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P E O P L E S O F T P R O P R I E T A R Y A N D C O N F I D E N T I A L TAX13C900- N O T E S . D O C - 1

PEOPLESOFT PAYROLL FOR NORTH AMERICA TAX UPDATE 13-C TAX UPDATE NOTES - RELEASE 9

PeopleSoft Payroll for North America Tax Update 13-C includes updates to U.S. and Canadian tables, COBOL program and store statement changes, object changes and re-delivered SQRs for U.S. and Canadian payroll reporting. These tax update notes include:

• Instructions for updating your system’s tables and a summary of the table changes

• A list of COBOL program and store statement changes

• A summary of the SQRs delivered with this tax update

• An appendix listing the object changes delivered with this tax update

For Release 9, the tax update package also includes the following documentation files: UPD885424_INSTALL.htm “PeopleSoft Application Update Installation Instructions” UPD885424_CODECHANGES.rtf PS Print Project Report for Release 9

Follow the instructions in the UPDxxxxxx_INSTALL.htm document to apply this tax update. Before applying Tax Update 13-C, you must apply all previous tax updates. Unless otherwise indicated by a specific posting date, Patch Numbers referenced in these tax update notes have not been posted to My Oracle Support.

P E O P L E S O F T P A Y R O L L F O R N O R T H A M E R I C A T A X U P D A T E 13 -C - R E L E A S E 9 J U N E 14 , 2013

2 – TAX13C900- N O T E S . D O C P E O P L E S O F T P R O P R I E T A R Y A N D C O N F I D E N T I A L

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J U N E 14 , 2013 P E O P L E S O F T P A Y R O L L F O R N O R T H A M E R I C A T A X U P D A T E 13 -C – R E L E A S E 9


Updating Your Tables Tax Update 13-C includes the following files for updating the tables in your PeopleSoft system. File Contents upd885424_01.dat upd885424_01.dms

U.S. tax table updates

upd885424_02.dat upd885424_02.dms

Garnishment table updates

upd885424_03.dms

Database stamp (There is no .dat file associated with this .dms file.)

upd885424_04.dat upd885424_04.dms

Canadian tax table updates

upd885424_05.dat upd885424_05.dms

Pay message table updates

The DataMover script (.dms) files identify the input data file (.dat) as well as the output log message file. The directory where DataMover looks for the input data file and the log file is specified in your Configuration Manager.



Special Notes – Canada Quebec Health Tax Exemptions As of 2013, employers must withhold the health contribution of an individual who, during the year, is 18 or over. However, in certain situations, an individual may request employers not to withhold the health contribution by submitting a completed form TP-1015.3-V, Source Deductions Return. With Tax Update 13-B, a new checkbox was added to the Quebec Income Tax Data page to indicate if the employee is exempt from contributing to the Quebec Health tax. If this checkbox is selected, the employee will not have health tax contributions included in their tax calculation.

With Tax Update 13-C, a new indicator has been added to the Update Source Deductions run control page to provide the ability to reset the “Exempt from Quebec Health” checkbox on the Quebec Income Tax Data page. Enter a value of “Y” in the “Reset Quebec Health” field to reset the “Exempt from Quebec Health” checkbox for all employees to “No”.



See the entries for TAX103CN.SQR and CTXRCTL1.SQC in the later section of this document titled Canadian SQRS for information on the related modifications delivered with this tax update. (Patch Number 16484153)



Special Notes – U.S. 2013 Year End Reporting

Ordering W-2 Forms for Tax Year 2013

In preparing to order W-2 forms for tax year 2013, employers should consider the following issues: Employers who will be reporting W-2 data to any state where their state Employer Identification Number (EIN) is greater than 12 characters in length should not order Form ID LSR02A (the “four-corner” format which prints four W-2s per page at the four corners of the page). W-2 Form ID LSR02A does not provide sufficient space in box 15 to print State EINs that exceed 12 characters. States that are currently known to issue Employer Identification Numbers that exceed 12 characters include Kansas, Utah, and Wisconsin. Employers who are considering ordering W-2 Form ID LSR02A should first review all of their state EINs to confirm that none of them exceed 12 characters in length.

* * * * * * * * * * * * * * * * * * * * * * * * * *

Employers who report W-2 data for New Jersey should be aware that, because of the unusually large number of data items that New Jersey requires to be individually printed on Form W-2, there is a very high incidence of data overflow that results in the printing of a second New Jersey W-2 form for each employee with New Jersey reportable data. With the requirement imposed beginning in tax year 2009 to print the amount deducted for New Jersey Family Leave Insurance (in addition to the amounts deducted for disability insurance and the various components of the New Jersey unemployment insurance program), the problem of data overflow for New Jersey W-2 reporting affected even more employees. To avoid running short of W-2 forms, in determining the quantity of forms to order, it is suggested that employers anticipate that two forms will be needed for each instance of an employee with W-2 data to be reported to New Jersey. * * * * * * * * * * * * * * * * * * * * * * * * * *

