Quarterly Reporting Guide. Release 54

Transcription

1 Quarterly Reporting Guide Release 54

2 Contents Quarterly/Annual Reporting... 4 Quarter End Process... 4 Validating the Wages and Taxes Being Reported for the Quarter... 4 Committing the Quarter End... 5 Generating the Quarter End File... 6 Prior Quarter Adjustments... 6 Amendments & Escalations... 7 Quarter End Dates... 9 Quarterly Reporting Setup... 9 Configuring Legal Entity Reporting Parameters Configuring Employee Level Reporting Parameters Validating Quarterly Wages and Taxes Ensure that previous quarters have been closed Generating the Quarter End File Prior Quarter Adjustments and Amendments Amendments Generating Adjusted Quarter End Files Appendix: Quarterly/Annual Reporting Parameters Legal Entity Specific Tax Reporting Parameters Federal Maine Minnesota New Mexico New York Vermont Wyoming Employee-Specific Tax Reporting Parameters Federal Alaska Arkansas California Indiana Page 2 of 30

3 Maine Massachusetts Minnesota New Jersey New Mexico Puerto Rico Rhode Island Washington Wyoming Earning Code Reporting Parameters Parameters in the General section Parameters in the State Quarterly Reporting section Page 3 of 30

4 Quarterly/Annual Reporting This section describes quarterly and annual reporting, or quarter/year end processing, for US legal entities, from functional setup to the processes payroll administrators need to follow to commit quarterly or yearly data, and file any necessary adjustments. Quarter End Process Quarter end processing is a US-only requirement. Every US employer engaged in a trade or business who pays remuneration for services performed by an employee must file Federal, State, and Local tax returns at the end of each calendar quarter. These quarterly files must include employee level wage and tax data. There are no quarter end processing activities in Canada. Canadian taxing authorities do not require quarterly tax filing. Within the application, quarter end processing involves the creation of the quarter end file and its transmission to Ceridian Tax Services (CTS). Once the quarter end file has been successfully sent to CTS, the process within the application is complete unless payroll administrators need to make corrections to their quarter end file. Validating the Wages and Taxes Being Reported for the Quarter Throughout the quarter, payroll administrators validate the wages and taxes being reported for the quarter by running the Wage and Tax Report from My Pay with the Perform Wage and Tax Validations option selected. Payroll administrators select which quarter to validate and which pay groups or legal entities to report on. On the report, the application includes payroll data from all committed pay runs within Page 4 of 30

5 the quarter for the selected pay groups or legal entities and performs several validations, alerting the payroll administrator to any of the following situations: If taxes that should have the same wage basis, such as the employee and employer Medicare tax, do not. If taxes have been under-withheld for an employee. If taxes have been over-withheld for an employee. Validating the wages and taxes being reported for a quarter should be an ongoing process so that issues can be corrected before the quarterly filing deadline. Committing the Quarter End To commit the quarter end, payroll administrators commit payroll for the last pay run of the quarter. The final pay run of the quarter is the last pay run, both normal or off-cycle pay runs, that has a pay date within the quarter; a pay period that is fully contained within the quarter but has a pay date after the end of the quarter is included in the next quarter. When payroll administrators load the last pay run of the quarter, the application informs them that the pay run is the last of the quarter and that it must be committed by the deadlines specified in the Ceridian Tax Service Quarter End Planner. Payroll administrators follow their normal process to review the pay run, running payroll audits and recording quick entries as needed, before committing when ready. The application prompts the payroll administrator again that they are committing the last pay run of the quarter. By committing the last pay run in the quarter, the payroll administrator is committing the quarter end; unless there are adjustments (described later in this section) this ends the payroll administrators involvement in the quarter end process. Note: There are some functional setup steps required before the first quarter end is processed; these steps are typically performed by system administrators prior to the quarter end and not considered part of the payroll administrator's quarter end processing. This is described later in this section. For more information, see Quarterly Reporting Setup on page 9. Page 5 of 30

6 Generating the Quarter End File On the CTS' deadline, typically the last Friday of the quarter, a system administrator needs to run the POS Quarterly And Annual Export background task (job 116) from System Admin > Background Tasks to generate the quarter end file. Administrators select the quarter end they want to process from the first parameter and Preemptive Run selected from the Filing Mode drop-down list. Note: In a future release the application will generate quarter end files automatically without the need for system administrators to run this background task. The application generates the quarter end file and transmits it to CTS; at this point, payroll administrators cannot make off-cycle, prior period adjustments against pay periods in the quarter without making prior quarter adjustments. The application also automatically generates and archives three reports: the Employer's Quarterly State Report of Wages Paid, Other State Wages Report, and Wage and Tax Report. These archived reports are not printed but available within the Archived Reports tab of My Reports. Note: : Once a quarter has been committed and the quarter end file generated and submitted to CTS, it is not possible to void pay runs within the quarter. Prior Quarter Adjustments If payroll administrators need to make adjustments to the payroll data of a prior quarter after the quarter end file has been generated, they can create a prior quarter adjustment: Prior quarter adjustments are a specific type of off-cycle pay run, where: The Run Type must be Prior Period Adjustment. The selected Pay Date must be the last day of the quarter. The off-cycle pay run must be applied against the last pay period with a pay date in the quarter; the payroll administrator must select this pay run from the Load Pay Run panel in My Pay before creating the new off-cycle pay run. Payroll administrators record the details of the prior quarter adjustment within the off-cycle following the normal process for prior period adjustment off-cycle pay runs. Once the prior quarter adjustments have been created, a system administrator needs to run the POS Quarterly And Annual Export background task (job 116) from System Admin Page 6 of 30

