The Company Tax Assistance Configuration menu item includes both the Tax and Wage Policy screens. Tax and wage policies provide the system with the various instructions for calculating tax assistance and withholding and the wage base to be used for these calculations. Creating tax and wage policies is a vital and required step in running a gross-up calculation.

The purpose of the Tax Policy screen is to allow users to develop and maintain tax policies, the various instructions the system uses to calculate tax assistance and withholding. For example, a tax policy might instruct the system to use statutory rules to calculate tax assistance, for all tax authorities, but to follow supplemental rules for withholding. A company may have a single tax policy for all of its assignments, or there may be different tax policies for different classes of assignments.

Access the Tax Policies screen by clicking on the Tax Policies link under the Tax Assistance Configuration menu option.

Then click on the New link in the first row and column of the Tax Policies list.

Create New Tax Policy By

The selection made in this field will inform the system as to how this new tax policy will be created. This drop down includes Defining A New Policy and Copying An Existing Policy.

Defining A New Policy – This selection should be used if the tax policy being created is not being copied from an existing tax policy.

Copying An Existing Policy – This selection should be used if the tax policy being created is being copied from an existing tax policy.

Note: The following fields will only be visible when the Copying An Existing Policy option is chosen in the Create New Tax Policy By field.

Company To Copy From – This drop down should be used to select the Company from which the tax policy will be copied from.

Policy To Copy – This drop down will contain a list of the existing tax policies for the Company selected in the Company To Copy From field. The information from the tax policy selected in this field will be copied to the new tax policy being created.

Inactive

The inactive checkbox, if checked, will mark the tax policy as inactive and no longer allow for the selection of that tax policy on the assignment level tax assistance screen. You may want to check this box until you complete the configuration of the tax policy and then uncheck it when complete to ensure it is not used for a calculation during the configuration process.

Name

This field will allow a name to be created for the service. The name provided for the service must be unique and is required to save the service.

Description

A more detailed description of the tax policy being created can be entered here. Then click the OK button. This will open the Tax Policy Details screen.

Tax Policy Name

The name originally provided for the tax policy will display and the system will allow for modification of that name.

Description

Will display, if any, the description originally provided for the tax policy and also allow for the modification of that description.

Country

The selection made here will determine if this tax policy can be used for United States gross up or for Canadian gross up. The selections that can be made are United State and Canada.

Calculation Options

The selection made here will inform the system as to what type of calculation should be executed for this tax policy. The selections that can be made are Calculate both taxability and taxes, Calculate taxability, but not taxes and Don’t calculate taxability or taxes.

Calculate both taxability and taxes – This selection should be made if the objective is to calculate both the taxability and the taxes of each expense.

Calculate taxability, but not taxes – This selection should be made if the objective is to calculate taxability only.

Don’t calculate taxability or taxes – This selection should be made if the objective is to calculate nothing.

Calculate Destination Only

If checked, this check box will turn off the calculation of tax assistance and withholding for the departure state and its associated local tax authorities. The calculations will only be done for the destination state and its local tax authorities.

A system and/or company level system preference can be set to control the default value of this checkbox for new tax policies.

Apply Work/Resident and Reciprocity Rules

This checkbox determines whether the calculation derived from the tax policy will apply the work/resident state withholding rules.

A system and/or company level system preference can be set to control the visibility and default value of this checkbox for new tax policies.

For additional information on the Work/Resident Reciprocity Rules functionality please refer to the Multi-State Withholding section at the end of this document.

Exclude Manual TA/WH Adjustments

When the checkbox is ticked, the system ignores any manual adjustments made to the assignment and calculates taxes as though those adjustments do not exists. This checkbox appears unticked by default.

True-Up Settings

These settings are only used when running a Payroll or Year End tax calculation through the Tax Calc Batch screen. They are not used by the Voucher Entry tax calculation. Whenever the system recalculates tax assistance and withholding (e.g. for a pay period or at year end), some differences may result that would cause additional adjustments to be desired.

