HRIS Human Resources Information Solution RESOURCE GUIDE · HRIS Resource Guide - Internal Use Only...

HRIS – Human Resources Information Solution

RESOURCE GUIDE: TAXES

HRIS Resource Guide

- Internal Use Only January 01, 2020 Taxes 2

TAXES Table of Contents

EMPLOYEE TAXES .................................................................................................................................................. 3

INTRODUCTION .............................................................................................................................................................. 3 TAXES ENTRY TIPS .......................................................................................................................................................... 3

FEDERAL TAX ELECTIONS ....................................................................................................................................... 4

ENTER FEDERAL TAX PR13.1 ........................................................................................................................................... 4 ENTER EXEMPT TAX WITHHOLDING ................................................................................................................................. 7 US TAX DEDUCTION ERRORS PR13.8 .............................................................................................................................. 10 IRS LOCK-IN WITHHOLDING ........................................................................................................................................... 11

STATE TAX ELECTIONS .......................................................................................................................................... 13

ENTER ARIZONA PERCENTAGE PR14.1 ............................................................................................................................ 13 ENTER ADDITIONAL AMOUNT PR13.1 ............................................................................................................................. 15

DISABLE TAXES FOR DECEASED EMPLOYEE .......................................................................................................... 16

INTRODUCTION ............................................................................................................................................................ 16 DISABLE TAXABLE WAGES – US TAX LOCATIONS FORM PR13.7 ........................................................................................... 17 STOP DECEASED EMPLOYEE DEDUCTIONS PR15.2 .............................................................................................................. 19

MEDICARE QUALIFIED GOVERNMENT EMPLOYEE (MQGE) .................................................................................. 21

INTRODUCTION ............................................................................................................................................................ 21 DISABLE SOCIAL SECURITY AND MEDICARE TAXES ............................................................................................................... 21 ENABLE MQGE TAXES .................................................................................................................................................. 25

MQGE EMPLOYEE NO LONGER ELIGIBLE DUE TO JOB CHANGE ............................................................................ 29

DISABLE MQGE/ENABLE SOCIAL SECURITY AND MEDICARE PR13.7 ..................................................................................... 29 STOP MQGE/START SOCIAL SECURITY AND MEDICARE DEDUCTIONS PR15.2 ......................................................................... 31

HRIS Resource Guide


Employee Taxes Introduction An Employee will have taxes withheld from their pay on a biweekly basis. These withholdings include:

Federal

State of Arizona

Social Security

Medicare

MQGE (where applicable)

Employee tax withholdings will default as defined by Federal/State Laws. However, an Employee must

complete the required legal documents (W-4 and A-4) to add or change tax withholdings. Employee

Federal taxes will be set up on the Employee US Taxes Form (PR13.1).

Agency Payroll Specialists have access to enter Federal and State tax information. An employee also has

the option to login to Y.E.S. and select their Tax withholdings. The information will automatically update

HRIS immediately.

Once an Employee’s taxes have been updated, file the applicable W-4 and A-4 form as determined by

each agency.

Taxes Entry Tips

Unlike many other HRIS Transactions, changes to an Employee’s tax withholdings cannot be future dated.

Changes can be made to the Employee taxes at any time, and these changes will be reflected on the next manual payment (handwrite) or regular payroll.

Changes are effective in HRIS immediately.

The State of Arizona does not withhold taxes for other states.

A rehired Employee must complete new tax forms and their record must be updated in HRIS. If not, the employee must be setup to the default Federal withholding rate of Single and no adjustments and the default State withholding rate of 2.7%

HRIS Resource Guide


Federal Tax Elections Enter Federal Tax PR13.1 Federal Tax Entry beginning January 1, 2020

The IRS has revised the Form W-4 Employee's Withholding Certificate resulting in several new fields in

HRIS. The fields used for the W-4 are the Mar Stat, Tax Exm, Addl Exemptions tab and Tax Info 2 tab.

