In conjunction with the 16.2.7 Suite release, a Vertex tax upgrades has been placed on FTP sites.
Note: Ticket numbers beginning with "BUG" or "JOB" are used for internal tracking. Ticket numbers beginning with "Z" refer to items managed through the Zendesk ticketing system.
Work tax credit not being deducted from Ohio resident city tax calculation
This issue occured only when Ohio residents worked in a Kentucky location where either of the following conditions existed for a county tax:
The county tax had a maximum limit.
The county tax was eliminated when a city tax existed. Previously, in some instances, PTQ was not correctly deducting the work tax credit during the calculation of the resident tax for cities in Ohio.
This issue was addressed, effective with this release.
The calculation was modified to calculate the correct credit amount.
Ohio city subject wages
This issue affects only employees who live and work in the same city in Ohio, and who are exempt from the city tax. If an employee lives and works in the same Ohio city and is tax exempt, PTQ was returning the subject gross wages on the resident tax handle in error.
This issue was fixed.
Concurrent Aggregation and the Annualized Concurrent Aggregation methods for Canada
Before this release, there were some calculation issues when an override tax or override rate was passed, or when an additional supplement tax or rate was passed. These issues occurred in Canadian Federal and Quebec Provincial tax calculations.
The following calculation methods were affected:
Annualized Concurrent Aggregation (Federal only)
These issues were fixed.
Additional MED EE Tax for highly compensated employees with wages from a predecessor employer
The Medicare and Railroad Retirement Tier 1 (Medicare portion) tax rate is currently 1.45% each for the employee and employer. In addition, you must withhold 0.9% Additional Medicare Tax from wages that you pay to an employee in excess of $200,000 in a calendar year. Employers are required to begin withholding Additional Medicare Tax in the pay period in which they pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Additional Medicare Tax is imposed only on the employee. There is no employer share of Additional Medicare Tax. When corporate acquisitions meet certain requirements, wages paid by the predecessor employer are to be treated as if they were paid by the successor employer for purposes of determining if the employee has reached the Additional Medicare Tax or Railroad Retirement Tier 1 Tax (Medicare portion) withholding threshold.
Vertex Payroll Tax Q Series Enhanced Integration Summary of Program Modifications March 2017 3
What these changes mean: For PTQ to use year-to-date wages to accumulate the wages for both employers, you must pass the predecessor employer wages and taxes in the following fields:
eVprtGrsIDPriorState - Prior State Gross
eVprtGrsIDPriorStateSup - Prior State Supplemental Gross
eVprtTaxAmtIDPriorState - Prior State Tax Amount
eVprtTaxAmtIDPriorStateSup - Prior State Supplemental Tax Amount PTQ will add the information in these fields for predecessor employer wages year-to-date
Issue with VI work state SUI calculation
Currently, PTQ calculates the territorial income tax for the Virgin Islands (VI). The Virgin Islands calculation does not handle multi-work situations. If the work and resident locations are not in the same territory, the calculation status is set to Invalid Employee handle, and no taxes are returned.
Beginning with this release, VI State Unemployment (SUI) calculates when the work GeoCode is 78-000-0000 (VI) even if the resident GeoCode is not the same.
This calculation change is for VI SUI ER only.
Canada Pension Plan (CPP) calculation error for employee who transfers from Quebec to another province
The self-adjust and self-adjust at maximum calculation methods are complicated if a portion of the employee's year-to-date earnings are earned in Quebec, due to the difference in the CPP and QPP contribution rates and annual contribution limits.
To determine if the employee and employer have satisfied the annual maximum contribution for the Canada Pension Plan (CPP) when the employee transfers from Quebec to another province, enhancements were made to the contributions calculations that use the self-adjust and self-adjust at maximum calculation methods.
Maine withholding tax
Beginning in 2017, the Maine Department of Revenue updated the formula for calculating Maine withholding tax.
In release 4.2.2, 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.