The system provides the following options to handle these adjustments:

Discard Negative Adjustments – This checkbox instructs the system to discard (reverse) negative adjustments. If the total true-up adjustment to income (total tax assistance adjustment) is negative, the system will reverse the entries made by the first tax calculation. The net result for the transferee will be a zero adjustment to tax assistance and withholding for the calculation. This setting is often used by companies that do not wish to recoup any excess tax assistance which has already been paid.

Discard Positive Adjustments – This checkbox instructs the system to discard (reverse) positive year-end adjustments. If the total true-up adjustment to income (total tax assistance adjustment) is positive, the system will reverse the entries made by the first tax calculation. The net result for the transferee will be a zero adjustment to tax assistance and withholding for the calculation. This setting is often used by companies that do not wish to pay any additional tax assistance and only recoup overpayments of tax assistance.

Adjustment Smaller Than $#.## – This checkbox instructs the system to discard (reverse) adjustments that are smaller in absolute value than a specified amount. If the total adjustment to income (total tax assistance adjustment) is less in absolute value than the specified amount, the system will reverse the entries made by the first tax calculation. The net result for the transferee will be no adjustment to tax assistance and withholding for the calculation. For example, if you enter $5.00 in the Discard Adjustment Smaller Than field and the total tax assistance adjustment is equal to or in between -$4.99 and +$4.99, the adjustment created by the first tax calculation will be reversed.

Respread Adjustments – This checkbox allows you to choose respread options. If this box is checked, the system will enable the three checkboxes below this field. Otherwise, those options will be disabled. All respread adjustments are offset by an adjustment to Federal withholding. The main reason to use the respread adjustments is to ensure that data is in a format which is acceptable by a company’s payroll system.

Respread FICA – This checkbox forces the system to change the FICA withholding amounts for the adjustment to equal the applicable percentage of the total adjustment. FICA includes OASDI and Medicare, as well as the Railroad (RRTA) tax authorities. For example, if the total adjustment to tax assistance is $100.00, the system will force the Medicare withholding amount to be exactly $1.45 (1.45% of the $100.00 adjustment). This option should be selected if a company’s payroll system is unable to accept an adjustment amount which is out of balance for FICA purposes.

Force FICA Positive – This checkbox forces the system to change any negative FICA withholding amounts to $0.00. FICA includes OASDI and Medicare as well as the Railroad (RRTA) tax authorities. For example, if the total adjustment to tax assistance is -$100.00, the system will force the FICA tax authorities’ withholding amount to be $0.00. This option should be selected if a company’s payroll system is unable to accept negative adjustments for the FICA tax authorities.

Respread State and Local – This checkbox forces the system to change the state and local (including SDI) withholding amounts for the adjustment to equal the total adjustment multiplied by the supplemental withholding rates. For example, if the total adjustment to tax assistance is $100.00, the system will force the California withholding amount to be exactly $6.00 (CA Supplemental Withholding Rate of 6.00% multiplied by the $100.00 adjustment). This option should be selected if a company’s payroll system is unable to accept an adjustment amount which is out of balance for state or local purposes.

Save

This button can be used to save the information entered and/or modified in Tax Policy Details portion of the screen.

Delete

This button will permanently delete the tax policy.

Note: Only tax policies that are not associated with an assignment can be deleted.

Close

This button will close the tax policy opened and return to the Tax Policies page.

Sequence

This field specifies the order of processing for each row during the tax calculation. Sequential numbers should be entered in this field (i.e. 1, 2, 3, etc.).

Each row of the Tax Assistance and Withholding Settings section contains “directions” to the tax engine for how to calculate tax assistance and withholding for the tax authorities and accounts specified. When tax assistance and withholding is calculated, the tax engine orders the tax policy information by the sequence number (lower numbered rows processed first). Each successive row in this section is used to “program” the tax engine and is used as an exception or over-ride to any previous row.