Access the PR13.1 Employee United States Taxes (PR13.1)

1. Type PR13.1 in the White Search box and click Enter

2. Type or Select Company 1

3. Type the Employee’s EIN

4. Click Inquire

The first row displays the default Federal Tax (Ded T101) Withholding Election of Single with no

additional adjustments.

To make changes to the defaulted values:

Type C in the FC field of the Federal Tax Deduction to make changes to the default withholding elections

to match the IRS Form W-4. Use the employee's W-4 Employee's Withholding Certificate to complete

entry into HRIS.

HRIS Resource Guide


1. Form W-4 Step 1: Year and Personal Information (REQUIRED)

a. Use the drop down to select the Mar Stat indicated in Step 1(c) of the W-4.

W-4 Step 1(c) Box Checked PR13.1 Mar Stat

Single/Married filing separately 01

Married filing jointly (or Qualifying window(er)) 04

Head of household 06

b. Click Tax Info 2 tab. This new tab accommodates the new fields on the 2020 W-4.

c. Form Year field: Enter the 4-digit Form Year from the top right corner of the Form W-

d. The Form Year is required to ensure the appropriate tax tables are used. A blank Form

Year indicates the employee has elections from prior to 1/1/2020

2. Form W-4 Step 2: Multiple Jobs or Spouse Works

HRIS Resource Guide


Multiple Jobs field: Use the drop down to select value from the Form W-4:

Select 1 No if Step 2(c) box is blank

Select 2 Yes if Step 2(c) box is checked

3. Form W-4 Step 3: Claim Dependents

Dependents Field: Enter the amount from W-4 Step 3 box 3.

-Must be a multiple of 500

4. Form W-4 Step 4: Other Adjustments

a. Other Income Field: Enter the amount from W-4 Step 4 box 4(a) or leave blank

b. Deductions Field: Enter the amount from W-4 Step 4 box 4(b) or leave blank

c. Click Tax Info 1 Tab if an amount is populated in W-4 Step 4 box 4(c)

HRIS Resource Guide


d. Tax Code: Select 02 Addtl Amt; Tax not > txbl wage

e. Amount field: Enter the amount from W-4 Step 4 box 4(c)

f. Click Change to save changes

Enter EXEMPT Tax Withholding An employee claiming exemption from withholding has to write Exempt on the Form W-4 in the space

below Step 4(c). The employee must only complete Steps 1a, 1b and 5 of the W-4.

1. Access the PR13.1 Employee United States Taxes (PR13.1)

a. Type PR13.1 in the White Search box and click Enter

b. Type or Select Company 1

c. Type the Employee’s EIN

d. Click Inquire

The first row displays the default Federal Tax (Ded T101) Withholding Election of Single with no

additional adjustments.

HRIS Resource Guide


2. Type C in the FC field of the Federal Tax Deduction

3. Use the drop down to select the Mar Stat indicated in Step 1(c) of the W-4

W-4 Step 1(c) Box Checked PR13.1 Mar Stat

Single/Married filing separately 01

Married filing jointly (or Qualifying window(er)) 04

Head of household 06

4. Tax Exm field: Use the drop down to Select Y Yes; Tax Exempt only

5. Click Tax Info 2 tab

a. Form Year field: Enter the 4-digit Form Year from the top right corner of the Form W-4.

HRIS Resource Guide


The Form Year is required to ensure the appropriate tax tables are used. A blank Form Year indicates the

employee has elections from prior to 1/1/2020.

b. All remaining fields on the Tax Info 2 tab must be blank

6. Click Tax Info 1 tab

a. All fields in the Tax Info 1 tab must be blank

7. Click Change

HRIS Resource Guide


US Tax Deduction Errors PR13.8 Use this form to view tax error after an employee is hired:

Tax factory errors for a specific employee on the Messages tab

Messages indicating to use BSI Tax Factory to view errors

1. Enter 13.8 in the Search box, click Enter

2. Company: Enter 1 if not already populated

3. Employee: Enter the EIN of the employee

4. Date: Enter the employee's Hire Date from HR11.1

5. Click Inquire

The Message tab will show any errors that need to be corrected.

The Location Changes tab will show errors due to Location Changes on an employee time record, that

override the employee’s record location.

