Maintaining Employer Tax Information (U.S.)

Maintaining Employer Tax
Information (U.S.)
Overview
Copyright Oracle, 2007. All rights reserved.
Maintaining Employer Tax n!ormation "#.$.% 2&&2'(&07.doc
E!!ective 07)**)07 +age * o! ,- .ev *
Maintaining Employer Tax n!ormation "#.$.%
System References
None
Distri!tion
Job Title
*
Owners"ip
The Job Title [list@YourCompany.com?Subject=E!"""""# is responsible $or ensurin% that this
&ocument is necessary an& that it re$lects actual practice.
E!!ective 07)**)07 +age 2 o! ,- .ev *
Maintaining Employer Tax n!ormation "#.$.%
E!!ective 07)**)07 +age - o! ,- .ev *
Overvie/
E!!ective 07)**)07 +age & o! ,- .ev *
Types o! #.$. Employer Taxation
Types of U.S Employer Taxation
This broa& ran%e o$ employer ta"ation &i'i&es into (e&eral an& State ta"ation.
(e&eral Ta"es )ayable by Employer*
+ Social Security ,(-C. / 0.S-1
+ 2e&icare ,(-C. / 3-1
+ (e&eral !nemployment -nsurance ,(!T.1
State Ta"es )ayable by Employer*
+ State !nemployment -nsurance / ,S!-1
+ State isability -nsurance / ,S-1
The pattern o$ employer ta"ation is comple". -t is important to recor& ta"ation &etails correctly
4hen you con$i%ure your payrolls so that subse5uent payroll calculations pro&uce an accurate
statement o$ employer liabilities.
This in$ormation is not &ate trac6e& an& i$ it is chan%e& it becomes acti'e imme&iately on the
ne"t payroll processin%.
E!!ective 07)**)07 +age 0 o! ,- .ev *
$etting #p Employer Taxes
Instr!ctor #ote
7hene'er there are ta"ation chan%es arisin% $rom your 4or6 structures8 ta"ability rules8 or
employee in$ormation you must capture these chan%es as part o$ your payroll con$i%uration $or
employer ta"ation. ,0utline e"amples o$ chan%e in these areas1.
Setting Up Employer Taxes
-t is important to up&ate your employer ta" in$ormation 4hene'er any o$ these chan%es occurs*
+ 7hen you set up ne4 enterprise 4or6 structures you shoul& also up&ate your $e&eral8
state an& local in$ormation $or each 9:E or le%al entity.
+ 7hen you &e$ine ne4 ta" cate%ories $or supplemental or impute& earnin%s8 or pre;ta"
&e&uctions you shoul& also up&ate the ta"ability rules at $e&eral8 state an& local le'el.
+ 7hen there are chan%es to employee in$ormation that ha'e an impact on employer ta"es
you shoul& also ma6e sure that these chan%es are up&ate& on the employee assi%nment.
E!!ective 07)**)07 +age , o! ,- .ev *
Entering Tax n!ormation !or 1.Es
$overnment Reporting Entities
Employer ta" in$ormation is re5uire& by the appropriate 9o'ernment :eportin% Entity ,9:E1.
You may also nee& to &e$ine one o$ your 9:Es as a transmitter $or ma%netic me&ia reports. -$
you operate multiple 4or6sites8 only one o$ your 9:Es can act as the transmitter. You typically
inclu&e the $ollo4in% in$ormation $or each o$ these entities*
+ 9o'ernment :eportin% Entities
- -&enti$ication numbers $or $e&eral8 state an& local a%encies
- Ta" rules $or sel$;a&just metho&s o$ ta"ation
- 7ithhol&in% calculation metho& ,$lat rate or percenta%e1
- State le'el unemployment rates
- (e&eral le'el supplemental an& ta" %roup in$ormation
+ Transmitters / i$ you sen& $e&eral or state returns each 5uarter or each year8 then you
must &e$ine transmitter &etails so that your can sen& your returns by ma%netic me&ia.
This applies in each o$ these instances*
- (e&eral le'el transmitter &etails $or 27S ,<=S >?@?1
- 7;@s an& :etirement )lan istribution ,A?BB:1
E!!ective 07)**)07 +age 7 o! ,- .ev *
- State le'el transmitter &etails $or State Cuarterly 7a%e =istin%s ,SC7=1
+ 2ultiple 7or6sites / employers 4ho operate multiple 4or6sites must sen& 5uarterly
employment an& 4a%e reports to the bureau o$ =abor Statistics. -n this case8 you supply*
- 27S transmitter &etails $or the 9:E
- . classi$ication o$ :eportin% Establishment $or your 27S transmitter
You enter most o$ the &etails $or 9:Es8 transmitters8 an& 27S transmitters in the
0r%aniDation 4in&o48 but $or $ull &etails please see these &etails in online help*
+ Enterin% (e&eral Ta" :ules $or a 9:E
+ Enterin% State Ta" :ules $or a 9:E
+ e$inin% the 2ultiple 7or6site :eportin% Transmitter 9:E
E!!ective 07)**)07 +age ( o! ,- .ev *
Entering 2ederal, $tate and 3ocal Tax n!ormation !or a 1.E
Instr!ctor #ote
This is just a hea&er sli&e. -t intro&uces the icons $or (e&eral -n$ormation8 State -n$ormation8
an& =ocal -n$ormation.
