Chapter 9: Tax Liability Report and Tax Filing Interface

Transcription

1 Chapter 9: Tax Liability Report and Tax Filing Interface CHAPTER 9: TAX LIABILITY REPORT AND TAX FILING INTERFACE... 1 TAX LIABILITY REPORT AND TAX FILING INTERFACE OVERVIEW... 1 TAX FILING INTERFACE FILE (TAX FILING FEATURE 281 REQUIRED)... 2 PRIOR QUARTER EXTRACT COMMA, SEPARATED VARIABLE (CSV) FILE (TAX FILING FEATURE 281 REQUIRED)... 2 EXTRACT CONTROL TRANSACTION... 2 POINTERS USED FOR THE TAX FILING INTERFACE... 3 TAX LIABILITY REPORTS... 3 Tax Liability Report... 3 Tax Liability Issues Report... 6 Tax Liability Extract Pointer Report... 7 Tax Liability EIN Totals Report... 8 Quarterly Wage Report by State... 9 STATE UNEMPLOYMENT INSURANCE RATE (SUI) TABLE STATE IDENTIFICATION NUMBER (SIT) TABLE TAX LIABILITY CROSS-REFERENCE OF FIELDS AND POINTERS SETTING UP YOUR TAX LIABILITY REPORT: PARAMETER FILES USED PERIOD-TO-DATE TAX AND TAXABLES Period-to-Date Tax and Taxable Considerations HOW TO RUN THE TAX LIABILITY PROCESS TAX FILING INTERFACE MESSAGES Tax Liability Report and Tax Filing Interface Overview If you have purchased the Tax Filing Interface, two additional components are produced when the tax liability processed is used -- a Tax Filing Interface File and a Prior Quarter Extract CSV File There are two variations of the process. One is run periodically with each payroll, provided that you have correctly set up your extract control and pointer files. The second is run quarterly by initiating the Tax Liability Job. Both sets of reports and files -- the periodic and quarterly -- can be run on demand. 1. Tax filing Interface File (Tax Filing Feature 281 Required) 2. Prior Quarter Extract Comma, Separated Variable (CSV) file (Tax Filing Feature 281 Required) 3. Quarterly filing Interface (Tax Filing Feature 281 Required) Tax Manual U.S. Tax Manual Chapter 9: Tax Liability Report and Tax Filing Interface 1

2 Tax Filing Interface File (Tax Filing Feature 281 Required) This conforms to a commonly used tax filing interface for tax filing services. Two versions of this file can be created -- a quarterly file is created if position 24 of the extract control transaction is a Q, and a periodic file if position 24 is a P. This file will only be produced if positions of the Extract Control Transaction are equal to CTS. This file is only generated for clients who have purchased Tax Filing Feature Code 281. Prior Quarter Extract Comma, Separated Variable (CSV) file (Tax Filing Feature 281 Required) This CSV file, which can be opened by MS Excel, lists all the detail associated with prior quarter adjustment transactions. All fields output by the extract program are saved in this file. This file is only generated for clients who have purchased Tax Filing Feature Code 281. Extract Control Transaction Here is the layout for the extract control transactions: Position Value Description 1-6 Spaces or Group 7-20 Not Used Not Used 24 Q P 25 Quarter Number Override for Quarterly Processing Or Blank Year Override or Blank Process all groups on Master Database Process group specified in positions 1-6. Quarterly Run Periodic Run 30 Not Used Quarter Number is extracted from CQAR, and may be overridden by entering quarter number in position 25 of the Extract Control Transaction. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Blank if processing periodic Quarterly Processing: The year will be extracted from CPPD or may be overridden by entering the year in positions of the Extract Control Transaction. Blank if processing Periodic Collector ID used when creating the CTS tax filing interface. Fill cannot be blank. 37 Not Used Process 940 Process same as 940 without FUTA and SUTA records Process Chapter 9: Tax Liability Report and Tax Filing Interface Tax Manual U.S. Tax Manual

3 41-43 BKU IRA PEN 44 Blank Not Used Backup withholding for 945 IRA/annuities for 945 Pensions for MTX Enter a 3 position Tax Filing Company ID CTS = 3 rd Party MTX - Peoplestrategy Tax Filing Blank Not Used Pointers Used for the Tax Filing Interface Pointer &CLTCT &CLTID Description CTS file only. Client ID override. A one-position literal pointer used to override the client ID for each CTS record created. If +CLTCT = 'Y', the system uses that extract CTRN as the client ID. This option will eliminate the need to have multiple client ID pointers for each group. If the system encounters both client-id pointers (&CLTID and CLTCT), the pointer and CLTCT takes precedence. CTS file only. Client ID A six-position literal used for the client ID for each CTS record created. Tax Liability Reports Tax Liability Reports come standard with the base system. There are two variations of the process. 1. Periodic Process Conducted each payroll, or edit/update process for regular calendar payments. 2. Quarterly Process Conducted each quarter. Process against the quarter to date database for balancing and reporting, and filing Each process can be included with the edit/update process automatically, or on demand. The reports are: Tax Liability Reports Tax Liability Report Tax Liability Issues Report Tax Liability Extract Pointer Report Tax Liability EIN Totals Report Quarterly Reports and Files include an additional report called: Quarterly Wage Report by State. Below is a description of each report, listed by the two processing category. Tax Liability Report The Tax Liability Report provides detail of calculated taxes, taxable wages, and gross wages by tax jurisdiction on a current, quarter-to-date, and year-to-date basis. Tax Manual U.S. Tax Manual Chapter 9: Tax Liability Report and Tax Filing Interface 3

