries in this table before entering any state and local tax information for your employees.

State Withholding

State Unemployment

State Disability

Setting Up SUT Exemptions To Generate Data for the TAX002 and TAX810 Reports

The TAX002 and TAX810 reports are generated based on SUT wages. When you select the Exempt From SUT field on this page, the system does not generate taxable wages, and the TAX002 and TAX810 reports will contain no data.

Perform the following to generate taxable earnings, enabling the TAX002 and TAX810 reports to produce the required wage detail reporting data, while still remaining exempt from State Unemployment Taxes:

1. Ensure that the Company Exempt from SUT field on the Company Table-FICA/Tax Details page is cleared.

2. Leave the Exempt From SUT field on the Company State Tax Table - General page cleared.

   These steps should ensure that the Exempt From SUT field on the State Tax Data page remains clear for each employee. Verify that the Exempt From SUT field is clear on all three pages.

3. Enter a dummy number in the State Unemployment Employer ID field on the Company State Tax Table – General page.

4. Enter a value of 0 (zero) in the State Unemployment Experience Rate.

After you do these steps, the system can track taxable wages without calculating SUT tax dollars. The TAX002 or TAX810 report can report the SUT subject wages.

Establishing Voluntary Disability Plans

Access the Company State Tax Table - VDI page.

Voluntary Disability Plan	Select this check box to indicate that the plan you’re defining is a voluntary disability plan allowed by the state.
Plan Number	Enter the plan number of the voluntary disability plan. For New Jersey, this number appears on Form W-2.
VDI Administrator Code	Select the code that identifies the administrator of the voluntary disability plan. You maintain VDI Administrator Codes on the VDI Administrator table.
Employee Rate	Enter the employee-paid rate.
Employer Rate	Enter the employer-paid rate.

To set up VDI with a rate of zero so that you can track the VDI wages, enter 99.99999 as the Employee Rate and Employer Rate on this page.

Entering General Ledger Account Numbers for State Taxes

Access the Company State Tax Table - GL Accounts page.

Enter the general ledger account numbers, if applicable, for the following company liabilities:

Maintaining the Tax Collector Table for Pennsylvania

For each municipality and overlying school district, the State Tax Register lists the effective rates for both Earned Income and Occupational Privilege taxes for residents and, when applicable, non-residents. Earned income and occupational privilege tax collector information for each municipality and school district are also listed. In some instances, there are different tax collectors for the municipality and the school district. When this occurs, employers must remit the school district’s tax to its collector and the municipality’s tax to its collector.

Tax collectors are set up as vendors using the Tax Collector Table (TAX_COLLECTOR_TBL) component or the Vendor Table component (VNDR_ID). After entering information about the tax-collecting agency, enter the vendor code on the Local Tax Type-Classes page.

See Also

Setting Up Vendors

Establishing Tax Types for PeopleSoft Enterprise Accounts Payable Integration

(USA) Establishing Company Local Taxes

To establish company local taxes, use the Company Local Tax Table component (COMP_LOCAL_TAX_TBL).

This section discusses how to set up company local tax table entries.

Note. You must complete the Company Local Tax table before local tax data for employees is entered because the locality field on the Local Tax Data page is edited against this table.

Pages Used to Define an Entry for the Company Local Tax Table

Setting Up Company Local Tax Table Entries

Access the Comp Local Tax Tbl page.

Employer ID

This field is used for local withholding tax for this locality. It is set by default to the Employer ID for state withholding taxes on the Company State Tax table.

GL Account Number - Local Withholding Tax for Non Commitment Accounting

These accounts are General Ledger accounts for use with local withholding tax; they are only used by the PayGL01 process. Only GL information not subject to Commitment Accounting would use these accounts.

(USF) Setting Up State and Locality Tax Routing

To set up state and locality tax routing, use the State Tax Routing USF component (GVT_STATE_TAX_ROUT) and the Locality Tax Routing USF component (GVT_LOC_TAX_ROUT).

