This documentation was created to give a quick overview the Tax Reporter functionality, processing and the functionality behind.
The Tax Reporter functionality allow customer to report for FED and States authorities the employee/employer gains during the year. We will pass through some form configurations, fields definitions, processing classes, print option etc.
Further on this document the process of Tax Reporter will be explained, separating the reports to fill the Cluster PCL4, extract this data and generate the form itself. Including on the documentation contain a related topic for further process on Tax Reporter (filing dates, Manual entries, as-of-date), a section regard performance on generation of forms are included in the documentation and the features used as well.
Tax form field processing
You define which of the taxable, tax, remitted amount, ceiling or rates should be used.
- Taxable wages are needed
- Tax wages are needed
- Deposited tax (these come from 3PR remittance and from Tax Company, tax authority and tax type NOT from EE level).
- Interest these are not supported as they were never implemented. Customers can specify a field but we need to tell them where to put it manually so that penalties and interests are recorded, the problem is that these are not recorded in payroll so tax reporter cannot report on them.
- Tax rate (linked to T5UTX and SUI overrides) - T5UTX used to record unemployment taxes. If set to 6, then the system will check BTXRATE table first and then check T5UTX ,if the company has a non-zero value for that tax type. (remember these are tax type 10 wage types).
- Ceiling or max wage Similar to 6, it checks for non-zero UI tax and then checks BTXRATE first, if this does not exist then it checks T5UTX table.
- Social Security Tax
- Medicare Tax rate - All options 6 – 9 share the same logic check for non-zero value for the tax type, then it checks BTXRATE and then it checks T5UTX table if necessary.
Tax form field evaluation types
A-D are not used
E- Company forms- no of employees
Used to report how many EEs are in each tax company, this is reported at tax company level.
F- Company forms- No of employers
Not used very much now, was used to calc how many tax companies were within a transmitter company.
G, H, I, J - are not usable now.
K- Special form exit processing
Somewhere in the logic there is a form called whatever is defined here and it needs to be executed in order to get the value needed
L- EID number also called the EIN number
The T5UTI and T5UTH tables are checked for the tax form group, and the contents of this will be the EIN of the company.
M- Text: tax form group name
To take the description of the tax form group and put it into the tax form field (see HR_F_W2) T066 for example
N- text, tax item name see T056 for example. It checks the T057 field for non-zero value and if found, places that text in T056 in this case,
O- Period to which Item belongs*.* Reporting period specifically a year, PU19 has reporting DMY and builds field D000 which is a date, normally a year.
P- State/ Locality Abbreviation, transforms the locality back to the state, i.e. OHIO becomes OH, Arizona becomes AZ etc.
Q- State/ locality abbreviations this one is not really used
R- W2 only: amount for box 13 R means that this field needs to be reported in box 12.
S- W2 only: amount for box 14, S means that this field needs to be reported in box 13.
T- Procedure TXTF Saves the amount internally and separately form the tax form, and the procedure is carried out and returns the amount.
U-X: are unusable.
If blank- there is no rule for printing
1- Print item in tax form negative
2- Print only when amount is positive
3- Don’t print if item is 0
9- Use tax authority of main form (not used)
B- Don’t report EE if item is negative Means if the item is negative, do not print a W2 for the EE at all, important if unemployment amount is negative.
C- Don’t report EE if items are zero or negative
Tax form field printing options
E and F- not used as logic has changed
L: Late sum in field (only used in 941) If set to L, then the field is not summed up until the last minute
M: Issue correction on demand, this is misleading, as this is issued for EE counts, so only printed if there is a correction to the number of employees
N: Print when positive, negative or 0. Used for forms which report daily such as 940/ 941 s this allows printing of all values
P and Q: not used
W: Print at most13 weeks only used for the state of NJ, it only prints 13 weeks’ worth of information, regardless of how many weeks are taken; only 13 are printed.
X: Save field description if not 0, e.g. field T202. There are 3 exits for this field
Tax Form Classes
All tax forms link to a tax form class.