Employers who report W-2 data for Pennsylvania should be aware that, because of the implementation of Pennsylvania Act 32 in tax year 2012, employees who reside and/or work in multiple Pennsylvania local tax jurisdictions will have a higher number of W-2 forms produced than before Pennsylvania Act 32. A separate employee Tax Balance record is created each time that Pennsylvania Local Earned Income Tax is withheld from an employee for a different Political Subdivision (PSD) Code, and each tax balance record represents a separate iteration of local wage and tax data which must be reported on Form W-2. Data for two local tax jurisdictions can be printed on each Form W-2 using these Form IDs: LSP03 LSR03P LPS4V Data for only one local tax jurisdiction can be printed on each Form W-2 using these Form IDs: LSR01 LSR02A XMLP 4 vertical XMLP pressure seal To avoid running short of W-2 forms, in determining the quantity of forms to order, employers should consider the mobility of their Pennsylvania employee population. It is strongly recommended that you set Locals per Form = 1 if you will be reporting Pennsylvania Local Earned Income Tax amounts on Form W-2. Some Pennsylvania tax collecting agencies have indicated that employers should not report data for more than one Pennsylvania locality on a single Form W-2. Do not set Locals per Form = 2 unless the Tax Collection District the forms will be submitted to has confirmed that printing two sets of local tax data on a single Form W-2 is acceptable.



Special Notes – U.S. Excluding Compulsory Gratuities from Minimum Wage/Tip Adjustment Tax Update 13-C delivers new functionality to allow employers paying tipped employees to identify imposed mandatory service charge amounts as compulsory gratuities, and to exclude these amounts from the tip minimum wage calculation, while including them in determining the FLSA rate used for overtime pay calculations, as required in rulings issued by the U.S. Department of Labor and Internal Revenue Service.

U.S. Department of Labor Wage & Hour Division ruling FLSA2005-31: http://www.dol.gov/whd/opinion/FLSA/2005/2005_09_02_31_FLSA.htm [An] “imposed gratuity” is not a tip under the FLSA. Thus, no tip credit is allowed for amounts received as an imposed gratuity and the employer must pay the entire minimum wage and overtime as required by the FLSA. IRS Rev. Rul. 2012-18 http://www.irs.gov/irb/2012-26_IRB/ar07.html#d0e170 IRS Tax Topic 761 http://www.irs.gov/taxtopics/tc761.html Service charges added to a bill or fixed by the employer that the customer must pay, when paid to an employee, will not constitute a tip, but rather constitute non-tip wages. These non-tip wages are subject to social security tax, Medicare tax, and federal income tax withholding. In addition, the employer cannot use these non-tip wages when computing the credit available to employers under section 45B of the Internal Revenue Code, because these amounts are not “tips.”

The new value Compulsory Gratuity is added to the drop-down list of choices displayed for the Tips Category field on the Earnings Table/Calculation page.

To set up an Earnings Code to be used for paying compulsory gratuities such as imposed mandatory service charges, complete the steps shown on the following page, which illustrates setting up an example of such an earnings type for banquet gratuities.

New value added in Tax Update 13-C



On the General tab, select Payment Type = Amounts Only and select Effect on FLSA = Amounts Only.

On the Calculation tab, select Tips Category = Compulsory Gratuity and select Category for FLSA = Regular.

(Patch Number 16370222)



U.S. Changes

Federal / State Tax Table State Effective

Date of Table Entry

Table Update Description

ID 01/02/2013

A new table entry effective-dated 01/02/2013 is added to deliver Idaho withholding tax changes effective for wages paid on or after January 1, 2013. For audit history purposes, the Effective Date of the new table entry is dated 01/02/2013, to preserve the values in the previous table entry dated 01/01/2013, which may have already been used in the calculation of 2013 payrolls. http://tax.idaho.gov/s-results-pub.cfm?doc=EPB00006 (Patch Number 16570637; posted as Patch Number 16583416 to My Oracle Support on 02 April 2013)

Minnesota Withholding Tax Changes At the time Tax Update 13-C was finalized for delivery, the Minnesota Department of Revenue had announced on its website that they expected to publish Minnesota withholding tax calculation changes on June 20, 2013. http://www.revenue.state.mn.us/newsroom/Documents/20130531TaxLawChangeRollOut.pdf Any product modifications which may be needed to implement Minnesota withholding tax changes will be made available to customers as quickly as possible once they have been published by the Minnesota Department of Revenue. North Dakota Withholding Tax Changes At the time Tax Update 13-C was finalized for delivery, the office of the North Dakota State Tax Commissioner had not yet published anticipated changes in North Dakota withholding calculations resulting from the enactment of North Dakota S.B. 2156, which includes a reduction in North Dakota tax rates. http://www.cchgroup.com/wordpress/index.php/tax-headlines/state-tax-headlines/north-dakota-corporate-personal-income-taxes-rate-reductions-and-credit-provisions-enacted/ http://governor.nd.gov/media-center/news/dalrymple-signs-250-million-income-tax-relief Any product modifications which may be needed to implement North Dakota withholding tax changes will be made available to customers as quickly as possible once they have been published by the office of the North Dakota State Tax Commissioner.