This section lists the pages used to set up state and locality tax routing.

Pages Used to Set Up State and Locality Tax Routing

Establishing Tax Types for PeopleSoft Enterprise Accounts Payable Integration

To establish tax types for PeopleSoft Enterprise Accounts Payables integration, use the Tax Type Table USA component (TAX_TYPE_TBL), Tax Type Table USF component (TAX_TYPE_TBL), or Tax Type Table CAN component (CAN_TAX_TYPE), the State Tax Types/Classes USA component (STAT_TAX_TYPE_TBL) or State Tax Types/Classes USF component (STAT_TAX_TYPE_TBL), and the Local Tax Types/Classes USA component (LOCL_TAX_TYPE_TBL) or Local Tax Type/Classes USF component (LOCL_TAX_TYPE_TBL). Use the TAX_TYPE_TABLE component interface to load data into the tables for the Tax Type Table USA component and Tax Type Table USF component

This section provides an overview of tax types for accounts payable integration and discusses how to:

• (CAN) Define Canadian federal and provincial tax types.

• (USA) Link tax types to federal or state tax vendors and tax classes.

• (USA) Link tax types to local tax vendors and tax classes.

See Also

Administering the Interface with PeopleSoft Payables

Understanding Tax Types for PeopleSoft Accounts Payable Integration

If you plan to use PeopleSoft Accounts Payable to send tax authorities the taxes deducted from employees’ paychecks, you must link the appropriate set of deductions to each tax vendor.

Tax types are used to link tax classes to vendors. A tax type represents a collection of tax classes, such as withholding, earned income credit, and so on, specific to a particular tax jurisdiction (federal, state, local, provincial).

Setting up tax types and linking them to vendors is done differently for the U.S. and Canada.

• Canada

  Use the Canadian Tax Types page to name the tax type and link it to tax classes and vendors.

• U.S.A.

  1. Define tax types on the Tax Type Table page.

  2. Link tax types to tax classes and vendors on the State Tax Type Table page or the Local Tax Type Table page.

Example

In the state of California, employees are subject to two taxes for short-term disability: SDI (paid to the state) and OASDI (paid to the federal government). Each tax is comprised of a different set of tax classes. In this case, you might create a tax type named Short-Term disability. You would then access the Fed/State Tax Type/Classes page and define what Short-Term Disability represents at the federal level: For the vendor, you select the Internal Revenue Service; for the tax classes you select only those included in OASDI. You then repeat the process to define Short-Term Disability at the state level. This time, you select the Franchise Tax Board as the vendor and just those tax classes that contribute to SDI.

Pages Used to Set Up Tax Types for PeopleSoft Accounts Payable Integration

(CAN) Defining Canadian Federal and Provincial Tax Types

Access the Canadian Tax Type Table page.

Source	Select the type of tax transaction from the options available. Values include Goods and Services Tax, Health and Payroll Taxes, Provincial Sales Tax, or Statutory Deductions.
Province	If you chose Provincial Sales Tax in the Source field, select the Province in this field.
Tax Class	Select the tax class you want to associate with this tax type and vendor from the options available. Add all applicable tax classes. The Source field determines which tax classes are available for selection. If Goods and Services Tax is selected, only federal sales tax types are allowed: G (GST) and H (HST). If Health and Payroll Taxes is selected, only health and payroll tax types are allowed: HTX and PYT. If Provincial Sales Tax is selected, only provincial sales tax types are allowed: I (PSTI), P (PST), Q (QSTI), S (QST), T (PPT), and U (QPT). If Statutory Deductions is selected, only income related tax types are available: CIT, CPP, CPR, EIE, EIR, QIT, QPP, QPR, RV2 and T4A.

See Also

Setting Up Vendors

(USA)(USF) Linking Tax Types to Federal or State Vendors and Tax Classes

Access the State Tax Type Table page.

Note. Enter $U in the search page to enter federal tax type information.