7 > Background Tasks to re-generate the quarter end file for the legal entities that have modified data. Administrators select the quarter end they want to process from the first parameter and Mass File selected from the Filing Mode drop-down list. The application generates the adjusted quarter end file for the legal entities impacted by the prior quarter adjustments and transmits it to CTS. Amendments & Escalations The application only allows prior quarter adjustments between the end of the quarter and a cut off date defined by CTS; beyond this cut off date any changes or corrections have to be filed with CTS as an amendment. Amendments require a manual process co-ordinated with CTS where physical paperwork is filed by the client with CTS; although the details of the amendments are still recorded in the application for reporting and informational purposes as 'adjustments for amendments', the application cannot generate and transmit another quarter end file using this information. Instead, the information must be filed with CTS manually -- the actual paperwork filed with CTS to modify the quarter end filing is the amendment. If payroll administrators attempt to make a prior quarter adjustment after the cut off date the application prompts them that their adjustments will create amendments: Although beyond the cut off date for adjustments, in some extreme cases CTS can grant an extension on the cut off date, so that their corrections to the prior quarter are created as adjustments and automatically sent to CTS, instead of as an amendment requiring a manual process. It is unlikely that CTS will be able to grant an extension. The ability to extend the cut off date should not be communicated to clients as an option. If escalation is possible: 1. A Dayforce Support representative logs into the application using a service role and runs the Quarter/Year Commit Date Escalation Job (job 156) from System Admin > Background Tasks to adjust the date on which payroll administrators can still file prior quarter adjustments. Page 7 of 30

8 The support representative selects the quarter that needs to be adjusted and the new cut off date from the Commit Date field. The client's payroll administrator must create the prior quarter adjustment on this selected date. Note: As of this release, the Force commit date prior to escalation date checkbox is displayed on the Quarter/Year Commit Date Escalation Job's parameters. This checkbox is used for testing purposes only to set cut off dates to be earlier than they currently are. This checkbox should always be cleared. 2. Payroll administrator creates a prior quarter adjustment, following the normal process. 3. A system administrator runs the POS Quarterly And Annual Export background task (job 116) with the appropriate quarter selected and Mass File selected from the Filing Mode drop-down list to generate any adjusted quarter end files. If escalation is not possible: It is not always possible to delay the cut off date for filing prior quarter adjustments; when escalation is not possible, clients need to file an amendment with CTS. This involves payroll administrators creating an off-cycle pay run following the steps to make a prior quarter adjustment however when they commit the off-cycle pay run, the application marks it as an amendment; the details of the adjustments do not generate a new quarter end file and they are not sent to CTS. Instead, the payroll administrators needs to co-ordinate with CTS to file the amendment manually. In summary, the quarter end process involves: 1. Payroll administrators committing pay for the last pay run in the quarter. 2. System administrators running the POS Quarterly And Annual Export background task (job 116) with the appropriate quarter selected and Preemptive Run selected from the Filing Mode drop-down list. 3. Payroll administrators making any prior quarter adjustments (if necessary) before the quarter end file is submitted by CTS. 4. System administrators running the POS Quarterly And Annual Export background task (job 116) with the appropriate quarter selected and Mass File selected from the Filing Mode drop-down list to generate any adjusted quarter end files. 5. Escalating through Dayforce Customer Support (if necessary) when a prior quarter adjustment needs to be made, but it is beyond the cut off date for adjustments. If the deadline can be extended: a. A support representative logs into the application using a service role and runs the Quarter/Year Commit Date Escalation Job (job 156) from System Admin > Background Tasks to adjust the deadline. b. The payroll administrator records the prior quarter adjustments, following the normal process, on the date supported adjusted the deadline to. Page 8 of 30