E!!ective 07)**)07 +age ' o! ,- .ev *
Entering 2ederal Tax n!ormation !or a 1.E
Instr!ctor #ote
Emphasise the importance o$ enterin% an& maintainin% $e&eral8 state an& local in$ormation
correctly. .ccurate employer ta" in$ormation is critically important $or the calculation o$ ta"es
on a pay chec6 an& employer liabilities.
Entering %e&eral Tax Information for a $RE
Ensure that your or%aniDation is a 9:E8 then enter these (e&eral ta" rules*
+ The Sel$ .&just 2etho& o$ 4ithhol&in% $or Social Security8 2e&icare an& (!T.. This
metho& is more accurate. -t uses year;to;&ate earnin%s as the calculation basis.
+ The type o$ employment8 as on the Employee Cuarterly Ta" :eturn ,BEA1.
+ The Ta" 9roup8 to associate se'eral 9:Es. o this 4hen employees trans$er bet4een
9:Es. Your 4ithhol&in% $or Social Security an& (!T. in the ol& 9:E then &isplays as a
cre&it in the ne4 9:E.
+ Select the Supplementary Calculation 2etho& $or the 9:E. This is either a%%re%ation8 or
$lat percenta%e.
You enter most o$ these &etails in the 0r%aniDation 4in&o4. :e$er to Enterin% (e&eral Ta"
:ules $or a 9:E in the online help.
E!!ective 07)**)07 +age *0 o! ,- .ev *
Entering $tate Tax n!ormation !or a 1.E
Entering State Tax Information for a $RE
.ny in$ormation that you chan%e here becomes imme&iately e$$ecti'e on the ne"t payroll run.
Enter these state ta" rules $or each 9:E*
+ The State Co&e. Your selection o$ a state co&e can also imply a&&itional chan%es / i$ so8
be sure to enter them correctly.
+ The 9:E i& number $or S!- an& S-T ,State -ncome Ta"1.
+ The Sel$ .&just 2etho& $or S!- an& S-. 3o4e'er8 i$ S!- or S- rates chan%e in mi&;
year8 select No Sel$ .&just $or the remain&er o$ the year8 then chan%e to Sel$ .&just at the
be%innin% o$ the ne"t year.
+ The S!- E"perience :ate A to re$lect 4hat the state has assi%ne& to your or%aniDation. -$
you lea'e this rate blan68 it &e$aults to the ma"imum permitte& by that state. You can also
enter S!- E"perience :ate @ to account $or mi&;year chan%es. 3o4e'er8 0racle )ayroll
al4ays uses S!- E"perience :ate A8 to calculate S!- liability8 e'en i$ S!- E"perience
:ate @ also has entries.
+ The (ilin% StatusF.llo4ance :ate. -$ you select the $e&eral &e$ault then the employeeGs
$e&eral $ilin% status also becomes the state &e$ault. .lternati'ely8 you can select a state
&e$ault o$ sin%le status an& Dero allo4ances.
E!!ective 07)**)07 +age ** o! ,- .ev *
You enter most o$ these &etails in the 0r%aniDation 4in&o4. (or $ull &etails re$er to Enterin%
State Ta" :ules $or a 9:E in the online help.
E!!ective 07)**)07 +age *2 o! ,- .ev *
Entering 4or5ers Compensation $tate Tax n!ormation !or a 1.E
Entering 'or(ers )ompensation State Tax Information for a $RE
-$ you are settin% up 7or6ers Compensation8 enter the $ollo4in% in$ormation $or your 9:E*
+ The name o$ your carrier. You can ma6e this an e"ternal or%aniDation 4ith the
classi$ication o$ 7or6ers Compensation Carrier.
+ The e"perience mo&i$ication rate $or the 7or6ers Compensation premium calculation.
The rate must be a positi'e number.
+ . number to re$lect one o$ the t4o 4ays in 4hich a state can mo&i$y the 7or6ers Comp
premium. -$ the state uses an employerGs liability to apply a surchar%e o$ @?H8 then enter
A@? to re$lect this. .lternati'ely8 i$ the state allo4s a premium &iscount o$ A?H8 then
enter B? to re$lect this. o not ma6e any entry i$ the state cannot mo&i$y the 7or6ers
Comp premium.
:e$er to Practice Entering Tax Rules for a GRE [LAB28C2Y]
E!!ective 07)**)07 +age *- o! ,- .ev *
Entering 3ocal Tax n!ormation !or a 1.E
Entering *ocal Tax Information for a $RE
(or those localities 4here you 4ithhol& ta"es an& ma6e ta" payments8 enter the name o$ the
locality.
E!!ective 07)**)07 +age *& o! ,- .ev *
$etting #p Transmitter n!ormation !or a 1.E
Instr!ctor #ote
This is just a hea&er sli&e to intro&uce the icon $or Settin% !p Transmitter -n$ormation $or a
9:E.
E!!ective 07)**)07 +age *0 o! ,- .ev *
Overvie/ o! 1.E Transmitter $et6p
Instr!ctor #ote
E"plain that these are the three main acti'ities in'ol'e& in settin% up a transmitter 9:E.
Overview of $RE Transmitter Set!p
-$ your 9:E uses ma%netic me&ia to submit $e&eral an& state ta" 4a%e reportin%8 your setup
acti'ities must inclu&e each o$ the $ollo4in%*
+ -&enti$y the transmitter 9:E.
