Tuesday Dec 18, 2012

Fiscal Cliff

As December 31, 2012 quickly approaches, so does the deadline to extend the Bush Era Tax Cuts which were extended under the Budget Control Act of 2011.  PeopleSoft realizes that there may be some customer anxiety over the delayed withholding tables. PeopleSoft is unable to move forward with delivering the tax changes until we get the official ruling and withholding tables from the IRS.  Please be assured that our legislative analysts are in the loop and are monitoring this situation daily.  Any changes will be included in a special posting. We have created a Knowledge Document in My Oracle Support, Document ID 1332295.1 to keep you up to date on the pending changes.

Thursday Oct 13, 2011

U.S. Savings Bonds - Payroll for North America

Did you know the U.S. Department of Treasury stopped issuing paper bonds through traditional payroll savings plans for Federal employees September 30, 2010 and non-Federal Employees effective December 31, 2010? Cost reduction drove these changes to the U.S. Savings Bond Program as well as the long term goal to issue all securities electronically. U.S. Treasury securities are a great way for your employees to invest and save for the future. With these new changes, it is easier than ever to offer this benefit to your employees using the Payroll for North America product. If you, as an employer, are offering this benefit to your employees, there are a few easy steps the employees would need to take:

  • Employees will need to open a TreasuryDirect account at www.treasurydirect.gov where they will be provided a TreasuryDirect Account number. The Bank (ABA) Routing number will always be 051736158.
  • Employees will create Direct Deposit record in ePay (just as they would for any other banking/financial institution).
  • With these changes:
    • Employers are no longer the “administrators” of the Savings Bond Program.
    • Employers no longer need to hold or accumulate funds towards the purchase price of a security.
    • Employers do not have to request the issuance of securities or keep track of registrations.
    • Employers can offer a Savings Bond Program with minimal effort.

For more information on this process please see My Oracle Support Document ID 1127539.1.

Tuesday Jul 05, 2011

LEGISLATIVE ALERT - FUTA TAX RATE CHANGES

The FUTA Surtax of 0.2% will expire on June 30, 2011 based on information provided in the IRS Publication 15 (Circular E) for 2011. Employers will see a lower Federal Unemployment tax rate in the second half of the year after the special surtax expires. The FUTA tax rate will remain at 6.2% through June 30, 2011. Effective July 1, 2011, the FUTA tax rate decreases to 6.0%. Due to the urgency of this change PeopleSoft Payroll for North America has created a special posting to comply with the IRS regulations. Please refer to My Oracle Support Document ID 133225.1 for specific information on this posting as it relates to your release.

Monday Jun 06, 2011

Pennsylvania Act 32

Do you pay employees in Pennsylvania? If so, the Oracle/PeopleSoft Payroll for North America team would like to bring to your attention new legislation, called Pennsylvania Act 32 of 2008. Pennsylvania Act 32 provides for a restructuring of the local Earned Income Tax (EIT) collection system for Pennsylvania local governments and school districts, and was signed into law on July 2, 2008. Act 32 provides for one EIT tax collector for each county (with the exception of Allegheny County and Philadelphia). This change will reduce the number of local EIT collectors from 560 to 69. The law requires employers to withhold EIT from residents and non-residents to remit all withholdings within 30 days of the end of each quarter, or in some cases monthly. Businesses with multiple locations across the state will now be allowed to remit to the county where they are headquartered. 

This Act imposes new tasks and responsibilities on Pennsylvania employers for the calculation and withholding of Pennsylvania local earned income tax. For more detailed information on this law please go to the Pennsylvania website of the Pennsylvania Department of Community and Economic Development.

Statewide implementation of Act 32 begins with wages paid on or after January 1, 2012. However, three Pennsylvania counties have announced that they will require employers to begin complying with Act 32 requirements in 2011:

  • Chester County
  • Lebanon County
  • Wyoming County

In May 2011, PeopleSoft delivered product updates to assist employers in Chester, Lebanon and Wyoming counties. These changes are being posted in Tax Update 11-C. 

My Oracle Support Document ID 1087164.1 provides complete information on the product update information for the early adopter counties (Chester, Lebanon and Wyoming). We will be versioning this document to provide additional information for the remaining counties as the details become available. If this information is applicable to your organization, please bookmark this page.

Monday May 23, 2011

Oracle PeopleSoft Benefits and Payroll for North America – How does the new Healthcare Legislation impact your PeopleSoft products?

The "Patient Protection and Affordable Care Act" (PPACA) (P.L. 111-148) and the "Health Care and Education Reconciliation Act of 2010" (H.R. 4872) were signed into law March of 2010. The Oracle PeopleSoft team has been monitoring this legislation and the impacts it has on the PeopleSoft Benefits and Payroll for North America products. Through the use of Position Statements, updates and changes are communicated to our customers. Most recently we reported on product updates that were made as a result of changes that extend health care coverage to young adults.

