Friday Sep 20, 2013

UPDATE 9/2013: Peoplesoft Benefits and Payroll for North America - How does the new Healthcare Legislation impact your PeopleSoft products?

The PeopleSoft Payroll for North America/Benefits products have been adding functionality along the way to support the requirements for HealthCare reform.  One big piece of legislation that is still evolving is Employer Shared Responsibility.  In July of this year the IRS announced that they were going to defer this requirement until 2015 to allow time for the IRS to find a better way to support the requirement. 

On September 5, 2013 the IRS released the proposed guidelines and invited stakeholders to submit comments on the proposed rules through early November 2013.  Once the IRS finalizes the rules, PeopleSoft can take a position on what should be done.  We have revised our Position Statement, specifically on Shared Responsibility on September 20, 2013 to include new information.  The revisions can be found on Page 17.  The updated Position Statement can be found on My Oracle Support, Document ID 1080659.1. 

PeopleSoft HCM Federal Defense of Marriage Act (DOMA)

The Federal Defense of Marriage Act (“DOMA”) was enacted September 21, 1996. US law did not recognize same-sex marriage granted under the laws of other states. This act defined "marriage" as a heterosexual union and had defined "spouse" as “a person of the opposite sex who is a husband or a wife." While the act was in place the Internal Revenue Code adopted the definition of "spouse" from DOMA and excluded same-sex spouses from some of the taxation benefits a heterosexual spouse. On June 26, 2013 the U.S. Supreme Court declared Section 3 of DOMA, which denied federal recognition of same-sex marriages, unconstitutional. However, this left in place Section 2, which allowed states to refuse to recognize same-sex marriages performed in other states.

On August 29, 2013 IRS issued ruling IR-2013-72 which stated same-sex couples, legally married in a jurisdiction that recognizes their marriage will be treated as married for federal purposes. The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a jurisdiction that does not recognize same-sex marriage. The PeopleSoft team is working hard to define the areas of impact to the Benefits, PeopleSoft Payroll for North America, and Payroll Interface Products. We will be delivering some changes as early as Tax Update 13-E as we continue to analyze the complete scope and impact to the PeopleSoft product lines. Please see the PeopleSoft Position Paper on My Oracle Support , Document ID 1586141.1.

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This blog is dedicated to topics focused on legislative updates to PeopleSoft Applications including Human Capital Management and Financials.

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