Fusion US Third-Party Tax Filing Interface

8/20/2019 Fusion US Third-Party Tax Filing Interface

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An Oracle White Paper

February 2014

Fusion: US Third-Party Tax Filing Interface


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Disclaimer

The following is intended to outline our general product direction. It is intended for information purposes

only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code,

or functionality, and should not be relied upon in making purchasing decisions. The development, release,

and timing of any features or functionality described for Oracle’s products remains at the sole discretion of

Oracle


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Table of Contents

Third-Party Tax Filing: Explained ........................................................ 2

Quarterly Reporting .......................................................................... 2

Monthly Reporting ............................................................................. 2

Periodic Reporting ............................................................................ 2

Tax-Filing Setup for US ADP Transporter: Critical Choices ............... 3

ADP Configuration ............................................................................ 3

Organizations and Locations ............................................................ 3

Balance Management ....................................................................... 3

Reporting Information Card .............................................................. 4

Optional Configuration ...................................................................... 5

Running the Third-Party Tax Interface: Worked Examples ................ 7

Quarterly Tax Reporting ................................................................... 7

Monthly Tax Reporting ...................................................................... 7

Periodic Tax Reporting ..................................................................... 8

Tax-Filing Interface Error Recovery: Examples .................................. 9

Correcting Data After Periodic Archive Processing ......................... 9

Correcting Data Before Upload ........................................................ 9

Correcting Data After Upload ........................................................... 9

Form W-2 Box Information.................................................................. 10

Form W-2 Box Information ............................................................. 10

Form W-2 Box 12 Balances ............................................................ 15


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Third-Party Tax Filing: Explained

Business outsourcing solutions providers such as ADP can perform wage direct deposits, print W-2s, and

file federal, state, and local taxes for their customers. Oracle Fusion HRMS (US) provides a tax filing

interface for customers who choose to use such a third-party provider. This interface extracts all relevantpayroll data into an output file appropriate for ADP Transporter, so that you can submit it for processing.

This third-party interface supports three reporting intervals for tax filing:

Quarterly

Monthly

Periodic

All tasks are run from the Regulatory and Tax Reporting work area.

Quarterly Reporting

This extract uses payroll data to file quarterly and annual returns and, optionally, to print employee W-2s.

Use the Run Third-Party Quarterly Tax Filing Extract task to extract the archived payroll data to an outputfile.

Monthly Reporting

This extract uses payroll data to file monthly state unemployment wages and taxes. Use the Run Third-

Party Monthly Tax Filing Extract task to extract the payroll data to an output file. Currently, Illinois is the

only state requiring this reporting.

Periodic Reporting

This extract uses payroll data captured by the periodic archive process to report tax liabilities on an as-

needed basis.To run the periodic archive:

1. Use the Run Third-Party Periodic Tax Filing Extract task to extract the payroll data to an output file.

2. When selecting data for extract, use overlapping dates to ensure all appropriate payroll data is

captured.

Note:

The periodic extract file does not pass any year-to-date withheld amounts, so employers in

Missouri must apply for their tax credit directly from the Missouri tax authority.


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Tax-Filing Setup for US ADP Transporter: Critical Choices

The following assumptions and configuration requirements exist for the tax interface:

ADP Configuration

Organizations and Locations

Balance Management

Reporting Information Card

Optional Configuration

ADP Configuration

Prior to running your first extract, if you are a new user to ADP Transporter, you must establish a feed

with ADP prior to any attempt to extract.

Organizations and Locations

When setting up your organizations and locations, you need to consider the following: For locations in participating states:

1. Start the Manage Locations task.

2. Specify the Employer Unit Number under the United States Unemployment Reporting Information

section.

This value will be a three, four, or five digit number, depending on the state. Currently this is

required for New Mexico, Massachusetts, Minnesota, Iowa, and Michigan.

Oracle Fusion tax reporting units (TRUs) are considered companies by ADP. The extract output file

can include multiple batches, each representing a TRU.

Enter the employer client ID number provided by ADP into the Fusion system:

1. Start the Manage Legal Reporting Unit HCM task.

2. Enter the employer client ID in the Client Identifier field in the Third-Party Interfaces context at the

Federal level.

This ID cannot be more than 14 characters long.