Authority Selection

This field identifies the tax authorities that will be affected by this row of processing. This drop down includes All Authorities, Authority, and Authority Type.

All Authorities – This option encompasses all taxing authorities. Selecting this option will allow for the specification of the same tax policy options on a particular row for all authorities at once.

Note: It is highly recommended that the initial row of each tax policy be established as a baseline and cover all taxing authorities and accounts.

Authority – Selecting this option will allow for the specification of tax policy options for an individual tax authority (US Federal, California, Colorado, etc.). If this option is chosen the Tax Authority field and Find Local button

will then be displayed to the right.

Tax Authority – This drop down will include all individual tax authorities except locals.

Find Local – The Find Local button will launch the Find Local Authority page. Once the desired local has been located and selected it will then appear in the Tax Authority field.

Authority Type – This option encompasses broad authority types (Federal, State, Local, etc.). Selecting this option will allow for the specification of tax policy options by broad authority types. If this option is chosen the Authority Type field with then be displayed to the right.

Authority Type – This drop down includes all broad authority types.

Account Selection

This field identifies the accounts that will be affected by this row of processing. This drop down includes Account, Account Type, Acct. Category and All Accounts.

Account – Selecting this option will allow for the specification of tax policy options for an individual account. If this option is chosen the Account field will then be displayed to the right.

Account – This field can be used to manually enter the desired

account number or the button to the right can be used to launch the Select Account page.

Account Type – Selecting this option will allow for the specification of tax

policy options for a specific account type. If this option is chosen the Account Type field will then be displayed to the right.

Account Type – This drop down will include all account types, which are derived from the system taxability options and include Deductible, Excludable, Non-Deductible and Not Reportable.

Acct. Category – This option is under development for a future release, it currently has no functionality.

All Accounts – This option encompasses all accounts. Selecting this option will allow for the specification of the same tax policy options on a particular row for all accounts at once.

Paid To

The field allows for the set up of different policies based upon who the expense is paid to. This drop down includes Employee and Other. If no selection is made in this field, the policy row will apply to both paid to Employee and paid to Other expenses.

Tax Assistance

This drop down field indicates to the system whether or not tax assistance should be calculated for this row of the tax policy. The drop down includes If Applicable, No and Yes.

If Applicable – With this option, the system will automatically determine if tax assistance should be calculated or not, based upon the taxability of the expense being processed.

No – With this option, the system will not calculate tax assistance.

Yes – With this option, the system will calculate tax assistance regardless of the taxability of the expense. Because of this, the “Yes” option should be used very sparingly. It will calculate tax assistance on excludable and deductible expenses, as if they were non-deductible.

TA Method

This drop down field allows for the specification of the tax assistance method to be used to calculate tax assistance. The method selected will determine both the tax rate table and the calculation used. The values available for selection in this drop down menu can vary based on the taxation setting of the Tax Policy but can include Fixed Rate, Marginal After Move, Marginal Before Exp, Statute, Statute No AMT, and Supplemental.

Fixed Rate – When selected, the Rate field, located to the right, will become enabled and allow for the entry of a fixed percentage to be used in the tax assistance calculation. The value should be entered as a percent. For example, to enter a fixed rate of 9% enter 9, not .09. Tax assistance will be calculated at the percentage rate entered. This option does not take deductions, exemptions, child tax credits or AMT tax calculations into account.

Marginal After Move - When selected, the system will determine one rate to use for all expenses being calculated. The system will do a tax return, including all taxable expenses, to arrive at an estimated taxable income. It will then compare that estimated taxable income against the statute (liability) tax tables to find the appropriate tax rate. That rate is used to determine the tax assistance amount for all expenses being calculated. The tax rate will not change during the calculation; therefore it is not a blended rate. This option takes deductions and exemptions (and their phase outs) into account when calculating the estimated taxable income amount, which could affect the tax rate used, but it does not provide tax assistance for the additional income caused by the phase outs. In addition, it does not take either AMT calculations or the phase out of child tax credits into account.