Local Tax Table

State Locality Locality Name OLD Rate/Amt NEW Rate/Amt Effective Date

MT MT0001 MT0001R

Old Fund Liability Tax (Patch 16816560)

Status = Active Status = Inactive (tax repealed)

08/24/2001

OH 18350 Conneaut (Patch 16594668)

0.018000 / Resident 0.018000 / Nonresident


01/01/2013

44674 London (Patch 16594668)



07/01/2013

66894 Richmond Heights (Patch 16594668)



07/01/2013

79716 Vermilion (Patch 16594668)



06/01/2013

80738 Walton Hills (Patch 16594668)



07/01/2013

85232 Willard (Patch 16594668)



07/01/2013

P0019 Warrensville Heights JEDZ (Patch 16594668)

County = blank County = Cuyahoga

01/01/2002 correction

P0028 Green Twp – Cheviot JEDD II (Patch 16594668)

New entry

0.010000 / Resident 0.010000 / Nonresident Maximum Tax = $1,055.70

01/01/2013



Local Tax Table – Pennsylvania Local Earned Income Tax Tax Update 13-C includes updates to Pennsylvania Local Earned Income Tax entries in the Local Tax Table based on data downloaded from the “Real-time Register” on the website maintained by the Commonwealth of Pennsylvania. Table updates are delivered for Local Tax Table entries for Local Earned Income Taxes for which previously existing tax rates do not match the current information downloaded from the “Real-time Register” on the Pennsylvania website. All updates to Pennsylvania Local Earned Income Tax entries in the Local Tax Table delivered in this tax update are effective-dated 01/01/2013. These Pennsylvania Local Earned Income Tax rate changes downloaded from the “Real-time Register” on the Pennsylvania website are documented separately in these files delivered with this tax update: PA32EIT13C.doc Word document PA32EIT13C.xls Excel spreadsheet http://munstatspa.dced.state.pa.us/registers.aspx (Patch Number 16596966)



Local Tax Reciprocity Table

Locality of Residence

Locality of Employment

Effective Date

Credit Reduction Percent

Credit Limit Rate

Reciprocity Rule:

OH-44674 London

OH $DFLT

07/01/2013 Action: Add new row to change Reciprocity Rule from Rule 1 to Rule 2.

100.00 0.005000 Rule 2: Withhold 100% of calculated work locality withholding on work locality wages. Then calculate residence locality withholding by the applicable method, depending on whether residence or work locality tax rate is greater. (Patch Number 16594668)

OH-44674 London

OH-18000 Columbus

07/01/2013 Action: Add new row to change Reciprocity Rule from Rule 1 to Rule 2.


OH-79716 Vermilion

OH $DFLT

06/01/2013 Action: Add new table entry.




Taxable Gross Definition Table Note: Any user-defined entries you may have previously added to the Taxable Gross Definition Table entries for the jurisdictions listed below will need to be re-added after applying this tax update. User-defined entries are not carried forward when Taxable Gross Definition Table entries are re-delivered. State/ Locality

Effective Date of Table Entry

Table Update Description

Maryland 07/01/2013 A new table entry is added to indicate that effective July 1, 2013, benefits provided to an employee’s same-sex spouse are excluded from the definition of taxable wages subject to the withholding of Maryland state income tax. Taxable Gross = Withholding Base Gross = FWT Taxable Gross Component ID = DPB Withholding Follows Federal Rules = not selected Tax Gross Effect = Subtr From (Patch Number 16844679)

Minnesota 08/01/2013 A new table entry is added to indicate that effective August 1, 2013, benefits provided to an employee’s same-sex spouse are excluded from the definition of taxable wages subject to the withholding of Minnesota state income tax. Taxable Gross = Withholding Base Gross = FWT Taxable Gross Component ID = DPB Withholding Follows Federal Rules = not selected Tax Gross Effect = Subtr From (Patch Number 16844679)

Effective July 1, 2013, Delaware also excludes benefits provided to an employee’s same-sex spouse from the definition of taxable wages subject to the withholding of Delaware state income tax. No new Taxable Gross Definition Table entry is required for Delaware, since the table already includes an entry for Delaware containing Taxable Gross Component ID “DPB” as a result of Delaware’s earlier recognition of benefits provided to an employee’s civil union partner. Effective August 1, 2013, Rhode Island also excludes benefits provided to an employee’s same-sex spouse from the definition of taxable wages subject to the withholding of Rhode Island state income tax. No new Taxable Gross Definition Table entry is required for Rhode Island, since the table already includes an entry for Rhode Island containing Taxable Gross Component ID “DPB” as a result of Rhode Island’s earlier recognition of benefits provided to an employee’s civil union partner.



Garnishment Rules Table (U.S.)

State Rule ID Effective

Date

Action

CA GENERAL 07/01/2013 The rule for calculating California creditor garnishments is updated to comply with California A.B. 1775, which was enacted on September 23, 2012, and which amends Section 706.050 of the California Code of Civil Procedure to change the method of computing the amount of an employee’s earnings that may be garnished under an earnings withholding order. http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201120120AB1775

Effective for wages paid on or after July 1, 2013, the maximum amount of an employee’s weekly disposable earnings that is subject to garnishment under an earnings withholding order cannot exceed the lesser of (a) 25% of the employee’s disposable earnings, or (b) the amount by which the employee’s disposable earnings exceed 40 times the California state minimum hourly wage in effect at the time the earnings are payable. California Form WG-002 (“Earnings Withholding Order“) will be updated to reflect the new exemption calculation. http://www.courts.ca.gov/documents/wg002.pdf (Patch Number 16749241)