For California, you must provide the employees' Wage Plan Code.

o At the payroll statutory unit (PSU) level, use the Manage Legal Entity HCM Information task.

o At the TRU level, use the Manage Legal Reporting Unit HCM Information task. Enter the value in

the Wage Plan Code field at the Regional level.

The value you enter at TRU level overrides the value for the PSU. Both can be overridden for

individual employees on the reporting card.

For New Jersey, you must indicate your family leave insurance plan and disability plan types, and if

you are opting for private plans, provide the plan numbers. Use the Manage Legal Reporting Unit

HCM Information task to specify these values at the Regional level. If private plans are used, the plan

numbers are displayed on the employee W-2.

Balance Management

When setting up balances, consider the following:


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When defining and managing balances, you must establish feeds for any balance you want to pass

on the file.

For a list of W-2 balances required for end-of-year reporting, refer to the Form W-2 Box Information

reference topic.

In addition to the W-2 balances, the following non-W-2 balances can also be passed on the file:

o Employer-Subsidized Meals

o Moving Expenses Paid to Third-Parties

o Qualified Transportation

o Sick Pay Wages

Reporting Information Card

The Reporting Information card requires the following parameters be set:

Field Name Notes

ADP Special

Processing

Required

Indicates whether the employee's W-2 should be excluded from main populationprinting.

ADP Special Sort

Code

Provides additional data for sort options G and E in the ADP client maintenance

system.

Corporate OfficerIdentifies employees who are corporate officers of the employer.

As this is required by multiple states, specify it at the federal level.

Eligible for

Retirement Plan

An employee is automatically marked as eligible for the retirement plan on Box

13 of their W-2 when any of the following balances has a value greater thanzero:

W2 401k

W2 403b

W2 408k

W2 501c

W2 Pension Plan

W2 Roth 401k

W2 Roth 403b

Use this field to manually identify employee eligibility if they do not contribute to

any plan.

Family Status Designates if the employee owns majority interest of this business.

Geographic CodeTwo-digit code that identifies where the employee works.

Required for Alaska reporting only.


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Health Care StatusDesignates if the employee is considered covered or not covered. Used in the

calculation of Vermont health care deduction reporting.

Occupational CodeSix-digit code that describes the activities of the employee.

Required for Alaska reporting only.

Probationary Code Identifies employees hired on a trial basis.

Seasonal CodeIdentifies employees as seasonal workers. Required for Maine and North

Carolina reporting only.

Wage Plan CodeUsed to override the value specified at the payroll statutory unit and tax reporting

unit levels. Applies to California reporting only.

Optional Configuration

The following settings may be necessary, depending on your individual reporting requirements:

Box 14 of the employee W-2 can be configured to display state-specific deductions, such as:

o Maine Public Employees Retirement System contribution

o Maryland state retirement pickup amount

o New York domestic partner benefits

The application automatically configures the feeds and Box 14 labels for the following state

deductions. No user action is required.

State Value Box 14 Label

Alaska State Unemployment Insurance AK SUI

California State Disability Insurance CA SDI

Hawaii State Disability Insurance HI SDI

Kentucky Boone County Occupational

Tax

BOONOC

Kentucky Boone County Mental Health

Tax

BOONMH

New Jersey State Disability Insurance DI

New Jersey Unemployment Insurance,

Workforce DevelopmentPartnership Fund,

Supplemental Workforce Fund

UI/WF/SWF

New Jersey State Disability Insurance

Private Plan Number

DI P.P #

New York State Disability Insurance NY SDI


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Pennsylvania Local Services Tax PA LST

Rhode Island State Disability Insurance RI SDI

For other state-specific deductions, to populate Box 14 for the quarterly extract:

1. Feed the appropriate W2 Box 14 balance.For the New York domestic partner benefits contribution, you must use the W2 Box 14A balance

and Box 14A lookup code.

2. Update the meaning of the corresponding lookup code of the US_W2 BOX 14 USER-DEFINED

lookup type.

The text you type will be the label text appearing on the W-2 Box 14.

Depending on the transmission method you have chosen, you may have to change the name of the

output file prior to transmission to ADP. Refer to your ADP documentation for instructions and

guidelines.


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Running the Third-Party Tax Interface: Worked Examples

Oracle Fusion HRMS (US) provides a tax filing interface for customers who choose to out source their tax

filing through ADP Transporter.