9 c. A system administrator runs the POS Quarterly And Annual Export background task for the quarter with Mass File selected from the Filing Mode drop-down list. d. creating amendments and filing them manually with CTS if the cut off date cannot be updated. If the deadline cannot be extended: a. The payroll administrator records and commits the prior quarter adjustments, following the normal process and acknowledging the prompts the application displays about filing amendments. b. The payroll administrator co-ordinates with CTS to file the amendments manually. Quarter End Dates For each quarter there are three dates that create deadlines for the process of quarterly filing: First cut-over: Scheduled to occur on the last Friday of the quarter, on this date quarter end files are generated and need to be sent to CTS. In future releases, this will be an automatic process but as of this release it is triggered by running background job 116. Second cut-over: Scheduled by CTS, typically one week after the first cut-over date for the quarter, this is the last date that CTS accepts adjustments. Between the first cut-over and second-cut over dates, off-cycle pay runs can be created as prior quarter adjustments to modify the payroll and tax data reported in the quarter end file. After the second cut-over date, any changes to the quarter end file must be made as amendments. Final deadline: Scheduled by CTS, this is a 'drop dead' date after which it is not possible for CTS to accept and process quarterly files, adjustments, or amendments. Quarterly Reporting Setup This section describes the set up tasks associated with quarterly reporting; in addition to reporting payroll and quarterly tax data, legal entities may be required to report several other tax parameters, such as the kind of employer they are or their employment code to the federal government, and in some states, additional parameters relating to providing health care coverage, medical coverage, and other state-specific codes. There are two types of legal entity parameters -- those that apply, by default, to all of the employees in the legal entity, such as the NAICS employee class code reported to Wyoming, and those that apply to the legal entity itself, such as the kind of employer reported to the federal government. This document contains a full list of the available legal entity parameters that can be reported. For more information, see Legal Entity Specific Tax Reporting Parameters on page 19. What a legal entity needs to report to the federal or state governments they employ people in depends on a variety of factors, including the states the legal entity operates in, its industry, and the reporting requirements set by federal and state tax authorities. Page 9 of 30

10 Reporting parameters set at the legal entity level can be overridden for specific employees in My HR; in addition, there are tax reporting parameters that are employee-specific that may need to be reported, such as recording which employees are corporate officers and seasonal employment codes. This document also contains a full list of the available employee parameters that can be reported. For more information, see Employee-Specific Tax Reporting Parameters on page 22. Finally, there are also parameters set on the different earning definitions employees' wages are paid under; although only applicable to a few states, if a legal entity pays employees in these states, certain special wages need to be reported. Note: If the earning definitions configured in the application all use existing, system default codes selected from the Tax & Compliance field on their Details tab, then these parameters have already been set and no further set up is required. The application includes the values of the legal entity and employee parameters that are effective the last day of the quarter in the quarter end file that is sent to CTS. Any changes to these parameters must be made so that their effective date range covers the last day of the appropriate quarter in order to ensure that those values are included with the quarterly reporting. You need to enable the Org Setup > Org Setup > Organization > Legal Entity > Legal Entity Property Bag feature and the My HR > My People > Tax Definitions > Employee Property Bag feature to perform this setup. Configuring Legal Entity Reporting Parameters The tax reporting parameters for U.S.legal entities are recorded on the Quarterly/Annual Reporting Parameters tab of a selected legal entity. For example, Federal tax reporting requires that a legal entity report the kind of employer it is, its employment code, and optionally whether the business was terminated or its employees are eligible for retirement plans. You can also specify another Federal Employer ID Number (FEIN) for W-2 headers if the organization made changes within the tax year: Page 10 of 30

11 The state of Alaska requires the two-digit 'Geo Area' code of where the legal entity operates: To record the quarterly reporting parameters for a legal entity: 1. Select the appropriate legal entity in the Legal Entity tab of Org Setup > Organization. 2. Select the Quarterly/Annual Reporting Parameters tab. 3. Click the New button. The application adds a new, blank row. 4. Provide an effective date range for the reporting parameters using the Start Date and End Date fields. 5. Select the appropriate tax authority from the State drop-down list. The application displays the reporting parameters that the corresponding tax authority requires. 6. Specify values in the reporting parameters, as needed. 7. Click the Save button. Note: You need to enable the Legal Entity Property Bag sub-feature of Org Setup > Org Setup > Organization > Legal Entity > Legal Entity Property Bag in order to access the Quarterly/Annual Reporting Parameters tab. For more information, see Legal Entity Specific Tax Reporting Parameters on page 19. Configuring Employee Level Reporting Parameters In some cases, a specific employee might require tax parameters; employee-level reporting parameters can override the value for the same parameter set at the legal entity level, if it exists, while some are only employee-specific parameters. Page 11 of 30