4 Data is grouped by major taxing authority, with all Federal information appearing first and the remaining information arranged alphabetically by state. Local tax information is arranged within the specific state group. Setting up the Tax Liability report to reflect your Employer Rates and your company s definition Current Taxes: Refer to the Genesys Tax Code. On the individual level, it is also referred to as the DNnn field Tax Rate: Refers to the table SUI (State Unemployment Insurance Rate) or to the &SUIRT pointer, if SUI is not being used, and the WCR (Worker s Compensation Rate). See the definition of the SUI table later in this chapter. The base product will default to the new employer rate for that state if no entry is found for the Group being referenced in the process. Refer to Table of State Unemployment Insurance (SUI) Taxable Wage Bases.to find the New Employer Rates that will be used. Current Taxes - Column Headings The column headings block displays below the page header block. Tax Jurisdiction - The first line in each grouping identifies the major taxing authority (Federal or specific state name). The remaining lines within the group identify the type of tax, taxable wage, gross wage, and, within the appropriate state groups, any local tax information. Tax Code - This column displays the numeric code that corresponds to a specific state or local tax name. Tax Rate - Displays the tax rate, as a percent, for any type of tax where the rate is variable by client. State unemployment rates or the Massachusetts health tax are examples of how the specific tax rate varies by client. Tax I.D. Number This is the employer identification number assigned by the taxing authority. For purposes of consistency this number always prints on the line containing the Tax amount information for a particular tax type. As an 4 Chapter 9: Tax Liability Report and Tax Filing Interface Tax Manual U.S. Tax Manual

5 example, the federal employer s identification number always prints on the Federal Withholding Tax line, the appropriate state employer s number prints on the State Withholding Line, the state unemployment identification number prints on the SUI Tax line. The data in this column is right justified, with a maximum length of eighteen characters. Current Liability - The amount of tax calculated for a specific jurisdiction for the current payroll processing. This column displays a maximum amount of 9,999,999, and a minimum amount of 9,999,999, Current Wages - The amount of either taxable or gross wages for a specific jurisdiction for the current payroll processing. This column displays a maximum amount of 9,999,999, and a minimum amount of 9,999,999, Quarter-to-Date - The amount of tax, taxable wage, or gross wage accumulated to date for the current quarter. This column displays a maximum amount of 9,999,999, and a minimum amount of 9,999,999, Year-to-Date - The amount of tax, taxable wage, or gross wage accumulated to date for the current year. This column displays a maximum amount of 9,999,999, and a minimum amount of 9,999,999, Specific Tax Information Detail This area of the report contains the detailed information identified by the Column Headings block. There is one detail block, or grouping, for each major taxing authority. (One for Federal, and an additional block for each state). The first line in each block identifies the major taxing authority (Federal or specific state name). The following lines in the group identify the type of tax, taxable wage, gross wage, and, within the appropriate state groups, any local tax information. The last line of each block consists of a total liability for the group. If the detail for a single block spans more than one page, the name and tax code for the major taxing authority prints at the top of the next page along with the word continued. Total Liability by Major Taxing Authority - This is a subtotal of the Current Liability column (only) that displays at the end of each major taxing authority. Total Current State Liability - This is a total of the state liability subtotals only. Total Current Tax Liability - This is a total of all of the current liabilities, regardless of jurisdiction. Section 2: Prior Quarter Taxes Report Column Headings The column-heading block displays below the page header block. Tax Jurisdiction - The first line in each grouping identifies the major taxing authority (Federal or specific state name). The remaining lines within the group identify the type of tax, taxable wage, gross wage, and, within the appropriate state groups, any local tax information. Tax Code - This column is used to reflect the numeric code that corresponds to a specific state or local tax name. Tax Rate - Displays the tax rate, as a percent, for any type of tax where the rate is variable by client. State unemployment rates or the Massachusetts health tax are examples of how the specific tax rate varies by client. Tax I.D. Number This is the employer identification number assigned by the taxing authority. For purposes of consistency this number always prints on the line containing the Tax amount information for a particular tax type. As an example, the federal employer s identification number always prints on the Federal Withholding Tax line, the appropriate state employer s number prints on the State Withholding Line, the state unemployment identification number prints on the SUI Tax line, etc. The data in this column is right justified, with a maximum length of eighteen characters. Prior Liability - The amount of tax calculated for a specific jurisdiction for any prior quarter adjustments included with the current payroll processing. This column displays a maximum amount of 9,999,999, and a minimum amount of 9,999,999, Prior Wages - The amount of either taxable or gross wages for a specific jurisdiction for any prior quarter adjustments included with the current payroll processing. This column displays a maximum amount of 9,999,999, and a minimum amount of 9,999,999, Tax Manual U.S. Tax Manual Chapter 9: Tax Liability Report and Tax Filing Interface 5