State Rule ID Effective Date

Action

ID LEVY LEVY2

07/01/2013 Two new garnishment rules are added to calculate the amount of an employee’s wages subject to garnishment for Idaho state tax levies, to comply with Idaho S.B. 1047, which became law on April 2, 2013, and which adds new Section 63-3060A to Idaho Code Chapter 30, Title 63. http://www.legislature.idaho.gov/legislation/2013/S1047.htm Effective for wages paid on or after July 1, 2013: Rule ID LEVY: The proportion of gross taxable earnings subject to garnishment for payment of a levy for Idaho taxes is limited to 25%; except: Rule ID LEVY2: The proportion of gross taxable earnings subject to garnishment for payment of a levy for Idaho taxes is limited to 10% for an employee who is also subject to a levy for payment of U.S. Federal taxes. (Patch Number 16842184)

WI GEN/HEAD 01/01/2012 A new garnishment rule is added to calculate the amount of wages subject to creditor garnishment for an employee whose status is Head of Household of a family of two or more persons, based on a comparison of household income to the poverty guidelines amounts published in the U.S. Federal Register. http://www.wicourts.gov/forms/CV-427.pdf Enter the number of family members in the Dep/Exempt Count field in the Exemption Parameters section of the employee’s Garn Spec Data 6 page. (Patch Number 16657704)



Canadian Changes

Canadian Tax Table Changes Page Province Field Old

Amount New Amount

Effective Date

Provincial Rates NB Annual Taxable Income (V) 0.09100 0.09680 01 Jul 2013







Tax Update 13-C - COBOL and Store Statement Changes for Release 9 All payroll users must apply all COBOL and store statement changes included in Tax Update 13-C.

Changed COBOL Modules This tax update includes the modified COBOL programs and copy members listed on the following page. Customers should incorporate the source programs into their source libraries and recompile and relink. For delivered copy members, any modules affected by the changed copy members must also be recompiled. For your installation, if you do not have a tool to determine which COBOL modules are affected by the changed copy member(s), we recommend that you recompile all modules.

Changed Store Statements This tax update includes the modified store statements listed on the following page. They are located in the COBOL directory. Replace your current version and rerun your store statements using DataMover. For Release 9 Changes are made to COBOL programs:

PSPCNTAX.CBL PSPCPCAL.CBL PSPCKREV.CBL PSPPYNET.CBL PSPETIPC.CBL PSPTCALC.CBL PSPMFLSA.CBL PSPTUPDT.CBL PSPPARRY.CBL PSPUSTAX.CBL Changes are made to copy members: PSCTARRY.CBL PSCERNTB.CBL PSCPYMSG.CBL Changes are made to store statements: PSPTADTE.DMS PSPCKREV.DMS PSPTARUN.DMS PSPPARRY.DMS PSPTCALC.DMS PSPTUPDT.DMS Redelivered without changes: STOREPAY.DMS Note: When applying Tax Update 13-C, customers must run STOREPAY.DMS to ensure that PSPCKRV2.DMS and PSPCKRV3.DMS are executed, which is required to implement the resolution for Patch Number 16479420. (PSPCKRV2.DMS and PSPCKRV3.DMS are not redelivered in this tax update.)



Patch Numbers COBOL and Store Statement changes for the Patch Numbers listed below and on the following pages are included in this tax update. Unless otherwise indicated by a specific posting date, Patch Numbers referenced in these tax update notes have not been posted to My Oracle Support. E&G = PeopleSoft Payroll for North America for Education & Government USF = PeopleSoft Payroll for North America for U.S. Federal Government Patch Number

Description

14273729 Patch Number 14273729 modifies PSPTCALC.CBL, PSPTCALC.DMS, and copy member PSCPYMSG.CBL to correctly process pay calculations for employees in the scenarios described in the chart on the following page, in which Company State Tax Table entries are either absent or set to Status = Inactive for the employee’s resident and/or work state. The texts of the error messages referenced in the chart are as follows:

000013 (existing message): “The SUT rate for the company and state displayed below was not found in the company state tax table.” 000402 (existing message): “The Company State Tax Table for the company and state displayed below is inactive.” 000406 (new message delivered in Tax Update 13-C): “The Company State Tax Table for the company and state displayed below was not found.”

Note: The validation to check the status of the Company State Tax Table for the resident state is performed prior to the validation for the work state. Once payroll error message 000402 or 000406 is issued for the resident state, additional validations are not performed to check the Company State Tax Table for the work state(s). The work state validations are performed only after any resident state issues have been resolved. This is the current design in Payroll Calculation and is unchanged.



Before Patch 14273729 Modifications After Patch 14273729 Modifications

Company State Tax Table for employee’s resident state shows Status = Inactive and Company State Tax Table for employee’s work state shows Status = Inactive

Error Message 000402 was not generated for the resident state; the employee did not receive a check because Error Message 000402 was generated for the work state.

Error Message 000402 is generated for the resident state; the employee does not receive a check.

Company State Tax Table for employee’s resident state shows Status = Active and Company State Tax Table for employee’s work state shows Status = Inactive

Error Message 000402 was generated for the work state; the employee did not receive a check.

No change.

Company State Tax Table for employee’s resident state shows Status = Inactive and Company State Tax Table for employee’s work state shows Status = Active

No error message was generated. State withholding tax was calculated and withheld for the resident state without the required associated account numbers from the Company State Tax Table, which could result in employer tax reporting problems.