12 You can record tax reporting parameters for specific employees on the Quarterly/Annual Reporting Parameters tab of My HR > Tax Definitions: 1. Load the appropriate employee's record in My HR. 2. Click the Tax Definitions button. 3. Select the Quarterly/Annual Reporting Parameters tab. 4. Click the New button. The application adds a new, blank row. 5. Provide an effective date range for the reporting parameters using the Start Date and End Date fields. 6. Select the appropriate tax authority from the State drop-down list. The application displays the reporting parameters that the corresponding tax authority requires. 7. Specify values in the reporting parameters, as needed. 8. Click the Save button. Note: You need to enable the Employee Property Bag sub-feature of My HR > Tax Definitions in order to access the Quarterly/Annual Reporting Parameters tab. For more information, see Employee-Specific Tax Reporting Parameters on page 22. Validating Quarterly Wages and Taxes This section describes how to validate the wages and taxes being reported by the application in the quarterly file. This validation should be performed on an ongoing basis so that any issues are discovered early and can be corrected before the quarterly filing deadline. Quarterly wages and taxes can be validated within My Pay by running the Wage and Tax Report. The report can be run for specific pay groups or legal entities and includes all the payroll data from committed pay runs within the quarter. The application validates if: Taxes that should have the same wage basis, such as the employee and employer Medicare tax, do not. Taxes have been under-withheld for an employee. Taxes have been over-withheld for an employee. To run the report: 1. Select Wage and Tax Report from the Reports drop-down list. The application displays the report's parameters. 2. Select the quarter and the year you want to report on from the Quarter drop-down lists. 3. Optionally, click the button and select the pay groups and legal entities for which to generate a report. Leave these fields blank to report on all US pay groups and legal entities for the quarter. 4. Optionally, select the Include Amendments checkbox to ensure that the report includes any tax information that was amended since the report was last run. Page 12 of 30

13 5. Optionally, click the button next to Tax Authorities and select one or more tax authorities to report on. Leave blank and the report includes all tax authorities. 6. Select the Perform Wage and Tax Validations checkbox so that the application validates the quarterly wages and taxes and reports on any issues. 7. Clear the Include Taxes with No Validation Errors checkbox so that the application only reports on taxes with issues. 8. Select one of the following options from the Group By drop-down list to specify how the information in the report will be grouped: Legal Entity (the default) Pay Group 9. Select one of the following options from the Sort By drop-down list to specify how the information in the report will be sorted: Employee Number (the default) Employee Name SSN/SIN 10. Select either PDF or Excel. 11. Click the Run Report button. 12. When the report is ready you can download it from a link on the Reports tab within Dayforce Messaging. The application displays a set of records for each employee that has some issue with the wages and taxes currently reported in the quarter; for each tax, the application reports on the wage basis and tax amount paid, as well as a message underneath describing the issue with the tax. The application can display messages if: A tax is under withheld: The application flags which taxes are under withheld and by how much. It also displays the taxable wage basis being reported and the tax rate being used. A tax is over withheld: The application flags which taxes are over withheld and by how much. It also displays the taxable wage basis being reported and the tax rate being used. A tax does not have the same wage basis as other taxes with the same taxability: The application flags which taxes have a different wage basis than taxes that should have the same wage basis and lists all the taxes that it does not match with. In this example, the NJ DT EE tax has a wage basis of $150, which does not match the wage basis for several other taxes, even though it should: Correcting the issues displayed on the Wage and Tax Report requires an investigation into the root cause of the problem and often requires a tax expert's knowledge to determine the appropriate response. Additional steps to take include: Page 13 of 30

14 Determine if the issue needs to be corrected in the application and reported: Not all issues raised by the validations the application performs need to be corrected and sent as part of the quarterly reporting process; if an employee tax is under or over withheld, this issue may not require any action, depending on the size of the amount. For example, if an employee tax is over withheld by $55, that money is refunded to the employee when they file their taxes; similarly, if an employee tax is under withheld by $65, that employee will owe $65 when they file their taxes. If the dollar amount under or over withheld is of an acceptable size, then it does not need to be corrected. Whereas if an employee has a tax that is over with held by some material amount, such as $4,500, this should be corrected within the application so that the employee receives these funds without waiting to file their taxes at the end of the year. Run the Employee Pay Run History Report for the employee with wage and tax issues: You can run the Employee Pay Run History Report for a specific employee, for any number of pay runs, and the application returns the payroll register for that employee; run the report for each available pay period in the year, including any year-to-date (YTD) history import pay runs, and examine the details. You may be able to determine in which pay run the wage basis for two taxes that should match became out of sync; for example, if the tax amount and wage basis was imported for one tax but not another during the YTD history import the Employee Pay Run History Report will only show a wage basis and tax amount for one of the matching taxes in the pay run with the YTD data load. Check relevant areas of configuration: You can check the configuration and parameters of taxes with issues at both the employee level in My HR > Tax Definitions and at the employee's legal entity level on the Tax Authorities tab of the Legal Entity tab within Org Setup > Organization. Was the tax with an issue incorrectly marked as exempt or blocked for part of the quarter? For taxes that can have a rate specified in the Experience Rate tax parameter, such as state unemployment taxes, was the tax configured with the correct rate? Was that rate effective for the entire year or quarter? Ensure that previous quarters have been closed For payroll administrators in the USA, you must close the quarter end with the last pay run of each quarter to send payroll and tax data to Ceridian Tax Services (CTS) so that it is filed with the appropriate tax authorities. You close the quarter end by committing the last pay run of the quarter, which is the last pay run that has a pay date in the quarter. If a pay date for a pay run in one quarter falls in the next quarter, the pay run is considered part of the next quarter. For example, say pay period 07 runs from March 18 to March 31 (the end of Q1), and has a pay date of April 6 (beginning of Q2). In this case, that pay period is treated a part of the second quarter, Q2. Closing the last quarter of the year must be done before you can begin Year End processing. You must prepare to begin Year End processing by ensure that the final quarter of the year is closed by taking the following steps: 1. Navigate to Payroll. Page 14 of 30