6 Specific Tax Information Detail This area of the report contains the detailed information identified by the Column Headings block. There is one detail block, or grouping, for each major taxing authority. (There is a block for Federal information, and an additional block for each state). The first line in each block identifies the major taxing authority (Federal or the specific state name). The following lines in the group identify the type of: Tax Taxable wage Gross wage Any local tax information (within the appropriate state groups) The last line of each block consists of a total liability for the group. If the detail for a single block spans more than one page, the name and tax code for the major taxing authority prints at the top of the next page, followed by the word continued. Total Liability by Major Taxing Authority - This is a subtotal of the Prior Liability column (only) that displays at the end of each major taxing authority. Total Prior State Liability - This is a total of the state liability subtotals for prior quarter adjustments only. Total Prior Tax Liability - This is a total of all of the prior quarter tax adjustment liabilities, regardless of jurisdiction. Tax Liability Issues Report When the Tax Liability report is processed, if any issues are encountered pertaining to employee information that might impact reporting items, this report will be produced. Errors are listed by group and then individual. These errors should be corrected as soon as possible. Problems such as Invalid Social Security Numbers, Medicare or Social Security Tax for an employee is not equal to the wages times the rate, and invalid state unemployment code is being used, and so on. For explanation of the error messages, refer to Tax Filing Interface Messages in this chapter. Note that after Release (May, 2009), in the column headings Employee Number is Individual Number and Employee Name is Individual Name. 6 Chapter 9: Tax Liability Report and Tax Filing Interface Tax Manual U.S. Tax Manual

7 Tax Liability Extract Pointer Report When the Tax Liability Report is processed, a report lists the extract control transaction and pointer transactions used for the associated run of the Tax Liability Report. The report will also list any errors or missing data in the extract control and pointer transactions Tax Manual U.S. Tax Manual Chapter 9: Tax Liability Report and Tax Filing Interface 7

8 Tax Liability EIN Totals Report This report contains the same information as the standard Tax Liability Report, such as calculated taxes, taxable wages, and gross wages by tax jurisdiction on a current, quarter-to-date, and year-to-date basis. However this information is summarized for all groups that comprise a Federal Employer Identification Number (FEIN). A Super Group is used to define a FEIN. All groups assigned to a Super Group will be summarized for this report. If no Super Group is defined, all groups in the database will be summarized together. 8 Chapter 9: Tax Liability Report and Tax Filing Interface Tax Manual U.S. Tax Manual

9 Quarterly Wage Report by State The State Wage Report lists individual employee gross wages, weeks worked and hours worked for the quarter. The report is sorted by group within each state. This report is only produced when position 24 of the extract control transaction is a Q Tax Manual U.S. Tax Manual Chapter 9: Tax Liability Report and Tax Filing Interface 9

10 State Unemployment Insurance Rate (SUI) Table State Unemployment Insurance Rate Table data is used for the Tax Liability Report and quarterly processing. The default table name is SUI. If another table name is used, the pointer &SUIRT must contain the SUI Rate Table Name. Table Key Table Data Position Description 1-3 Table Name SUI 4-9 CTRN, blanks, Super Group 10 Blank State postal abbreviation or UN (unit processing) 13 Blank Unit Number if unit processing Position Description 1-6 SUI Rate (example % => ) 7 Blank 8-25 SUI Identification Number Blank Override rate for MA Employer Medical Assistance Contribution Employer specific Nevada Bond Rate Tax I.D. refers to the table SIT, or the pointer &SITTB. Below is a definition of the SIT table. An error will be printed in the Tax Liability Report if there is no State Identification Number found for that group processing. Example of formatting override for MA EMAC would be 0.0%, 0.12%, and 0.24%. These rates would be entered as follows on the SUI table. 10 Chapter 9: Tax Liability Report and Tax Filing Interface Tax Manual U.S. Tax Manual