Note: Marginal After Move is usually not the correct option for any ceiling tax (wage limit) authority, such as OASDI, or SDI/SUI taxes.

Note: The “No TA Sort” option on the Wage Policy will determine whether or not taxable expenses that do not receive tax assistance are included in the estimated taxable income calculation to arrive at the rate to use under the Marginal After Move option. If the “No TA Sort” option is set to “No Sort”, “Sort First”, or left blank, they will be included. If the “No TA Sort” option is set to “Sort Last”, they will not be included.

Marginal Before Exp - If selected, for each expense the system will do a "before" tax return to arrive at an estimated taxable income. It will then compare that estimated taxable income against the statute (liability) tax tables to find the appropriate tax rate. That rate is used to determine the tax assistance amount for that expense. The tax rate will not change during the calculation; therefore it is not a blended rate. This option takes deductions and exemptions (and their phase outs) into account when calculating the estimated taxable income amount, which could affect the tax rate used, but it does not provide tax assistance for the additional income caused by the phase outs. In addition, it does not take either AMT calculations or the phase out of child tax credits into account.

Note: Marginal Before Exp is usually not the correct option for any ceiling tax (wage limit) authority, such as OASDI, or SDI/SUI taxes. If an expense starts out below the ceiling, the entire expense will be tax assisted, even if the ceiling is crossed by that expense.

Statute - With the Statute option, the system will adhere to the applicable statutes (tax laws) to estimate the actual tax liability. It runs a "before" and an "after" tax return for each expense. For each tax authority, the increase in taxes due on the "after" tax return is the tax assistant amount. This is sometimes referred to as the "tax return" method.

For federal and most states, the system uses the most current marginal rate schedules, and takes many factors into account, including the phase out of deductions and exemptions, child tax credits, etc. The federal AMT rates and calculations are built into the system as well.

Statute No AMT - This option is identical to the Statute option discussed above, except the federal AMT rates and calculations are ignored.

Supplemental - With this option, the system will calculate tax assistance similar to the way in which a payroll system withholds taxes. Using supplemental rate(s), it runs a "before" and "after" tax return for each expense. For each tax authority, the increase in taxes due on the "after" tax return is the tax assistance amount. This option does not take into account deductions, exemptions, child tax credits or the AMT calculations.

The American Jobs Creation Act of 2004 requires withholding at the highest marginal rate if supplemental wages exceed $1 million. The application will consider the amount in the Non-Relo Supplemental Wages field on the Employee Salary screen for the Federal tax authority to determine the appropriate rate if the supplemental method is chosen in the tax policy.

Tax On Tax

This field indicates to the system which tax authorities the system should calculate “tax assistance on tax assistance” for. This is often referred to as “iterations”. The drop down includes All Authorities, None and This Authority.

All Authorities – With this option, the system will calculate tax assistance on the tax assistance for all authorities. In other words, the tax assistance for each authority will iterate against the tax assistance for all of the other tax authorities. This is sometimes referred to as “full iterations”.

None – With this option the system will not calculate any tax assistance on any other tax assistance. It will only provide tax assistance on the expense itself. This is sometimes called “zero iterations”.

This Authority – With this option, the system will calculate tax assistance on the tax assistance for the currently selected authority only. In other words, each authority will only iterate on itself. For example, federal tax assistance will be provided on the expense, and on the federal tax assistance that was calculated in the prior iteration, but federal tax assistance will not be provided on the tax assistance for any other authority.

Withholding

The selection in this field determines whether or not withholding will be calculated. The drop down includes If Applicable, No and Yes.

If Applicable – With this option, the system will automatically determine whether or not withholding should be calculated for the expense.

No –With this option the system will not calculate any withholding.

