Oracle Apps

Seting up Employer Tax Information includes:

1. Entering Federal, State and Local tax information for GRE
2. Setting up Transmitter information for GRE
3. Setting up Multiple Worksite Reporting

Employer Liabilities for federal taxes are:
– Social Security (FICA-OASDI)
– Medicare (FICA-HI)
– Federal Unemployment Tax Act (FUTA)

Employer Liabilities for state taxes are:
– State Unemployment Insurance (SUI)
– State Disability Insurance (SDI)

For US legislation, Vertex maintains the
tax table information and assist in the
calculation of specific employer and employee taxes

When you set up your enterprise work structures
You must enter federal, state and local tax details for
each GRE/Legal Entity
• If you define new tax categories when you set up
compensation types of supplemental or imputed
earnings, or pre-tax deductions
– You must enter taxability rules for these categories at
the federal, state and local levels

Setting up Transimitter Information for GRE

Several reports must be submitted to federal or state agencies quarterly or yearly
– Submission is often made through magnetic media and requires ‘Transmitter’ details
– Enter GRE transmitter information in the Organization window
• Set up Federal level Transmitter details for Multiple Work Site Reports (BLS-3020), W-2’s
and Retirement Plan Distribution (1099-R)
• Set up State level Transmitter details for State Quarterly Wage Listings (SQWL)

Multiple Worksite Report:

Employers with multiple worksites must file quarterly employment and wage reports
• This information is used by the Bureau of Labor Statistics to analyze
U.S. employment data
• The MWS Report is submitted on magnetic media
• Only one GRE submits the MWS Report to the Bureau of Labor Statistics
regardless of the number of locations in multiple states

This reporting GRE reports the wages and locations of employees in all
locations across all states and other GRE’s
– Use the Reporting Establishment classification to identify this GRE
– Enter MWS Transmitter details for this GRE

Taxibility Rules for Earnings and Deduction:

We have predefined Taxibility Rules for the correct taxation of regular and overtime
earnings.
• The Earnings classification and Regular category are always subject to federal and state taxes
• Categories associated with Supplemental and imputed earnings classifications may be subject to
different taxes at the federal, state and local tax levels

We can define additional Tax categories with different tax rules:
Define additional tax categories using the lookup types:
– US_SUPPLEMENTAL_EARNINGS
– US_IMPUTED_EARNINGS

Eentering and calculating FUTA credits

FUTA or Federal Unemployment Tax is an employer liability
that must be reported annually on form 940
• Calculating FUTA Credits
– An employer’s FUTA tax rate can be reduced through credits it can
take based on the amount and timeliness of state unemployment taxes it pays

Vertex Updates:
The Vertex is the vendor which on regular intervals provides updates to the various tax tables for
the US legislation. For correct tax calculations the application must be up to date with the Vertex Update

Applicant Creation:
===================
A Record is created in per_all_people_f with person_id of Applicant and also the applicant_number column gets populated.
Also a record gets created in hz_parties table with party_type as PERSON and party_id is link between per_all_people_f and hz_parties.
Also a record gets created in PER_ALL_ASSIGNMENTS_F table but with no assignment number.
THERE WON’T BE ANY RECORD IN PER_PERIODS_OF_SERVICE TABLE

Applicant Hired as Employee:
============================
When an applicant is originally hired, an additional record is created in PER_ALL_PEOPLE_F with a person type of EMPLOYEE and an effective start date of the hire date and effective end date of "the end of time" (represented by the date December 31, 4712). At the same time, one additional record is created in PER_ALL_ASSIGNMENTS_F with start date as Hire Date and end date as 31-Dec-4712. The Applicant Assignment Record in end dated. And one record is created in PER_PERIODS_OF_SERVICE table.

Employee Termination:
=====================
1) Navigate to US HR or US HRMS Manager (or equivalent) > People > Enter and Maintain >
Others > End Employment.

Termination of employee with Same Actual, Last Standard and Final Process Date:

An additional row is created in PER_ALL_PEOPLE_F with a person type of EX_EMPLOYEE and at the same time the original EMPLOYEE record will be end dated as will the assignment record.
A new assignment record is created in the PER_ALL_ASSIGNEMNTS_F table for terminated assignment with start date as termination date and end date as 31-Dec-4712.

Also the period of service record in the table, PER_PERIODS_OF_SERVICE is updated with values for Actual, Last Standard and Final Process Date.

Reverse Termination:
The EX_EMPLOYEE record is removed from the PER_ALL_PEOPLE_F table and the employee record is made end dated in Future (31-Dec-4712).
Also the Termination assignment records are removed from PER_ALL_ASSIGNMENTS_F
The PER_PERIODS_OF_SERVICE is updated with no values for Actual, Last Standard and Final Process Date.

Termination of employee with an Actual date and different but same Last Standard and Final Process Date:

Actual Date: 31-Jan-2009
Last Standard Process: 05-Feb-2009
Final Process Date: 05-Feb-2009

An additional row is created in PER_ALL_PEOPLE_F with a person type of EX_EMPLOYEE and at the same time the original EMPLOYEE record will be end dated as will the assignment record.

Two assitional assignment records will be created after end dating the current assignment record.
One Employee Assignment Type Record with Terminate Assignment status from 01-FEB-2009 to 05-FEB-2009
One Benefits Active Assignment record from 01-FEB-2009 to 31-DEC-4712
The PER_PERSON_TYPE_USAGES_F will have a record from 01-FEB-2009 to 31-DEC-4712 for person type, EX_EMP - Ex-employee.

Termination of employee with same Actual date and Last Standard Process Date but Different Final Process Date:

Actual Date: 31-Jan-2009
Last Standard Process: 31-Jan-2009
Final Process Date: 05-Feb-2009

An additional row is created in PER_ALL_PEOPLE_F with a person type of EX_EMPLOYEE and at the same time the original EMPLOYEE record will be end dated as will the assignment record.

Two assitional assignment records will be created after end dating the current assignment record.
One Employee Assignment Type Record with Terminate Assignment status from 01-FEB-2009 to 05-FEB-2009
One Benefits Active Assignment record from 01-FEB-2009 to 31-DEC-4712

Employee Rehired:
=================
If the employee is rehired, another record would be created, similar to the original one.
In PER_ALL_PEOPLE_F, an additional record would be created with start date as new hire date and end date as 31-Dec-12 with person_type of Employee.
In PER_ALL_ASSIGNMENTS_F, a new record will be created with start date as new hire date and end date as 31-Dec-12.
In PER_PERIODS_OF_SERVICE, a new would be created with start date as new hire date.

Things to note about this section:
1) The person ID does not change when the employee is rehired.
2) The assignment ID does change when the employee is rehired.