+ Capture employer an& employee &ata that must appear on a particular tape or &is6ette.
+ Speci$y 4hat e5uipment you are usin% to %enerate the $iles $or transmission.
E!!ective 07)**)07 +age *, o! ,- .ev *
$etting #p Transmitter n!ormation !or Each .eporting Area
Instr!ctor #ote
!se this sli&e as an o'er'ie4 o$ each o$ the main reportin% areas $or 4hich transmitter setup is
re5uire&. There are $urther sli&es to outline the particular setup re5uirements $or each o$ these
areas o$ reportin%.
Setting Up Transmitter Information for Eac" Reporting +rea
You must set up transmitter in$ormation $or each o$ these areas o$ reportin%*
+ State Cuarterly 7a%e =istin%s ,SC7=s1
+ 2ultiple 7or6 Site :eportin% ,<=S;>?@?1
+ 7a%e an& Ta" Statement ,7;@1
+ :etirement )lan istribution ,A?BB;:1
E!!ective 07)**)07 +age *7 o! ,- .ev *
$etting #p Transmitter n!ormation !or $743
Setting Up Transmitter Information for S,'*
The State Cuarterly 7a%e =istin% process creates t4o $iles*
+ . $ile containin% 5uarterly state 4a%e listin%s to loa& on tape $or submission to the
correct state a%ency
+ . secon& $ile that contains report totals an& other summary in$ormation $or entry onto the
tape transmittal $orm.
3o4e'er8 be$ore you run the State Cuarterly 7a%e =istin% process you must ensure that you
ha'e alrea&y set up %eneric transmitter &ata8 an& state transmitter &ata.
.s in&icate& pre'iously8 your setup acti'ities in'ol'e*
+ -&enti$yin% the transmitter
+ Capturin% the &ata $or transmission
+ -&enti$yin% the e5uipment use& $or transmission.
E!!ective 07)**)07 +age *( o! ,- .ev *
Transmitter denti!ication !or $743
Transmitter I&entification for S,'*
To i&enti$y the 9:E transmitter $or SC7=8 enter the $ollo4in% in$ormation $or your SC7=
9eneric Transmitter :ules in the 0r%aniDation 4in&o4.
+ A?BB: Transmitter ,Enter Yes1. Since you can only ha'e one transmitter 9:E8 all your
other 9:Es shoul& &isplay INoJ.
+ Transmitter contact name an& phone number
+ The authoriDation co&e or number that your state pro'i&es
You may $in& it help$ul to %roup to%ether any states that ha'e similar transmitter re5uirements.
<y %roupin% states 4ith similar re5uirements you can minimiDe the e$$ort in'ol'e& in preparin%
SC7= reports $or multiple states.
E!!ective 07)**)07 +age *' o! ,- .ev *
Transmitter 8ata !or $743
Transmitter Data for S,'*
SC7= reportin% &ra4s on &ata $rom se'eral &i$$erent types o$ recor&. To ensure consistency
an& the security o$ your transmitte& &ata 8 you can use one o$ these the stan&ar& ma%netic
trans$er $ormats*
+ The -CES. stan&ar& $ormat ,-nterstate Con$erence o$ Employment Security .%encies1.
2ore than t4enty states ha'e alrea&y a&opte& this $ormat $or secure ma%netic trans$er.
+ The SS. stan&ar& $ormat. ,Social Security .&ministration1
Note8 ho4e'er8 that 4hen you are settin% up your transmitter8 you nee& only consi&er &ata $or
the . an& < recor&s. You &o not nee& to inclu&e the &ata $or all recor& co&es. Some states &o
not re5uire the $ull . an& < recor&s8 but re5uire instea& some o$ the in$ormation that appears
on these recor&s.
E!!ective 07)**)07 +age 20 o! ,- .ev *
.ecord Codes !or $743
Instr!ctor #ote
E"plain that this table contains the recor& co&es $or &i$$erent SC7= &ata recor&s.
Recor& )o&es for S,'*
This table &isplays the recor& co&es an& recor& names $or each SC7= &ata recor&. The
$ollo4in% recor& co&es pro'i&e the necessary &ata $or your SC7= transmitter setup*
Co&e . / Transmitter recor& ,!ni5uely i&enti$ies the 9:E that transmits your 4a%e listin% $iles
to a state1.
Co&e < / .uthentication recor& ,-&enti$ies the e5uipment use& to create the $ile1.
None o$ the other co&es are necessary $or transmitter setup8 an& they appear $or re$erence
purposes only.
E!!ective 07)**)07 +age 2* o! ,- .ev *
$tate9$peci!ic $et6p !or $743
State-Specific Set!p for S,'*
-n a&&ition to enterin% %eneric &ata8 you must also enter state;speci$ic &ata $or these states*
+ -llinois
+ Kansas
+ 2issouri
+ Ne4 Jersey
+ )ennsyl'ania
+ Te"as
+ North Carolina
+ (lori&a
+ Kentuc6y
+ 2ontana
+ Ne4 Yor6
+ 0hio
+ Ne4 3ampshire
E!!ective 07)**)07 +age 22 o! ,- .ev *
Note8 ho4e'er8 that 4hen you are settin% up your transmitter8 you nee& only consi&er &ata $or
the . an& < recor&s. You &o not nee& to inclu&e the &ata $or all recor& co&es. Some states &o
not re5uire the $ull . an& < recor&s8 but re5uire instea& some o$ the in$ormation that appears
on these recor&s.