Yes – With this option the system will calculate withholding regardless of the taxability of the expense. This option should be used very sparingly. It will calculate withholding on excludable expenses as though they were non-deductible.

Withholding Method

The selection made in this field determines how the withholding will be calculated. The values available for selection in this drop down menu can vary based on the taxation setting of the Tax Policy but can include Fixed Rate, Same as TA, Supplemental and Marginal After Move.

Fixed Rate – If selected, the Rate field, located on the right, will become enabled and allow for the entry of a fixed percentage to be used in the withholding calculation. The value should be entered as a percent. For example, to enter a fixed rate of 9% enter 9, not .09. Withholding will be calculated at the percentage rate entered.

Same as TA – With this option, the system will withhold the same amount that the system calculated for the tax assistance.

Note: The value selected in the Withholding field is ignored when this is set to Same as TA. Withholding will always be the same amount as tax assistance for each expense.

Supplemental – With this option the system will withhold using supplemental rules and the supplemental rate table for the applicable tax authority(s).

Marginal After Move – With this option, the system will determine one rate to use for all expenses being calculated. The system will take wages + expenses to determine the rate to be used and that rate will be used for all expenses. This option will take into account deductions and exemptions but not credits.

Notes: The Marginal After Move option is only available for Tax Policies set to use Canadian taxation. Marginal After Move is usually not the correct option for any ceiling tax (wage limit) authority, such as CPP or CEI. If an expenses starts out below the ceiling, the entire expense will be tax assisted, even if the ceiling is crossed by that expense.

Difference Adj

The selection in this field instructs the system on what to do when the tax assistance and withholding amounts are not equal to one another. The drop down includes, Advance, Check, Check if Neg., Check if Pos. and Federal.

Advance – This option is under development for a future release, it currently has no functionality.

Check – If selected, the system will adjust the check for any difference calculated between tax assistance and withholding. This option will allow the check amount to increase or decrease, from the expense amount.

Check if Neg. – If selected, the system will adjust the check for any negative difference calculated between tax assistance and withholding. Otherwise, the system will adjust the federal withholding bucket. This option will only allow the check amount to decrease from the expense amount.

Check if Pos. – If selected, the system will adjust the check for any positive difference calculated between tax assistance and withholding. Otherwise, the system will adjust the federal withholding bucket. This option will only allow the check amount to increase from the expense.

Federal – If selected, the system will adjust the federal bucket for any differences calculated between tax assistance and withholding. This option will always force the check amount to be equal to the expense amount.

Save

This button can be used to save the information entered and/or modified in Tax Policy Details portion of the screen.

Delete

This button will permanently delete the tax policy. If you are viewing or editing a particular sequence row the delete button will only delete that row.

Note: Only tax policies that are not associated with an assignment can be deleted.

Close

This button will close the tax policy opened and return to the Tax Policies page.

The purpose of the Wage Policy screen is to allow users to develop and maintain wage policies. A wage policy is used to calculate the wage base, which is an important baseline number in the calculation of tax assistance and withholding. Defining wage policies is one of the many ways that allows for the customization of tax assistance and withholding calculations to fit the needs of the organization. To access Wage Policies click on the Wage Policies link under the Tax Assistance Configuration menu option.

To add a new Wage Policy click on the New in the first row and column of the Wage Policy list.

Create New Wage Policy By

The selection made in this field will determine how a new wage policy will be created. This drop down includes Defining A New Policy and Copying An Existing Policy.

Defining A New Policy – This selection should be used if the wage policy being created is not being copied from an existing wage policy.

Copying An Existing Policy – This selection should be used if the wage policy being created is being copied from an existing wage policy.

Note: The following fields will only be visible when the Coping An Existing Policy option is chosen in the Create New Wage Policy By field.

Company To Copy From – This drop down field should be used to select the Company from which the wage policy will be copied from.

Policy To Copy – This drop down will contain a list of the existing wage policies from the previously selected Company. The information from the wage policy selected in this field will be copied to the new wage policy.

