(USA) Administering Additional U.S. Payroll Functionality

This chapter discusses how to:

Allocate tips.
Administer U. S. Savings Bonds purchases.
Adjust imputed income for U.S. group-term life insurance.
(E&G) Certify time and effort.

PeopleTools PeopleBook: Using PeopleSoft Applications

Allocating Tips

This section provides overviews of the tip allocation process and tip allocation calculation methods, lists prerequisites, and discusses how to:

Enter employee tip allocation data.
Select the tip allocation end date.
Calculate allocated tips.
Update allocation balances.
View allocations for an establishment.
Review the tips allocation process status.

Understanding the Tip Allocation Process

Most large hospitality industry employers must report additional information to the Internal Revenue Service (IRS) concerning the establishment’s receipts and the employees’ tip incomes, by establishment. A large establishment is one that employs more than 10 people on a typical business day.

Tip allocation is required when the amount of tips reported by tipped employees for a pay period is less than a specified percentage of the establishment’s gross receipts for that period. The amount that you allocate is the difference between the total reported tips and the specified percent of the establishment’s gross receipts. You can apply for a lower percentage, if you can show, in writing, that the tip rate at the establishment is less than the specified percent.

Each tip establishment allocates tips. An establishment is an individual restaurant, hotel, and so on, at a unique location. If a company has 15 restaurants, it allocates tips separately for each restaurant. In addition, allocated tips are not subject to withholding; therefore, the system does not withhold taxes. However, the system maintains the year-to-date allocated tips shortfall balance and reports it on the employee’s Form W-2. Also, the system reports allocated tips on the paycheck stub as memo earnings because memo earnings do not add to the check gross and are not included in taxable grosses.

The tip allocation process consists of four steps:

Calculate the allocated tips.
Use the Structured Query Report (SQR) reports to check the results.

You can calculate allocated tips any number of times for an allocation date before approving the calculation.
Approve the tip allocation results.

After you approve the calculation for an allocation date, you cannot recalculate for that date.
Update the allocated tip balances.

Allocated tips must be approved before the balances can be updated.

Reporting on the Tip Allocation Process

The system provides the following tip allocation reports:

Allocation Earnings (PAY052)
Employee Gross Receipts (PAY055)
Allocation by Establishment (PAY050)
Allocation by Employee (PAY051)

Understanding Tip Allocation Calculation Methods

There are three acceptable tip allocation calculation methods:

Gross receipts
Hours worked
Good faith agreement

In each method, the company allocates tips once per month, quarterly, annually, or for each pay period.

Gross Receipts Method

This method calculates an allocation amount for each directly tipped employee, using the gross receipts that are attributable to directly tipped employees. These steps are based on Form 8027.

To use the gross receipts method:

Calculate the allocation base for an allocation period:

gross receipts in that period × specified percent
Calculate the tipped employee allocation base:

allocation base − total tips reported by indirectly tipped employees
For each directly tipped employee, calculate the employee’s gross receipt ratio:

total gross receipts for all tipped employees / gross receipts attributable to the employee
Calculate the employee’s share of the allocation base:

tipped employee allocation base × employee’s gross receipt ratio
Calculate the employee’s shortfall:

employee’s share of the allocation base − employee’s reported tips

If the amount is less than zero, it is considered zero.
Calculate the total shortfall by summing all employees’ shortfall amounts.
Calculate the total tips by summing all the tips that are reported by directly and indirectly tipped employees.
Calculate the total allocation amount:

allocation base − total tips
Calculate the employee’s shortfall ratio:

employee’s shortfall / total shortfall
Calculate the employee’s allocated amount:

total allocation × employee’s shortfall ratio

Hours Worked Method

This method calculates an allocation amount for each directly tipped employee using the hours that are worked by the employee.

Note. Only establishments that employ fewer than 25 employees (tipped and nontipped) during a pay period can use this method.