-n a&&ition to enterin% %eneric &ata8 you may also nee& to enter state;speci$ic &ata $or certain
states.
E!!ective 07)**)07 +age 2- o! ,- .ev *
llinois: $et6p !or $743
Illinois. Set!p for S,'*
(or -llinois8 select one o$ these $ilin% types in the SC7= State Transmitter :ules 4in&o4*
+ >.L &is6ette
+ L.@L &is6ette
+ 2a%netic Cartri&%e
+ 2a%netic Tape
.t 9:E =e'el8 enter Employer A :ules $or E ,Employer :ecor&1 an& T ,Total :ecor&1 &ata.
E!!ective 07)**)07 +age 2& o! ,- .ev *
;ansas: $et6p !or $743
/ansas. Set!p for S,'*
(or Kansas8 enter the total remittance amount o$ 4a%es in the SC7= State Transmitter :ules
4in&o4.
E!!ective 07)**)07 +age 20 o! ,- .ev *
Misso6ri: $et6p !or $743
Misso!ri. Set!p for S,'*
(or 2issouri8 enter the total remittance amount o$ 4a%es in the SC7= State Transmitter :ules
4in&o4.
.t the 9:E le'el8 enter Employer A :ules $or E ,Employer :ecor&1 an& T ,Total :ecor&1 &ata.
E!!ective 07)**)07 +age 2, o! ,- .ev *
<e/ =ersey: $et6p !or $743
#ew 0ersey. Set!p for S,'*
(or Ne4 Jersey8 obtain the tape authoriDation number $rom the 7:;E> $orm8 an& then enter
this number in the SC7= State Transmitter :ules 4in&o4.
E!!ective 07)**)07 +age 27 o! ,- .ev *
+ennsylvania: $et6p !or $743
1ennsylvania. Set!p for S,'*
(or )ennsyl'ania8 enter the total remittance amount o$ 4a%es in the SC7= State Transmitter
:ules 4in&o4. .t 9:E le'el8 enter Employer @ :ules $or E ,Employer :ecor&1 an& T ,Total
:ecor&1 &ata.
E!!ective 07)**)07 +age 2( o! ,- .ev *
Texas: $et6p !or $743
State-Specific Set!p for S,'*
(or Te"as enter the $ollo4in% in$ormation*
+ -$ you are inclu&in% employee 4a%e recor&s ,S18 an& total recor&s ,T18 enter Yes in the
.llocation =ist.
+ Enter a B &i%it - number as the Ser'ice .%ent -.
+ Enter a &ollar amount as the Total :emittance .mount.
+ -$ you are reportin% ta" C;> &ata8 choose Yes in the C> &ata $iel&.
+ Enter the su$$i" co&e pro'i&e& by the Te"as Employment Commission.
.lso8 at 9:E le'el8 enter the Employer @ :ules $or E ,Employer :ecor&1 an& T ,Total :ecor&1
&ata.
E!!ective 07)**)07 +age 2' o! ,- .ev *
2lorida, ;ent6c5y, Montana: E and T 8ata !or $743
%lori&a2 /ent!c(y an& Montana. E an& T Data for S,'*
.t 9:E le'el $or (lori&a8 Kentuc6y an& 2ontana8 enter Employer A :ules $or E ,Employer
:ecor&1 an& T ,Total :ecor&1 &ata.
E!!ective 07)**)07 +age -0 o! ,- .ev *
<orth Carolina, <e/ >ampshire, <e/ ?or5, Ohio: E and T 8ata
!or $743
#ort" )arolina2 #ew 3amps"ire2 #ew 4or(2 O"io. E an& T Data for S,'*
.t 9:E le'el $or North Carolina8 Ne4 3ampshire8 Ne4 Yor68 0hio8 enter Employer @ :ules
$or E ,Employer :ecor&1 an& T ,Total :ecor&1 &ata.
E!!ective 07)**)07 +age -* o! ,- .ev *
$ .ecord 8ata !or $743
S Recor& Data for S,'*
(or the S recor& ,Employee 7a%e ata18 enter the $ollo4in% in$ormation at the employee le'el
un&er 9:Es an& 0ther ata*
+ Select the 9:E $or the employee
+ -n&icate i$ the employee is a seasonal 4or6er. <y &e$ault8 employees are not re%ar&e& as
seasonal8 so you must e"plicitly speci$y i$ you are recor&in% in$ormation $or a seasonal
4or6er. o this $or all states.
+ -$ the employee is an o$$icer o$ your corporation8 enter Yes $or the 0$$icer Co&e. o this
$or all states
+ Enter any a&&itional in$ormation that is re5uire& by particular states. (or e"ample8
.las6a8 Cali$ornia8 -n&iana an& 2issouri all re5uire a&&itional in$ormation. (or &etails8
re$er to the online help.
E!!ective 07)**)07 +age -2 o! ,- .ev *
Transmitter E@6ipment !or $743
Transmitter E5!ipment for S,'*
To i&enti$y the transmitter e5uipment $or SC7=8 enter the $ollo4in% in$ormation at 9:E le'el
on the A?BB: 2a%netic :eport :ules 4in&o4*
+ A?BB: Transmitter ,Select yes8 or no1
+ Transmitter control co&e. ,This shoul& be the same co&e as the A?BB: transmitter $or that
9:E.1
+ <ureau ,Select yes8 or no1
+ Combine& (ilin% ,Select yes or no1.