Inactive

The inactive checkbox, if checked, will mark the wage policy as “inactive” and not allow the wage policy to be selected on the assignment level tax assistance screen.

Name

This field will provide a user-defined name for the wage policy. The name provided for the wage policy must be unique within the Company.

Description

A more detailed description of the wage policy being created can be entered here. When complete click the OK button to continue to configure the Wage Policy.

Name

Will display the name originally provided for the wage policy and also allow for modification of that name.

Description

Will display, if any, the description originally provided for the wage policy and also allow for the modification of that description.

Country

The selection made here will determine if this wage policy can be used for United States gross up or for Canadian gross up. The selections that can be made are United State and Canada.

Payroll Feed Includes Previously Reported Wages

This checkbox allows the user to specify whether the wages supplied by payroll include previously reported relocation income. Wages supplied by payroll are viewable and editable on the Employee Salary tab of the Tax Assistance menu item. If this box is checked, the system will automatically calculate and exclude any previously reported relocation income when using YTD Wages in a tax calculation. If the box is not checked, the system will use the actual payroll feed amounts shown on the Employee Salary tab. This setting allows the system to differentiate between relocation income and non-relocation income for use in the tax calculation process.

Payroll Feed Includes Previously Reported Supplemental Wages

This checkbox allows the user to specify whether the wages in the Non Relo Suppl Wages field on the Employee Salary tab include previously reported relocation income. If this box is checked, the system will automatically calculate and exclude any previously reported relocation income when using the Non Relo Suppl Wages field in a tax calculation. If the box is not checked, the system will use the actual amount shown in the Non Relo Suppl Wages field. This setting enables the system to determine whether the tax calculation should apply the 25% or the 35% Federal Supplemental Withholding Rate.

Note: The checkboxes listed above will become disabled when Canada is selected in the Country field.

Delete

This checkbox allows users to delete a row from the wage policy grid without being forced to delete the entire wage policy. If checked, the row selected will be removed from the grid on Save.

Seq.

This field specifies the sequence or order of processing for each row during the tax calculation. Sequential numbers should be entered in this field (i.e., 1, 2, 3, etc. . .).

Each row of the wage policy grid contains the “directions” to the tax engine for how to calculate the wage basis for each taxing authority. When the wage basis is calculated, the tax engine orders the wage policy information by the sequence number specified. Each successive row in the wage policy grid is used to “program” the tax engine and is used as an exception to any previous row.

Authority Selection

This field identifies the tax authorities that will be affected by this row of processing. The drop down includes All Authorities, Authority, and Authority Type.

All Authorities – This option encompasses all taxing authorities. Selecting

this option will allow for the specification of the same wage policy options on a particular row for all authorities at once.

Authority – Selecting this option will allow for the specification of wage policy options for an individual tax authority (US Federal, California, Colorado, etc.). If this option is selected the Value field and Find Local button will become enabled.

Value – This drop down will include all individual tax authorities except local tax authorities.

Find Local – If selected, the Find Local button will launch the Find Local Authority page. Once the desired local has been located and selected it will then appear in the Value field.

Authority Type – This option encompasses the broad authority types (Federal, State, Local, etc.). Selecting this option will allow for the specification of wage policy options by broad authority types. If this option is selected the Value field will become enabled.

Value – This drop down will include all broad authority types.

Tax Assistance

The selection in this field specifies how the system should calculate the wage basis for tax assistance. The drop down includes Annual Salary, Annualized Salary, Annualized YTD Wages and YTD Wages.

Annual Salary – If selected, the system will calculate tax assistance based on the annual salary for the tax authority or tax authority type specified.

Annualized Salary – If selected, the system will use the Annual Salary to annualize the YTD Wages. The system will calculate tax assistance based on this annualized YTD Wage value. In order for the system to perform this calculation, the YTD amount and the Effective Date for each tax authority must be specified in the Wages/Salary section of the Employee Salary screen, and the Effective Transfer Date on the Tax Authority Input screen must be filled in.

