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Home / Educational Content / PeopleSoft / PeopleSoft Payroll for North America Newsletter – October 2022

PeopleSoft Payroll for North America Newsletter – October 2022

Luke Hodges

PeopleSoft Payroll for North America Newsletter – October 2022

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HCM 9.2 Image 44, also containing Tax Update 22-D, was posted on October 21, 2022. Tax Update 22-D for Releases 9.1 and 9.0 was posted on October 21, 2022.

  • Review highlights of HCM 9.2 Image 44 on YouTube.

Payroll for North America Image 44 New Features:

  • (Canada & U.S.) Direct Deposit Extended Functionality
  • (Canada & U.S.) Configurable Access for Fluid Employee Self-Service Year-End Details for All Users
  • (U.S.) W-2/W-2c Tax Preparer Import File
  • (U.S.) Program Funding Configuration

Reminder: Release 9.2 Payroll for North America Tax Update Tax Table Changes are delivered in a PeopleSoft Release Patchset (PRP) separately from the PeopleSoft Update Image (PI).

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Available Postings after PI44/Tax Update 22-D:

(U.S.) 34520432 – CALCULATE ER-PAID PA LOCAL PAYROLL PREP TAX FOR RESIDENTS OF TAX JURISDICTION was posted for Release 9.2 to My Oracle Support on October 26, 2022. The changes will also be included in Tax Update 22-E and HCM 9.2 Image 45. The patch modifies PSPTAXDT.CBL to correctly calculate employer-paid taxes for the Pennsylvania cities of Scranton and Hazleton when the employee is a resident of the local tax jurisdiction.

(U.S.) PRP 34655686 was posted for Release 9.2 to My Oracle Support on November 4, 2022. The Patchset contains the following patches, which will also be included in HCM 9.2 Image 45.

  • (U.S.) 34655686 – INDIANA STATE & COUNTY WITHHOLDING TAX CALCULATION CHANGES EFF 01 OCTOBER 2022 delivers product modifications to implement Indiana state and county withholding tax changes which became effective October 1, 2022, as published by the Indiana Department of Revenue in Indiana Departmental Notice #1 (R-39/9-22).
  • (U.S.) 34659185 – W4 PDF: UPDATE INDIANA FORM WH-4 TO R8 / 9-22
  • (U.S.) 34665099 – INDIANA STATE WITHHOLDING NEEDS FIELD IN TAX DATA FOR ADDITIONAL EXEMPTION FOR ADOPTED DEPENDENT
  • (U.S.) 34676072 – W4 PDF: UPDATE FOUNDATION STRUCTURE TO SUPPORT OTHER ALLOWANCES
  • (U.S.) 34701289 – W4 PDF: MODIFY FLUID TAX WITHHOLDING PAGES AND PEOPLECODE TO SUPPORT OTHER ALLOWANCES
  • (U.S.) 34701291 – W4 PDF: MODIFY FLUID APPROVAL PEOPLECODE TO SUPPORT OTHER ALLOWANCES
  • (U.S.) 34665445 – W4 PDF: DISABLE STATE W4 UPDATE FOR CO, ND, NM & UT WHEN FEDERAL TAX STATUS IS EXEMPT modifies the system to disable the State W4 PDF function for Colorado, North Dakota, New Mexico, and Utah when Federal Tax Data indicates that the employee claims exemption from withholding.
  • (U.S.) 34616468 – COLORADO TAX STATUS SHOULD BE EDITABLE WHEN FED TAX STATUS IS EXEMPT modifies the system to add validation in the State Tax Data page to allow the payroll administrator to change the Tax Status when the state is Colorado and Form DR 0004 = Received.

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Looking Ahead:

Release 9.2:  Tax Update 22-E is targeted to post as a PRP on Friday, December 2, 2022.

Releases 9.1 and 9.0:  Tax Update 22-E is targeted to post on Friday, December 2, 2022.

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Targeted Postings before PI45/Tax Update 22-E:

(U.S.) 33988797 – COLORADO PAID FAMILY & MEDICAL LEAVE PAYROLL DEDUCTIONS EFFECTIVE 01 JAN 2023 will be targeted to post by November 15, 2022, to My Oracle Support for Release 9.2 and 9.1 as well as included in HCM 9.2 Image 45 and Tax Update 22-E.

(U.S.) 34520432 – CALCULATE ER-PAID PA LOCAL PAYROLL PREP TAX FOR RESIDENTS OF TAX JURISDICTION will be targeted to post by November 15, 2022, to My Oracle Support for Release 9.1 and 9.0 as well as be included in Tax Update 22-E.

(U.S.) 34655686 – INDIANA STATE & COUNTY WITHHOLDING TAX CALCULATION CHANGES EFF 01 OCTOBER 2022 will be targeted to post by November 15, 2022, to My Oracle Support for Release 9.1 and 9.0 as well as be included in Tax Update 22-E.