To use the hours worked method:

Calculate the allocation base for an allocation period:

gross receipts in that period × specified percent
Calculate the tipped employee allocation base:

allocation base − total amount of tips reported by indirectly tipped employees
For each directly tipped employee, calculate the employee’s hours worked ratio:

employee’s total hours worked during this period / total hours worked by all tipped employees that worked during this period
Calculate the employee’s share of the allocation base:

tipped employee allocation base × employee’s hours worked ratio
Calculate the employee’s shortfall:

employee’s share of the allocation base − employee’s reported tips

If the amount is less than zero, it is considered zero.
Calculate the total shortfall by summing all employees’ shortfall amounts.
Calculate the total tips by summing all tips that are reported by both directly and indirectly tipped employees.
Calculate the total allocation amount:

allocation base − total tips
Calculate the employee’s shortfall ratio:

employee’s shortfall / total shortfall
Calculate the employee’s allocated amount:

total allocation amount × employee’s shortfall ratio

Good Faith Agreement Method

A good faith agreement is a written agreement between the employer and at least two-thirds of the employees in each occupational category that receives tips (for example, waiters, waitresses, and bus persons). The agreement must provide an allocation of the difference between total tips reported and the specified percent of the gross receipts among the tipped employees. The company decides how to configure the system to allocate tips; however, the formula the company creates must allocate tips based on the actual distribution of tip income among the employees.

Prerequisites

Before you can allocate tips, you must set up the following information for tipped employees:

Company table.
Pay Group table.
Federal and state Tax table.
Tip Establishments table.
General earnings code information.
Earnings code tax information.
Earnings code tax calculation information.
Job Data record.
Form W-2.

Pages Used to Allocate Tips

Page Name	Object Name	Navigation	Usage
Employee Gross Receipts	TIPS_EMPL_INPUT	Payroll for North America, Periodic Payroll Events USA, Tip Allocation, Update Employee Gross Receipts, Employee Gross Receipts	Specify the gross receipts to which an employee’s tips apply in each tip establishment.
Allocation End Date	TIPS_ALLOC_PD	Set Up HRMS, Product Related, Payroll for North America, Tip Allocation, Allocation End Date, Allocation End Date	Select the end date for the tip allocation. Use the same pay end date as your allocation end date.
Allocated Tips Calculation	RUNCTL_TIPS_ALLOC	Payroll for North America, Periodic Payroll Events USA, Tip Allocation, Calculate/Approve Allocation, Allocated Tips Calculation	Run the Run Tip Allocation COBOL SQL process (PSPTARUN), and (after you are satisfied with the results) approve the allocated tips.
Tip Allocation Balance Update	RUNCTL_TIPS_ALLOC	Payroll for North America, Periodic Payroll Events USA, Tip Allocation, Update Allocation Balances, Tip Allocation Balance Update	Run the Update Allocation Balances SQR Report process (PAY053) and produce the Update Allocations Balances audit report. The report lists, by employee, the current allocation amount, the year-to-date (YTD) allocation amount after the current update, the YTD hours (if tip allocation method is hours), and the allocated tips earnings code that is updated. Before using this page, you must approve the allocated tips calculation.
Employee Allocations	TIPS_EMPL_PD	Payroll for North America, Periodic Payroll Events USA, Tip Allocation, Review Allocation by Employee, Employee Allocations	View the record of an individual employee’s allocations.
Allocation by Employee Report	RUNCTL_TIPS_ALLOC	Payroll for North America, Periodic Payroll Events USA, Tip Allocation, Allocation by Employee Report, Allocation by Employee Report	Generate the PAY051 report, which lists tip employees, sorted by establishment. See PAY051 - Allocation By Employee.
Allctn by Establishment Report (allocation by establishment report)	RUNCTL_TIPS_ALLOC	Payroll for North America, Periodic Payroll Events USA, Tip Allocation, Allctn by Establishment Report, Allctn by Establishment Report	View tip allocation data, by employee, for an establishment. Use the subtotals on this page for troubleshooting.
Employee Receipt Report	RUNCTL_TIP_PAY055	Payroll for North America, Periodic Payroll Events USA, Tip Allocation, Employee Receipt Report, Employee Receipt Report	Generate the PAY055 report, which lists gross receipts for each employee in a selected time period, sorted by input date. Also provides subtotals for each tip establishment and total receipts for the company.
Establishment Allocations	TIPS_ESTAB_PD	Payroll for North America, Periodic Payroll Events USA, Tip Allocation, Review Allctns by Establishment, Establishment Allocations	Generate the PAY050 report, which lists tip allocation information for establishments. See PAY050 - Allocation By Establishment.
Tips Allocation Status	TIPS_ALLOC_ST	Payroll for North America, Periodic Payroll Events USA, Tip Allocation, Review Allocation Status, Tips Allocation Status	Review the status of the tip allocation process for a company.
Balance Verification Report	RUNCTL_TIP_PAY	Payroll for North America, Periodic Payroll Events USA, Tip Allocation, Balance Verification Report, Balance Verification Report	Generate the PAY052 report, which lists directly tipped employees and their YTD and pending allocated tips. This is a point-in-time report of all employees with allocated tips, sorted by company.