E!!ective 07)**)07 +age -- o! ,- .ev *
$etting #p Transmitter n!ormation !or 2ederal 4age and Tax
$tatements
Instr!ctor #ote
This is just a hea&er sli&e. <ut use it as an opportunity to as6 the stu&ents 4hat in$ormation
they 4oul& e"pect to enter $or 7;@ transmissions. -n contrast to the SC7= setup8 relati'ely
little in$ormation is re5uire& $or 7;@ reportin%8 as in&icate& on the ne"t sli&e.
E!!ective 07)**)07 +age -& o! ,- .ev *
Transmitter n!ormation !or 2ederal 4age and Tax $tatements
Transmitter Information for %e&eral 'age an& Tax Statements
Select your 7;@ transmitter by na'i%atin% to the 7;@ :eportin% :ules 4in&o4 an& enterin% the
7;@ transmitter at the 9:E le'el. Select one o$ your 9:Es. Your remainin% 9:Es 4ill ha'e
INoJ entere&.
E!!ective 07)**)07 +age -0 o! ,- .ev *
$etting #p Transmitter n!ormation !or .etirement +lans
Instr!ctor #ote
!se this as a hea&er sli&e to mar6 the transition $rom 7;@ transmitters to A?BB: transmitters.
You can also a&& an intro&uctory e"planation to outline the en& o$ calen&ar year reportin%
re5uirements $or retirement plans.
Setting Up Transmitter Information for Retirement 1lans
Employers 4ho ma6e &istributions o$ retirement income are re5uire& to submit a A?BB: report
at the en& o$ the calen&ar year. The A?BB: pro'i&es a summary o$*
+ :etirement &istributions $or the year
+ .ny amounts 4ithhel& $or $e&eral income ta"
You normally submit these reports by ma%netic me&ia8 an& you there$ore ha'e to set up 9:E
transmission rules to enable correct submission o$ your A?BB: in$ormation.
E!!ective 07)**)07 +age -, o! ,- .ev *
Transmitter denti!ication !or .etirement +lans
Transmitter I&entification for Retirement 1lans
To i&enti$y the 9:E transmitter $or retirement plans8 enter the the $ollo4in% in$ormation at
9:E le'el on the A?BB: 2a%netic :eport :ules 4in&o4*
+ A?BB: Transmitter ,Select yes8 or no1
+ Transmitter control co&e. ,This shoul& be the same co&e as the A?BB: transmitter $or that
9:E.1
+ <ureau ,Select yes8 or no1
+ Combine& (ilin% ,Select yes or no1.
E!!ective 07)**)07 +age -7 o! ,- .ev *
Transmitter E@6ipment !or .etirement +lans
Transmitter E5!ipment for Retirement 1lans
To i&enti$y the transmitter e5uipment $or retirement plans8 enter the the $ollo4in% in$ormation
at 9:E le'el on the A?BB: 2a%netic :eport :ules 4in&o4*
+ :ecor&in% mo&e ,Select .SC-- or E<C-C1
+ )arity
+ =abel ,No label8 Non;stan&ar&8 or Stan&ar& label1
+ ensity ,AM??8 >N???8 M@L?8 N?? C)-Gs1
E!!ective 07)**)07 +age -( o! ,- .ev *
$etting #p M6ltiple 4or5site .eporting !or a 1.E
Instr!ctor #ote
This is just a hea&er sli&e to intro&uce the icon $or Settin% !p 2ultiple 7or6site :eportin% $or
a 9:E.
E!!ective 07)**)07 +age -' o! ,- .ev *
Overvie/ o! M6ltiple 4or5site .eporting !or a 1.E
Overview of M!ltiple 'or(site Reporting for a $RE
2ultiple 7or6sites / employers 4ho operate multiple 4or6sites must sen& 5uarterly
employment an& 4a%e reports to the bureau o$ =abor Statistics. -n this case8 you supply*
- 27S transmitter &etails $or the 9:E
- . classi$ication o$ :eportin% Establishment $or your 27S transmitter
You enter most o$ the &etails $or 9:Es8 transmitters8 an& 27S transmitters in the
0r%aniDation 4in&o48 but $or $ull &etails please see these &etails in online help*
+ Enterin% (e&eral Ta" :ules $or a 9:E
+ Enterin% State Ta" :ules $or a 9:E
+ e$inin% the 2ultiple 7or6site :eportin% Transmitter 9:E
E!!ective 07)**)07 +age &0 o! ,- .ev *
Exemptions !rom M6ltiple 4or5site .eporting
Exemptions from M!ltiple 'or(site Reporting
Some employers 4ho operate multiple 4or6site reportin% are e"empt $rom the re5uirement to
$ile 27S reports. (or e"ample*
+ -n&ustries such as %as an& oil e"ploration8 construction an& contract lo%%in% are e"empt
$rom 27S reportin%.
+ Employers 4ho employ a total o$ $e4er than ten employees in their multiple 4or6site
locations are also e"empt.
E!!ective 07)**)07 +age &* o! ,- .ev *
$tates /ith Mandatory .eporting .e@6irements !or M4$
States wit" Man&atory Reporting Re5!irements for M'S
These states ha'e man&atory reportin% re5uirements $or multiple 4or6site reportin%. )lease
re$er to the online help $or &etails.
