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Calculate Taxes and Update Payroll functionality for Stock Administration (Doc ID 1063103.1)

Last updated on OCTOBER 02, 2018

Applies to:

PeopleSoft Enterprise HRMS Stock Administration - Version 8.9 to 9 [Release 8.9 to 9]
Information in this document applies to any platform.

Purpose

Synopsis -- Calculate Taxes and Update Payroll functionality, working with Stock Admin functionality

High Level Overview of Stock Administration Payroll Integration
The North American Payroll Integration for Stock Administration is centered on two functions, Calculate Tax and Update Payroll.

The critical functionality was to provide the end user with the capability to Calculate Tax and Update Payroll by using the Automatic Paysheet Creation process. This process creates a Paysheet for the following events:

A.  Calculate Tax for Stock Options: When calculating taxes for a given exercise or release, the user can press a push button and the PeopleCode remote call function to Payroll COBOL will create an off-cycle Paysheet for the employee. A remote call will also be made to process the Paysheet to calculate taxes on the ordinary income based upon the type of Exercise/Release. The tax details will then be retrieved and loaded into a stock tax record and then the Paysheet will be deleted. The pay calendar used to process this Paysheet is the next available one after the last confirmed calendar. The intermediary transaction record used to help build the Paysheet will also be deleted.

B.  Update Taxes for Stock Options: When the Stock Administrator is completed calculating taxes on the Option transaction, the user can press a push button to write a record to a payroll transaction file which are used to create a manual check Paysheet. The transaction set consists of the Ordinary Income to update the YTD Payroll balance, the total taxes for the Option transaction, and individual transactions that will create Tax Overrides on the manual check Paysheet.

The only way the user could reverse the update to Payroll is to void the transaction. In voiding the transaction, a check is made to see if the Payroll transaction generated has already been processed by Payroll. If not, the transaction is deleted and the user will have to create a new transaction. Otherwise, the user will have to produce the reversal report, so that Payroll makes the appropriate adjustment.

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