One of the many changes initiated by PPACA requires any group health plan or plan in the individual market that provides dependent coverage for children to continue to make that coverage available until the child turns 26 years of age. This was effective for Plan or Policy Years beginning on or after September 23, 2010. The Act provides that medical coverage be extended to children up to the age of 26 without restrictions for student or marital status. In addition the tax favored status remains until the end of the tax year during which the child attains 26.

In order to allow for the varying age limits between plans it was necessary to develop a new Dependent Age limit structure which would allow our customers to accommodate the new age limit for dependents in the medical plans. 

To compliment this change we will be delivering enhancements to the Oracle PeopleSoft Human Resources Base Benefits and Payroll for North America products to accommodate the difference in tax treatment of the Adult Child Benefit among states which do not conform to the Federal law. The IRS has issued guidance that the coverage for adult children is non-taxable through the calendar year they attain age 26, even though the law only requires plans to provide coverage up to the 26th birthday. State requirements may differ from these Federal requirements. In order to allow for compliance at the state level the following changes have been developed.

 

• Updated Benefit Rate Table Structure
• New relationship type “Adult Child”
• New Taxable Gross Component ID


The new configuration allows you to designate a value of the benefit attributable to the Adult Child in the Benefit Rate table. This value will then be used to calculate the appropriate state tax. Given the current functionality, the only deduction class that will not reduce the employee check, not impact Federal, and impute the income for the state is the Non-taxable Before tax deduction class. This deduction class is currently only available for use in Base Benefits for Savings Plan employer matching contribution. The new functionality will open up the use of this deduction class for use in the calculation of health premiums for the purpose of imputing taxable income for non conforming states.

The detailed information is posted to My Oracle Support Doc ID 1080659.1 - PeopleSoft Benefits and Payroll for North America Position Statement: HR 3590 and HR 4872.

In addition, we are currently following changes made in the Health Information Technology for Economic and Clinical Health (HITECH) Act, a section of the American Recoveries and Reinvestment Act of 2009 (ARRA). Congress passed the Health Information Technology for Economic and Clinical Health Act (HITECH) as part of the American Recoveries and Reinvestment Act of 2009. HITECH makes several significant modifications to the Health Insurance Portability and Accountability Act (HIPAA). These changes include creating new code and transaction sets for the HIPAA 834 EDI. Thorough analysis is currently being conducted and updates will be provided in an upcoming Position Statement.

Position statements can be found by accessing My Oracle Support.

Thursday May 19, 2011

Keeping up to date with Legislative changes in PeopleSoft Payroll for North America

These are changing times in the United States. Legislative changes are happening so fast it can be overwhelming keeping up with all that has changed. Payroll for North America is striving to keep you informed and up to date on the legislative changes coming down the line and let you know how these changes will affect you. Some examples of these changes are:


• American Recovery and Reinvestment Act
• Hire ACT
• International ACH Transfers
• Tax Relief ACT
• Health Care Reform
• Savings Bond Program changes with the announcement of TreasuryDirect
• New York Wage and Theft Prevention Act
• Pennsylvania Act 32


To keep you informed, PeopleSoft Payroll for North America has created Position Statements for the legislation that we consider to have significant changes in the law. The purpose of the Position Statement is to give you a brief explanation of what has changed, how the change will affect your payroll processing and what you need to do. The statements are frequently updated with information or changes that may come in after the original posting. Our goal is to make sure you have the latest information. We have a couple of ways for you to get the information you need:


• Visit the Payroll Knowledge center on Support.Oracle.com.


o Click on the Knowledge tab.
o Select PeopleSoft Enterprise > Human Capital Management > North American Payroll > All of North American Payroll.
o Simply type in a keyword ‘Position’.
o Refine your search by using more than one keyword (such as Position, New York)


• Visit  our Payroll for North America Online Community.


o You will be alerted to recently posted/modified Position Statements.  
o You will find valuable legislative solutions that don’t require an official position.
o You see tax update information to help you process those changes.
o There is also a discussion forum to ask questions and exchange solutions/best business practices with other customers.

Let PeopleSoft help reduce the stress and anxiety of these changing times by staying informed. PeopleSoft is working hard to get you the information you need. The information is just a few clicks away.

About

This blog is dedicated to topics focused on PeopleSoft Applications, including Human Capital Management, Financials, Enterprise Service Automation, Asset Lifecycle Management, Procurement, Supply Chain and Customer Relationship Management.

For information about legislative updates to our PeopleSoft Applications see the PeopleSoft Legislative Updates Blog.

For information about PeopleTools see the PeopleSoft Technology Blog.

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