Entering Employee Tip Allocation Data

Access the Employee Gross Receipts page.

Empl Rcd Nbr (employment record number)

Enter an employment record number for employees with multiple jobs.

Receipts Data

Gross Receipts

Enter the gross receipts to which the employee’s tips apply.

Selecting the Tip Allocation End Date

Access the Allocation End Date page.

Posted Date

This date must match the date that is entered on the run controls for calculating allocated tips and for updating the balances.

Calculating Allocated Tips

Access the Allocated Tips Calculation page.

Click Run to run this request. PeopleSoft Process Scheduler runs the Run Tips Allocation process at user-defined intervals.

Posted Date	Select the end date of the period for which you’re calculating or approving the tip allocations.
Start Date	Select the start date of the period for which you’re calculating or approving the tip allocations.
Calculate Allocated Tips	Select to run or rerun the calculation process. You can run the calculation process as many times as you like until you run the approve process. After you run the approve process, you cannot run the calculation process again for that company and allocation date.
Approve Allocated Tips	After you check the results of the calculation process, and you are satisfied with the calculation, select this check box to run the approve process.

Viewing Employee Allocations

Access the Employee Allocations page.

Note. You can view all the allocations of an individual employee even if that employee has allocations for more than one establishment. This page is display-only.

Updating Allocation Balances

Access the Tip Allocation Balance Update page.

Click Run to run this request. PeopleSoft Process Scheduler runs the Update Allocation Balances process at user-defined intervals.

Company	Enter the company which you are updating tip allocation balances.
Posted Date	Select the end date of the period for which you’re updating tip allocation balances. The value comes from the Allocation End Date page.

Viewing Allocations for an Establishment

Access the Establishment Allocations page.

Note. Access the Employee Allocations page to view allocations for an individual employee.

Reviewing the Tips Allocation Process Status

Access the Tips Allocation Status page.

Tips Allocation Status

This group box indicates the company’s tip allocation status as of the allocation end date.

Note. At the end of the process, all boxes should be selected as complete for that cycle.

Administering U.S. Savings Bonds Purchases

This section provides overviews of U.S. Savings Bonds purchases and the Bond Purchases report and discusses how to:

Enter data to purchase savings bonds.
View bond purchase and amount activity.
Run the Bond Purchases report.
Produce magnetic media output in Federal Reserve System format.

Understanding U.S. Savings Bonds Purchases

As part of their employee benefits package, many employers offer their employees the opportunity to purchase U.S. Savings Bonds through a Payroll Savings Plan. PeopleSoft delivers the U.S. Savings Bond table complete with all savings bond types that employees can purchase through a payroll deduction. The system uses this table to edit employee bond specifications and to process bonds during pay confirmation.

