1042 and NRA Processing Sunday, March 18, 2001 Track: HRMS Session: S2-6007 - PowerPoint PPT Presentation

Slide1 l.jpg
Download
1 / 62

1042 and NRA Processing Sunday, March 18, 2001 Track: HRMS Session: S2-6007. Panel Participants: Karen Banning, University of Kansas Dawna Groninger, University of Kansas Jennifer Gehrt, Kansas State University Linda Parker, Peoplesoft Gary Singer, Windstar Technologies, Inc.

Related searches for 1042 and NRA Processing Sunday, March 18, 2001 Track: HRMS Session: S2-6007

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.

Download Presentation

1042 and NRA Processing Sunday, March 18, 2001 Track: HRMS Session: S2-6007

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Slide1 l.jpg

1042 and NRA ProcessingSunday, March 18, 2001Track: HRMS Session: S2-6007


Slide2 l.jpg

  • Panel Participants:

  • Karen Banning, University of Kansas

  • Dawna Groninger, University of Kansas

  • Jennifer Gehrt, Kansas State University

  • Linda Parker, Peoplesoft

  • Gary Singer, Windstar Technologies, Inc.


Slide3 l.jpg

University of Kansas Overview

  • One of the 7 Regent Institutions governed by State of Kansas

  • Comply with reporting of earnings for non-resident alien earnings – using State earnings codes, tax panel information reporting

  • Must maintain own time reporting, leave accrual and balance information using existing time reporting system

  • State of Kansas produces the 1042-S forms for KU employees

  • PeopleSoft V7.6 HRSA – No fixes applied


Slide4 l.jpg

NRA Issues

  • Student Administration & Foreign Addresses

  • When a student address is entered by SA as foreign – Job Earns Distribution populated automatically

  • Default foreign address to ‘Home Address’ and we must manually override to local address

  • 1042 Balances – Earns/Taxes

  • The appropriate effective dates must be entered in Tax Data panels in order for correct year to be updated.

  • Normally this is pay period begin date


Slide5 l.jpg

Job Information – FICA Status Override


Slide6 l.jpg

Available Earnings Codes for NRA’s


Slide7 l.jpg

Job Earnings Distribution


Slide8 l.jpg

Federal Tax Data 1


Slide9 l.jpg

Federal Tax Data 2


Slide10 l.jpg

Federal Tax Data 3


Slide11 l.jpg

State Tax Data 1


Slide12 l.jpg

State Tax Data 2


Slide13 l.jpg

Local Tax Data


Slide14 l.jpg

Time Reporting –Time Sheet


Slide15 l.jpg

Employee Payline – with NR Earns Code – after first calc.


Slide16 l.jpg

JPAY159 – NRA’s Taxed


Slide17 l.jpg

JPAY163 – 1042 Gross Report


Slide18 l.jpg

JPAY164 – NRA’s reaching treaty max

in pay period


Slide19 l.jpg

JPAY310 – Mismatch earns codes on multiple

employee rec’ds


Slide20 l.jpg

Kansas State University Overview

  • Fall 2000 Enrollment = 21,929

  • Active Employees = 10,000+

  • Non-Resident Aliens = 1009

  • 1042 forms in 2000 = 504


Slide21 l.jpg

Kansas State University Overview

  • Use delivered PS HRMS 7.51 Education & Government NRA functionality with all relevant PS fixes applied

  • Use 1042 processing for payroll only--not scholarships and fellowships

  • Do not have PS Student Administration

  • Follow same basic rules and processes as the University of Kansas


Slide22 l.jpg

K-State’s Solutions to Problems with NRA Processes


Slide23 l.jpg

Employee Tax Data

  • We do not automate Employee Tax Data on Installation Table-- we always manually enter data in Tax Data


Slide25 l.jpg

Address in Personal Data

  • Train users to not insert foreign address in “Home Address”

  • Use local address in the “Home Address”

  • Use permanent foreign address in the “Mailing Address”, if desired


Slide27 l.jpg

Address in Personal Data

  • Will receive warning message when tabbing out of Country field on Federal Tax Data 3 panel -- that’s okay


Slide29 l.jpg

Visa/Permit Data

  • Tracking accurate Visa data is critical

  • Confusing panel for employee who has had more than one Visa type

  • Not effective-dated--Visa displays alphabetically, not employee’s current Visa

  • Tricky reporting

  • Fixed in PS 8?