11 0.0% % % To indicate exempt from Nevada Bond Rate, populate with State Identification Number (SIT) Table State Identification Number Table data is used for the Tax Liability Report and in quarterly and year-end processing. The default table name is SIT. If another table name is used, the pointer &SITTB must contain the name of the table containing the State Identification Number Table Name. Table Key Table Data Position Description 1-3 Table Name SIT 4-9 CTRN, blanks, Super Group 10 Blank State postal abbreviation Position Description 1-20 State Identification Number 21 Blank State Account Number 30 Blank PA only: Employer PSD Code 37 Blank Tax Collection District (TCD) for W2 s. If blank, will default using PSD Code to assign TCD. Current Liability, Current Wages, Quarter to Date, and Year to Date, refers to cross reference chart for field level accumulation of the taxing entity being referenced. In addition, for the Payroll/HR Web model is a cross reference of fields. Additional Year-End Setup Considerations: The year-end extract control transaction position 41 controls the formatting and extracting of the information for the SIT or the override pointer $SITTB. Extract Control Transactions Position 41: Blank or 0 = ID number/state name is located in group/super group level SIT Table File, with a separate set of entries for each group extracted. (If major sort on super group, system uses super group SIT Table File entries). 1 = ID number/state name is located in system level SIT Table entries with one set of entries for all groups (system level entries identified on SIT Table as all spaces in positions 1-6). Tax Manual U.S. Tax Manual Chapter 9: Tax Liability Report and Tax Filing Interface 11

12 Tax Liability Cross-Reference of Fields and Pointers Current Liability, Current Wages, Quarter to Date and Year to Date, refers to cross reference chart for field level accumulation of the taxing entity being referenced. In addition, for the Payroll/HR Web model is a cross reference of fields. Tax Type Current Liability Current Wages QTD Liability QTD Wages YTD Liability YTD Wages *EIC (96) ODnn DDnn CN22 CN23 YDnn DCnn FUTA Wages FUTA Gross Federal W/H Federal Gross SUI Wage/Tax TC04 X.008 (FUTA rate) TC04 TQ04 X.008 (FUTA rate) TQ04 TY04 X.008 (FUTA rate TY04 GROS QGRS YGRS OD02 TC01 CN22 (&FEDTQ) TC07 or X SUI Rate (SLOC) TQ01 YD02 TY01 GROS QGRS YGRS TC07 TQ07 or PQ7n X SUI Rate (SLOC TQ07 or PQ7n TY07 or PY7n X SUI Rate (SLOC TY07 or PY7n SUI Gross GROS SGRS N/A State W/H ODnn DDnn CN22 or PQ3n State Gross Local W/H Odnn DDnn CN22 or PL3n Medicare Tax Employee Medicare Tax Employer Social Security Tax Employee Social Security Tax Employer ODnn of the 97 deduction TC02 X.0145 (Medicare rate) CN23 SGRS CN23 YDnn or PLTn TC02 &MEDTQ TQ02 YDnn of the 97 deduction &SLWQn X.0145 (Medicare rate) TY02 X.0145 (Medicare rate) DCnn or PY3n DCnn or PFLn TY02 OD01 TC06 &SOCTQ TQ06 YD01 TY06 TC06 X.062 (Social Security rate) TQ06 X.062 (Social Security rate) *Tax calculation no longer supported as of January 2011 TY06 X.062 (Social Security rate) 12 Chapter 9: Tax Liability Report and Tax Filing Interface Tax Manual U.S. Tax Manual

13 Setting Up Your Tax Liability Report: Parameter Files Used XTAXEXTP is the parameter file called when you process periodic or edit/update processing. This file outlines the rules for extracting group related information and the format to be used. XTAXEXTQ is the parameter file that is called when you process quarterlies. This file outlines the rules for extracting group related information and the format to be used. Note: For Windows clients, these parameter files are located in your TXN directory. Layout for XTAXEXTP & XTAXEXTQ Position Value Description 1-6 Spaces or Group 7-20 Not Used Not Used 24 Q P 25 Quarter Number Override for Quarterly Processing Or Blank Year Override or Blank Process all groups on Master Database Process group specified in positions 1-6. Quarterly Run Periodic Run 30 Not Used Quarter Number is extracted from CQAR, and may be overridden by entering quarter number in position 25 of the Extract Control Transaction. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Blank if processing periodic Quarterly Processing: The year will be extracted from CPPD or may be overridden by entering the year in positions of the Extract Control Transaction. Blank if processing Periodic Collector ID used when creating the CTS tax filing interface. Fill cannot be blank. 37 Not Used BKU IRA PEN 44 Blank Not Used Process 940 Process same as 940 without FUTA and SUTA records Process 945 Backup withholding for 945 IRA/annuities for 945 Pensions for Spaces If using Tax Filing Services, refer to Tax Filing section for definition of this area Blank Not Used Note: If a group specified by the extract control transactions for periodic processing has a CSTT=I, that group is bypassed. Tax Manual U.S. Tax Manual Chapter 9: Tax Liability Report and Tax Filing Interface 13

