GL Interface: Handling of Employer Paid Taxes

Posted October 5, 2001.
PeopleSoft HRMS Known Issues and Information:

GL Interface: Handling of Employer Paid Taxes:

A question was raised at the Payroll Users Group conference concerning how the system determines which department to charge for employer paid taxes. The discussion ended by saying that we would research the issue and share our findings on the list serve. Below are excerpts from the original design document for the GL Interface and from the sqr that processes the GL Interface.

1. The following statement is from the detail design document for the GL Interface: "...The account numbers used for debiting expenses in the GL (Employer Paid Expenses such as matching fica, employer paid retirement, employer paid insurance, etc.) will be constructed by this interface by using the first 13 digits of the account code used for earnings and adding the appropriate object code as extracted from the GL - Expense Account Code field in the deduction table...."
    
2. The following is the actual code from the sqr:
    
   • ".... From the COMPANY_TBL retrieve the Employee Fica and Fica/Med liability account numbers, multiply the tax amount by -1, and write the Liability records to the GL interface.
      
   • Read the associated E and Q records (NOTE: Tax Class E = FICA Employer Liability and Tax Class Q = FICA/MED Employer Liability) from the PAY_TAX_DIST table.
      
   • If there are earnings for this paycheck, then get the Fund/Dept/Project from the earnings record, add the expense object code to that to create the account code, multiply the tax amount by the earnings percentage, and write the expense record to the GL interface.
      
   • If there are no earnings for this paycheck, use the account code from the PAY_TAX_DIST table and write the expense record to the GL interface.
      
   • >From the COMPANY_TBL retrieve the Employer Fica and Fica/Med liability account numbers, multiple the tax amount by -1, and write the Liability records to the GL interface...."

The code says that if there are earnings associated with the taxes on the paycheck the account code is taken from the earnings record. If there are no earnings associated with the taxes on the paycheck, the account code will be the same as on the Manage Payroll Process>Use>Paycheck Distribution>Tax Distribution panel.

Please check your GL Interface to see where taxes for an employee actually posted before preparing a journal entry to move tax liability amounts using the account code that appears in the Tax Distribution panel.

If you have any questions, please contact OIIT Customer Services at 1-888-875-3697 ( HelpDesk@PeachNet.EDU) or visit the USG-EAS-HRMS/ GeorgiaFIRST Website: http://www.usg.edu:8087/HRMS