Payroll for North America enables you to:

Keep track of bond owners, beneficiaries, and purchase distribution information.
Deduct the appropriate installments from employee paychecks.
Define different deduction characteristics for each pay group within your company.
Track the accumulation of funds for each denomination, for each bond owner.
Automatically process the resultant deduction amounts and goal balances for:
- Deductions from employees' pay.
- Reporting.
- Magnetic media output in Federal Reserve System format.
Enable the employee to purchase multiple bonds, using a single general deduction.

Understanding the Bond Purchases Report

The Bond Purchases report (PAY016A and FGPY011A), lists all bonds that have been purchased since the report was last run. The system marks a bond as having been purchased (that is, when the employee’s deductions are sufficient to cover the cost of the bond) by setting the BOND_LOG_STATUS to R (ready to purchase) in the PS_BOND_LOG table. The Bond Purchases report SQR selects all Bond Log rows with a BOND_LOG_STATUS of R and prepares the report. It then sets the status to D (disbursed) for each row that is selected. The report also identifies relevant information on co-owners and/or beneficiaries.

PAY016A also prepares a Bond Purchase File; each transaction contains the fields shown in the following table:

Field	Number of Positions
Denomination	5 positions
No. of Bonds Purchased	3 positions
Purchase Date	6 positions − YYMMDD
Owner Name	30 positions
Owner SSN	9 positions
Other Registrant Name	30 positions; optional field
Other Registrant SSN	9 positions
Other Registrant Type	1 position; optional field

You can change this format to accommodate your particular interface requirements.

See Also

PAY016A - Bond Purchases

(USF) FGPY011B - Bond Purchases - Federal Reserve System Format

Pages Used to Administer U.S. Savings Bonds Purchases

Page Name	Object Name	Navigation	Usage
U.S. Savings Bond Table	SAVINGS_BOND_TABLE	Set Up HRMS, Product Related, Payroll for North America, Deductions, U.S. Savings Bond Table, U.S. Savings Bond Table	View bond deduction criteria for U.S. savings bonds. This table controls bond purchasing within Payroll for North America. Note. PeopleSoft delivers all information for U.S. Bonds. You do not have to enter information on this page.
U.S. Savings Bond Report	PRCSRUNCNTL	Set Up HRMS, Product Related, Payroll for North America, Deduction Table Reports, U.S. Savings Bond, U.S. Savings Bond Report	Generate the Bond Table report (PAY706). The report lists information from the U.S. Bond table, which contains bond types. See PAY706 - Bond Table.
U.S. Savings Bond Specificatn (U.S. Savings Bond specification)	SAVINGS_BOND_SPEC	Payroll for North America, Employee Pay Data USA, Deductions, Purchase U.S. Savings Bonds, U.S. Savings Bond Specificatn Payroll for North America, Employee Pay Data USF, Deductions, Purchase U.S. Savings Bonds, U.S. Savings Bond Specificatn	Enter data to process payroll accumulations toward the purchase of U.S. Savings Bonds.
U.S. Savings Bond Activity	SAVINGS_BOND_LOG	Payroll for North America, Employee Pay Data USA, Deductions, Review U.S. Savings Bonds, U.S. Savings Bond Activity Payroll for North America, Employee Pay Data USF, Deductions, Review U.S. Savings Bonds, U.S. Savings Bond Activity	Display the activity of bond purchases and amounts collected.
Bond Purchase Report	RUNCTL_PAYINIT2	Payroll for North America, Payroll Processing USA, Pay Period Reports, Bond Purchase, Bond Purchase Report Payroll for North America, Payroll Processing USF, Pay Period Reports, Bond Purchase, Bond Purchase Report	Generate the PAY016A and FGPY011A (USF Bond Purchases) reports that list all bonds purchased since the last process run.
Bond-Federal Reserve File	RUNCTL_PAY016B	Payroll for North America, Payroll Processing USA, Pay Period Reports, Bond-Federal Reserve, Bond-Federal Reserve File Payroll for North America, Payroll Processing USA, Pay Period Reports, Bond-Federal Reserve, Bond-Federal Reserve File	Produces magnetic media output (report PAY016B and FGPY011B) in Federal Reserve System format for the purchase of bonds.