The Deduction Changes tab will show changes that occurred due to a Tax Locator Update.

HRIS Resource Guide


IRS Lock-In Withholding Use Tax Withholding Lock-In (PR14.2) to view an IRS 'lock' to the withholding level for Federal

withholding tax for U.S. employees for whom the employer has received a lock-in letter from the IRS.

The entering and releasing of the Lock-In Withholdings is maintained by ADOA Central Payroll. This form

is view only.

1. Enter PR14.2 in the search box, click Enter

2. Company: Enter 1

3. Employee: Enter the EIN of the employee

4. Deduction: Type T101 or choose T101 from the drop down menu

5. Click Inquire

HRIS Resource Guide


Example 1; Lock In field is blank displays Not applicable. This employee can change the Federal tax

elections directly on YES or submit a W-4 for Agency Payroll Specialist to update on PR13.1

Example 2; Lock In field is 9 displays Lock-in. This employee will receive an error in YES if they attempt

to change their Federal tax withholding. Agency Payroll Specialist cannot make changes on PR13.1, error

message of Cannot change; tax withholding lock in place will display in the status bar.

The Marital Status and Exempt Number displays what the IRS will allow the employee to claim. If the

exemption field is blank, the employee will not be able to claim any exemptions. The employee will not

be able to change their tax withholding unless they are making changes to withhold more taxes.

HRIS Resource Guide


State Tax Elections Enter Arizona Percentage PR14.1 Enter employee elected State Tax withholdings on PR14.1 and PR13.1 using the amounts from the

Employee’s Arizona Withholding Election Form A-4. Unless they are claiming exempt, an employee also

has the option to login to Y.E.S. and select their Arizona Tax withholdings. The information will

automatically update HRIS within 24 hours.

No. HRIS Field

Required (R)

Optional (O)

Step / Action Expected Results Notes / Additional Information

1 White Search

Box

R Type PR14.1 in the White Search Box click Enter

Employee

Deduction PR14.1

displays

2 Company Field R Type 1 in Company

field

State of Arizona

displays. All forms/actions

must contain a 1 in

the Company Field.

3 Employee

Field

R Type in the EIN of the employee

Employee name

displays

HRIS Resource Guide


No. HRIS Field

Required (R)

Optional (O)


4 Deduction

Code field

R Type or select T201 AZ STATE W/H TAX

displays

5 Inquire Button R Click Inquire Message Inquiry

Complete in the

lower left corner.

Values populate in fields

6 BSI Formula

field

R Delete any values Field is always left blank

7 Arizona

Formula field

R Enter Formula number

based on employee's

Percentage election

Formula 13 (2.7%) is used as a default if employee did not elect a percentage on the A-4.

8 Change button R Click Change Change Complete -

Continue displays

Continue to PR13.1

NOTE: If employee is claiming exempt, review the PR13.1 and confirm that the Tax Exempt field is blank and no longer displays ‘Yes’.

HRIS Resource Guide


Enter Additional Amount PR13.1 Review PR13.1 to review or update Additional Amount field or Tax Exm flag.

Remove any Additional Amount or remove the Tax Exempt Flag that may remain from a

previous A-4 election.

1. Enter PR13.1 in the search box

2. In the Company field, enter 1

3. Select or Type the EIN of the employee

4. Click Inquire

5. In the FC field corresponding to the T201 Ded, type or select a C for change

6. Tax Emp flag must be blank, remove Y if displayed

7. Click the Addl Tax Information tab

8. If the employee requests to have additional tax amount deducted from paycheck:

a. In the Tax code field, select Tax Code 2

HRIS Resource Guide


b. In the Amount field, enter the Additional Amount

If the Employee is claiming Tax Exempt, they cannot have an additional

amount. Verify both of these fields are blank.

9. Click Change

This completes the process for State Tax elections.

Disable Taxes for Deceased Employee Introduction Any wages due to a deceased employee’s beneficiary have special tax treatment. Depending on the year

of death and year of payment, various taxes need to be stopped before a payment can be issued.