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Legislative Monitoring

Canada

  • Canada & Québec Pension Plan Enhancement Phase 1 – Update calculations effective January 2023 based on amended March 2022 Income Tax Regulations

United States

The Arizona Department of Revenue has issued a revised Form A-4 (Employee’s Arizona Withholding Election) for 2023 that reflects new lower Arizona withholding tax rates. Arizona employers are required to make the new Form A-4 available to employees by January 31, 2023. For employees who fail to complete Form A-4 for 2023, the default Arizona withholding tax rate is reduced from 2.7% to 2.0%.

https://azdor.gov/media-center/latest-press-releases/news/arizona%E2%80%99s-employees-have-new-tax-withholding-options

(U.S.) 34775705 – DEFAULT ARIZONA WITHHOLDING TAX TO 2.0% OF TAXABLE WAGES EFF 01 JANUARY 2023 will be targeted to post to My Oracle Support for Releases 9.2 and 9.1 after Tax Update 22-E is posted. For Release 9.2 only, the PRP will also include:

(U.S.) 34765266 – W4 PDF: UPDATE ARIZONA FORM A-4 TO 2023

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New Hampshire The Granite State Paid Family Leave Plan

Employers who choose to participate in the New Hampshire state Paid Family Medical Leave program must contract for coverage with MetLife, either directly or through an insurance broker. Employee deductions are not required; it is up to the employer to decide how the premiums will be funded. Each participating employer can determine whether the premium cost will be:

  • shared by the employer and the employees;
  • paid for entirely by the employer; or
  • paid for entirely by the employees.

If an employer with 50 or more employees chooses not to offer any equivalent PFML benefit to its employees, any of the employer’s employees can choose to elect individual coverage, and the employer must accommodate those employees by making payroll deductions to collect the premium for individual coverage and remitting the premiums to MetLife.

New Hampshire customers will need to configure the implementation themselves after they get their agreement with MetLife.

https://www.paidfamilymedicalleave.nh.gov/employers/employer-responsibilities

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Anne’s Thoughts

Paid Family and Medical Leave and Program Funding Configuration

In 2002, California became the first state to pass Paid Family Medical Leave legislation; in the resulting years other states followed. Initially, there was only one new state every few years. However, in the last few years, states introduced and passed legislation for Paid Family Medical Leave more frequently.

Making the changes every time to our system was a difficult process for our customers and us. Our team brainstormed, consulted with the PNA focus group, and decided the best long-term approach is to introduce a configurable framework that allows Oracle to build rules for each new state that enacts legislation for Paid Family and Medical Leave and Long-Term Care programs.

The result of that effort is our Program Funding Configuration, which dynamically updates pages based on configuration and calculates the employer and employee portion of the contribution based on rules. PeopleSoft will deliver data scripts to update the tax tables and rules. We no longer need to deliver massive online and batch changes every time a state enacts a new program.

The first state for which PeopleSoft plans to deliver rules using the Program Funding Configuration will be Colorado Paid Family and Medical Leave, with payroll deductions beginning January 1, 2023.

Customers can modify or create their own rules as needed, like in the case of New Hampshire Paid Family and Medical Leave.

I recommend attending Oracle Advisor Webcast – Program Funding Configuration Deeper Dive on Thursday, December 1, 2022, starting at 11:00 AM EST/8:00 AM PST. We will explain the configuration and rules from a PeopleSoft and customer perspective.

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Changes to the PeopleSoft Application Image Delivery Schedule Beginning 2023

Beginning January 1, 2023, the PeopleSoft FSCM, HCM, and Campus Solutions applications will adopt a delivery schedule of 3 Images per year instead of 4.

Payroll for North America will deliver 4 tax updates per year instead of 5. Tax updates will continue to be included with the PeopleSoft HCM Images except for the end of the year tax update, which is delivered using a PRP.

Robbin Velayedam, Senior Director, PeopleSoft Product Strategy, provides further detail in his blog, “Changes to the PeopleSoft’s Application Image Delivery schedule beginning 2023 (an Important Update)”

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The Quest Oracle, Community PeopleSoft Payroll for North America Special Interest Group, meets on the second Tuesday of each month. Please join us; this is an informative meeting with lively conversation. We always welcome your participation and contribution.

Thanks to Nicole Apostola for leading these. For info, click here.

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Upcoming Conferences/Webinars

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Helpful Links

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Your feedback on our newsletter is always appreciated.  If you have suggestions for improving this newsletter, please let us know.

Please feel free to forward the newsletter to your colleagues using PeopleSoft Payroll for North America.   If you received this newsletter from a friend or colleague and would like to receive it, send me an email at anne.leung@oracle.com with NEWSLETTER in the subject and you will be added to our distribution list.

Would you like to have a voice in our roadmap and help guide our future?  If interested, please send an email to anne.leung@oracle.com with PNA Focus Group in the subject.  Interested in other PeopleSoft Focus Groups?  See the entire list here.

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