Entering Data to Purchase Savings Bonds

Access the U.S. Savings Bond Specificatn page.

Priority

Priority

Enter a priority number. During bond deduction processing, distributions are made to bond specifications in order of the priority that is established on this page. As with other deductions, the lower the number, the higher the priority. Priorities for the bonds themselves become part of the key information for the bond, so each bond must have a unique priority. Bond priority, however, has nothing to do with deduction priority. Do not use priority 999; it’s reserved for system use only.

Denomination

Select a denomination for the bond. The denominations that are displayed are the only ones that are offered by the U.S. federal government for payroll purchase of bonds.

Bond Owner Employee

Employee	Select if the employee is the registered owner of the savings bond.
or Dependent ID	Select the dependent’s ID if the employee is buying the bond for someone else. This person must be on the employee’s dependent/beneficiary list.

Other Registrant

None	Select if the employee’s name is the only one on the savings bond.
Co-Owner	Select if there are two owners of the bond. Additional fields become available for entering the co-owner information.
Beneficiary	Select if there is a beneficiary for the bond. Additional fields become available for entering the co-owner information.
Employee	Select if the employee is the co-owner or beneficiary.
or Dependent ID	Enter the dependent ID if a dependent is the co-owner or beneficiary.

Note. The bond owner, co-owner, or beneficiary must be either the employee or someone on the employee’s dependent/beneficiary list (on the Dependent/Beneficiary pages in the Benefits menu). The system does not allow you to specify the same person as both the bond owner and co-owner/beneficiary. If there is another registrant, select dependent/co-owner; then you can enter the appropriate ID.

Portion of Deducted Amount

The fields in this group box determine how the bond deduction is distributed.

Flat Amount	Enter a flat amount to apply to this bond. Typically, only one deduction is set up for bonds, but you can distribute the deduction among multiple bond specifications. Use either this field or the % of Deduction (percent of deduction) field for a given bond specification, but not both.
% of Deduction (percent of deduction)	Enter a percent of the total bond deduction that applies to this bond.
Excess	Select if you want this bond specification to receive any funds that are left over after bond distributions are completed. At least one bond must have this check box selected, even if the employee has only one specification. Assume that a bond deduction is 100 USD per pay period. You could specify that 50 USD of the deduction be applied toward one bond, 20 USD toward another bond, and 10 percent toward the third bond. Because the three deductions add up to only 80 USD, the excess 20 USD is posted to the bond specification that is selected to receive the excess.
Partial Amount	Select to enable the distribution to be less than the amount that is defined in the bond specification. Assume that you have a bond deduction of 100 USD, and you have specified that 70 USD goes toward one bond and 30 USD toward another. If you have only 90 USD to disburse, and the Partial Amount check box is selected for the second bond, 20 USD is allocated for the second bond.

Delivery Address

Same Address as Employee	Select if the address that you want the bond certificate mailed to is the same as the employee’s address.
Address Type	If the employee is the bond owner, select the appropriate address from the list of employee addresses.

If a dependent is selected as the bond owner, co-owner, or beneficiary, you can have the bond certificate mailed to a dependent’s address.

To send a bond certificate to an address other than the employee’s, clear the Same Address as Employee check box. The Which Dependent's Address? group box appears within the Delivery Address group box asking you whether the delivery address should be for the bond owner or other registrant. The default is Bond Owner and the bond owner address displays. If Other Registrant is selected, the address of the other registrant displays.

Viewing Bond Purchase and Amount Activity

Access the U.S. Savings Bond Activity page.