This third-party interface supports three reporting intervals for tax filing:

Quarterly

Monthly

Periodic

Note:

The Fusion application must be properly configured for tax interface reporting prior to running any

extract. Refer to “Tax-Filing Setup for US ADP Transporter: Critical Choices”, above.

Quarterly Tax Reporting

This extract uses payroll data to file quarterly and annual returns and, optionally, to print employee W-2s.

Use the Run Third-Party Quarterly Tax Filing Extract task to extract the archived payroll data to an outputfile.

1. From the Manage Regulatory and Tax Reporting work area, select the Run Third-Party Quarterly Tax

Filing Extract job for submission.

2. Specify the following values.

Field Name Description

Extract Tax Quarter The quarter you wish to report upon. Enter 3 for the third quarter.

Extract Tax Year The 4-digit year you wish to report upon. Enter 2011.

3. Submit the process.4. Review the audit report for totals sent on the file.

5. Upload the tax file to ADP Transporter.

Monthly Tax Reporting

For those states that require monthly reporting, this extract uses payroll data to report state

unemployment wages and taxes on a monthly basis. Use the Run Third-Party Monthly Tax Filing

Extract task to extract the payroll data to an output file. Currently, Illinois is the only state requiring

this reporting.

Note:

You do not need to generate this extract on months when you are creating the quarterly extract.1. From the Manage Regulatory and Tax Reporting work area, select the Run Third-Party Monthly Tax




Month The month you wish to report upon. Enter 2 for March.


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Year The 4-digit year you wish to report upon. Enter 2011.

3. Submit the process.

4. Review the audit report for totals sent on the file.


Periodic Tax Reporting

This extract uses payroll data captured by the periodic archive process to report tax liabilities on an as-

needed basis. Use the Run Third-Party Periodic Tax Filing Extract task to extract the payroll data to an

output file.

1. Run the necessary prerequisites for the Periodic Archive process (such as, payroll and prepayments).

2. Run the Periodic Archive process.

3. From the Manage Regulatory and Tax Reporting work area, select the Run Third-Party Periodic Tax




Periodic Extract Start Date Start date of the reporting period. Enter 3/1/2011.

Periodic Extract End Date End date of the reporting period. Enter 4/1/2011.

5. Submit the process. Upon successful completion, two output files are created: the tax file and an

audit report.

6. Review the Audit report for totals sent on the file.



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Tax-Filing Interface Error Recovery: Examples

The Oracle Fusion Tax-Filing Interface keeps no records of what files you send to ADP Transporter or

when you send them. It is up to you to ensure the accuracy of the Oracle Fusion HRMS (US) data you

capture and upload to ADP. The data maintained in Fusion must remain your source of truth.

Correcting Data After Periodic Archive Processing

For periodic tax filing, if you find an error in your payroll data after you have run the periodic archive, but

before you have submitted the extract process, you must:

1. Roll back the periodic archive.

2. Correct your information.

3. Rerun the archive process.

4. Run the tax-filing extract process.

Correcting Data Before Upload

In this case, you need to make corrections to your payroll data, but you have already generated the

extract file. If you have not yet uploaded the file to ADP, you must:

1. For periodic tax filing, roll back the tax-filing extract process and the periodic archive.

Note:

This assumes you have not run any post processes that are dependent on the periodic archive (such

as the payslip).

2. Correct your information.

3. For periodic tax filing, rerun the periodic archive process (periodic tax filing only).

4. Run the tax-filing extract process.

Correcting Data After Upload

Once you have uploaded your tax-filing extract to ADP, you must work with ADP to resolve issues and

correct any errors. You must also ensure all corrections are reflected in the data maintained in Fusion.


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Form W-2 Box Information

The following describes each of the balances assigned to various Form W-2 boxes.

The Oracle HRMS Third-Party Tax Filing Interface requires that you feed these balances for end-of-year

reporting.

Form W-2 Box Information

Box 7

Box Label Fusion Balance Additional Information

Social Security Tips W2 Social Security Tips

Box 8


Allocated Tips W2 Allocated Tips

Box 10


Dependent Care Benefits W2 Dependent Care

Box 11


Nonqualified Plans W2 Nonqualified Plan

Nonqualified Plans W2 Nonqualified 457

Box 12



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Codes Varies See "Form W-2 Box 12

Balances," below.