14 Tax Filing Services Clients Only: When generating the tax file, you cannot run Quarter and periodic at the same time. You must create the files for each separately. Only one collector ID is allowed per file. Multiple runs are needed for different collector IDs. In Windows systems, there are two possible transactions, one for periodic and one for quarterly. The names of the transactions are: xtaxextp.cp1 for periodic and xtaxextq.cp1 for quarterly, where x=application ID. The transactions are stored in the TXN folder. If you run batch program xtaxliab and pass the first parameter of Q, extract control transaction xtaxextq.cp1 is used. If you do not pass a parameter, then transaction xtaxextp.cp1 is used. XTAXPTRS parameter file contains your unique set up for taxes. This file is used to point to your unique set up on the group for taxable wages and taxes, as well as additional information necessary for filing for specific state requirements. Note for z/os clients: XTAXLIAB calls this file at the SYS010 statement Pointers for Tax Liability Report Pointer &AKGEO &AKOCC &ARESD Description Used to report the Alaska Geographic Code and Area. This field can point to an individual record miscellaneous field or a UDF. The default field name is AKGO. Used to report the Alaska Occupational Code. This points to a ten-position individual record miscellaneous field of a UDF. The default field name is AKOD. Seasonal Employee Code. This points to the individual 2-position-alpha/ numeric miscellaneous or UDF field. &CASDI &CAWGL &FEDTQ &FNAME &LNAME &LOCLT &MAHRS &MEDTQ &MESED &MESST &MIDDL For Maine the value must be Y if a seasonal employee or blank otherwise. California Disability State/Voluntary Indicator. A one-position literal that is used to determine whether all individuals within a group are under a State or Voluntary plan for disability. The value "V" indicates a voluntary plan. The default is a State plan. California Wage Plan Indicator. A one-position literal used to report California Wage Plan Indicator on a group level. Valid values 1 (default), 2,3,4,5,6 or 7. Federal QTD Tax Withheld. Points to an individual miscellaneous field, computational field or UDF that stores the amount to be reported for Federal quarter to date tax withheld. Employee First Name. This field can point to an individual record miscellaneous field or a UDF where the first 24 positions are used for the employee first name. Employee Last Name. This field can point to an individual record miscellaneous field or a UDF where the first 24 positions are used for the employee last name. Local Tax Name Table. A three-position literal that refers to the table name that stores the local name and CTS local code. The default table name is LCL. Massachusetts Total Hours Worked in the Quarter. Points to an individual miscellaneous field, computational field, or a UDF that stores the total number of hours worked in the quarter for Massachusetts. Medicare QTD Tax Withheld. Points to an individual miscellaneous field, computational field or UDF that stores the amount to be reported for Medicare quarter to date tax withheld. Maine seasonal end date in MMDDYYYY format. Maine seasonal start date in MMDDYYYY format. Employee Middle Initial. This field can point to an individual record miscellaneous field or a UDF where the first 24 positions are used for the employee middle initial. 14 Chapter 9: Tax Liability Report and Tax Filing Interface Tax Manual U.S. Tax Manual

15 &MNHRS &NAMEF &NJDIS &NYOTP &NYOTQ &NYOTY &ORHRP &ORHRQ &ORHRS &ORHRY &PAACC &PLTQ1-5 &PLWQ1-5 &PSWQ1-5 &QTRKY &QTRTB Minnesota Hours Worked in the Quarter Points to an individual miscellaneous field, computational field or a UDF that stores the total numbers of hours worked in the quarter for Minnesota. Name Format. A one position literal, if set to "Y" indicates that the individual name is formatted as "F M Last Name". This field is used if the pointers LNAME, MIDDL, or FNAME are spaces or the fields pointed to by these pointers contain spaces. New Jersey A one position group or system level literal pointer If set to Y, withholds NJ Disability. If set to N, does not withhold NJ Disability. New York Other Wage Pointer Current Amount Points to the individual record miscellaneous, computational, or user-defined field that contains the amount of Other wages to be reported. New York Other Wage Pointer-Quarter to Date Points to the individual record miscellaneous, computational, or user-defined field that contains the amount of Other wages to be reported. New York Other Wage Pointer-Year to Date Points to the individual record miscellaneous, computational, or user-defined field that contains the amount of Other wages to be reported. Oregon Workers Compensations Hours Worked Periodic Points to an individual miscellaneous field, computational field or a UDF that stores the total number of hours worked in the current period payroll for Oregon Workers Compensation. Oregon Workers Compensations Hours Worked Quarter to date Points to an individual miscellaneous field, computational field or a UDF that stores the total number of hours worked in the quarter for Oregon Workers Compensation. Oregon Hours Worked in the Quarter Points to an individual miscellaneous field, computational field or a UDF that stores the total numbers of hours worked in the quarter for Oregon. Oregon Workers Compensations Hours Worked Year to date Points to an individual miscellaneous field, computational field or a UDF that stores the total number of hours worked in the year for Oregon Workers Compensation. An eight-position, system-level, literal pointer used to report the State Identification Number on the Pennsylvania CTS MMREF-1 RS Record, positions Packet Local QTD Tax Withheld Points to an individual miscellaneous field, computational field or UDF that stores the amount to be reported for Local quarter to date tax withheld for the appropriate tax packets. Packet Local QTD Wages Points to an individual miscellaneous field, computational field or UDF that stores the amount to be reported for Local quarter to date wages for the appropriate tax packets. Packet State QTD Wages Points to an individual miscellaneous field, computational field or UDF that stores the amount to be reported for State quarter to date wages for the appropriate tax packets. Quarterly Processing Table Key. A one position literal, if set to "Y" indicates that only the state abbreviation is used for the lookup into the Quarterly Processing Table. If the pointer is not used, the key to the table is group and state abbreviation. Valid value: Y Quarterly Processing Table. A three-position group or system-level literal pointer that refers to the table name that stores the Quarterly Processing table name. The default table name is QTR. Tax Manual U.S. Tax Manual Chapter 9: Tax Liability Report and Tax Filing Interface 15

