To enter the
unique identification number for the GRE: To enter the
unique identification number for the GRE:In the Organization window, query the GRE if it does not already appear there.
In the Organization Classifications region, select Government Reporting Entity, click Others, and select Employer Identification.
Click in a field of the Additional Organization Information window to open the Employer Identification window.
Enter the identification number the IRS has issued for the GRE.
Note: If required, a Retirement Organization may have the same Employer Identification Number as an existing GRE.
Select All State or Only States Under State Tax Rules as applicable in the State Income Tax Withholding Rule field.
The application applies the following rules when determining whether or not to withhold the state income tax:
Verify whether the state has income tax withholding. If the state has income tax withholding, then the application checks for the State Income Tax Withholding Rule set up at the GRE/Level Entity level Employer Identification window.
If the State Income Tax Withholding Rule is set up as All States, then the application allows deduction of the state tax.
If the State Income Tax Withholding Rule is set up as Only States Under State Tax Rules, then the application checks for State Tax Rules.
If State Tax Rules are found for the state, then the deduction will happen as per the setup.
If State Tax Rules are not found, then the application verifies whether the state is the Work State for the current employee. If the state is a Work State, then the application withholds the state tax.
This behavior of the application is applicable to the Enhanced and Enhanced + Wage Accumulation Tax interfaces.
If you want to skip the SIT deduction for an employee, then you can use the relevant Tax Info windows at the Assignment level for the employee.
See: Tax Information for an Employee Assignment
For more information, see: Tax Withholding Methods and Taxability Rules for Earnings and Deductions Categories
Indicate if you want to automate the SUI wage credit calculation. If the Automate SUI Wage Credit field is set to Yes at the GRE Level, then the payroll calculation gives credit for SUI in the current state based on SUI paid in previous states for the year.
Most states allow for unemployment wages already taxed by a prior state to qualify towards the SUI wage base limit, as long as the employee works for the same employer in both states. By enabling this option, Oracle Payroll identifies the remaining amount of taxable wages and includes it in the payroll calculation. You no longer overpay State Unemployment Insurance when an employee changes SUI states.
Note: This functionality is not applicable to the state of Minnesota. The state Minnesota does not give credit for the SUI tax paid in other states; however, any SUI wages earned in Minnesota are considered for other states.
The default is No. If the field is set to No for New Jersey, the payroll calculation does not give credit for SUI, SDI, and SDI1 paid in previous states.
If the SUI override fields at the assignment level or at the GRE level are populated, then the system behaves as before, and no SUI wage base automation takes place, regardless of what value you select here.
Select the Exempt Additional Tax and Process Additional Tax fields as required. These fields are applicable only when an employee is marked for tax exemption. The preferences selected in this window are applicable to the Federal, State, and Local levels. The preferences set here are effective only with the "Enhanced" Tax Interface. With "Enhanced + Wage Accumulation" Tax Interface, the behavior will be determined by Vertex Quantum as per the statutory requirement for that jurisdiction when handling the additional tax deduction for employees marked for tax exemption.
Exempt Additional Tax: This is applicable in all in all run types, like Regular and Supplemental Runs when an employee is marked as tax exempt.
If Exempt Additional Tax is set as Yes, then the additional tax amount specified for an employee will not be withheld.
If Exempt Additional Tax is set as No, then additional tax amount will be deducted, even if an employee is marked as Tax Exempt.
The default value for Exempt Additional Tax is considered as Yes, if it is not setup.
Process Additional Tax: This is applicable only in Regular Run Type when an employee is marked as Tax Exempt.
If Process Additional Tax is set as Yes, then the additional tax amount specified for an employee will be deducted even if the employee is marked as Tax Exempt.
If Process Additional Tax is set as No, then the additional tax amount specified for an employee will not be deducted.
The default value for Process Additional Tax is considered as Yes, if it is not setup.
Click OK and then Save.