For each employee assignment, you maintain information taken from the W-4 Employee's Withholding Allowance Certificate that employees must complete, as well as certain additional tax-related information.
Additional Information: If an employee has more than one assignment, you must enter identical data for each.
See: Tax Information for an Employee Assignment
To review and change default tax information for an employee, use the appropriate Tax Rules window. Information in these windows are maintained date effectively.
Note: All changes effect the tax calculation as of the date paid, not the date calculated.
See Also:
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 in the same tax year.
Note: The state of Minnesota is an exception to this rule. If an employee transfers from any state to Minnesota, there is no credit of SUI wages allowed. Oracle Payroll also requires the employee be in the same Government Reporting Entity (GRE).
Oracle Payroll provides the following when you make modifications that result in a change to the SUI state:
An alert when the payroll or human resources representative makes a change to an employees work address that changes the SUI state.
A workflow sent to the human resources or payroll representative you assigned when defining the GRE.
A change to the SUI state occurs by either changing the work location on the assignment window, or manually changing the SUI state on the employee's federal tax window.
Oracle Payroll also populates the SUI Base Override field with the remaining amount of taxable wages. If the combined SUI ER taxable wages in all states except the current state for the same GRE in the same tax year is less than the SUI wage limit of the current state, the system sets the SUI Base Override field to the difference of the two. If the combined ER taxable wages are equal to or greater than the limit of the current state, the SUI Base Override field is set to zero.
Note: You can disable this functionality by setting the Automate SUI Wage Credit field in the Employer Identification window to No.
You must still run the Clear SUI Wage Base Override as part of the Year Begin processes. The process clears the SUI Wage Base Override field whether automatically or manually input.
If the SUI wage limit changes as a result of an update to the Jurisdiction Information Tables, the system does not self adjust the limit entered in the SUI Wage Base Override field.
Note: If you have employees that transfer to a different work state during the tax year, it is mandatory you run the Year Begin Process to clear the SUI Base Override field. See: Clear SUI Wage Base Overrides Process
Employers are responsible for ensuring that nonresident aliens have taxes withheld appropriately. It is the employers decision as to how to change the set up to withhold the correct amount of taxes.
You use the Extra Information Type (EIT) VISA Residency Details to set the Non Resident Alien parameter. The EIT determines if a person is a resident or non-resident. Oracle passes the residency information to Vertex for use in the tax calculation.
Override tax amounts and override tax rates take precedence over setting the Non Resident Alien parameter. If an override tax amount or tax rate exist, and the Non Resident Alien parameter is set to true, the application processes the override instead of calculating the tax using the Non Resident Alien parameter.
When additional tax amounts exist, Oracle Payroll adds the additional amount to the tax calculation for the current period. The tax calculation amount may or may not include override tax amounts or rates. The Non Resident Alien parameter does not affect the processing of additional tax amounts.