16 &RIHRS &SEXCD &SGRSO &SITTB &SLTQ1-9 &SLTQA-L &SLWQ1-9 &SLWQA-L &SOCTQ &SUFFX &SUIKY &SUIRF &SUIRT &TNHRS &TQ07O &TRPSP Hours Worked in the Quarter Points to an individual miscellaneous field, computational field or a UDF that stores the total numbers of hours worked in the quarter Gender Points to an individual miscellaneous field or a UDF where the first position is used for gender code. Valid values are F (female) and M (male). State Gross Wage (SGRS) override Points to the individual record miscellaneous, computational or UDF that stores the amount to be reported in place of State Gross Wages (SGRS). This override affects all states in the group record (unless overridden by an entry in the QTR Table, positions 6-9. If an override is used to point to a field that has no equivalent tax packet field, the warning message "Warning - no SGRS packet equivalent, PSGn used" will be generated, and the packet information will be reported. State Identification Number Table. A three-position group or system-level literal pointer that refers to the table name that stores the State Identification numbers. The default table name is SIT. State/Local QTD Tax Withheld. Points to an individual miscellaneous field, computational field or UDF that stores the amount to be reported for State/Local quarter to date taxes. Associated with the number of S and L type deductions set up at the group level via CN22. State/Local QTD Wages. Points to an individual miscellaneous field, computational field or UDF that stores the amount to be reported for State/Local quarter to date wages. Associated with the number of S and L type deductions set up at the group level via CN23. Social Security QTD Tax Withheld. Points to an individual miscellaneous field, computational field or UDF that stores the amount to be reported for Social Security quarter to date tax withheld. Employee Suffix field. This field can point to an individual record, miscellaneous field, or UDF where the first 4 positions are used for the Suffix part of the employee's last name. SUI Rate Table Key. A one position literal, if set to "Y" indicates that only the SUI code is used for the lookup into the SUI rate table. If this pointer is not used the key to the table is the group and SUI code. Valid value: Y SUI Rate Format. A one position literal that can be set to a 4 to indicate that the format for the SUI rate in the SUI rate table is formatted as %%.%%. The default format is %%%%%%. Valid value: 4 SUI Rate Table Name. A three-position group or system-level literal pointer that refers to the table name that stores the SUI rates. The default table name is SUI. Tennessee Hours Worked in the Quarter Points to an individual miscellaneous field, computational field or a UDF that stores the total numbers of hours worked in the quarter for Tennessee. State Taxable Wage (TQ07) override Points to the individual record miscellaneous, computational or UDF that stores the amount to be reported in place of State Taxable Wages (TQ07). This override affects all states in the group record (unless overridden by an entry in the QTR Table File, data positions If an override is used to point to a field that has no equivalent tax packet field, the warning message "Warning - no TQ07 packet equivalent, PQ7n used" will be generated, and the packet information will be reported. Third Party Sick Pay 16 Chapter 9: Tax Liability Report and Tax Filing Interface Tax Manual U.S. Tax Manual

