Run Tax Credit Calculation (TP140) to
calculate and report tips in excess of those deemed wages
for meeting the federal minimum wage requirement, and to calculate
the Social Security and Medicare tax on the excess tips amount.
Note:
Run Tax Credit Calculation (TP140) is
not an update report so you can run the report as often as necessary.
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Access Tax Credit Calculation (TP140).
Note: Voids, manual payments, and adjustments are
included in the calculation of the tax credit.
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Select the Company, Process Level, Department, Job
Code, and Employee Group for which you want to perform a tax credit
calculation.
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If
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Then
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The employee is included in the
company, process level, department, job code, or employee group or if the employee has tip records
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Tax Credit Calculation (TP140) selects the employee for the tax credit
calculation.
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You select a specific process level
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only records associated with that process
level are reported and included in the tax credit calculation.
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You select a specific department
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only records associated with that department
and process level are reported and included in the tax credit calculation.
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You select a specific job code
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only records associated with that job code are reported
and included in the tax credit calculation.
The job code
must be defined on Job Code (HR06.1) as a tipped
job eligible to include in the tax credit calculation. The Tips field
on HR06.1 must have a value of C.
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Note: The selected records for an employee are sorted by process level,
work state, department, and job code.
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Complete the form. Use these guidelines to specify the field values:
- Date
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To include in the tax credit calculation, the time records with
payment dates within a specific date range only, specify the beginning
date of the desired date range.
To include in the tax credit calculation, the time records within
a specific date range only, specify the ending desired date range.
If you define a date range, then only records that fall within the
date range and that meet the other defined criteria are reported and
included in the tax credit calculation.
- Social Security Rate
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Specify the Social Security rate to use in the tax credit calculation.
- Medicare Rate
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Specify the Medicare rate to use in the tax credit calculation.
- Pay Class
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Select the pay class that represents the kinds of pay that you want
to include in the tax credit calculation.
To include in the calculation only certain kinds of pay, define
a pay class and associate the appropriate pay summary groups with
that pay class.
Note: If you select a pay class, then the application includes in
the calculation the amounts from pay summary groups associated with
the selected pay class (excluding tips) only. The application reads
the pay summary group flags to determine whether amounts associated
with the pay summary group are included, excluded, or subtracted from
the pay class totals. If you do not select a pay class, then the application
totals all wages.
- Report Sequence
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Select the value that determines the sequence that you want the report
to print.
- Summary Option
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Select the option that determines the kind of data included
in the report.
Select D (Employee Detail) to include in the report all tax
credit calculation data for employees meeting the report parameters.
Select T (Employee Totals) to include in the report, the tax
credit calculation totals only for employees meeting the report parameters.
Select S (Sort Level Totals) to include in the report, the sort
level totals only for the report parameters. Sort levels are determined
by the value in the Report Sequence field.
- Employee Sequence
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Select the value that determines the employee sequence in which
the data prints on the report.
If you do not define an employee sequence, then the report prints
in the order defined in the Print Order field in Company (HR00.1) for the selected company.
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Select the Submit form action to submit the report.
Follow-up
The tax credit report produced by Tax Credit Calculation (TP140) offers these sort options:
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Process Level, Department, Job, Employee
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Process Level, Department, Employee
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Job, Employee
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Employee
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Process Level, Work State, Department, Job, Employee
The report provides the totals for these columns: Payment
Date, Wages, Hours, Minimum Wage Due, Tip Credit, Tips, Excess Tips,
and Tax Credit by sort sequence.
If the excess tips for Social Security and Medicare are different,
then a second line prints on the report for the detail line and the total
lines.