No Company State Tax Table entry found for either the employee’s resident state or work state



Company State Tax Table for employee’s resident state shows Status = Active and No Company State Tax Table entry found for employee’s work state


No change.

No Company State Tax Table entry found for employee’s resident state and Company State Tax Table for employee’s work state shows Status = Active

No error message was generated. State withholding tax was calculated and withheld for the resident state without the required associated account numbers from the Company State Tax Table, which could result in employer tax reporting problems.

New error message 000406 is generated, and any resident state tax withholding is suppressed.



Patch Number

Description

14478126 Patch Number 14478126 modifies PSPMFLSA.CBL to correctly calculate the FLSA rate for prior pay period adjustments when a Comp Rate Code has been specified on the employee’s pay lines. Prior to the modifications, the Comp Rate Code was not applied to the employee’s overtime hourly rate when recalculating the FLSA rate for a prior pay period adjustment.

14539741 Patch Number 14539741 modifies PSPPYNET.CBL to correctly populate the Pennsylvania Work PSD Code (WORK_PSD_CD) with PSD Code 880000 when hours are backed-out of the employee’s Paysheet-generated Pennsylvania work locality and that work locality is also the employee’s Pennsylvania residence locality, and replaced by hours worked at a work locality outside of Pennsylvania. Prior to the modifications, in this scenario, the Work PSD Code field was incorrectly populated with the employee’s Resident PSD Code, instead of with PSD Code 880000 which is used to signify a location outside of Pennsylvania. Note: Further additional modifications may be required to be delivered in a future tax update related to the practice of backing-out hours for an employee’s Paysheet-generated Pennsylvania work locality as it impacts employees in specific situations.

14845225 Patch Number 14845225 modifies PSPPYNET.CBL to prevent Cincinnati (OH-15000) local income tax from being incorrectly refunded when a Cincinnati resident with a high dollar amount YTD Cincinnati taxable gross is paid for work in multiple Kentucky localities. Prior to the modifications, a refund of Cincinnati local tax could be erroneously generated for an employee in this situation, as a result of changes delivered in Tax Update 12-D for Patch Number 14181573 to resolve a local tax reciprocity issue occurring when an employee was paid both regular and supplemental earnings together on the same check.

16059657 Patch Number 16059657 modifies PSPPARRY.CBL, and PSPPARRY.DMS to correctly process Absence Management entries in the following situation:

1. Load Paysheet Transactions Page/Calculate Options: Paysheet Update Source = Absence Management; and

2. Absence Management entries are loaded into PSHUP_TXN using daily EARNS_BEGIN_DT and EARNS_END_DT and assigned a SEQNO for each line. Entries are not necessarily in chronological order; and

3. Entries for the last day of the pay period are followed by additional entries for the employee which have an earlier EARNS_BEGIN_DT/EARNS_END_DT but higher SEQNO.

Prior to the modifications, in the above scenario, the Additional Number field in PSHUP_TXN was updated incorrectly and did not correspond to the value of the payline. In some cases, the pay calculation for an employee may have been incorrect if the employee received a mid-period pay rate change.



Patch Number

Description

16239730 Patch Number 16239730 modifies PSPPARRY.CBL to correctly evaluate the “OK to Pay” checkbox on the Additional Pay page when creating the paysheets. For example, Earnings “ABC” is set up with “OK to Pay” selected, and Earnings “DEF” is set up with “OK to Pay” not selected. On the paysheet, Earnings “ABC” will be correctly reflected on Addl Line 1 with “OK to Pay” selected, and Earnings “DEF” will be correctly reflected on Addl Line 2 with “OK to Pay” not selected. Prior to the modifications, the “OK to PAY” flag incorrectly showed as selected for both earnings.

16242962

Patch Number 16242962 modifies PSPCPCAL.CBL to include one-time sales tax overrides in deduction totals. Prior to the modifications, if there was only a sales tax deduction override and no base amount, the sales tax would not be deducted from net pay nor would the amount be sent to the general ledger.

16284592 Patch Number 16284592 modifies PSPPYNET.CBL to prevent the generation of invalid tax activity for Pennsylvania locality code 880000 (Out of State) when an employee who is a resident of a Pennsylvania locality that imposes no local earned income tax is paid earnings for work performed in both of these work locations:

1. State = PA / Locality = BLANK; and

2. State = PA / Locality = 510101 (Philadelphia).

Prior to the modifications, invalid tax data was created for Pennsylvania locality 880000 in this situation.

16356201 Patch Number 16356201 modifies PSPUSTAX.CBL to correctly calculate the taxable gross for Additional Medicare when the Additional Medicare tax is input manually as a one-time tax override on the employee’s payline. Prior to the modifications, the Additional Medicare tax was calculated correctly; however, the process failed to generate the Additional Medicare taxable gross when the exact tax amount that would have normally been calculated by the COBOL program was input manually as a tax override. (If the tax override was entered as either under or over the correct tax amount, the Additional Medicare Taxable Gross was calculated correctly).

16370222 Patch Number 16370222 modifies PSPETIPC.CBL, PSPTARUN.DMS, PSPTADTE.DMS, and copy member PSCERNTB.CBL to correctly exclude Compulsory Gratuity earnings from the minimum wage and tip adjustment calculations. A new drop down value “Compulsory Gratuity” is added to the Tips Category field on the Earnings Code Calculation Page so that customers can elect this option if it is applicable to their business practices. Prior to the modifications, Compulsory Gratuity earnings could not be separately identified for tips purposes and were consequently incorrectly included in the minimum wage and tip adjustment calculations. See the previous Special Notes – U.S. section of this document for additional information on this new functionality.