17 &VIHRS &VTHRS &WAHRS &WCRKY &WCRTE &WYCLS &WYCOV &WYOFF A group or system level literal pointer used to report 3rd party sick pay W-2 flag on the T/C 002 Payroll Partner Header record, position 53. If &TRPSP = Y, a Y will be reported in position 53. If &TRPSP = N, an N will be reported in position 53. Virgin Island Hours Worked in the Quarter Points to an individual miscellaneous field, computational field or a UDF that stores the total numbers of hours worked in the quarter for Virgin Islands. Vermont Hours Worked in the Quarter Points to an individual miscellaneous field, computational field or a UDF that stores the total numbers of hours worked in the quarter for Vermont. Washington Hours Worked in the Quarter Points to an individual miscellaneous field, computational field or a UDF that stores the total numbers of hours worked in the quarter for Washington. Workers Compensation Rate Table Key. A one position literal, if set to "Y" indicates that only the state abbreviation is used for the lookup into the Workers Compensation Rate Table. If the pointer is not used, the key to the table is group and state abbreviation. Valid value: Y Workers Compensation Rate Table Name. A three-position group or system-level field that refers to the table name that stores the workers compensation rates. The default table name is WCR. Currently this is only used for the state of Wyoming Wyoming Class Code and Indicator. This field can point to an individual record miscellaneous field or a UDF where the first six positions are used for the Class Code and the seventh position is used for Class Code EE indicator on the Excess Wage record (record 602). The first six positions are also the Workers Compensation Rate Table key positions Wyoming Workers Compensation Coverage Type. This field can point to an individual record miscellaneous field or a UDF where the first position is used for the workers compensation coverage type. This value is used on the excess wage record (record 602). The valid values are U, W and B. Refer to the CTS specifications for details on the valid values. Wyoming Corporate Officer Id This field can point to an individual record miscellaneous field or a UDF where the first position is used for the corporate officer id. This value is used on the excess wage record (record 602). The valid values are blank, P, V, S, T and O. Refer to the CTS specifications for details on the valid values. Period-To-Date Tax and Taxables The Genesys applications accumulate period-to-date tax withheld and taxable wages for all S- and L-type deductions. The mechanisms that control this feature are two group-level pointer fields, CN22 and CN23. Their function is described below. CN22 is designated to contain the data element of the first of at least nine contiguous individual miscellaneous fields. These fields will be used to store period-to-date social security, federal, state, and local (the CD field pointed to by CITX) income taxes withheld. In addition, period-to-date local tax withheld for each of the five possible tax packets will be stored in these fields. A packet field is used to store the packet period-to-date state tax withheld. CN23 is designated to contain the data element of the first of at least twelve contiguous individual miscellaneous fields. These fields will be used to store period-to-date taxable wages for CD field number three and the major local tax CD pointed to by CITX. In addition, any period-to-date state taxable wages and local taxable wages that may be applicable to any of the five tax packets will also be accumulated in these fields. Quarter-to-date federal and social security wages are already accumulated in the individual's main record. Tax Manual U.S. Tax Manual Chapter 9: Tax Liability Report and Tax Filing Interface 17

18 Note: Additional fields will be allocated for each additional S- or L-type CD field. As soon as CN22 and/or CN23 are established, the system will scan the group header record to determine the number of tax deductions present and then automatically allocate the required number of miscellaneous fields necessary for the storage of tax and taxable wages. The number of S and L type deductions and the social security deduction are totaled in determining the number of miscellaneous fields required for storage of withheld tax. The system will then automatically add the five additional miscellaneous fields required to store the local tax withheld in the tax packets to this total. The number of S and L type deductions, not including the Federal and F.I.C.A. deductions, are totaled in determining the number of miscellaneous fields required for storage of taxable wages. The system will then automatically add up to 18 additional miscellaneous fields required to store the state and local taxable wages in the packet to this total. Keep in mind that when the DN pointers are established, miscellaneous fields for storage of taxes and taxable wages for a major local tax deduction will be allocated by the system even if the CITX pointer contains 00. Note: It is advisable that all individual miscellaneous fields dedicated for the accumulation of tax and taxable wages be mass changed to zeros on or before the cycle that CN22 and/or CN23 are set up. This will clear out any extraneous data that may be present in the fields, which could distort the accumulations, once they begin. Additionally, it will highlight the fields that are being used for the period-to-date tax and taxable wage accumulations. If the miscellaneous fields are not changed to zeros and any non-numeric data is encountered when the system attempts to start or move an accumulation, the field will be zero filled prior to starting the accumulation. Under the same circumstance, if numeric data is encountered in the miscellaneous field, the tax or taxable wage amount will be added to the existing data. Therefore, even though the miscellaneous fields may never have been used for any other purpose, it is recommended that they be changed to zeros prior to establishing the CN pointers. It is essential that enough individual miscellaneous fields are dedicated to store these new accumulations. For this purpose, the user should take into consideration the possibility of implementing additional state and/or local tax deductions during the year. If enough miscellaneous fields are not dedicated, it may result in an overflow situation into an area in the miscellaneous database that is currently used for some other purpose. If this should occur, it will cause a distortion of the accumulation as well as a loss of whatever information was previously being stored in the field. If either of these error conditions should occur during the Edit and Update Phase processing, the following error message will be displayed on the Audit Detail Report PTD Accumulators Exceed Individual Miscellaneous Fields Please note that even if these error conditions are encountered, these errors are critical and will prevent the accumulations of both tax and taxable wages on the same cycle in which they occur. It will be necessary to rerun the Edit and Update Phase to correct them. If they are not corrected, the Output Production Phase may be run; however, the accumulations will not start up again until the error condition is corrected. The error message mentioned above will continue to be printed on the Audit Detail Report until corrected. The following precautions should be taken when setting up and using this feature: If any S or L type deductions are added to the group header record, the deduction should be set up as a higher deduction number than any existing state and/or local tax deduction currently present. The accumulations are stored in ascending CDnn order; therefore, an insertion of an S or L type deduction between other existing S or L type deductions will cause the accumulations to become distorted. Please note that even though the priority of when a deduction should be taken may be changed through the use of the process after field on the earnings and deduction file, it will not change the fact that the accumulations are always done in ascending deduction number order. The CITX pointer must not be changed or removed during an accumulation period. Again, because the accumulation of tax and taxable wage information is done in ascending deduction number order, a disruption of the CITX pointer would cause the accumulations to become distorted. If the user anticipates transfers of employees between groups; the related groups must contain consistent values in CN22, CN23, and the CITX pointers. Keeping the values in these fields the same will ensure that the accumulations continue in the correct fields on inter-group transfers. 18 Chapter 9: Tax Liability Report and Tax Filing Interface Tax Manual U.S. Tax Manual

