To review and maintain employee tax information, use the Federal, State, County, City Tax Rules, and Percentage windows. Entries to these windows are date effective.
By default, the State, County, or City Tax Rules windows display tax records considered active for an assignment on the effective date (that is the date you are tracked to). The Percentage window displays the details related to an assignment's active tax records. Oracle Payroll for US provides the Show Inactive Tax Record check box in the Federal Tax Rules window to help control which tax records are available for display.
The Show Inactive Tax Records check box is available in the Federal Tax Rules window. Selecting this check box displays both active and inactive tax records for an assignment. This check box is not active when you open the State, County, City Tax Rules, or Percentage windows. The check box becomes active after you close these windows.
To differentiate between active and inactive tax records when the Show Inactive Tax Records check box is selected, inactive records are shown in read-only mode. Select the Edit Inactive check box to update inactive tax records.
When you select the Show Inactive Tax Records check box, the application uses certain criteria to identify them as active records. Tax records are considered active if they are associated with any of the following assignment details:
Primary Address: Primary address indicates resident address and resident taxation address. The tax record can match with either of these details.
Work Location: Work Location is the employee assignment's primary work location address and payroll taxation address. The tax record can match with either of these details. If the assignment is marked as Work at Home, then the work location is ignored in deciding if a tax record is active.
Time Percentage: If an employee works in different work locations for a specific percentage of time in a given period, then the time percentage for work locations is maintained through the Percentage window. If a tax record associated with a work location has a non-zero time percentage, then the tax record is considered active. If the assignment is marked as Work at Home, then the time percentage will be ignored in deciding if a tax record is effective.
School District: If an assignment's local tax rules record is associated with a school jurisdiction, then the school district tax is calculated for the assignment. Therefore these tax records are considered active.
Tagged Jurisdictions: For earnings that are taxed only for a particular jurisdiction, the related element entries are added to an assignment with jurisdiction details provided in the element entry's jurisdiction input value. If a jurisdiction has such tagged earnings, then the tax record associated with that jurisdiction is considered active.
State selected as a SUI State: If a state is selected as a SUI State in the Federal Tax Rules window, then that state tax record is considered active.
If a tax record satisfies any of the above criteria, then the tax record is considered active. The tax record is considered active for a complete year, that is from January to December, even if it meets the above criteria only for a part of that year. If a city tax record is active, then the related county and state tax records are also considered active. Similarly, if a county tax record is active, then the related state tax record is considered active. At the same time, if a state tax record is active, then the county or city tax records under it can be active or inactive. Similarly, if a county tax record is active, then the city tax records under it can be active or inactive.
When you select the Show Inactive Tax Records check box in the Federal Tax Rules window, the application retrieves active tax records first, followed by inactive tax records in the following windows:
State Tax Rules
County Tax Rules
City Tax Rules
The Edit Inactive check box is visible in the following windows only if you select Show Inactive Tax Records:
State Tax Rules
County Tax Rules
City Tax Rules
The Edit Inactive check box is disabled for active records and is enabled state for inactive records. To enable users to distinguish between active and inactive tax records, the inactive tax records are by default shown in read-only mode. If it is necessary to update an inactive tax record, then you must select Edit Inactive, which makes the tax record editable.
Percentage Window:
The application displays active tax records by default. If Show Inactive Tax Record is checked in the Federal Tax Rules window, then all records are displayed.
The following example explains the behavior of the Tax Rules windows for active and inactive tax records:
Employee details for this example:
An employee A's record is available in the Oracle system from 01-JAN-2013.
For period from 01-JAN-2013 to 31-DEC-2013, the employee resided and worked in Colorado. Therefore, the Colorado tax record is available for this employee from 01-JAN-2013.
From 01-JAN-2014, the employee is a resident of New York state and works in New York and California states, say, 80% of the time in New York and 20% of time in California. As tax records are created from the assignment start date, California and New York tax records are available from 01-JAN-2013. In 2013, only Colorado tax record is effective and other records are inactive. From 2014, both New York and California tax records are effective and Colorado tax record is inactive.
By default, tax records effective for the employee on the specified date are shown. To view all records of employee, select the Show Inactive Tax Records check box.
If you leave Show Inactive Tax Records unchecked, which is default, only Colorado state record is displayed for the employee. Though Colorado, California and New York Tax records are present for employee, because there is no association between the employee and California, New York states in 2013, those tax records are not retrieved.
If you select Show Inactive Tax Records, then you can view all active records first followed by inactive records. In this scenario, the application first displays the Colorado record followed by California and New York. Access California and New York records by pressing the down arrow key. The Edit Inactive check box is an indication that the window displays all tax records. This check box is enabled if the tax record is inactive. otherwise it will be in the disabled state.
As the Colorado State tax record is active for the employee in 2013, you cannot edit this record.
Both the California and New York state tax records are inactive for the employee in 2013 and are displayed in read-only mode. To update the records, select Edit Inactive.
In 2014, California and New York state tax records are active for the employee and Colorado tax record is inactive.
If you leave Show Inactive Tax Records unchecked, then California and New York state records are displayed for the employee. As there is no association between the employee and Colorado state in 2014, that tax record is not retrieved.
If you select Show Inactive Tax Records, then first California and New York state records are shown as they are active for the employee in 2014. You cannot edit active tax records. The Colorado record is retrieved after active tax records. You can edit the inactive tax record by selecting Edit Inactive.
In 2013, Colorado tax record is active and California, New York state tax records are inactive for the employee.
If you leave Show Inactive Tax Records unchecked, then when the Percentage window is accessed from Federal Tax Rules or State Tax Rules windows, by default, only active tax records related details of Colorado state California and New York states are not shown since they are inactive.
If you select Show Inactive Tax Records, then when the Percentage window is accessed from Federal Tax Rules or State Tax Rules windows, tax record details Colorado, California and New York states are shown.
In 2014, California and New York state tax records are active for the employee and Colorado State record is inactive.
If you leave Show Inactive Tax Records unchecked, then both California and New York state details are shown. Colorado is not shown.
If you select Show Inactive Tax Records, you can view active and inactive tax details related to all the states when accessed from Federal Tax Rules or State Tax Rules window.
See:
See also: Adjusting Percentage Tax Rules