E!!ective 07)**)07 +age &2 o! ,- .ev *
$etting #p Transmitter n!ormation !or an M4$ 1.E
Instr!ctor #ote
This is just a hea&er sli&e to intro&uce the icon $or Settin% !p Transmitter -n$ormation $or a
9:E.
E!!ective 07)**)07 +age &- o! ,- .ev *
$etting #p Transmitter n!ormation !or an M4$ 1.E
Setting Up Transmitter Information for an M'S $RE
0nly one 9:E can be the the 27S transmitter.
E!!ective 07)**)07 +age && o! ,- .ev *
Transmitter denti!ication !or an M4$ 1.E
Transmitter I&entification for an M'S $RE
To i&enti$y the 9:E transmitter $or 27S8 enter the $ollo4in% in$ormation $or your 2ultiple
7or6site :eportin% :ules 4in&o4 in the 0r%aniDation 4in&o4.
+ 27S Transmitter ,Enter Yes1. Since you can only ha'e one transmitter 9:E8 all your
other 9:Es shoul& &isplay INoJ.
+ Contact name. This is the name o$ the person creatin% the tape an& is re5uire&
in$ormation
+ Contact telephone number. This is the contact telephone number $or the person creatin%
the tape / a%ain re5uire& in$ormation.
+ Company Tra&e Name. This is the name o$ your company8 an& is re5uire& in$ormation.
E!!ective 07)**)07 +age &0 o! ,- .ev *
Transmitter E@6ipment !or M4$
Transmitter E5!ipment for M'S
To i&enti$y the transmitter e5uipment $or 27S8 enter the $ollo4in% in$ormation in the
0r%aniDation 4in&o4 $or the or%aniDation that you ha'e classi$ie& as your 9:EFle%al entity*
+ Tape me&ium. Speci$y 4hether the &ata 4ill be on -nternet Trans$er ,(T)18 )C &is6ette8
Cuality Job )ro%ram tape8 :eel Tape or Tape Cartri&%e.
+ Tape &ensity. Speci$y the &ensity o$ the tape me&ium. ,(or e"ample8 AM??8 >N???8 M@L?
or N?? C)-1.
+ 3ea&erF=abel. Select No =abel8 Non;stan&ar&8 or Stan&ar& label.
E!!ective 07)**)07 +age &, o! ,- .ev *
8e!ining ?o6r 4or5sites !or M4$
Defining 4o!r 'or(sites for M'S
0nce you ha'e set up your transmitter 9:E you must then enable each 4or6site in your
reportin% chain. You &o this by settin% up 4or6site reportin% rules in the 0r%aniDation 4in&o4
o$ each or%aniDation that you ha'e classi$ie& as a reportin% establishment. The re5uire& actions
are*
+ -&enti$y the )rimary :eportin% 7or6site 4ith an entry o$ Yes8 to &enote the o$$icial
a&&ress $or the 4or6site.
+ Enter the S!- account number. :emember that this is the same number as the 9:E o$ the
4or6site.
+ Enter the :eportin% !nit Number. This number is %i'en by the state8 an& can also contain
alphabetical 'alues.
+ Enter the Tra&e Name to &enote the name o$ the 4or6site bein% reporte&.
+ Enter a 7or6site escription. This must be a uni5ue &escription $or this 4or6site.
(or $urther in$ormation8 althou%h not re5uire&8 you can also enter Comment Co&eA an&
Comment Co&e@ &etails. These co&es are use$ul i$ you 4ant to e"plain 4hy there are
substantial &i$$erences bet4een your current report an& a pre'ious se5uence o$ reports. (or
E!!ective 07)**)07 +age &7 o! ,- .ev *
e"ample8 un&er Comment Co&eA you can recor& &iscrepancies $or each o$ the $ollo4in%
cate%ories*
+ >E / Chan%e in hourly pay &ue to chan%e in 4or6
+ E@ / ecrease in part;time 4or6ers
+ NB / Establishment mer%er
+ LA ; (ire &isruption
!n&er Comment Co&e@8 you can recor&*
+ .&&itional reasons $or chan%es to employment &ata not mentione& in Comment Co&eA
+ =ar%e chan%es in employment or 4a%e &ata
E!!ective 07)**)07 +age &( o! ,- .ev *
TaxaAility .6les: Overvie/
Taxaility R!les
This is an o'er'ie4 topic to e"plain 4hat ta"ability rules are8 an& to intro&uce the i&ea that
ta"ability rules 'ary $or &i$$erent types o$ payment. Subse5uent sli&es e"plain ho4 rules &i$$er
in each case.
Ta"ability rules &etermine*
+ 7hether a particular earnin% is liable $or ta"
+ 7hether a particular &e&uction 5uali$ies as a re&uction in the ta"able %ross pay
+ 7hether the ta" is payable in the current pay perio&8 or 4ithhel& $or payment until the
en& o$ the year
-n practice8 these 5uestions apply &o not apply to re%ular an& o'ertime earnin%s since these are
al4ays subject to ta". 3o4e'er8 supplemental an& impute& income ,bonuses8 an& non;
monetary bene$its in 6in&1 &o re5uire the application o$ ta"ability rules to &etermine ta"able
status. )re;ta" &e&uctions also re5uire a ta"ability rule to &etermine ta"able status.