Box 13


Statutory Employee N/A Yes/No field on Federal

Employee Withholding

Certificate

Retirement Plan N/A

Displays a checkbox on the W-

2, with selection indicating

participation, depending on the

results listed in the Additional

Information column.

Checks the following balances

for values greater than zero:

W2 401k

W2 403b

W2 408k

W2 501c

W2 Pension Plan

W2 Roth 401k

W2 Roth 403b

Also checks the Reporting Card

field for a value of Y.

Third-party Sick Pay N/A

Displays a checkbox on the W-2, with selection indicating

receipt of pay, depending on

the results listed in the

Additional Information column.

Checks the W2 Third Party Sick

Pay balance for a value greaterthan zero.

Box 14A


Varies

The label for this box is

determined by the value you

provide in the W2 Box 14A

lookup code Meaning of the

US_W2 BOX 14 USER-

W2 Box 14A


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DEFINED lookup type.

Box 14B


Varies



provide in the W2 Box 14B


US_W2 BOX 14 USER-


W2 Box 14B

Box 14C


Varies



provide in the W2 Box 14C


US_W2 BOX 14 USER-


W2 Box 14C

Box 14D


Varies


determined by the value youprovide in the W2 Box 14D


US_W2 BOX 14 USER-


W2 Box 14D


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Box 14E


VariesThe label for this box is


provide in the W2 Box 14E


US_W2 BOX 14 USER-


W2 Box 14E

Box 14F


Varies



provide in the W2 Box 14F


US_W2 BOX 14 USER-


W2 Box 14F

Box 14G


Varies



provide in the W2 Box 14G


US_W2 BOX 14 USER-DEFINED lookup type.

W2 Box 14G

Box 14H



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Varies



provide in the W2 Box 14H

lookup code Meaning of theUS_W2 BOX 14 USER-


W2 Box 14H

Box 14I


Varies

The label for this box isdetermined by the value you

provide in the W2 Box 14I


US_W2 BOX 14 USER-


W2 Box 14I

Box 14J


Varies



provide in the W2 Box 14J


US_W2 BOX 14 USER-


W2 Box 14J

Box 14X


Varies



W2 Box 14X For Oracle Fusion Third-Party

Tax Filing Interface users, this

information is not passed on the


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provide in the W2 Box 14X


US_W2 BOX 14 USER-


output file.

Box 14Z


Varies



provide in the W2 Box 14Z


US_W2 BOX 14 USER-


W2 Box 14Z For Oracle Fusion Third-Party

Tax Filing Interface users, this

information is not passed on the

output file.

Form W-2 Box 12 Balances

Code Balance Description

A W2 Uncollected Social

Security Tax Tips

Uncollected social security or RRTA tax on tips.

A balance for Code A includes the amount of social

security tax on an employee's tips that could not be

collected because of insufficient funds.

B W2 Uncollected Medicare

Tips

Uncollected Medicare tax on tips.

A balance for Code B includes the amount of Medicare

tax on an employee's tips that could not be collected

because of insufficient employee funds.

C W2 Group Term Life Taxable cost of group-term life insurance over 50,000

USD.

A balance for Code C includes the value of employer-

provided group-term life insurance coverage over

50,000 USD minus the employee's after-tax

contributions.

D W2 401k Elective deferrals to a section 401 (k) cash or deferred

arrangement.

A balance for Code D includes the employee's total

elective deferrals to a 401 (k) cash or deferred


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arrangement, even if the employee exceeds the annual

elective deferral limit. Note:

When feeding this balance, you must include any catch-

up deductions.

E W2 403b Elective deferrals to a section 403 (b) salary reduction

agreement.

A balance for Code E includes the employee's total

elective deferrals to a 403 (b) salary reduction

agreement to purchase an annuity contract, even if the

employee exceeds the annual elective deferral limit.

Note:


up deductions.

F W2 408k Elective deferrals to a section 408 (k) (6) salaryreduction SEP.

A balance for Code F includes the employee's total

elective deferrals to a 408 (k) (6) salary reduction

Simplified Employee Pension plan, even if the employee

exceeds the annual elective deferral limit.

G W2 457 Elective deferrals and employers contributions

(including nonelective deferrals) to any governmental or

nongovernmental section 457 (b) deferred

compensation plan.

A balance for Code G includes the total elective and

nonelective contributions made to a 457 (b) deferred

compensation plan for government employees or tax

exempt organizations, even if the employee exceeds the

annual elective deferral limit.

