Important Points -
(1) Address
All employees attached to a payroll must have a home address throughout their period of employment.Also, if you enter the ZIP Code first, the city, state, and county fields are automatically populated.
(2) Marital Status, Ethnicity, and Veteran fields in the Legislative Information section
Note: The Ethnicity and Veteran fields are required for EEO and VETS reporting.
(3) On the Employment Information page, provide the necessary work relationship, payroll relationship, assignment, job, manager, payroll, and salary details.
Note: Use the Payroll Details section to associate a TRU and payroll with the employee. If you opt not to, this employee would not automatically receive an Employee Withholding Certificate, and you would have to create it manually. See Manual Tax Card Creation for more instructions.
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Once a TRU is attached to an employee, the W-4 Federal Tax Card is generated. The association to the TRU is also generated. Additionally, the US taxation element is automatically added to the employee’s element entry once the association to the TRU is done. This tax card is not created for HR-only customers.
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Verifying Employee New Hire Status in Work Relationship Details
When hiring or rehiring employees, the New Hire Status field indicates whether they are to be included or excluded from new hire reporting. Find this field in the Work Relationship Details of the Employment Information page.
Field Name Description :
New Hire Status
- Identifies the employee’s employment status as pertains to the New Hire report:
Different Values
(1) Include in the New Hire report :Employee is to be included in the next run of the New Hire Report.
(2) Already reported: Employee has already been included in a previous run of the New Hire Report.
The New Hire Report process automatically sets all included employees to this status upon completion in final mode.
(3) Excluded from the New Hire report : Employee is not included in the report.
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Adding a Second Assignment
To add an additional assignment to an employee’s employment
information: 1. Follow steps 1 through 3 under Maintaining Employment
Information above.
2. Select Edit > Update.
3. Enter an Effective Start Date (or accept the default).
4. Select Add Assignment.
5. Click OK.
6. Enter employment information.
7. Click Next.
8. Enter compensation details.
9. Click Next.
10. Add or delete roles as needed.
11. Click Next.
12. Review the information and click Submit.
13. Click Yes.
You can view and access the new assignment from the
Employment Tree. The last assignment added is the one first displayed in the
Manage Employment UI when it is initially accessed. The other assignments may
be accessed using this tree hierarchy.
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There are several factors that make up the payroll processing.
Taxation Within Fusion Payroll
Vertex provides all the statutory compliance for the Oracle Fusion Global Payroll engine, but it is important for you to understand how the payroll process handles US taxation.
Managing the Employee Withholding Certificate
The Employee Withholding Certificate is the default tax card. For most employees, it is created automatically during the New Hire process. The Employee Withholding Certificate provides information used in taxation. Items such as filing status, number of allowances, and exemptions from taxes are specified on the card. If no values are entered, during tax calculations, a default value of Single for filing status and zero allowances will be used.
Setting Up Automatic Tax Card Creation
To ensure that new workers get an Employee Withholding Certificate:
1. Set the PAYROLL_LICENSE process configuration parameter to either PAYROLL or PAYROLL_INTERFACE, as appropriate to your implementation.
2. Confirm that element eligibility has been created for the US Taxation element. This element is automatically added to employee’s element entry when the association to the Tax Reporting Unit is completed.
Manual Tax Card Creation
There are cases where an employee would not have their tax card automatically created, such as if they were loaded through the File Based Loader utility.
For these employees, to create an Employee Withholding Certificate:
1. Navigate to the Payroll Calculations work area.
2. Start the Manage Calculation Cards task.
3. Search for and select the person record.
4. Click Create.
5. Enter an appropriate Effective-As-of-Date, and select Employee Withholding Certificate for Name.
6. Enter employee information as appropriate at the Federal level.
7. Click Save.
8. Select the Regional link under the Component Groups tree.
9. Enter employee information as appropriate for the Regional level.
10. Click Save.
11. Select the Associations link under the Component Groups tree.
12. Under Associations, click Create.
13. Select the Tax Reporting Unit, and click OK.
14. Click Save. This creates the US Taxation Component and is displayed in the Calculation Component column after saving.
15. Under Association Details, click Create.
16. Select the Employment Terms or Assignment Number and the Calculation Component created in prior steps, and click OK.
17. Click Save.
18. Upon tax card association creation, the following fields are autopopulated with default values on the federal-level employee withholding certificate and should be verified:
State for Unemployment Calculation
State for Disability Calculation
Primary Work Address
Changing the TRU for an Assignment:
To change the TRU for a preexisting assignment on the Employee Withholding Certificate:
1. Navigate to the Payroll Calculations work area.
2. Select Manage Calculation Cards.
3. Search for and select the person record.
4. Click Employee Withholding Certificate.
5. Click Associations under the Component Groups tree.
6. Select the Tax Reporting Unit under Associations for which the assignment currently exists.
If the association for the TRU for the new assignment does not already exist, create it now.
7. Select the assignment number to change under Association Details.
8. Click Edit>Update.
9. Select the Calculation Component for the new TRU.
10. Click Save and Close.
This end dates the record for the assignment associated with the previous TRU and creates a new record for the new TRU.
Manage Tax Withholding in My
Portrait
Employees can update their own
withholding information in Portrait using the Manage Tax Withholding action:
1.
Select Manage Tax Withholding action in the left panel under Actions.
This displays the Employee
Withholding Certificate page.
2. Click Edit.
This is available for both the federal and state level.
When the
federal employee withholding certificate is accessed, the system displays the
federal W-4 editable PDF form. For those states that do follow federal, the
state name is stamped on the editable federal PDF form. For those states that
do not follow federal, the specific state’s editable PDF form will be
displayed. The employee can perform their updates on these forms for both
federal and state withholding. When the form is submitted, the data is saved to
the system. See Appendix C for information on accessing the PA Residency
Certificate in My Portrait.
Tax Calculation:
Oracle Fusion Global Payroll automatically calculates your taxes when you perform a payroll run. The following describes the rules it uses when doing so.
Payroll Processing
When you perform a payroll run, the payroll process:
1. Determines the resident and work tax addresses based on the following hierarchy:
Address Type ---- Priority
Location address ---- 4
Location override address ---- 3
Assignment-level location override ---- 3
Work at home flag = Yes ---- 1 (overrides assignment, location override, and location)
Higher priorities override the lower ones.
The process derives the resident tax address from the home address, and the work tax address is derived from the work location or, if the work-at-home flag is enabled, it uses the home address.
2. Determines the related withholding status and any additional information from the tax calculation card.
3. Passes this information to Vertex for calculation.
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