Fusion US Third-Party Tax Filing Interface

An Oracle White Paper
February 2014
Fusion: US Third-Party Tax Filing Interface
Disclaimer
The following is intended to outline our general product direction. It is intended for information purposes
only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code,
or functionality, and should not be relied upon in making purchasing decisions. The development, release,
and timing of any features or functionality described for Oracles products remains at the sole discretion of
Oracle
Table of Contents
Third-Party Tax Filing: Explained ........................................................ 2
Quarterly Reporting .......................................................................... 2
Monthly Reporting ............................................................................. 2
Periodic Reporting ............................................................................ 2
Tax-Filing Setup for US ADP Transporter: Critical Choices ............... 3
ADP Configuration ............................................................................ 3
Organizations and Locations ............................................................ 3
Balance Management ....................................................................... 3
Reporting Information Card .............................................................. 4
Optional Configuration ...................................................................... 5
Running the Third-Party Tax Interface: Worked Examples ................ 7
Quarterly Tax Reporting ................................................................... 7
Monthly Tax Reporting ...................................................................... 7
Periodic Tax Reporting ..................................................................... 8
Tax-Filing Interface Error Recovery: Examples .................................. 9
Correcting Data After Periodic Archive Processing ......................... 9
Correcting Data Before Upload ........................................................ 9
Correcting Data After Upload ........................................................... 9
Form W-2 Box Information.................................................................. 10
Form W-2 Box Information ............................................................. 10
Form W-2 Box 12 Balances ............................................................ 15
Third-Party Tax Filing: Explained

Business outsourcing solutions providers such as ADP can perform wage direct deposits, print W-2s, and
file federal, state, and local taxes for their customers. Oracle Fusion HRMS (US) provides a tax filing
interface for customers who choose to use such a third-party provider. This interface extracts all relevant
payroll data into an output file appropriate for ADP Transporter, so that you can submit it for processing.
This third-party interface supports three reporting intervals for tax filing:
Quarterly
Monthly
Periodic
All tasks are run from the Regulatory and Tax Reporting work area.
Quarterly Reporting
This extract uses payroll data to file quarterly and annual returns and, optionally, to print employee W-2s.
Use the Run Third-Party Quarterly Tax Filing Extract task to extract the archived payroll data to an output
file.
Monthly Reporting
This extract uses payroll data to file monthly state unemployment wages and taxes. Use the Run ThirdParty Monthly Tax Filing Extract task to extract the payroll data to an output file. Currently, Illinois is the
only state requiring this reporting.
Periodic Reporting
This extract uses payroll data captured by the periodic archive process to report tax liabilities on an asneeded basis.
To run the periodic archive:
1. Use the Run Third-Party Periodic Tax Filing Extract task to extract the payroll data to an output file.
2. When selecting data for extract, use overlapping dates to ensure all appropriate payroll data is
captured.
Note:
The periodic extract file does not pass any year-to-date withheld amounts, so employers in
Missouri must apply for their tax credit directly from the Missouri tax authority.
Tax-Filing Setup for US ADP Transporter: Critical Choices

The following assumptions and configuration requirements exist for the tax interface:
ADP Configuration
Organizations and Locations
Balance Management
Reporting Information Card
Optional Configuration
ADP Configuration
Prior to running your first extract, if you are a new user to ADP Transporter, you must establish a feed
with ADP prior to any attempt to extract.
Organizations and Locations

When setting up your organizations and locations, you need to consider the following:
For locations in participating states:

1. Start the Manage Locations task.
2. Specify the Employer Unit Number under the United States Unemployment Reporting Information
section.
This value will be a three, four, or five digit number, depending on the state. Currently this is
required for New Mexico, Massachusetts, Minnesota, Iowa, and Michigan.
Oracle Fusion tax reporting units (TRUs) are considered companies by ADP. The extract output file
can include multiple batches, each representing a TRU.
Enter the employer client ID number provided by ADP into the Fusion system:
1. Start the Manage Legal Reporting Unit HCM task.
2. Enter the employer client ID in the Client Identifier field in the Third-Party Interfaces context at the
Federal level.
This ID cannot be more than 14 characters long.
For California, you must provide the employees' Wage Plan Code.
o At the payroll statutory unit (PSU) level, use the Manage Legal Entity HCM Information task.
o At the TRU level, use the Manage Legal Reporting Unit HCM Information task. Enter the value in
the Wage Plan Code field at the Regional level.
The value you enter at TRU level overrides the value for the PSU. Both can be overridden for
individual employees on the reporting card.
For New Jersey, you must indicate your family leave insurance plan and disability plan types, and if
you are opting for private plans, provide the plan numbers. Use the Manage Legal Reporting Unit
HCM Information task to specify these values at the Regional level. If private plans are used, the plan
numbers are displayed on the employee W-2.
Balance Management
When setting up balances, consider the following:
When defining and managing balances, you must establish feeds for any balance you want to pass
on the file.
For a list of W-2 balances required for end-of-year reporting, refer to the Form W-2 Box Information
reference topic.
In addition to the W-2 balances, the following non-W-2 balances can also be passed on the file:
o Employer-Subsidized Meals
o Moving Expenses Paid to Third-Parties
o Qualified Transportation
o Sick Pay Wages
Reporting Information Card

The Reporting Information card requires the following parameters be set:
Field Name
Notes
ADP Special
Processing
Required
Indicates whether the employee's W-2 should be excluded from main population
printing.
ADP Special Sort

Code
Provides additional data for sort options G and E in the ADP client maintenance
system.
Corporate Officer
Identifies employees who are corporate officers of the employer.

