US Tax

[welcomewiki]

[welcomewiki]

Maintain payroll schema for override methods

In the first activity of this step, you maintain the override tax methods used for current payments and for differences from retrocalculations in schema US Tax caculation (UTX0). In the second activity, you define constants that represent threshold amounts for these current payments and retrocalculation differences.

Example
Fkt Par1 Par2 Par3 Par4
UPAR1 CUR NA 1 X
UPAR1 DIF 1 2 X

Constants:
TXCTH Current-payment threshold (annual) = $1200
TXRTH Retro-difference threshold (annual) = $600

If we assume a monthly subunit, the threshold amounts per period are $100 and $50 respectively.

According to this example:
Current payments that are below or equal to $100 are calculated using the regular method (1 in Par3), and those that are above are calculated using the method defined in the individual wage type. This applies to both regular and on-demand payrolls (X in Par4).

Differences from retrocalculations that are below or equal to $50 are calculated using the supplemental method (2 in Par3), and those that are above are calculated using the regular method (1 in Par2). This is true for regular payrolls only (X in Par4).

Standard settings: The standard schema is set as follows. If the settings are correct for your firm, no change is necessary:

Fkt Par1 Par2 Par3 Par4
UPAR1 CUR NA
UPAR1 DIF 1 22 B
Current payments: The calculation method defined for the wage type (processing class 68) is used for current payments. This is true for all payroll types (regular and on-demand payrolls).

Retrocalculated differences: The tax method for all retrocalculation differences is the regular method. This is true for all payroll types (off-cycle and adjustment payrolls).

Activities: If any of the parameters should be changed for your company then proceed as follows:

Activity 1: Adjust schema parameters.

1. Modify schema UTX0 as required:
For each occurence of function UPAR1, change each parameter as required for your organization.
2. Save and generate the schema.
Activity 2: Define the constants for current and retrocalculation difference thresholds.
1. Select the entry TXCTH, and define the annual threshold amount for current payments.
2. Select the entry TXRTH, and define the annual threshold amount for retrocalculated differences.
3. Save your changes.

[welcomewiki]

[welcomewiki]

[welcomewiki]

Load Tax Data
In this section, you will load standard US tax data. If you have executed the client copy for HR tables at the beginning of your installation, you do not have to complete all of the load steps.