Download Oracle HRMS US Implementation Guide

•
Section 125 for Tax (SECTION_125_FOR_TAX_BD)
•
Dependent Care (DEPENDENT_CARE_BD)
•
Dependent Care for Tax
•
(DEPENDENT_CARE_FOR_TAX_BD)
Tax Calculation requires the amount that is reduced from the Subject to
Tax Earnings amount. This reduced amount is derived from subtracting
the amount of Pre–Tax Deductions that is subject to Tax from the total
Pre–Tax Deduction amount. Example: Def Comp 401K is the total
pre–tax amount. Def Comp 401K for Tax is the amount of pre–tax
deduction that does NOT reduce Subject to Earnings, and as such must
be initialized only if it is nonzero. The same is true for Section 125 and
Dependent Care.
•
Employee TAX Withheld (TAX_WITHELD_BD)
•
EIC Advance (EIC_ADVANCE_BD)
•
Taxable Earnings for taxes with upper limits
(TAX_TAXABLE_BD)
Taxable Earnings must be set for FUTA, SS and Medicare. The balance
initialization process does not include validation for upper limit and
hence the amount initialized must NOT exceed the upper limit.
Note: Medicare Taxable will be equal to the subject amount
following recent legislation changes.
•
Employer Liability Balances
The following balances are DERIVED from the values entered in the
above mentioned balances.
Note: Do not initialize these explicit balances for Federal level
taxes.
•
Subject Witholdable = Regular Earnings + Supplemental Earnings
for Tax
•
Subject Nwhable = Supplemental Earnings for NW Tax
•
401 Reductions = Def Comp 401K – Def Comp 401K for Tax
•
125 Reductions = Section 125 – Section 125 for Tax
•
Dep. Care Reductions = Dep. Care – Dep. Care for Tax
•
Subject Earnings = Subj Whable + Subj NWhable
•
Exempt = Gross – Subject Earnings
Technical Essays
A – 145