15 2. Verify that all pay runs for the previous quarters have been committed and that there are no outstanding issues or adjustments that must be resolved. 3. Verify that the final pay run for the year has been committed. Generating the Quarter End File This section describes how to generate the quarter end file once payroll administrators have committed the last pay run in the quarter. The quarter end file needs to be generated on the last day of the quarter by running the POS Quarterly And Annual Export background job within System Admin > Background Jobs: 1. Select POS Quarterly And Annual Export from the list of background tasks. Note: The list of background tasks can be sorted by any column to find the task you are looking for faster. Click on a column's label to sort by that column. 2. Select the appropriate quarter from the Filing Period drop-down list. 3. Select either Final cut off run or First cut off run (US Only) from the Filing Mode dropdown list. 4. Click the Run button. Note: In a future release the application will generate quarter end files automatically without the need for system administrators to run this background job. The application generates the quarter end file and transmits it to CTS. At this point, payroll administrators cannot make off-cycle, prior period adjustments against pay periods in the quarter without making prior quarter adjustments. Prior Quarter Adjustments and Amendments This section describes how to make prior quarter adjustments, describes the difference between an adjustment and an amendment, and the process you must follow to file amendments. If you need to make adjustments to the payroll data of a prior quarter but it is after the last day of that quarter, you can create a prior quarter adjustment. By creating a prior quarter adjustment, you can modify the payroll and tax data sent in the quarter end file to Ceridian Tax Services (CTS). The application regenerates the quarter end file and sends the adjusted information to CTS. There is a limited time after the end of quarter during which you can still make adjustments. The application allows prior quarter adjustments only between the end of the quarter and a cut off date defined by CTS. Beyond this cut off date any changes or corrections have to be filed with CTS as an amendment. The application prompts you if your adjustment has to be filed as an amendment. In addition, prior quarter adjustments can be used to update the values of any quarterly reporting parameters; the application includes the values effective the last day of the quarter in Page 15 of 30

16 the quarter end file. If these values were incorrect, effective the last day of the quarter, when the quarter end file was generated you will need to make a prior quarter adjustment, after the parameters were updated and dated effective the last day of the quarter, to file the new values in the quarter end file. If you only need to update the quarterly reporting parameters, you can file a 'blank' prior quarter adjustment (such as adding and subtracting $1 in earnings for an employee) so that the payroll and tax data in the quarter end file does not change. This prompts the application to generate a new quarter end file for the updated legal entity, which in turn causes it to check for the quarterly reporting parameters to include in the file -- if you have updated the quarterly reporting parameters effective the last day of the quarter, then these new values will be included in the updated quarter end file. To make a prior quarter adjustment in My Pay: 1. Select the last pay run in the previous quarter from the Load Pay Run panel. Note: You must select the last run in the prior quarter to make a prior quarter adjustment. 2. Click the New button next to the Off-Cycle Pay Run label. The application displays the New Off Cycle Pay Run prompt. If the application displays the Amendment Run prompt: Then you cannot create a prior quarter adjustment; click the Cancel button and refer to the Amendments section on the next page on what to do next. 3. Click the calendar button ( ) next to the Pay Date field and select the last day of the previous quarter. Note: You must select the last day of the prior quarter to make a prior quarter adjustment. 4. Select Prior Quarter Adjustment from the Run Type drop-down list. 5. Type a short name that will be appended to the name of the pay run in the Name field. For example, if the pay run the off-cycle is applied against is named SL.BWKLY.USA you can type Prior Quarter Adjustment in the Name field and the off cycle run that you are creating will be named SL.BWKLY.USA - Prior Quarter Adjustment. 6. Click OK. 7. Select the off cycle pay run you created from the Load Pay Run pane. 8. Click the Open button. 9. Record the details of the adjustments in the Adjustments tab, as needed. You record the details of the prior quarter adjustment within the off-cycle following the normal process for prior period adjustment off-cycle pay runs. Once finished you need to inform a system administrator or other user with access to the System Admin > Background Jobs feature; they will need to run a job in the application to file the adjusted quarter end file with CTS. Page 16 of 30