This is a display-only page that is maintained by the system to show the status of bond activity. The system doesn’t purchase bonds for you, but it does show how much money has been deducted toward bond purchases and how many units that money will buy. It’s updated when you run the Pay Confirmation COBOL SQL process (PSPCNFRM).

Bond Activity Status

The status of the bond activity appears:

Funds Not Ready: Indicates that there are insufficient funds to purchase the bond.

Funds Ready to Disburse: Indicates that there are sufficient funds to purchase the bond when you run the Bond Purchases report.

Funds Disbursed: Indicates that you have run the Bond Purchases report and that the funds have been disbursed for every employee whose record showed Funds Ready to Disburse prior to running the report.

(USF) This field is updated by the Treasury/Bond Interface. Details are presented in thePurchase Details group box.

AP Status(accounts payable status)

This is system-maintained and indicates whether bond monies have been sent to PeopleSoft Enterprise Payables for payment. This is not applicable to U.S. federal organizations.

(USF) Purchase Details

These fields are updated after the Treasury/Bond Interface is run. This group box appears for U.S. federal organizations only.

Bond Purchase Units	The number of units purchased in the pay period.
Bond Purchased Date	The paycheck issue date of the pay period in which units were purchased.

Running the Bond Purchases Report

Access the Bond Purchase Report page.

Click Run to run the report by using PeopleSoft Process Scheduler.

Producing Magnetic Media Output in Federal Reserve System Format

Access the Bond-Federal Reserve File page.

Click Run to run the report by using PeopleSoft Process Scheduler.

PAY016B (USF FGPY011B) works the same way as PAY016A (USF FGPY011A), but it produces magnetic media output in Federal Reserve System format for the purchase of bonds.

Adjusting Imputed Income for U.S. Group-Term Life Insurance

This section provides an overview of the Imputed Income COBOL SQL process (PSPIMRUN), lists a prerequisite, and discusses how to

Run the Imputed Income process.
View imputed income calculation results.

Understanding the Imputed Income COBOL SQL Process

Payroll for North America addresses imputed income every pay period. Although imputed income calculations are accurate with the information available in a pay period, you might require adjustments at the end of the year, as a result of changes in coverage or an employee being terminated. To make adjustments, use the Imputed Income Adjustment process.

The Imputed Income process performs calculations and creates a file containing one-time adjustment records for all employees who require them.

Review the calculation results using the Imputed Income Adjustment report , before loading the transactions into paysheets.

When you’re ready to load the imputed income transactions into paysheets, run the Imputed Income process in Update Paysheets mode, and the system makes the adjustments as one-time deductions with a taxable benefit deduction classification. The system establishes these one-time deductions as off-cycle manual checks (paylines).

The manual checks that the Imputed Income process creates do not have an amount in the Total Gross and Net Pay fields. This is not necessary, because the imputed income adjustment that the process creates is a taxable benefit deduction class, and it does not affect gross or net pay.

When the Imputed Income process creates the adjustment paysheet, it changes the Deductions Taken field value on the By Paysheet - One-Time Deductions page to None. This prevents the system from taking normal taxable benefits and employer deductions on the adjustment check.

You cannot rerun the Imputed Income process. For example, suppose you run the process once and it produces an error after loading some paysheets. If you run it again using the same run control information (the same company, pay group, pay end date, date range, and so on), you receive another error, because the system attempts to insert duplicate rows into the database. Therefore, if you must rerun the process, delete the paysheets that the process added previously.

Attach your adjustment paysheets to a pay calendar that does not contain any other off-cycle paysheets. In other words, there should be no other off-cycle paysheets entered for the same calendar in which you create the imputed income adjustments.