The 1st letter of the tax form represents the periodicity:
M- Correction form Annual
P- Correction form quarterly.
A100 -> W2 wage and tax statement (annual)
However, just because AQMP means something for us internally does not mean anything for the customers, they do not have to name their forms this way.
V_T5UT4- tax form class description
V_T5UT5- tax form class details.
V_T5UT7- tax form class relations
Tax Reporter – further topics
Once the filing date is set, you cannot run a W2 again, you can only process either a copy of the W2 printout for an EE or EEs or you can run a W2C.
W2’s vs W2C’s
A correction for W2s can be done up to the time the filing date is set. Correct employees with retro changes and this will print the word “corrected” on the W2, after that, once the filing date has been set, you cannot change W2’s, you have no option other than to run W2C’s*.*
If a copy of a W2 is printed, it will have “re-issued” printed on it.
Post Filing Run
This is a run which is carried out, if after filing the W2’s that an employee never received a W2 in the first place, you can run a W2 post filing run in order to produce a W2 for that employee. In this case, the employee will be picked up by automatic employee selection in the W2 run.
This allows customers to enter manual entries for tax form groups in tax reporter, and to basically override what is already generated. Usually this is used at year end when customers find themselves against the clock and need to produce W2S, or when a complex retro may be needed, and a manual entry is just quicker to use to get the form printed. The problem with manual entries is that it is not good practise for auditing purposes to use it.
The pay date for manual entries needs to be within the dates specified in the selection at the top of the TR screen, otherwise, these entries will not be evaluated.
After specifying the reporting period end date, one of the most important time data is the as-of-date, i.e. the date from which Tax Reporter is to consider payroll results.
Below is an example of a Tax Reporter run for the third quarter, where the as-of-dates allow considering payrolls which pay dates are outside the reporting interval but they retroactively have effect on payrolls from the current reporting interval.
This information together with the actual generation time and date, and the control and form numbers are stored in the bookkeeping tables T5UXX and T5UXY. One of the major differences between production mode or simulation (test) mode in Tax Reporter is that the simulation run does not update these bookkeeping tables.
Function UCQRC in subschema UEND writes Pernr to table when their Retro crosses a Quarter.
Be sure to set Filing Date on Tax Reports so table can track the As Of Date for Correction Tax Report runs and for the Recon report comparison
To fill forms cluster PCL4 and produce output in the shortest period possible, Tax Reporter employs scheduling program RPCTRSU0. This program executes one or more instances of cluster fill program RPCTRCU0 and print program RPCTRPU0 in order to divide the size of the reporting run.
- One instance of RPCTRCU0 is called for each tax company whose data is being processed under transmitter Tax Company, and one instance of RPCTRPU0 is called for each type of output being processed.
- You can influence the performance of program RPCTRCU0, depending on the number of “commit work” statements (by changing the value of constant TRCOM in payroll constant table T511K).
Features in Tax Reporter
In transaction PU19 first decision is which Tax Company.
The feature UTXTM allows you to select just 1 Tax Co on this screen but process multiple tax companies each with its own EIN by means of a transmitter tax company. Mag Media all in 1 file with separator records for the individual Tax Companies.
Feature UTXRP allows you to select just 1 Tax Co on this screen but process multiple tax companies as if they were all the same single EIN from the designated reporting tax company.
Selecting 1 Tax Form may generate multiple related Tax Reports as linked in the delivered configuration of the IMG
Once a Tax Form has run for a Tax Company for a Timeframe it has generated the data to PCL4 cluster, viewable from PU19 Utilities or RPCTRDU0 then a copy can quickly be reprinted via ‘Print Copies’ icon.
- Handy Hint: FOR W2 processing only, box1 = T001, box2= T002, box 20= T020
Form processing indicator, if this s checked it means that from ERP 2005 up PDF is used for this tax form.
Evaluation type fields, defines which data of the interface tables will be taken in order to be reported on a specific tax form field.