Patch Number

Description

16479420 Patch Number 16479420 modifies PSPCKREV.CBL, PSPCKREV.DMS, PSPPYNET.CBL, PSPTCALC.CBL, PSPTCALC.DMS, PSPTUPDT.CBL, PSPTUPDT.DMS, and copy member PSCTARRY.CBL. STOREPAY.DMS is also redelivered but without modifications. Customers must run STOREPAY.DMS when applying Tax Update 13-C. A new field TAX_SUPP_CUR is also added to the records PAY_TAX and WRK_TAX. The new field is required to track the state withholding tax calculated prior to the state withholding tax amount being reduced when a State Reciprocity Rule requires that the calculated state withholding tax of an employee’s resident state be reduced by the state withholding tax withheld for the employee’s work state. These product modifications are delivered to correctly calculate an employee’s resident state withholding tax in the following scenario:

1. The employee is paid supplemental and/or special supplemental earnings on multiple paychecks; and 2. The State Tax Reciprocity Table for the employee’s resident state indicates that the calculated resident

tax that would otherwise be withheld is reduced by tax withheld for the work state.

Prior to the modifications, the employee’s resident state withholding tax was overstated on the supplemental or special supplemental paychecks.

16615022

Patch Number 16615022 modifies PSPCNTAX.CBL to establish the correct thresholds for the new Quebec health tax. Prior to the modifications, the Quebec Health tax calculation for the $18,000 - $40,000 tax bracket was incorrect. (Posted to My Oracle Support as Patch Number 16623557 on 11 April 2013)



U.S. SQRs delivered with Tax Update 13-C for Release 9 Descriptions of SQR modifications are followed by the Patch Number. Unless otherwise indicated by a specific posting date, Patch Numbers referenced in these tax update notes have not been posted to My Oracle Support. E&G = PeopleSoft Payroll for North America for Education & Government USF = PeopleSoft Payroll for North America for U.S. Federal Government

Annual Reporting SQRs SQR Description

TAX920US.SQR TAX960AS.SQR TAX960GU.SQR TAX960US.SQR TAX960VI.SQR

TAX920US.SQR is the W-2c Print File for reporting corrections to W-2 forms issued for U.S., American Samoa, Guam, and U.S. Virgin Islands. TAX960AS.SQR is the W-2AS Print File to print annual wage and tax statements for reporting data to American Samoa. TAX960GU.SQR is the W-2GU Print File to print annual wage and tax statements for reporting data to Guam. TAX960US.SQR is the W-2 Print File for reporting annual wage and tax data on Form W-2 for U.S. employees. TAX960VI.SQR is the W-2VI Print File to print annual wage and tax statements for reporting data to the U.S. Virgin Islands. The programs are modified to reset the variable IMPORTSUFFIX to null so that the files accessed by the application engine process PYYEW2A are created with the correct file extension of ".xml" and so the W-2 and W-2c PDF forms are generated correctly for the online administrator and self service views for US, AS, GU, and VI employees. SETENV.SQC is delivered with IMPORTSUFFIX set to null. However, if a customer sets this to a non-blank value (e.g., .dat), then the path names created in TAX960xx.SQR and TAX920US.SQR and stored in PS_PY_SS_USA_TMP will have an extra extension that is not accounted for by PYYEW2A. Prior to the modifications, the application engine process PYYEW2A generated the following error message when accessing files created with a file extension other than .xml if the variable IMPORTSUFFIX was set to a non-blank value in SETENV.SQC:

“XML data file not found for employee xxxxxx. Failed to attach XML data file for employee xxxxxx”.

An error message was also displayed when accessing the W-2 and W-2c PDF forms for online administrator and self service views for US, AS, GU and VI employees:




Quarterly Reporting SQRs SQR Description

TAX810CA.SQR T810CAHP.SQR (E&G)

TAX810CA.SQR reports quarterly wage and tax data to California for Commercial employers. T810CAHP.SQR reports quarterly wage and tax data to California for Public Sector (E&G) employers. These California quarterly wage reporting programs are redelivered with modifications to comply with the following specific formatting requirements in California Employment Development Department publication DE 545 Rev. 6 (4-12) (Federal/State Employment Taxes Implementation Guide): http://www.edd.ca.gov/pdf_pub_ctr/de545.pdf

1. The employee’s first name cannot exceed 16 characters.

2. The employee’s last name cannot exceed 30 characters.

3. Only the following seven special characters are allowed when reporting the employee’s name:

, . ’ & ” / -

Prior to the modifications:

1. The limitations on the number of characters in the employee name fields were not observed, and quarterly tax files that contained employee first names exceeding 16 characters or employee last names exceeding 30 characters were rejected by California.

2. No special characters of any kind (including the approved special characters) were included in employee name fields, but such employees were included in the files, and files were not rejected by California for reasons related to special characters.