19 Period-to-Date Tax and Taxable Considerations When you set up CN22 and CN23, ensure that enough miscellaneous fields have been dedicated for the system to store the accumulations. In addition, miscellaneous fields for storage of a major local tax deduction will be allotted by the system even if the CITX pointer contains 00. If a CD category has been established for Earned Income Credit payments, it uses a type code of S. The system will automatically accumulate the payment in the period-to-date tax withheld field. The tax and taxable accumulators are automatically cleared when NCQR or NCYR is indicated on the Edit / Update Control Transaction (also known as the 60 Control Transaction). The accumulators may also be cleared each month when NCMO, provided the CZnn (Clearing Fields) are set up accordingly. In addition to accumulating and printing these values on the individual level, grand totals of these accumulations will appear on the final totals page of the Register, by jurisdiction code. How to Run the Tax Liability Process The periodic process runs automatically with each payroll, if you set up the periodic extract control parameter. This process can be run on demand at anytime for periodic or quarterly results. 1. Which reports and files do you want to run periodic or quarterly? 2. Set up the extract control parameter(s) Periodic: Windows: xtaxextp.cp1 or z/os: xtaxliab at SYS010 Quarterly: Windows: xtaxextq.cp1 or z/os: xtaxliab at SYS Set up the tax liability pointers Windows: PTAXPTRS.CP1 z/os xtaxliab at SYS Populate tables used: 5. Run the Job SIT - State Income Tax Employer IDs SUI State Unemployment Insurance Employer IDs WCR State Workers Compensation Rates o Optional. The first parameter defines whether the reporting is periodic or quarterly. P = Periodic, Q = quarterly Blank defaults to Periodic o o Optional. The second parameter overrides the sequential master file to process. Blank defaults to PP050.DAT Example run quarterly and override to a quarter end master file. PTAXLIAB Q PP050Q32008.DAT Tax Manual U.S. Tax Manual Chapter 9: Tax Liability Report and Tax Filing Interface 19

20 Tax Filing Interface Messages &WCRTE missing An employee is set up for Wyoming Worker s Compensation, but the rate/and or group is missing from the table WCR Invalid Soc. Sec. Max. Wage or Tax for year (processing year) The Social Security Wage and Tax Limits have not been updated for the processing year. Local Name Missing for Local NNNNNN (Local Tax Services Only) The employee listed has a local deduction set up that is invalid, or is Missing from the Local Table File. MA Health Insurance not set up for Employee This is a Massachusetts requirement. Refer to Chapter 4: Massachusetts Medical Security Health Insurance. Medicare is shut off, wages or taxes found This is a warning message indicating that wages or taxes were found. Medicare Tax Not = Rate times Taxable Wage A Medicare Wage variance has occured. The Medicare rate multiplied by the Medicare wage does not equal the Medicare tax. Medicare Taxes > Zero, Wages Equal Zero The individual has Medicare taxes withheld but no corresponding wages to report. Missing Mid Employment Field For Kansas quarterly processing, data fields MME1, MME2, and MME3 are not defined in your data dictionary. Refer to Chapter 4: Kansas Quarterly Reporting, Processing Considerations. Missing YTD SUI Gross Field Data field SGRY is not in your data dictionary. This field accumulates YTD state gross wages. Social Security is shut off, wages or taxes found This is a warning message indicating that wages or taxes were found. Social Security Number Invalid The Social Security number has failed the SSA rules, it may not begin with an 8 or 9, and may not be , , or Social security number has defaulted to zeroes. Social Security Tax Not = Rate times Taxable Wage A Social Security Wage variance has occured. The Social Security rate multiplied by the Social Security wage plus Social Security tips does not equal the Social Security tax. Social Security Taxes > (the current year social security tax limit) Limit IRS requires that Social security tax not exceed the current year social security tax limit. Social Security Taxes > Zero, Wages Equal Zero The individual has social security taxes withheld but no corresponding wages to report. Social Security Wages + Tips > (the current year social security wage limit) IRS requires that Social security wages plus Social security tips may not exceed the current year social security wage limit. State Unemployment Code is Zero This is a error indicating that the state unemployment field is 00. State Unemployment Gross is less than Taxable Wage The umemployment gross wage cannot be less than the taxable wage. Tax Filing ID Missing for Local NNNNNN (Tax Filing Services Only) The employee listed on the report is referencing a local tax which the Local Table does not contain the Tax Filing ID. 20 Chapter 9: Tax Liability Report and Tax Filing Interface Tax Manual U.S. Tax Manual