Note:


up deductions.

H W2 501c Elective deferrals to a section 50 (c) (18) (D) tax-exemptorganization plan.

A balance for Code H includes the total elective

deferrals to a 501 (c) (18) (D) tax-exempt organization

plan (not employer nonelective contributions or

employee after-tax contributions).


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J W2 Nontax Sick Nontaxable sick pay.

A balance for Code J includes the amount of third-party

sick pay that is not subject to federal income tax

because of the employee's after-tax contributions to the

sick pay plan.

K W2 Excise Parachute 20% excise tax on excess golden parachute payments.

A balance for Code K includes a 20% excise tax on

excess golden parachute payments made to key

corporate employees after a merger or acquisition.

L W2 Expense

Reimbursement

Substantiated employee business expense

reimbursements.

A balance for Code L includes the amount of employee

business expense treated as substantiated (nontaxable)

only if the employer reimburses its employees for

expenses under a per diem or mileage allowance that

exceeds the government-approved rates.

M W2 Uncollected Social

Security Group Term Life

Uncollected social security or RRTA tax on taxable cost

of group-term life insurance over $50,000 (for former

employees).

A balance for Code M includes the amount of

uncollected social security tax on the value of excess

group-term life insurance coverage for former

employees.

N W2 Uncollected Social

Security Group Term Life

Uncollected social security or RRTA tax on taxable cost

of group-term life insurance over $50,000 (for former

employees).

A balance for Code M includes the amount of

uncollected social security tax on the value of excess

group-term life insurance coverage for former

employees.

P W2 Qualified Move Excludable moving expense reimbursements paid

directly to employees. A balance for Code P includes the amount of moving

expense reimbursements paid to employees that were

not included in the employee's income because they

were paid for qualified moving expenses.

Q W2 Nontax Combat Nontaxable combat pay.


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You can elect to have your non taxable combat pay

included in earned income for the earned income credit.

R W2 Medical Saving

Account

Employer contributions to an Archer MSA.

A balance for Code R includes employer contributions toyour medical savings account (MSA).

S W2 408p Employee salary reduction contributions under a section

408 (p) SIMPLE.

A balance for Code S includes employee salary

reduction contributions under a section 408 (p) SIMPLE

(not included in box 1).

T W2 Adoption Adoption benefits.

A balance for Code T includes adoption benefits not

included in box 1.

V W2 Nonqualified Stock Income from the exercise of nonstatutory stock option(s)

(included in boxes 1, 3, and 5).

A balance for Code V includes income from the exercise

of nonstatutory stock options.

W W2 Health Saving Account Employer contributions (including employee

contributions through a cafeteria plan) to an employee's

health savings account.

Y W2 Nonqualified Deferred

Compensation

Deferrals under a section 409A nonqualified deferred

compensation plan.

The amount set aside under a nonqualified deferred

compensation plan. This includes the current year

deferrals and earnings on the current year and prior

year deferrals.

Z W2 409a Nonqualified

Income

Income under section 409A on a nonqualified deferred

compensation plan.

The amount set aside under a nonqualified deferred

compensation plan that is taxable in the year of deferraldue to the failure of the employer's plan to meet certain

qualifications under section 409a. Can also be used to

report amounts deferred into a nonqualified plan in prior

years if the employer's plan was not modified.

AA W2 Roth 401k Designated Roth contributions to a Section 401 (k) plan.


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If an employee participates in a Section 401 (k) plan that

includes a qualified Roth contribution program, the

employee may elect to make a designated Roth

contribution to the plan or program in lieu of elective

deferrals.

Note:


up deductions.

BB W2 Roth 403b Designated Roth contributions to a Section 403 (b) plan.

If an employee participates in a 403 (b) salary reduction

program that includes a qualified Roth contribution

program, the employee may elect to make a designated

Roth contribution to the plan or program in lieu of

elective deferrals.

Note:


up deductions.

DD W2 Health Coverage Cost of employer-sponsored health coverage. Refer to

the IRS guidelines on what values should be included in

this box.

EE W2 Roth 457B Designated Roth contributions under a governmental

section 457 (b) plan.

This amount does not apply to contributions under a tax-

exempt organization section 457 (b) plan.

Note:


up deductions.


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February 2014

Author: John Lawson

Contributing Authors:

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