17 Amendments The application only allows prior quarter adjustments between the end of the quarter and a cut off date defined by CTS; beyond this cut off date any changes or corrections have to be filed with CTS as an amendment. Amendments require a manual process co-ordinated with CTS where physical paperwork is filed by the client with CTS; although you still record the details of the amendments in the application for reporting and informational purposes, the application cannot generate and transmit another quarter end file using the information in amendments. Instead, the information must be filed with CTS manually. If, when attempting to make a prior quarter adjustment, it is after the cut off date the application prompts you your adjustments will create amendments: Click the Cancel button and contact Dayforce Customer Support. Support will co-ordinate with CTS to determine the next steps. In some cases the cut off date can be adjusted to a later date so that you can make a prior quarter adjustment instead of a manual amendment. If your Customer Support representative informs you that the cut-off date was adjusted, you can create your prior quarter adjustment following the steps in this section. When finished, a system administrator or other user with access to System Admin needs to run the background job to transmitted the adjusted quarter end file to CTS. If your Customer Support representative informs you that the cut-off date cannot be adjusted, you can create a prior quarter adjustment, following the instructions on the previous page, except click the OK button on the Amendment Run prompt. You can record the details of the adjustment for amendment within the off-cycle as normal; when you click the Commit button you are prompted again -- you will need to accept the message and follow a manual process with CTS to file the paperwork for you amendment. Generating Adjusted Quarter End Files If payroll administrators create prior quarter adjustments, they need to be filed with CTS by running the POS Quarterly And Annual Export background task from System Admin > Background Jobs to re-generate the quarter end file for the legal entities that have modified data. Page 17 of 30

18 To generate the adjusted quarter end files from within System Admin > Background Jobs: 1. Select POS Quarterly And Annual Export from the list of background tasks. Note: The list of background jobs can be sorted by any column to find the task you are looking for faster. Click on a column's label to sort by that column. 2. Select the appropriate quarter from the Filing Period drop-down list. 3. Select either Final cut off run or First cut off run (US Only) from the Filing Mode dropdown list. 4. Click the Run button. The application generates the adjusted quarter end file for the legal entities impacted by the prior quarter adjustments and transmits it to CTS. Page 18 of 30

19 Appendix: Quarterly/Annual Reporting Parameters This appendix briefly describes the parameters used by the Quarterly/Annual Reporting Parameters tabs in both the Legal Entity tab of Org Setup > Organization, and in My HR > Tax Definitions. Legal Entity Specific Tax Reporting Parameters Tax reporting parameters for legal entities are specified at the federal and state level. These parameters are configured in the Quarterly/Annual Reporting Parameters tab of the Legal Entity tab in Org Setup > Organization. This section describes each of the possible federal and state parameters that may apply to a legal entity. Note: Not all states require additional parameters. The State drop-down list of options includes only the states with additional filing requirements. Federal Kind of Employer Used for year end reporting, select an option from the drop-down list to represent the legal entity s employer type: Select Federal Government if the legal entity is an entity of the US federal government. Select None Apply if none of the employer type options apply. Page 19 of 30

20 Select State and Local Governmental Employer if the legal entity is part of state or local government. Select State and Local Tax Exempt Employer if the legal entity a State and/or Local 501c organization. Select Tax Exempt Employer if the legal entity is a non-governmental 501c organization. Employment Code Used for year end reporting, select an option from the drop-down list to represent the legal entity s employment code, as determined when the legal entity was registered: Select Agriculture Form 943 if the legal entity operates in the agricultural industry. Select Household Schedule H if the legal entity operates in the household services industry. Select Medicare Qualified Government Employment - Form 941 if the legal entity is a state or local government employer, and employs individuals whose services are not covered for Social Security, but who are required to pay the Medicare-only portion of the Federal Insurance Contributions Act tax (FICA). Select Military Form 941 if the legal entity has registered its FEIN as military (Code M). Select Railroad CT-1 if the legal entity will file the Employer's Annual Railroad Retirement Tax Return. Select Regular Form 941 if the legal entity submits form 941. Select Regular Form 944 if the legal entity has been notified in writing by the IRS that annual form 944 must be filed instead of form 941. Terminated Business Used for year end reporting. Select this checkbox if the business has been closed or terminated. Retirement Plan Eligible Used for year end reporting. Select Yes if the legal entity s employees are eligible for a retirement plan; select No if they are not; or select [None] to have the application determine employees' availability based on their contributions to a deferred compensation plan within the tax year. This information populates the Box 13 Retirement Plan checkbox on employees' W-2 forms. Alaska Geo Area Code Used for quarter end reporting, record the appropriate two-digit numeric geographic code in this field; this is required for a legal entity if any of its employees' primary worksite is in Alaska during the quarter and is based on the address of employees' primary work locations. If you are unsure of the correct geographic code, please refer to the Alaska Occupational Coding Manual, which can be found at By setting the code at the legal entity, you are defining a code that is applied, by default, to all of the legal entity's employees; this is appropriate if the legal entity only has one worksite in Alaska, or if the majority of employees primarily work at one worksite it is faster to set the code Page 20 of 30

