How to Set up Adjustment Element to Trigger Taxable Income for 1099R Magnetic File (Doc ID 1674612.1)

Last updated on DECEMBER 06, 2016

Applies to:

Oracle HRMS (US) - Version 11.5.10.2 and later
Information in this document applies to any platform.

Goal

The 1099R Magnetic File needs taxable income to trigger the file to recognize the taxes withheld. A Balance Adjustment for 0.01 needs to be posted to Taxable Income.


Need guidance on how to set up the adjustment element.

 

As explained in <BUG 18239537> - 1099R BOX 12 IS SHOWING ON PRINTED FORM AND 1099R REGISTER, BUT 0.00 ON MAG FILE:


The SIT data and FIPS code will be included in the 1099R Magnetic File only when 'l_state_taxable_amount' is greater than zero.

'l_state_taxable_amount' = A_SIT_SUBJ_NWHABLE_PER_JD_GRE_YTD +
  A_SIT_SUBJ_WHABLE_PER_JD_GRE_YTD -
  A_SIT_PRE_TAX_REDNS_PER_JD_GRE_YTD

 
The behavior difference between the Magnetic file and the printed information is because the 1099R Paper report is picking up a balance. The magnetic file is using a formula as indicated above.

The SIT OVERRIDE element is forcing a tax deduction (Courtesy Tax) thus creating a balance which is why it shows on the 1099R Reports.

As the Subject Withholdable Income is not greater than zero, it will be necessary to manually enter the Courtesy Tax deducted from the employees payments into the 1099R Magnetic File or post a Balance Adjustment to enter 0.01 in income
 

Solution

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