(USA)(USF) Linking Tax Types to Local Vendors and Tax Classes

Access the Local Tax Type Table page.

The fields on this page are the same as those on the State Tax Type Table page.

See (USA)(USF) Linking Tax Types to Federal or State Vendors and Tax Classes.

(USA) Defining Tax Locations

To define tax locations, use the Tax Location Table component (TAX_LOCATION_TBL). Use the TAX_LOCATION_TBL component interface to load data into the tables for this component.

This section provides an overview of tax locations and discusses how to:

• Establish the locations for which you process payroll and taxes.

• Associate states and localities with the tax location code.

Understanding Tax Locations

The system establishes federal, state, and local employee tax data and tax distribution data according to the information you establish in the Tax Location table. In this table, you establish each of your locations with a Tax Location ID and identify the work states, provinces, and localities associated with each tax location.

Note. If you’ve selected Automatic Employee Tax Data on the Installation table, the system automatically sets up tax data for each work and resident state and locality of each of your employees. Tax distribution records are created for the work state/locality if the tax location represents a single state/locality.

Pages Used to Define Tax Locations

Establishing the Locations for Which You Process Payroll and Taxes

Access the Tax Location Table - Address page.

Tax Location Code	Establish a tax location code for each location for which you process payroll and tax data. You can associate any number of states and localities with each code.
Alaska Area Code	If applicable, select an Alaskan area code.

Note. If you select Automatic Employee Tax Data on Installation table 1 and assign a Tax Location ID to each employee on the Job Data table, each employee’s tax data is set by default to the Employee Tax Data page and the Employee Tax Distribution page.

Associating States and Localities with the Tax Location Code

Access the Tax Location Table − State/Province/Locality page.

State	Use to identify each state that is associated with the tax location code. You can associate any number of states with a single tax location. For each state, identify each taxing locality, if any. The states you associate with this tax location code must be defined on the Company State Tax table and the Company Local Tax table. This value is set by default to the Employee Tax Data pages and the Employee Tax Distribution page for employees you assign to this tax location.
Locality	The localities you associate with this tax location code must be defined on the Company State Tax table and the Company Local Tax table. This value is set by default to the Employee Tax Data pages and the Employee Tax Distribution page for employees you assign to this tax location.
Other Work Locality	Use this field only where multiple local taxes apply in one location, such as: Paducah, KY and McCracken County, KY. Earned Income Tax, and Occupational Privilege Tax in Pennsylvania. To form further links in a locality chain: Add another row with the same state. Enter the other work locality from the previous row in Locality. Enter the new work locality. Note. You should never attempt to enter multiple Indiana localities. Regardless of the number of Indiana locations in which an employee may work, either simultaneously or over the course of the year, the employee is liable for Indiana county tax for only one Indiana county per calendar year. This is the Indiana county of residence as of January 1, if that county imposes a tax, or the Indiana county of principal work activity as of January 1, if the residence county does not impose a tax.

Note. Locality and Other Work Locality are not required in Canada, because a Canadian employee can be taxed in only one Province at a time, and there are no locality taxes in Canada.

See Also

Setting Up Organization Foundation Tables

Increasing the Workforce

Understanding Split Local Tax Distribution for KY, AL, and OR

(E&G) Establishing 1042 Processing for Non-resident Aliens

To establish 1042 processing for non-resident aliens, use the Treaty/NR Alien Table component (TREATY_NR_ALIEN_TA).

This section provides an overview of tax treaties and discusses how to set up 1042 processing for non-resident aliens.

Understanding Tax Treaties

The U.S. government has entered into tax treaties with nearly 40 foreign jurisdictions. Income tax treaties coordinate the tax systems of the United States and other countries that are parties to treaties. Treaty provisions affect the taxation of non-resident aliens working in the U.S. While tax treaties are generally based on a standard model, each treaty might have slightly different provisions.