21 at the legal entity, as a default, and apply different geo area codes for specific employees to override this default, as necessary. if the legal entity has several worksites in Alaska where its employees work, you need to specify the appropriate geo area code at the employee-level. Maine Seasonal Period Start Used for quarter end reporting, select a start date for the seasonal period in this field. Seasonal Period End Used for quarter end reporting, select an end date for the seasonal period in this field. Minnesota Unit Number Reporting Used for quarter end reporting, setup if Legal Entity has Unit Numbers for Sites (that is, the Worksite Number field is populated) and must report the Unit Number on the Quarterly Returns. Verify by navigating to Org Setup > Organization, selecting the legal entity, clicking the Multiple Worksite Reporting tab, and then in the Worksites section, locate the Worksite Number for the entry or entries. New Mexico Unit Number Reporting Used for quarter end reporting, setup if Legal Entity has Unit Numbers for Sites (that is, the Worksite Number field is populated) and must report the Unit Number on the Quarterly Returns. Verify by navigating to Org Setup > Organization, selecting the legal entity, clicking the Multiple Worksite Reporting tab, and then in the Worksites section, locate the Worksite Number for the entry or entries. New York Dependent Medical Insurance Used for quarter end reporting, select this checkbox if the legal entity provides medical insurance for employees dependents. Vermont Health Care Coverage Page 21 of 30

22 Used for quarter end reporting, Select this checkbox if the legal entity offers employees health care coverage. Wyoming NAICS Employee class code Used for quarter end reporting, record the six-digit North American Industry Classification System code in this field. This code is assigned to the legal entity by the state of Wyoming, and is specific to the primary nature of the business. Employee-Specific Tax Reporting Parameters Tax reporting parameters for employees are specified at the federal and state level. These parameters are configured by navigating to My HR, loading an employee, clicking the Tax Definitions button, and then clicking the Quarterly/Annual Reporting Parameters tab. This section describes each of the possible federal and state parameters that may apply to an employee. Note: Not all states require additional parameters. The State drop-down list of options includes only the states with additional filing requirements. Federal Standard Occupational Code Used for quarter end reporting, record the Standard Occupational Code (SOC) used by Federal statistical agencies to classify employees. If you are unsure of the correct code, refer to the most current SOC User Guide available at This code must be specified for all employees that have SUI taxes in Alaska. Statutory Employee Used for year end reporting, you need to select this checkbox for statutory employees whose earnings are subject to social security and Medicare taxes but not subject to federal income tax withholding. Do not select this checkbox for common-law employees. There are workers who are independent contractors under the common-law rules but are treated by statute as employees. They are called statutory employees and include: A driver who distributes beverages (other than milk), or meat, vegetable, fruit, or bakery products; or who picks up and delivers laundry or dry cleaning if the driver is the employer's agent or is paid on commission. Page 22 of 30

23 A full-time life insurance sales agent whose principal business activity is selling life insurance or annuity contracts, or both, primarily for one life insurance company. An individual who works at home on materials or goods that the employer supplies and that must be returned to the employer if the employer also furnishes specifications for the work to be done. A full-time traveling or city salesperson and turns in orders to the employer from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments. The goods sold must be merchandise for resale or supplies for use in the buyer's business operation. This work must be the salesperson's principal business activity. SS/MED Religious Exemption (Form 4029) Used for year end reporting, select this checkbox if the employee has submitted Federal Form 4029 (Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits). Retirement Plan Eligible Used for year end reporting, select 'Yes' if the employee is eligible for a retirement plan, or 'No' if they are not. Select '[None]', and the application determines the employee's availability based on their contributions to a deferred compensation plan within the tax year. This information populates the Box 13 Retirement Plan checkbox on the employee's W-2 forms. This can be used to override the parameter set at the legal entity level. Alaska Alaska Geo Area Code Used for quarter end reporting, record the two-digit numeric geographic code in this field if the employee's primary worksite is in Alaska during the quarter. If the employee worked at different locations during the quarter, code for the most recent primary worksite. If the employee travels statewide, for example as a sales representative, specify the code for the location in which the employee spends the most time. If you are unsure of the correct geographic code, please refer to the Alaska Occupational Coding Manual, which can be found at Arkansas Seasonal Employee Code Used for quarter end reporting, record the seasonal employee code assigned by the state of Arkansas. These codes are given out by the Department of Workforce Services and can be 1-2 characters. Page 23 of 30