The ta"able status can be*
Subject an& 7ithhol&able / this means that the earnin% is ta"able an& that payment shoul& be
ma&e in the current pay perio&.
E!!ective 07)**)07 +age &' o! ,- .ev *
Subject an& Not;4ithhol&able / this means that the earnin% is ta"able but that payment shoul&
be ma&e at a later perio&8 typically at en& o$ year.
E!!ective 07)**)07 +age 00 o! ,- .ev *
TaxaAility .6les: .eg6lar
Taxaility R!les. Reg!lar
The rules $or processin% re%ular an& o'ertime earnin%s are pre&e$ine& 4ith 0racle )ayroll.
:e%ular earnin%s are al4ays subject to ta"8 an& you cannot mo&i$y their ta"able status by
chan%in% ta"ability rules.
E!!ective 07)**)07 +age 0* o! ,- .ev *
TaxaAility .6les: $6pplemental and mp6ted
Taxaility R!les. S!pplemental an& Imp!te& Income
There are pre&e$ine& cate%ories $or supplemental an& impute& income8 but you can &e$ine
a&&itional cate%ories8 or ma6e a selection o$ the e"istin% cate%ories to &etermine 4hich rules
shoul& apply $or particular earnin%s.
You &e$ine ne4 ta" cate%ories 4ith these loo6up types*
+ O!SOS!))=E2ENT.=OE.:N-N9S
+ O!SO-2)!TEOE.:N-N9S
3o4e'er8 4e recommen& that you use a pre$i" $or any ne4 cate%ories that you create. This 4ill
&istin%uish them $rom the ta" cate%ories &eli'ere& by 0racle.
7hen you ha'e set up your ne4 ta" cate%ories you can select them 4hen you &e$ine each
earnin%s or &e&uctions type8 or 4hen you &e$ine the earnin%s or &e&uctions element.
7e also recommen& that you &o not chan%e any pre&e$ine& $e&eral an& state ta" rules. This is
because your chan%es 4ill be o'er4ritten at the ne"t payroll up%ra&e.
E!!ective 07)**)07 +age 02 o! ,- .ev *
TaxaAility .6les: +re9tax 8ed6ctions
Taxaility R!les. 1re-tax De&!ctions
There are $i'e pre&e$ine& cate%ories*
+ e$erre& Comp E?A6
+ epen&ent Care A@L
+ 3ealth Care A@L
+ 3ealth Care E?>b
+ 3ealth Care ELP
Ta"ability rules $or pre;ta" &e&uctions are $re5uently up&ate& at the local ta" le'els.
E!!ective 07)**)07 +age 0- o! ,- .ev *
3ocal TaxaAility .6les
*ocal Taxaility R!les
You can only enter local ta"ability rules $or one country or city at a time. <ecause local
ta"ability rules superse&e the state ta" rules8 there is a e$ault :ules E&ite& chec6bo" on the
Ta"ability :ules 4in&o4 to sho4 that local rules are in e$$ect. 7hen this bo" is chec6e&8 it
in&icates that you 4ill nee& to re;apply the state ta" rules i$ you 4ant to continue usin% them.
(or $urther &etails8 see Creatin% =ocal Ta"ability :ules in the online help.
:e$er to Practice Defining a Ne Tax Categor! [LAB28C"Y]
E!!ective 07)**)07 +age 0& o! ,- .ev *
Entering and Calc6lating 2#TA Credits
Entering an& )alc!lating %UT+ )re&its
Employers use $orm BE? to &etermine*
B (!T. ,(e&eral !nemployment Ta"1 ta"able 4a%es $or the calen&ar year.
B (!T. ta" liability on those 4a%es a$ter accountin% $or applicable state unemployment ta"
cre&its an& (!T. ta" &eposits ma&e &urin% the year.
3o4e'er8 in consi&eration o$ prompt payment8 or a particular le'el o$ contribution8 some
employers may be entitle& to claim (!T. cre&its. These employers can choose to calculate
their cre&it accor&in% to*
B Net .mount 04e& ,Net (!T.1
B State !nemployment -nsurance ,2a"imum (!T.1. This is typically chosen by
employers base& in se'eral states8 as it applies the most a&'anta%eous state
unemployment ta" rate $or the employer.
Since (!T. is al4ays calculate& $or the complete payroll year8 4e &o not recommen&
chan%in% bet4een these t4o metho&s in mi&;year.
E!!ective 07)**)07 +age 00 o! ,- .ev *
#sing the <et 2#TA 3iaAility Method
Using t"e #et %UT+ *iaility Met"o&
You must set your liability rate. The normal (!T. rate is M.@H. The -:S allo4s a ma"imum
cre&it a%ainst this rate o$ L.EH. The liability net rate is the &i$$erence bet4een the t4o rates.
This o'erri&es the Qerte" rate an& calculates the (!T. liability balance base& on percenta%e
entere&. You enter Net (!T. liability on the (e&eral Ta" :ules 4in&o4.
:e$er to Practice Entering #$TA Tax Rates [LAB28C%Y]
E!!ective 07)**)07 +age 0, o! ,- .ev *
#sing Maxim6m 2#TA 3iaAility
)alc!lating Maxim!m %UT+ *iaility
(!T. liability calculates at the stan&ar& Qerte" rateR the cre&it sho4s as a separate balance.
You enter the ma"imum (!T. cre&it percenta%e $or each state ta"ability rule 4ithin a 9:E.