Note: The program was modified to include only six of the seven specified special characters in the employee name fields. SQR programming restrictions prevent the inclusion of the seventh special

character, the apostrophe or single quote mark ( ’ ), which will be replaced with a blank space when it occurs in an employee name. (Patch Number 16750250)



SQR Description

TAX810PR.SQR

TAX810PR.SQR reports quarterly wage and tax data to Puerto Rico. The program is modified to remove any hyphens from the employee name fields and separate the last name into First Last Name (Paternal) and Second Last Name (Maternal), as required by Puerto Rico for quarterly wage reporting. For example, if the employee’s name is Victor Lopez-Sanchez, the First Last Name will now be reported as “Lopez” and the Second Last Name will be reported as “Sanchez”. Prior to the modifications, if an employee’s name field contained hyphens, they were not edited/stripped by the program and Puerto Rico rejected the file. In the above example, “Lopez-Sanchez” was reported as the First Last Name, and blanks were reported for the Second Last Name. (Patch Number 16532285)

TAX810DE.SQR TAX810NJ.SQR TAX810OH.SQR TAX810PA.SQR TAX810RI.SQR TAX810WA.SQR GETWEEKS.SQC GETWEKSA.SQC

TAX810xx.SQR programs (where ‘xx’ reflects the 2-digit state code) report quarterly wage and tax data. GETWEEKS.SQC is used to determine the number of weeks worked by the employee in the reporting quarter. GETWEKSA.SQC is a clone of GETWEEKS.SQC used to determine the number of weeks worked by the employee by evaluating the Saturdays in the reporting quarter, which is a requirement unique to Ohio. In the TAX810xx.SQR programs, the array size for QtrDays is increased from 10 to 20. The comments at the top of GETWEEKS.SQC and GETWEKSA.SQC are modified to indicate that the size of the array is 20 instead of 10. Prior to the modifications, an array out-of-bounds error was encountered when an employee with multiple pay groups in a single quarter was the last employee processed in the array, triggering the array reset flag. (Patch Number 16370964)



Canadian SQRs delivered with Tax Update 13-C for Release 9 Descriptions of SQR modifications are followed by the Patch Number. Unless otherwise indicated by a specific posting date, Patch Numbers referenced in these tax update notes have not been posted to Updates & Fixes on My Oracle Support.

Canadian SQRs SQR Description

CTX910AS.SQR CTX910AS.SQR produces a summary of amended and cancelled slips together with supporting employee details for year-end balancing purposes. The latest version of each amended/cancelled year-end slip is reported and compared with the corresponding original slip, to produce the net differences between the two versions. The program is modified to correctly calculate the difference between the original and the amended/cancelled value for Box G when the amended value is 0.00. Prior to the modifications, when the amended value of Box G was 0.00, the difference between the original and the amended/cancelled box value in the Employee Summary Change section, was incorrectly printed as the difference between Box A and the original value of Box G. (Patch Number 14647842)

CTXRCTL1.SQC CTXRCTL1.SQC retrieves run control information for report parameters used for Canadian year-end tax reporting. The program is modified to support the new “Reset Quebec Health” field on the Update Source Deductions run control page. See the Special Notes – Canada section of this document for further information related to this patch. (Patch Number 16484153)

PAY124CN.SQR PAY124CN.SQR mass creates ROE data records to be reported by the ROE print program (PAY101CN.SQR). We modified the program to report "Multiple Pay Periods" in Box 18 only if the pay frequency changes occur within the applicable ROE reporting period. Prior to the modifications, "Multiple Pay Periods" was always reported in Box 18 if pay frequency changes occurred in the past. (Patch Number 15971866)



SQR Description

PYSSPXML.SQC

PYSSPXML.SQC formats the XML data that populates the XMLP RTF templates for paycheques and pay advices. The SQC and corresponding RTF templates for paycheques and advices are modified to reflect the Canadian French translation of the footnote "*TAXABLE" and header "NET PAY DISTRIBUTION" on the Canadian Pay Cheque PDF, Pay Advice PDF and Self-Service Manual Cheque PDF. Prior to the modifications, the footnote "*TAXABLE" was not translated on paycheques and advices when the Canadian French language option was selected for creating the PDF forms. In addition, the header "NET PAY DISTRIBUTION" was not translated on pay advices. (Patch Number 14684032)

TAX103CN.SQR TAX103CN.SQR calculates and updates Federal and Provincial basic claim amounts for employees by generating a new Canadian Income Tax Data record for each employee who is active as of the Effective Date specified. The program is modified to support the new “Reset Quebec Health” field on the Update Source Deductions run control page. Prior to the modifications, the process abended with an error message “Cannot insert NULL into ("EMDBO"."PS_CAN_TAX_DATA"."QC_HLTH_EXMPT"). See the Special Notes – Canada section of this document for further information related to this patch. (Patch Number 16484153)



Previous Updates Tax Update 13-B U.S. – State withholding tax changes for Georgia, Missouri, New Mexico;

Taxable Gross Definition Table update for Maine; Local Tax Table changes for Kentucky, Ohio, Pennsylvania; Garnishment Rules Table changes for U.S. and Arizona tax levies; redelivered SQR programs.

Canada – Provincial tax changes for BC and Quebec; redelivery of year-end SQR programs.