Taxable Wage is Disabled on PR13.7 and the Tax Deductions are stopped on PR15.2

Federal & State Tax

Social Security &

Medicare

Deduction Codes to

Disable

Wages paid IN SAME

calendar year as

employee’s death

Exempt Taxable T101 and T201

Wages paid AFTER

calendar year of

employee’s death

Exempt Exempt

T101, T102, T103,

T104, T105 and T201

MQGE EE:

T101, T106, T107 and

T201

HRIS Resource Guide


Disable Taxable Wages – US Tax Locations Form PR13.7

HRIS Field

Required (R)

Optional (O)


White Search

Box

R Type PR13.7 in the

White Search Box

click Enter

The US Tax

Locations Form

(PR13.7) will open.

Company Field R Type or Select

Company 1

State of Arizona

displays

Company should always be 1

Employee Field R Type the Employee’s

EIN

Employee’s name

is displayed after

cursor is moved to

the next field.

Next Button R Click the Next button

to display the

Employee’s record.

The Employee’s tax

programs will

appear.

FC Field for T101

Federal

Withholding

R Type D or select

Disable from the

drop down menu.

FC Field for T201 R Type D or select

Disable from the

drop down menu.

HRIS Resource Guide


HRIS Field

Required (R)

Optional (O)


– AZ State W/H

Tax

Change button R Click Change Change complete

continue displays

Status is now Disabled

If Employee Died in the PRIOR Calendar Year also disable the following deductions:

T102 SOCIAL SECURITY - ER

T103 SOCIAL SECURITY EE

T104 Medicare – EE

T105 Medicare – ER

Taxable Wages are now disabled. Continue to PR15.2 to stop the deductions.

HRIS Resource Guide


Stop Deceased Employee deductions PR15.2 Employee Deduction Speed Entry Form PR15.2

Use the PR15.2 to update multiple deductions on a single screen.

No. HRIS Field

Required (R)

Optional (O)


1 White Search

Box

R Type PR15.2 in

the White Search

Box click Enter

The Employee

Deduction Speed

Entry PR15.2

displays.

2 Company Field R Type or Select

Company 1

State of Arizona

displays

Company should always be

1

3 Employee Field R Type the

Employee’s EIN

Employee’s name is

displayed after

cursor is moved to

the next field.

4 Position To field O Type T101 On Inquire, T101 will

display in Row 1

5 Inquire Button R Click Inquire Message Inquiry

Complete will appear

in the lower left

corner of the

window.

All deductions for this

employee will appear

HRIS Resource Guide


No. HRIS Field

Required (R)

Optional (O)


6 FC field R Type C or select

Change from the

drop down menu

7 End Date Field R Type in the End

Date to stop the

deduction.

Format is MMDDYYYY

8 Change Button R Click Change to

save the changes

Message Change

Complete –

Continue, will appear

in the lower left

corner of the

window.

If Employee Died in the PRIOR Calendar Year also end date the following deductions:

T102 SOCIAL SECURITY - ER

T103 SOCIAL SECURITY EE

T104 Medicare – EE

T105 Medicare – ER

This completes the process of disabling taxes for a deceased employee.

HRIS Resource Guide


Medicare Qualified Government Employee (MQGE) Introduction Employees who are required to pay the Medicare-only portion of FICA are referred to as Medicare

Qualified Government Employees (MQGE). These Employees will have MQGE (Medicare Only) withheld

from their pay on a biweekly basis in place of Social Security and Medicare Taxes. These employees are

still required to pay Federal and State taxes. Eligible Employees at the State of Arizona include Superior

Court Judges.

MQGE deductions are established in HRIS using the US Tax Locations Form (PR13.7) and the Employee

Deduction Entry Form (PR14.1)

MQGE can only be entered at the Agency Payroll Specialist due to the HRIS forms required to complete

the setup.

Note:

The MQGE withholding requires stopping the existing Medicare and Social Security withholdings then establishing an Employee and Employer MQGE withholding.

Changes to an Employee’s tax withholdings cannot be future dated.