Example

Joanne is a CCB employee in a monthly pay group. Her coverage changes in the middle of the year. From January 1 to June 30, she has basic and supplemental life. Her basic life is fully employer-paid; her supplemental life is fully employee-paid:

Plan Type	Description	Coverage	Premium
20	Life	25,000 USD	Employer-paid premium: 15 USD
21	Supplemental Life	25,000 USD	Employee-paid premium: 1.25 USD

Because the IRS does not consider the first 50,000 USD of coverage taxable, the system performs no imputed income calculations for Joanne during the first half of the year.
On July 1, however, Joanne suddenly gets a big increase in her basic life coverage:

Plan Type

Description

Coverage

Premium

20

Life

50,000 USD

Employer-paid premium: 30 USD

21

Supplemental Life

25,000 USD

Employee-paid premium: 1.25 USD
Because Joanne now has coverage totaling 75,000 USD, starting with the next payroll after July 1, 25,000 USD is considered taxable as imputed income.

Joanne is 37 years old. In this age bracket, the Uniform Premium table calls for a calculation of .11 USD per month per 1,000 USD of coverage:

25,000 USD / 1,000 USD x .11 USD = 2.75 USD
The system subtracts Joanne’s employee-paid, after-tax contribution to the coverage:

2.75 USD – 1.25 USD = 1.50 USD taxable benefit.

Plan Type	Description	Coverage	Premium
20	Life	50,000 USD	Employer-paid premium: 30 USD
21	Supplemental Life	25,000 USD	Employee-paid premium: 1.25 USD

These calculations are correct beginning with the end-of-July payroll. However, the IRS stipulates that any contributions that are made by the employee must be factored into the equation. In Joanne’s case, you must include all her contributions from January 1 to June 30. The result is a reduction in her true tax liability for the year as a whole.

At the end of the year, Imputed Income processing:

Recalculates Joanne’s imputed income (without subtracting her monthly contributions) for every month of the year.
Adds up the monthly figures to arrive at a total.
Adds up her monthly contributions.

This table shows the process:

Month	Imputed Income	Employee Contribution
January	0 USD	1.25 USD
February	0 USD	1.25 USD
March	0 USD	1.25 USD
April	0 USD	1.25 USD
May	0 USD	1.25 USD
June	0 USD	1.25 USD
July	2.75 USD	1.25 USD
August	2.75 USD	1.25 USD
September	2.75 USD	1.25 USD
October	2.75 USD	1.25 USD
November	2.75 USD	1.25 USD
December	2.75 USD	1.25 USD
Totals:	16.50 USD	15 USD

Joanne’s total imputed income for the year is 16.50 USD; her contributions amount to 15 USD. On this basis, her taxable benefit for the year should be only 1.50 USD (16.50 − 15 USD). However, because the system calculates her taxable benefit on a month-by-month basis, her taxable benefit is 9 USD (6 months × 1.50 USD per month). Therefore, the system must reduce Joanne’s taxable benefit for the year by 7.50 USD:

Total taxable benefit from month-by-month calculations (9.00 USD) – total taxable benefit from end-of-year calculation (1.50 USD) = end-of-year adjustment (1.50 USD).

Prerequisite

Before running imputed income adjustment processing, you must establish the taxable benefit deduction that you plan to use for adjustments. You can use either an existing deduction code of 20-29, or establish a new deduction code only for adjusting imputed income.

Pages Used to Adjust Imputed Income for U.S. Employees

Page Name	Object Name	Navigation	Usage
Imputed Income Calculation	RUNCTL_IMP_CALC	Payroll for North America, Periodic Payroll Events USA, Imputed Income Adjustments, Calculate Adjustments, Imputed Income Calculation Payroll for North America, Periodic Payroll Events USF, Imputed Income Adjustments, Calculate Adjustments, Imputed Income Calculation	Calculate imputed income adjustments and update paysheets with the adjustment amounts.
Imputed Income Adjustment Rpt (imputed income adjustment report)	RUNCTL_PAYINIT2	Payroll for North America, Periodic Payroll Events USA, Imputed Income Adjustments, Adjustment Report, Imputed Income Adjustment Rpt Payroll for North America, Periodic Payroll Events USF, Imputed Income Adjustments, Adjustment Report, Imputed Income Adjustment Rpt	Generate the PAY033 report, which contains the results of imputed income adjustments.