Tax Update 13-A U.S. – U.S. Federal withholding tax changes for 2013; 2013 state withholding

tax changes for Colorado, Connecticut, Hawaii, Illinois, Oklahoma, Oregon, Rhode Island, Vermont; 2013 state unemployment taxable wage base changes for Hawaii, Idaho, the U.S. Virgin Islands, Wyoming; 2013 state disability changes for Hawaii; 2013 Pennsylvania employee state unemployment tax rate change; Local Tax Table changes for Kentucky, Michigan, Ohio, Oregon, Pennsylvania; redelivered SQR programs.

Canada – Provincial tax changes for Quebec and Yukon Territory; redelivery of year-end SQR programs.

Tax Update 12-F U.S. – 2013 Social Security tax rate increase; new Additional Medicare tax; 2013 state withholding tax changes for California, Kansas, Kentucky, Maine, Minnesota, Nebraska, New York, North Dakota, Puerto Rico, Yonkers; 2013 state minimum wage changes for Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Rhode Island, Vermont, Washington; 2013 state unemployment taxable wage base changes for Alaska, Colorado, Georgia, Illinois, Iowa, Kentucky, Minnesota, Montana, Nevada, New Jersey, New Mexico, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Utah, Washington, Wisconsin; 2013 state disability changes for California, New Jersey, Rhode Island; Local Tax Table Changes for Indiana, Kentucky, Maryland, Ohio, Pennsylvania; Garnishment Rules Table change for Oregon; Taxable Gross Definition Table change for San Francisco Payroll Tax; redelivered SQR programs.

Canada – 2013 CPP, QPP, EI, and federal tax rate changes; provincial tax changes for Alberta, BC, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Northwest Territories, Nunavut, Ontario, Prince Edward Island, Quebec, Saskatchewan and Yukon Territory; redelivery of year-end SQR programs.



Appendix: Object Changes delivered in Tax Update 13-C

Application Engine Programs:

Program Description 881 890 900 910 PYAP_XTAX Report ID 16369523

Modified following SQLs to reference $U for tax class 6. FED-TAX FED-TAX S FED-TXCAFED-TXCAS ST-TX-ALST-TX-ALS ST-TX-SSST-TX-SSS STTXALCASTTXALCAS STTXSSCASTTXSSCAS

PY_RETROPAY_EVENT.Handlers.UpdateRetroAddlPay Report ID 16273452 Modified method ProcessEvent.

PYYE_RESCAN Report ID 16361519 Modified Section PYUPGETN Step01.

PYAP_XDEDN Report ID 14690542 Modified Section EXTRACT Step GETXDEDNS.

PYAP_XDEDNCA Report ID 14690542 Modified Section EXTRACT Step GETDLIABS.

Components:

Name Description 881 890 900 910 RUN_TAX020.USA Report ID 16488101

Added new component.

PY_IC_PAY_INQ Report ID 14600051 Added CompRecFld PeopleCode.

Fields:

Field Description 881 890 900 910 TAX_SUPP_CUR Report ID 16479420

Added new field.

RESET_QUE_HEALTH Report ID 16484153 Added new field.

Pages:

Name Description 881 890 900 910 PY_FORM_STAT_CAN Report ID 16290671

Modified page.

PY_FORM_STAT_MRQ Report ID 14727510 Modified page.

PY_FORM_STAT_USA Report ID 16290671 Modified page.

RUNCTL_TAX020 Report ID 16488101 Added new page.

RUNCTL_TAX103CN Report ID 16484153 Modified page.



Pay Message Table:

Pay Message Number

Description 881 890 900 910

000406 Report Id 14273729 Added new message.

Records:

Name Field Description Create/ Alter

881 890 900 910

DEDUCTION_TBL SPCL_PROCESS Report ID 15874737 Modified FieldChange PeopleCode.

GENL_DEDUCTION DEDCD Report ID 15931687 Modified RowInsert PeopleCode.

PAY_TAX TAX_SUPP_CUR Report ID 16479420 Added new field to record.

Alter

PY_IC_W4_FTX_VW EMPLID Report ID 16328504 Modified SaveEdit PeopleCode.

PY_YE_SS_NOTES PY_SLIP_FORM_USE COUNTRY

Report ID 14839850 Modified FieldChange PeopleCode and Search options.

Alter

RC_CAN_YE RESET_QUE_HEALTH Report ID 16484153 Added new field to record.

Alter

WRK_TAX TAX_SUPP_CUR Report ID 16479420 Added new field to record.

Alter

Translate Values:

Field Description 881 890 900 910 TIPS_CATEGORY Report ID 16370222

Added new value "G" (Compulsory Gratuity).



XMLP Data Definition:

Data Source ID Description 900 910 CNADVICES Report ID 14684032

Modified data source definition.

CNCHEQUES Report ID 14684032 Modified data source definition.

XMLP Report Definition:

Report Name Description 900 910 PRTCNADV Report ID 14684032

Modified pay advice print template.

PRTCNCHQ Report ID 14684032 Modified paycheque print template.

SSPCNADV Report ID 14684032 Modified pay advice self service template.

SSPCNCHQ Report ID 14684032 Modified paycheque self service template.

XMLP Template Definition:

Template ID Description 900 910 PRTCNADV_1 Report ID 14684032

Modified pay advice print template.

PRTCNCHQ_1 Report ID 14684032 Modified paycheque print template.

SSPCNADV_1 Report ID 14684032 Modified pay advice self service template.

SSPCNCHQ_1 Report ID 14684032 Modified paycheque self service template.