It is also possible to update the employee deductions via the Employee Deduction Speed Entry Form (PR15.2) however; instructions are not included in this document.

Disable Social Security and Medicare Taxes

US Tax Locations Form (PR13.7) This form is used to indicate whether a tax deduction code is to be included in the Taxable Wages

calculation. A blank Status includes the tax deduction code in Taxable Wages. A Disabled Status will

exclude the tax deduction code from the Taxable Wages calculation.

HRIS Resource Guide


HRIS Field

Required (R)

Optional (O)


White Search Box

R Type PR13.7 in the White Search Box Press Enter

The Employee US Taxes Locations (PR13.7) will open.

Company field R Type or Select Company 1

State or Arizona will display


Employee field R Type the Employee’s EIN

Employee’s name is displayed after cursor is moved to the next field.

Next button R Click Next Tax deductions are displayed

It is extremely important that only the Social Security and Medicare deductions are disabled. Do not disable Federal or State deductions. FC field for T102_SOCIAL SECURITY ER

R Type D or select Disable from the drop down menu.

FC field for T103_SOCIAL SECURITY EE


FC field for T104_MEDICARE EE


FC field for T105_MEDICARE ER


Change button R Click Change Message Change Complete – Continue, will appear in the lower left corner.

Status will display as Disabled

HRIS Resource Guide


Employee Deductions (PR14.1) – End T102, T103, T104, T105 This form is used to indicate whether a tax deduction code is to taken from the employee's paycheck.

Disable the taxes on PR13.7 prior to end dating the deductions on PR14.1

Only change the fields indicated in this process, the values in other PR14.1 fields are defaulted based on

the system setup, do NOT change the values.

HRIS Field

Required (R)

Optional (O)


White Search Box


The Employee Deduction PR14.1 displays

Company field R Type or select Company 1

State of Arizona displays


Employee field R Type the Employee’s EIN


Deduction Code

R Type in the Deduction Code

HRIS Resource Guide


HRIS Field

Required (R)

Optional (O)


The first deduction code is T102 – Social Security ER

Inquire Button R Click Inquire Deduction information appears

End Date field R Type the End Date for the deduction

MMDDYYYY format. Use Hire Date or the Pay Period End (PPE) Date from the Payroll before the employee is being enrolled in MQGE.

Change Button R Click Change Message Change Complete – Continue appears in the lower left corner

Next Button R Click Next Button The next deduction code displays.

Clicking Next will automatically inquire on the screen. The next codes will be T103, then T104, then T105.

Repeat steps for deductions T103, T104 and T105. The process of disabling Social Security and Medicare Taxes is complete.

HRIS Resource Guide


Enable MQGE Taxes

Create Employee Deductions (PR14.1) – Add T106 and T107 This form is used to create the MQGE tax deductions that will be withheld from the employee's

paycheck. Only input the fields indicated in this process, the values in other PR14.1 fields are defaulted

based on the system setup, do NOT change the values.

HRIS Field

Required (R)

Optional (O)


White Search

Box


White Search Box

click Enter

The Employee

Deductions PR14.1

displays

Company field R Type or select

Company 1

State of Arizona

displays


Employee field R Type the Employee’s

EIN


displayed after

cursor is moved to

the next field.

HRIS Resource Guide


HRIS Field

Required (R)

Optional (O)


Deduction

Code

R Type in the

Deduction Code

T106 MQGE ER

Inquire Button R Click Inquire Employee Deduction

does not exist

message displays

Begin Date

field

R Type the Begin Date

for the deduction

MMDDYYYY format.

Use Hire Date or the Pay Period

Begin Date of the Payroll the

employee is being enrolled in

MQGE.

Add Button R Click Add Message Add

Complete – Continue

appears in the lower

left corner

Values are populated into

fields.

Repeat steps for deduction T107.

Continue to Enable MQGE Deductions.