Steps to annualizing an Employee’s Wages using Annual Salary:

For example, an employee with YTD Wages of $270,000 on November 15 and an Annual Salary of $150,000 will have estimated year-end wages of $288,904. This is calculated as ((($150,000 / 365 calendar days) * 46 days remaining in the year) + $270,000 YTD wages).

Annualized YTD Wages – With this option, the system will use the YTD Wages amount to annualize the YTD Wages. The system will calculate tax assistance based on the Employee’s annualized YTD wages for the tax authority or authority type specified. In order for the system to perform this calculation, the YTD wages amount and the effective date for each tax authority must be specified in the Wages/Salary section of the Employee Salary screen, and the Hire Date on the Employee Details screen must be filled in.

Steps to annualizing an Employee’s wages using YTD Wages:

YTD Wages – If selected, the system will calculate tax assistance based on the year to date wages for the authority or authority type specified.

Withholding

The selection in this field specifies how the system should calculate the wage basis for withholding. The drop down includes Annual Salary, Annualized Salary, Annualized YTD Wages and YTD Wages.

Annual Salary – If selected, the system will calculate withholding based on the annual salary for the tax authority or tax authority type specified.

Annualized Salary – If selected, the system will use the Annual Salary to annualize the YTD Wages. The system will calculate withholding based on this annualized YTD Wage value. In order for the system to perform this calculation, the YTD amount and the Effective Date for each tax authority must be specified in the Wages/Salary section of the Employee Salary screen, and the Effective Transfer Date on the Tax Authority Input screen must be filled in.

Steps to annualizing an Employee’s Wages using Annual Salary:

For example, an employee with YTD Wages of $270,000 on November 15 and an Annual Salary of $150,000 will have estimated year-end wages of $288,904. This is calculated as ((($150,000 / 365 calendar days) * 46 days remaining in the year) + $270,000 YTD wages).

Annualized YTD Wages – With this option, the system will use the YTD Wages amount to annualize the YTD Wages. The system will calculate withholding based on the Employee’s annualized YTD wages for the tax authority or authority type specified. In order for the system to perform this calculation, the YTD wages amount and the effective date for each tax authority must be specified in the Wages/Salary section of the Employee Salary screen, and the Hire Date on the Employee Details screen must be filled in.

Steps to annualizing an Employee’s wages using YTD Wages:

YTD Wages – If selected, the system will calculate withholding based on the year to date wages for the authority or authority type specified.

No TA Sort

An important wage policy feature is the ability to process “No TA” taxable expenses, or taxable expenses that are not grossed up, before or after the other taxable expenses. This will have a bearing on the wage basis for each tax authority. If these expenses are sorted (processed) first, this will tend to produce higher marginal rates for state and federal gross-ups on the other taxable expenses earlier in the year. This will also have a bearing in when the OASDI “cap” will be met. The purpose of the No TA Sort column is to instruct the system on when to include these items. This drop down includes No Sort, Sort First and Sort Last.

No Sort – If selected, this option will take the no tax assistance items as they come, which will have a bearing on when the OASDI or any other local “cap” will be met on subsequent items.

Sort First – If selected, this option will sort (process) the no tax assistance expense items first in the calculations, which can mean that the OASDI type limits will be hit sooner and thus OASDI type tax assistance benefits can be reduced, saving the company money.

Sort Last – With this option the system will sort the no tax assistance expense items last in the calculations, and will generally mean that the “caps” will be hit later, and overall corporate tax assistance benefits will be higher unless the overcompensation is recovered at year end.

Save

This button can be used to save the information entered and/or modified in the wage policy.

Delete

This button will permanently delete the wage policy.

Note: Only wage policies that are not associated with an assignment can be deleted.

Close

This button will close the wage policy opened and return to the Wage Policies page.