Calculating Imputed Income adjustments

Access the Imputed Income Calculation page.

Click Run to run this request. PeopleSoft Process Scheduler runs the Imputed Income process at user-defined intervals.

Process From Month and Thru Month

Enter a numerical value for the first and last months in the date range. (Ordinarily, this is 1 through 12—January through December).

Processing Mode

Calculate Impute Adjust Only (calculate imputed adjustment only)

Calculates imputed income for the selected period and creates transaction files, but does not load the transactions into paysheets.

Update Paysheets Only

Loads calculated imputed income transactions that are created in a previous run into paysheets as one-time deductions.

Both

Calculates imputed income and creates transaction files, then loads the transactions into paysheets as one-time deductions.

Use these options as follows:

Run the process in Calculate Impute Adjust Only mode.
Run SQR PAY033, the Imputed Income Adjustment report, and review the results.
If the results are acceptable, run the process in Update Paysheets Only mode to load the transactions into paysheets.
If the results are not acceptable, fix the problems and go back to step one.

Apply GTL/DPL adjustments to

Use this group box to designate the deduction codes to which you want the system to apply the imputed income transactions when it loads the transactions into paysheets.

DPL Effect (dependent life effect)

Select the type of adjustment.

You must have one row for Add to DPL (add to dependent life) and one row for Add to GTL (add to group-term life).

Note. Under ordinary circumstances, the run control has only two rows in the Apply GTL/DPL adjustments to (apply group-term life/dependent life adjustments to) group box. Even if some employees have more than one GTL or DPL plan, the process applies their adjustments to a single plan—one for GTL and one for DPL.

Deduction Code

Deduction codes must be valid for all employees in the run.

Important! This COBOL process takes one or two minutes to process each employee. If you have many employees, the process could take hours or even a full day.

Viewing Imputed Income Calculation Results

Access the Imputed Income Adjustment Rpt page.

Click Run to run the report by using PeopleSoft Process Scheduler.

Note. If you used the process to load adjustment transactions into paysheets, use the Paysheet or Payline pages to view the one-time deductions.

(E&G) Certifying Time and Effort

This section provides an overview of time and effort certification and discusses how to:

Specify time and effort earnings codes.
Run the time and effort report.

Understanding Time and Effort Certification

Higher education organizations can use the Grants Time and Effort Certification report (GMTEC002) to satisfy A-21 Certification requirements. Time and effort certification applies to any individual who receives funding through your institution's sponsored programs office and to anyone who charges more than one funding source or project/grant. Each institution handles this reporting requirement differently.

See Also

PeopleSoft Grants PeopleBook

Pages Used to Certify Time and Effort

Page Name	Object Name	Navigation	Usage
Time and Effort Certification	GM_TEC_OT_ERNCD	Set Up HRMS, Product Related, Payroll for North America, Compensation and Earnings, Grants Time and Effort Certif, Time and Effort Certification	Select earnings codes to include in time and effort certification.
Time/Effort Certification Rpt (time/effort certification report)	RC_GM_TE	Payroll for North America, Payroll Distribution, Additional Integrations, Time/Effort Certification Rpt, Time/Effort Certification Rpt	Run the GM Time and Effort Certification report.

Specifying Time and Effort Earnings Codes

Access the Time and Effort Certification page.

Earnings Code

Select the earnings code to include in the time and effort certification.

The SQR normally includes all regular earnings hours and amounts, but each employee can have a number of other earnings (additional pay, overtime, bonus, parking allowance, expense reimbursement, and so on). You will not want all of these earnings to be included in the GM Time and Effort Certification report. You can control which of these other earnings to include in the report by listing the specific earnings codes on this page.

Running the Time and Effort Report

Access the Time/Effort Certification Rpt page.

This page is identical to the common run control page used for many payroll processes and reports.

See Using the RUNCTL_PAYINIT and RUNCTL_PAYINIT2 Pages.