(or e"ample8 the -:S allo4s a ma"imum cre&it o$ L.EH $or one o$ the states 4here you ha'e
employees 4or6in%. You enter the rate in the State Ta" :ules 4in&o4 ,rates 'ary $rom state to
state1.
(or $ull &etails see the (!T. Cre&it an& Enterin% a (!T. Cre&it topics in online help.
:e$er to Practice Entering #$TA Tax Rates [LAB28C%Y]
E!!ective 07)**)07 +age 07 o! ,- .ev *
76estion: 4hat AAo6t the 3atest #pdatesC
Instr!ctor #ote
!se this sli&e as an opportunity to prepare the stu&ents $or the Qerte" e"planation on the ne"t
sli&e8 but also e"plore their un&erstan&in% o$ ho4 0racle )ayroll an& Qerte" 4or6 in
association to supply the latest ta"ation up&ates as soon as they are nee&e&. 3ere are some
sample 5uestions to prompt the &iscussion*
0racle )ayroll supplies a patch 4ith all the latest ta" tables $or the !nite& States?
You can choose $rom a recommen&e& list o$ thir& party 'en&ors 4ho 4ill supply you 4ith
the latest &ata?
Qerte" 4ill supply the &ata as it becomes a'ailable once you ha'e purchase& 0racle
)ayroll?
.lternati'ely8 i$ you $eel that stu&ents are su$$iciently $amiliar 4ith this area8 &ispense 4ith the
&iscussion an& just use this sli&e as a 'isual intro&uction to the ne"t one.
E!!ective 07)**)07 +age 0( o! ,- .ev *
Dertex and the 3atest #pdates
Instr!ctor #ote
.s6 the stu&ents i$ they are clear about the up&ates that Qerte" pro'i&es as oppose& to the
up&ates that 0racle )ayroll pro'i&es.
6ertex an& t"e *atest Up&ates
You must obtain a Qerte" licence to %et access to the latest ta" up&ates. Qerte" is an
in&epen&ent thir& party pro'i&er o$ ta" tables $or $e&eral8 state an& local ta"es. Sample Qerte"
&ata is pro'i&e& by your $irst installation o$ 0racle )ayroll. 3o4e'er8 this sample &ata is $or
test purposes only. You shoul& still apply $or a licence imme&iately.
You shoul& also lin6 the Qerte" element to all payrolls. This lin6 enables e'ery ne4 hire to
automatically recei'e the Qerte" element 4hen you assi%n them to a payroll. !p&ates to 7E $or
e"istin% employees also re%ister on the Qerte" element. -$ an employee &oes not ha'e the
Qerte" element8 you cannot calculate ta"es $or that employee. -n a&&ition to the Qerte" up&ates8
0racle )ayroll supplies pre&e$ine& ta" rules $or the $ollo4in% !nite& States ta"es*
+ Ta" &e&uctions / (-T8 (!T.8 SS8 2e&icare8 S-T8 S!-8 S-8 7C8 City8 County8 School
istrict an& 3ea& Ta"es.
+ Ta" cre&its / E-C
+ Employer ta"es / SS8 2e&icare8 7C8 S!-8 S-
E!!ective 07)**)07 +age 0' o! ,- .ev *
76estion: Mandatory +atchesC
Instr!ctor #ote
!se this sli&e to emphasise the importance o$ the !S )ayroll man&atory patches. You can
either as6 the stu&ents to i&enti$y these patches8 or %o &irectly to the ne"t sli&e on 4hich the
man&atory patches are liste&.
E!!ective 07)**)07 +age ,0 o! ,- .ev *
Mandatory +atches
Man&atory 1atc"es
0racle )ayroll releases these man&atory patches*
+ CA Statutory !p&ates / en& o$ 2arch
+ C@ Statutory !p&ates / en& o$ June
+ C> Statutory !p&ates / en& o$ September
+ CE Statutory !p&ates / en& o$ ecember
These statutory up&ate patches contain so$t4are up&ates8 an& re'ise& ta" in$ormation $or State
Cuarterly 7a%e =istin%s.There is also a J-TF%eoco&e annual cleanup patch8 %enerally release&
aroun& the en& o$ July.
Note that the Year En& patch is release& in t4o phases ,September an& ecember18 an& the
Year <e%in patch is also release& in ecember. There may also be a $urther phase release in
January $or both Year En&8 an& Year <e%in.
The Year En& an& Year <e%in patches contain up&ate& (e&eral in$ormation $or the ne4 ta"
year.
You shoul& plan to apply all o$ these patches as they become a'ailable.
E!!ective 07)**)07 +age ,* o! ,- .ev *
-n a&&ition8 remember that there is an 0racle 3:2S $amily pac6 release each July. You shoul&
chec6 the .bout &ocument $or the July (amily )ac68 an& subse5uent up&ates to North
.merican )ayroll 2an&atory )atches ,2eta=in6 note AAAEBB.A1 to establish ho4 the $amily
pac6 relates to each o$ the payroll man&atory patches. (or e"ample8 you may $in& that the Year
En& )hase A patch re5uires the 3:2S July (amily )ac6 4hereas the C> Statutory !p&ate &oes
not.
E!!ective 07)**)07 +age ,2 o! ,- .ev *
$6mmary
E!!ective 07)**)07 +age ,- o! ,- .ev *

Maintaining Employer Tax Information (U.S.)

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