To claim benefits of a treaty, an employee must have a visa and be a resident of one of the treaty countries. An employee can claim benefits of only one treaty at any given time. Employees who want to claim benefits under a tax treaty must submit a written statement and applicable forms (W-4, Form 8233, Form 1001) to their employer.

As an employer, you must apply the specific treaty rules when calculating federal withholding tax. These rules often include time limits and earnings caps. Different types of earnings, such as scholarships, grants, and fellowships, might be subject to different taxation rates. You must produce a Form 1042-S and a 1042 summary form for each non-resident alien employee affected by the special withholding rates. If you file 250 or more 1042-S forms, you must report on magnetic media. Earnings reported on a 1042-S are not reported on a W2; so, an employee may need both a W2 and a 1042-S if some earnings are covered by the special tax treaty rates and some are not.

In addition to employees covered by tax treaties, some non-resident alien employees, such as those with specific types of earnings such as scholarships, fellowships, and grants, must also have those earnings reported on a 1042-S.

Use the Treaty/NR Alien Table page to capture the tax rates specified in tax treaties (including exempt earnings, which are recorded with a 0% tax rate). This table identifies those earnings subject to a 30% flat withholding tax.

Pages Used to Establish 1042 Processing for Non-Resident Aliens

Setting Up 1042 Processing for Non-Resident Aliens

Access the Treaty NR Alien Table page.

Country	If you want to establish entries on the Tax Treaty NR Alien table that are applicable to more than one country (for example, to use for all scholarship income that is to be taxed at 30%), you can use any value prefixed by a $ in the country code (for example, Country = $S).
Allowances Permitted	For each tax treaty record you establish, specify the number of allowances permitted by the treaty.
Income Code (for 1042-S)	Select each type of earnings subject to special tax treatment under the treaty.
Max Earnings Eligible Per Year	Specify the earnings caps that apply for each earnings type.
Tax Rate (after form)	Specify the taxation rates that apply for each earnings type.
Tax Rate (before form received)	Specify the taxation rates that apply for each earnings type.

Note. PeopleSoft re-delivers the tax treaty table with each major version and, if required, with the year-end Tax Update. If interim changes are required, you must track and apply the changes in your environment.

See Also

Maintaining Payroll Data

(USA) Establishing UI Report Codes

To establish UI report codes, use the UI Report Code Table component (CO_UI_RPTCD_TBL).

This section discusses how to set up UI report codes.

Page Used to Establish UI Report Codes

Setting Up UI Report Codes

Access the UI Report Code Table page.

Information you enter here works with the Multiple Worksite Report (SQR TAX004) to link a Tax Location Code to a UI Report Code. When you add an entry to the UI Report Code table, the system prompts you to enter the company code and the location code of the site you want to establish for reporting worksite information to the U.S. Bureau of Labor Statistics.

Company UI Information

(USA) Establishing Standard Occupational Classifications for Alaska

To establish standard occupational classifications for Alaska, use the U.S. SOC Table component (US_SOC_TBL). Use the US_SOC_TABLE component interface to load data into the tables for this component.

This section discusses how to set up U.S. standard occupation classifications for Alaska.

Note. If your company has no operations in Alaska, ignore the U.S. Standard Occupational Classification (SOC) table.

Page Used to Establish U.S. Standard Occupational Classifications for Alaska

Setting Up U.S. Standard Occupational Classifications for Alaska

Access the U.S. SOC Table page.

Note. Use the Job Code table to link Standard Occupational Classification codes with particular job codes in your organization.

(USA) Specifying Voluntary Disability Insurance Plan Location and Contact Information

To specify voluntary disability insurance plan location and contact information, use the VDI Administrator Table component (VDI_ADMINISTRATOR).

This section lists the pages used to enter voluntary disability insurance plan location and contact information.

Pages Used to Enter Voluntary Disability Insurance Plan Location and Contact Information

(USA) Specifying Parameters for Quarterly Tax Reporting

To specify parameters for quarterly tax reporting, use the Tax Reporting Parameters component (TAX_RPT_PARAMETERS).

