E1: 07/77: Quantum for Payroll - Vertex Release 4.2
(Doc ID 2122686.1)
Last updated on FEBRUARY 24, 2021
Applies to:JD Edwards EnterpriseOne Canadian Payroll - Version 9.0 and later
JD Edwards EnterpriseOne US Payroll - Version 9.0 and later
Information in this document applies to any platform.
Vertex, Inc. has released Version 4.2.
There are code changes required in order to receive the new functionality introduced by Vertex, Inc.
During the certification process, it was found that the payroll tax (PTQ 4.0) and sales tax(STQ 4.1) sharing the same GeoCoder database caused Vertex to not function correctly. To have PTQ and STQ share the GeoCoder database, the same DBMS has to be specified. You can use both on the same machine but you must configure PTQ and STQ to use its own Geocoder database. Vertex recommends using STQ 5.0 with PTO 4.0 or 4.1.
Vertex 4.2 Frequently Asked Questions
Q1: Can the Vertex 4.2 Release be applied without the JD Edwards code changes?
A1: Yes, Vertex Release 4.2 can be applied without the JD Edwards code changes. Please note that you will not receive the new functionality provided in Vertex 4.2 until the JD Edwards EnterpriseOne code changes are applied. Additionally, until the release has been certified by JD Edwards EnterpriseOne, correct tax calculations cannot be confirmed.
Q2: If we are on Vertex 4.0, can we move to Vertex 4.2 without the JD Edwards code changes?
A2: Yes, you can move from Vertex 4.0 to Vertex 4.2 without the JD Edwards code changes, however, you will not receive the new functionality in Vertex 4.2 until the JD Edwards EnterpriseOne code changes are applied. Additionally, until the release has been certified by JD Edwards EnterpriseOne, correct tax calculations cannot be confirmed.
Q3: What will happen if I'm on Vertex 4.1.1 and I take the JDE ESU that contains Vertex 4.2 code?
A3: If you are on Vertex 4.1.1 and apply the code for Vertex 4.2 it is not expected that you will experience any difference in tax calculations. You will not receive the new functionality for Vertex 4.2 until the JD Edwards EnterpriseOne code changes are applied. Additionally, until the release has been certified by JD Edwards EnterpriseOne, correct tax calculations cannot be confirmed.
Q4. We are on Vertex 4.0. Can we moved to Vertex 4.2 without any tax implications?
A4. All vertex releases are cumulative. Moving to Vertex 4.2 will require JD Edwards code changes. It is recommended that you apply the ESU for the associated Vertex release.
What's New In Vertex Release 4.2
Puerto Rico Residents Tax
Vertex Payroll Tax Q Series has been changed to more precisely handle the Puerto Rico tax rates and law. Bona fide residents of Puerto Rico working in Puerto Rico for the entire tax year are not subject to United States (U.S.) federal withholding tax, but are required to pay federal income tax on the following:
• U.S. income earned outside of Puerto Rico
• Income earned where the employer is the U.S. government or one of its agencies
A new form (PR.RESIDENT) was created to identify bona fide residents of Puerto Rico in order to eliminate their federal withholding tax. When the form is not present, federal tax will be calculated on the wages on the federal tax handle. The calculation status will be set based on the tax calculation. Tax amount overrides and additional tax will be processed on the federal tax handle.
While Vertex introduced a new form to handle the federal tax exemption for Puerto Rico residents that work in Puerto Rico, the changes did not include functionality to handle multiple work location scenarios, for example, employees that work both inside and outside of Puerto Rico during a pay period. In this case, only the wages earned outside of PR are subject to federal taxes, but there is a limitation in Vertex PTQ 4.2 where it will also include any wages earned outside of PR in this tax calculation. As of the completion this of Bug, Vertex had not committed to a timeframe for providing support for this specific scenario.
Two payments to the employee will be required under the above scenario with one payment based on the wages earned in PR and the other based on the wages earned outside of PR. This workaround will be required until Vertex makes the necessary modifications to handle this scenario on their side in a later release of Vertex PTQ.
These changes have no impact on the Puerto Rico state tax calculation.
Canada Non-Periodic Bonus
Beginning with this release, there is a change in how taxes are calculated and reported on bonus or retroactive pay, when the amounts are equal to or less than a certain threshold.
Refer to the Canada Revenue Agency (CRA) and Revenu Quebec for additional guidance about current thresholds.
Guam Tax Reporting
In previous versions of PTQ, Guam (66-00-0000) was treated similarly to U.S. GeoCodes. The following federal taxes
were treated as follows:
• FICA – calculated and returned on the federal handle
• FUTA – calculated and returned on the federal handle
• Income Tax Withholding – was not calculated
Previously, if you did not want these taxes to calculate you had to use the bypass calculation method. This has been changed. Now, PTQ calculates the territorial income tax for the Guam.
When both the work and resident location is Guam tax will be calculated as Guam income tax on the resident state tax handle. No tax will be returned on the federal tax handle. The calculation status on the federal tax handle will be set to gross amount not taxable. Also FUTA and State Unemployment tax will not be calculated. The calculation status for FUTA will be set to gross amount not taxable. The calculation status for State Unemployment tax is set to tax does not exist.
Nebraska Wage Accumulation Reporting
Income tax on wages paid to a Nebraska resident must be withheld, even when another state's withholding applies.Nebraska allows a credit for taxes paid to another state. Sometimes there are Nebraska taxes owed after the credit is applied. Previously, we returned the Nebraska tax and the wages earned outside of Nebraska. When wages earned by a Nebraska resident are for work performed outside Nebraska, the wages should not be reported to Nebraska. In order to accomplish this, a new default JIT (10) was created for Nebraska state income tax withholding. With this default JIT, taxes will be reported in Nebraska, but wages will not be reported if both of the following are true:
• The wages are earned outside Nebraska
• The tax on the wages is paid outside Nebraska
All currently available JITs remain as options.
* When entering a record in Additional Tax Overrides for Nebraska, do not enter 10 in the JIT field; you will get an "Invalid Value" error, leave the JIT field blank (zero)
Maine Withholding Tax
Recently, the Maine Department of Revenue updated the percentage method for calculating Maine withholding tax to include a step for taxpayers who are subject to a phase out of the standard deduction on their income tax returns. Currently, the Maine standard deduction amounts are phased out for single taxpayers with Maine income over $70,000 and married taxpayers filing joint returns with Maine income over $140,000.
In release 4.2, Vertex modified the program code and updated the calculation to account for these changes. Refer to the Vertex Payroll Tax Q Series Calculation Guide for more information about the changes in calculations.
Apply the ESU for the release and bug listed to receive the new functionality.
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In this Document
|Vertex 4.2 Frequently Asked Questions|
|What's New In Vertex Release 4.2|
|Puerto Rico Residents Tax |
|Canada Non-Periodic Bonus |
|Guam Tax Reporting|
|Nebraska Wage Accumulation Reporting|
|Maine Withholding Tax|