Slide32 l.jpg

NRA Data Integrity

  • Added a Save Error Edit to State Tax Data requiring “Resident” checkbox to be ‘No’


Slide34 l.jpg

NRA Data Integrity

  • Employee Tax Audit Reports (SQRs) vs multiple on-line edits

  • Run audit reports beginning last day of pay period through day of final on-cycle pay calc


Slide35 l.jpg

Job Earnings Distribution Audits

  • Fed Tax Special Status = NRA without NRA Earnings code in JOB_EARNS_DIST record

  • NRA Earnings Code without Fed Tax Special Withholding Status = NRA

  • Multiple active Employment Records and Earning Codes in each JOB_EARNS_DIST record are not equal

  • Dept ID in JOB is not equal to Dept ID in JOB_EARNS_DIST


Slide36 l.jpg

Visa Audits

  • Employee with Visa Type = J2 and FICA Status = Exempt and enrolled in < 6 credit hours

  • Employee with Visa Type that requires Subject to FICA

  • Employee with Visa Type = J2 not eligible for Tax Treaty


Slide37 l.jpg

Other NRA Audits

  • Fed Tax Data--NRA requires additional withholding = $15.30

  • NRA with Citizenship Status = ‘Alien Permanent’ is Subject to FICA


Slide38 l.jpg

Look out!!

  • Watch for custom SQRs that update JOB in batch--must also update the JOB_EARNS_DIST record at same time


Slide39 l.jpg

FICA/SUT Audit Report

  • J1/F1 Visas should always be exempt from FICA and SUT (unless Substantial Presence Test is met)

  • When FICA Exempt, SUT must be Exempt

  • When FICA Subject, SUT must be Nonexempt


Slide40 l.jpg

Tax Treaty Table

  • PeopleSoft re-delivers tax treaty table with each major release and with each application update

  • Interim changes must be tracked and applied in your system


Slide41 l.jpg

Tax Treaty Information

  • Tax Treaty and NRA information available on our web site: http://www.ksu.edu/hr/infomgmt/treatysum.htm

  • IRS Tax Treaty Information is simplified to include Income Codes 18 and 19, only


Slide42 l.jpg

Substantial Presence Test

  • We use manual worksheet to capture SPT calculations

  • Enter data from worksheet in PS SPT panel so data is readily available


Slide44 l.jpg

Substantial Presence Test

  • Start Date = Arrival Date in USA

  • Expiration Date = On-campus Work Permit Expires


Slide45 l.jpg

Substantial Presence Test

  • PS 7.51 needs Arrival Date and Visa Issue Date on SPT panel--possibly there in PS 8


Slide46 l.jpg

PeopleSoft/Windstar Partnership: Background

  • Partnership formed in December 1999

  • Objective: To complement PeopleSoft’s non-resident alien taxation processing capabilities with the case-by-case tax treaty analysis capabilities in Windstar’s Tax Navigator

  • Windstar is developing a two-way interface between PeopleSoft Payroll and Windstar Tax Navigator


Slide47 l.jpg

PeopleSoft/Windstar Partnership: Overview

Windstar Tax Navigator

PeopleSoft Payroll

Captures immigration history data

Employee Data

Captures employee data

Tax Treaty Analysis

Results

Determines foreign national’s tax residency and performs tax treaty analyses

Payroll Processing

(including Tax Calculations

based on Treaty Rules)

Prepares withholding and tax treaty exemption forms

Maintains Tax Balances (including 1042)

1042 Tax Balances

Produces 1042-S reports

Produces 1042-S reports


Slide48 l.jpg

PeopleSoft Non-Resident Alien Taxation


Slide49 l.jpg

PeopleSoft Non-Resident Alien Taxation


Slide50 l.jpg

Before they enroll, you must get them here


Slide51 l.jpg

Before you pay them, you must know their tax status


Slide52 l.jpg

Information Required

  • Demographics

  • Family Information

  • Immigration History back to 1/1/1985

  • Prior Treaty Usage


Slide53 l.jpg

Before they enroll, you must get them here

VisaManager


Slide54 l.jpg

Before they enroll, you must get them here

VisaManager

  • Forms for F, M, J, Q, H, L, O Immigration Statuses

  • Forms for ongoing maintenance

  • Full History

  • Full Reporting Fulfillment


Slide55 l.jpg

Before you pay them, you must know their tax status

International

Tax

Navigator


Slide56 l.jpg

Before you pay them, you must know their tax status

International

Tax

Navigator

  • Performs Full Substantial Presence Test on any Immigration History

  • Performs Treaty Analyses

    • One at a time

    • Batch

    • Looks forward or back

  • Completes Forms for Withholding & Reporting


Slide57 l.jpg

The Flow

VisaManager


Slide58 l.jpg

The Flow

VisaManager

Transition

DB


Slide59 l.jpg

The Flow

VisaManager

Transition

DB

International

Tax

Navigator


Slide60 l.jpg

The Flow

VisaManager

Transition

DB

Two Ways, too

International

Tax

Navigator


Slide61 l.jpg

The Flow – Coming Soon

International

Tax

Navigator

VisaManager

Transition

DB

What to Do

PeopleSoft

HR/

Payroll

Student

System

A.P.


Slide62 l.jpg

The Big Picture – Coming Soon

New

Hires

International

Tax

Navigator

VisaManager

I9 SS5 W7

Transition

DB

Foreign National Information Form

PDF Based

FNIF

Foreign National Information System

Web Based

FNIS

PeopleSoft

HR/

Payroll

Student

System

A.P.


  • Login