This section discusses how to define parameters for quarterly tax reporting:

Page Used to Specify Parameters for Quarterly Tax Reporting

Defining Parameters for Quarterly Tax Reporting

Access the Quarterly Tax Reporting Parms page.

Balances for Year	The value you enter here defines the reporting period.
Balances for Quarter	The value you enter here defines the reporting period.

Electronic Mag Media Rpt Parms

(CAN) Defining Canadian Tax Information

To define Canadian tax information, use the Canadian Company Tax Table component (CO_CAN_TAX_TABLE) and the Wage Loss Plan Table component (WAGELS_PLN_TBL).

This section discusses how to:

• Define Canadian company tax information.

• Define Canadian wage loss plans.

• Define Canadian yearly tax reporting parameters.

Pages Used to Define Canadian Tax Information

Defining Canadian Company Tax Information

Access the Canadian Company Tax Table page.

Company Tax Information

Company Tax Rates

Note. It is your responsibility to update all rates on the Canadian Company Tax table.

Warning! It is your responsibility to update the Prescribed Interest Percent field according to the rate set each quarter by the Canadian federal government. PeopleSoft does not update this field in its tax updates; PeopleSoft leaves the field blank.

Defining Canadian Wage Loss Plans

Access the Wage Loss Plan Liability Accts page.

The Canadian Wage Loss Plan table identifies valid Canadian wage loss replacement plans. The Wage Loss Replacement Plan field in the Canadian Income Tax Data table at the employee level is edited against this table. You must create entries on this table before you enter any Canadian tax data for your employees. You must set up at least one entry on the Wage Loss Plan table for each company. Typically, you create this entry using the default EI Employer Rate and corresponding Quebec EI Employer Rate. You must define additional entries for each wage loss plan your company has registered with CRA.

Wage Loss Plan Information

(CAN) Defining Canadian WCB Assessment Reporting

To define Canadian WCB assessment reporting, use the WCB classifications Component (CAN_WCB_CU_RATES). Use the CAN_WCB_CU_RATES component interface to load data into the tables for this component.

This section provides an overview of Canadian WCB assessment reporting and discusses how to:

• Define WCB assessable earnings.

• Define WCB classifications, rate groups, and assessment rates.

Understanding Canadian WCB Assessment Reporting

PeopleSoft Payroll for North America enables employers registered with the Workers’ Compensation Boards (WCB) in Canada to report and pay assessments based on the total assessable earnings of their workers. The system accommodates the assessment reporting structures of all provinces. This functionality enables the reporting of assessments by rate groups and classification units.

Pages Used to Define Canadian WCB Assessment Reporting

Defining WCB Assessable Earnings

To define WCB assessable earnings, you need to establish a new Tax Form ID—WCB Assessable Earnings—and the associated tax form Boxes for each province on the Tax Form Definition page. The Boxes reflect the two-letter province code, preceded by a W.

You also must define and associate the assessable Earnings and Deduction Codes for each province with the WCB Assessable Earnings Tax Form ID. The Earnings Codes defined as Regular Hours and Overtime Hours on the Pay Group table are automatically accumulated by the system as assessable earnings without defining them on the Tax Form Definitions page.

Select the applicable provinces and define the assessable earnings.

Associate the WCB Assessable Earnings tax form ID with the appropriate Plan Type, Deduction Code, Ded (Deduction) Class, Sales Tax, and Earnings Code.

Note. The earnings codes defined as Regular Hours and Overtime Hours on the Pay Group table are automatically accumulated by the system as assessable earnings without defining them on the Tax Form Definitions page.

See Also

Accessing Year-End Processing Instructions

Define WCB Classifications, Rate Groups, and Assessment Rates

Access the WCB Classifications page.

This page can accommodate both a single classification assigned to a single province and multiple Rate Groups associated with multiple classifications (or CUs) for a single province.