24 California State Disability Insurance Used for quarterly reporting, select a combination of state disability insurance and state unemployment insurance (SUI): Select Personal Income Tax Only if the employee is having only personal income tax withheld. Select State Plan for Dis Ins and SUI if the employee has a state plan for disability insurance and state unemployment insurance. Note: Typically this will apply to the vast majority of the employees. Select State Plan for Dis Ins, exempt from SUI if the employee has a state plan for disability insurance, and is exempt from state unemployment insurance. Select State Plan for SUI Public Entity Employees Only if the employee is a public entity employee, and has a state plan for unemployment insurance. Select State Plan for SUI, exempt from Dis Ins if the employee has a state plan for unemployment insurance, but is exempt from disability insurance. Select State Plan for SUI, Vol Plan for Dis Ins if the employee has a state plan for unemployment insurance, and a voluntary or private plan for disability insurance. Select Voluntary Plan for Disability Insurance, Exempt from SUI if the employee has a voluntary or private plan for disability insurance, and is exempt from state unemployment insurance. This parameter is used for employees reporting Californian SUI or disability wages; typically an employee that has earned money and paid taxes in California during the quarter. Indiana Seasonal Employee Code Used for quarter end reporting, record the seasonal employee code assigned by the state of Indiana. These codes are given out by the Department of Workforce Development and can be 1-2 characters. Maine Seasonal Period Start Used for quarter end reporting, select a start date for the seasonal period in this field. Seasonal Period End Used for quarter end reporting, select an end date for the seasonal period in this field. Page 24 of 30

25 Massachusetts Corporate Officer Used for year end reporting, select this checkbox if the employee is a corporate officer. Minnesota Corporate Officer Used for year end reporting, select this checkbox if the employee is a corporate officer. New Jersey State Disability Insurance Used for quarterly reporting, select this checkbox if the employee is eligible for state disability insurance. New Mexico Corporate Officer Used for year end reporting, select this checkbox if the employee is a corporate officer. Puerto Rico State Disability Insurance Used for quarterly reporting, select this checkbox if the employee is eligible for state disability insurance. Rhode Island State Disability Insurance Used for quarterly reporting, select this checkbox if the employee is eligible for state disability insurance. Washington Corporate Officer Used for year end reporting, select this checkbox if the employee is a corporate officer. Page 25 of 30

26 Wyoming Employee Class Code Used for quarter end reporting, for employees that are SUI (state unemployment insurance) exempt, you need to specify why they are exempt by selecting an appropriate class code from the drop-down list. Select Corporate Officer if the employee is exempt from state unemployment insurance because they are a corporate officer within the legal entity. If you select this, the application loads the Corporate Officer Type drop down control. Select Government if the employee is exempt from state unemployment insurance because they are a government employee. Select Inmate if the employee is exempt from state unemployment insurance because they are an inmate. Select Job Training Program if the employee is exempt from state unemployment insurance because they are part of a job training program. Select School to Work if the employee is exempt from state unemployment insurance because they are part of a school to work program. Select Volunteer if the employee is exempt from state unemployment insurance because they are a volunteer. Select Welfare if the employee is exempt from state unemployment insurance because they are a welfare recipient. Corporate Officer Type Used for quarter end reporting, if the Corporate Officer option was selected from the Employee Class Code drop-down list. Select a corporate officer type: Select Other Officer if the employee is a corporate officer type that is not included in the list of options. Select President if the employee is President. Select Secretary if the employee is Secretary. Select Treasurer if the employee is Treasurer. Select Vice President if the employee is Vice President. NAICS Employee Class Code Used for quarter end reporting, record the six-digit North American Industry Classification System code in this field. This code is assigned by the state of Wyoming, and is specific to the primary nature of the employee's job. Typically this is set at the legal entity and applies to all of the legal entity's employees; populate this field only to override the legal entity value for the specific employee, if necessary. Page 26 of 30

27 Earning Code Reporting Parameters This topic contains a list of the parameters that are selected by default on system earning codes and reported as part of quarterly / annual reporting. These parameters are displayed on the United States tab of the Tax & Compliance tab of an earning definition's configuration in Payroll Setup > Earning Definition. Parameters in the General section In the General section the following parameters are reported with the quarter end file: Workers' Comp Earnings The 'Education Assistance' earning code is flagged as 'educational wages' for the state of Florida. Earnings reported under earning definitions using this earning code are reported to the state of Florida as educational wages. FL Educational Wages The 'Education Assistance' earning code is flagged as 'educational wages' for the state of Florida. Earnings reported under earning definitions using this earning code are reported to the state of Florida as educational wages. NY Other Wages There are several earning codes flagged as 'other wages' for the state of New York: Severance 3Pty Sick Ntx Move EE NTx STD Pay Earnings reported under earning definitions using these earning codes are reported to the state of New York as other wages. WA Other Wages The 'NonStat Stk' earning code is flagged as 'other wages' for the state of Washington. Earnings reported under earning definitions using this earning code are reported to the state of Washington as other wages. Parameters in the State Quarterly Reporting section In the State Quarterly Reporting section the following parameters are reported with the quarter end file: Massachusetts Hours Page 27 of 30