HRIS Resource Guide


Enable MQGE Deductions

US Tax Locations Form (PR13.7) – T106 & T107

It is very risky to enable/disable a tax deduction. It is extremely important that only the MQGE deductions are enabled. At no time should any other Tax deduction be enabled using this form

No. HRIS Field

Required (R)

Optional (O)


1 White Search Box


The Employee US Taxes Locations (PR13.7) displays

2 Company field R Type or Select Company 1

State of Arizona displays Company should always be 1

3 Employee field R Type the Employee’s EIN


4 Next button R Click Next to display the employee’s record

The Location appears

5 User Tax Deductions tab

R Click User Tax Deductions tab

Locate a blank row to add the deductions

HRIS Resource Guide


US Tax Locations Form (PR13.7) – User Tax Deductions Tab

No. HRIS Field

Required (R)

Optional (O)


1 FC Field

R Type A or select Add from the drop down menu.

Repeat for line 2

2 Ded Field R Type T106 or select MQGE – ER from the drop down menu.

Repeat for T107 MQGE-EE

3 Change button R Click Change Change complete- Continue displays

This completes the process for adding MQGE tax deductions.

HRIS Resource Guide


MQGE Employee No Longer Eligible due to Job Change Disable MQGE/Enable Social Security and Medicare PR13.7 US Tax Locations Form (PR13.7) Use the form to Disable MQGE taxable wages and Enable Social Security and Medicare taxable wages.

HRIS Field

Required (R)

Optional (O)


White Search

Box


White Search Box

Press Enter

The US Tax Location

PR13.7 displays.

Company field R Type or Select

Company 1

State or Arizona will

display


Employee field R Type the

Employee’s EIN


displayed after

cursor is moved to

the next field.

Next button R Click Next Tax deductions are

displayed

It is extremely important that only the Social Security, Medicare and MQGE deductions are

enabled/disabled. Do not disable Federal or State deductions.

FC field R Type E or select

Enable from the

drop down Menu

Enable deductions:

T102_SOCIAL SECURITY ER

T103_SOCIAL SECURITY EE

HRIS Resource Guide


HRIS Field

Required (R)

Optional (O)


T104_MEDICARE EE

T105_MEDICARE ER

Change button R Click Change Message Change

Complete –

Continue, will appear

in the lower left

corner.

Status will be blank

User Tax

Deductions tab

R Click User Tax

Deductions tab

T106/T107

deductions display

HRIS Field

Required (R)

Optional (O)


FC Field for T106 MQGE–ER

R Type D or select Delete from the drop down menu

Repeat for T107 MQGE-EE

Change button R Click Change Change Complete Continue message displays

Deductions are removed from form.

HRIS Resource Guide


Stop MQGE/Start Social Security and Medicare deductions PR15.2

Employee Deduction Speed Entry Form PR15.2 Use the PR15.2 to update multiple deductions on a single screen. Stop MQGE tax deductions and start

Social Security and Medicare tax deductions.

No. HRIS Field

Required (R)

Optional (O)


1 White Search Box


The Employee Deduction Speed Entry PR15.2 displays.

2 Company Field R Type or Select 1 State of Arizona displays


3 Employee Field R Type the Employee’s EIN


4 Position To field O Type T102 On Inquire, T102 will display in Row 1

5 Inquire Button R Click Inquire Message Inquiry Complete will appear in the lower left corner of the window.

All deductions for this employee will appear

6 FC field R Type C or select Change from the drop down menu.

MQGE Deductions T106 and T107:

HRIS Resource Guide


No. HRIS Field

Required (R)

Optional (O)


End Date Field R Type in the End Date to stop the deduction.

Format is MMDDYYYY

Social Security and Medicare Deductions T102, T103, T104, T105:

Begin Date Field R Type in the NEW Begin Date

End Date Field R Blank out the End Date

Value is blank

7 Change Button R Click Change to save the changes.

Message Change Complete – Continue, will appear in the lower left corner of the window.

This completes the process of disabling MQGE and starting Social Security & Medicare deductions

Date post:	29-May-2020
Category:	Documents
Upload:	others
View:	13 times
Download:	0 times

HRIS Human Resources Information Solution RESOURCE GUIDE · HRIS Resource Guide - Internal Use Only...

Documents