As this is required by multiple states, specify it at the federal level.
An employee is automatically marked as eligible for the retirement plan on Box
13 of their W-2 when any of the following balances has a value greater than
zero:
Eligible for
Retirement Plan
W2 401k
W2 403b
W2 408k
W2 501c
W2 Pension Plan
W2 Roth 401k
W2 Roth 403b
Use this field to manually identify employee eligibility if they do not contribute to
any plan.
Family Status
Geographic Code
Designates if the employee owns majority interest of this business.

Two-digit code that identifies where the employee works.
Required for Alaska reporting only.
Health Care Status
Occupational Code
Designates if the employee is considered covered or not covered. Used in the

calculation of Vermont health care deduction reporting.
Six-digit code that describes the activities of the employee.
Required for Alaska reporting only.
Probationary Code
Identifies employees hired on a trial basis.
Seasonal Code
Identifies employees as seasonal workers. Required for Maine and North

Carolina reporting only.
Wage Plan Code
Used to override the value specified at the payroll statutory unit and tax reporting
unit levels. Applies to California reporting only.
Optional Configuration
The following settings may be necessary, depending on your individual reporting requirements:
Box 14 of the employee W-2 can be configured to display state-specific deductions, such as:
o Maine Public Employees Retirement System contribution
o Maryland state retirement pickup amount
o New York domestic partner benefits
The application automatically configures the feeds and Box 14 labels for the following state
deductions. No user action is required.
State
Value
Box 14 Label
Alaska
State Unemployment Insurance
AK SUI
California
State Disability Insurance
CA SDI
Hawaii
HI SDI
Kentucky
Boone County Occupational

Tax
BOONOC
Kentucky
Boone County Mental Health

Tax
BOONMH
New Jersey
DI
New Jersey
Unemployment Insurance,
Workforce Development
Partnership Fund,
Supplemental Workforce Fund
UI/WF/SWF
New Jersey

Private Plan Number
DI P.P #
New York
NY SDI
Pennsylvania
Local Services Tax
PA LST
Rhode Island
RI SDI
For other state-specific deductions, to populate Box 14 for the quarterly extract:
1. Feed the appropriate W2 Box 14 balance.
For the New York domestic partner benefits contribution, you must use the W2 Box 14A balance
and Box 14A lookup code.
2. Update the meaning of the corresponding lookup code of the US_W2 BOX 14 USER-DEFINED
lookup type.
The text you type will be the label text appearing on the W-2 Box 14.
Depending on the transmission method you have chosen, you may have to change the name of the
output file prior to transmission to ADP. Refer to your ADP documentation for instructions and
guidelines.
Running the Third-Party Tax Interface: Worked Examples

Oracle Fusion HRMS (US) provides a tax filing interface for customers who choose to out source their tax
filing through ADP Transporter.
This third-party interface supports three reporting intervals for tax filing:
Quarterly
Monthly
Periodic
Note:
The Fusion application must be properly configured for tax interface reporting prior to running any
extract. Refer to Tax-Filing Setup for US ADP Transporter: Critical Choices, above.
Quarterly Tax Reporting

This extract uses payroll data to file quarterly and annual returns and, optionally, to print employee W-2s.
Use the Run Third-Party Quarterly Tax Filing Extract task to extract the archived payroll data to an output
file.
1. From the Manage Regulatory and Tax Reporting work area, select the Run Third-Party Quarterly Tax
Filing Extract job for submission.
2. Specify the following values.
Field Name
Description
Extract Tax Quarter The quarter you wish to report upon. Enter 3 for the third quarter.
Extract Tax Year
The 4-digit year you wish to report upon. Enter 2011.
3. Submit the process.

4. Review the audit report for totals sent on the file.
5. Upload the tax file to ADP Transporter.
Monthly Tax Reporting

For those states that require monthly reporting, this extract uses payroll data to report state
unemployment wages and taxes on a monthly basis. Use the Run Third-Party Monthly Tax Filing
Extract task to extract the payroll data to an output file. Currently, Illinois is the only state requiring
this reporting.
Note:
You do not need to generate this extract on months when you are creating the quarterly extract.
1. From the Manage Regulatory and Tax Reporting work area, select the Run Third-Party Monthly Tax
Field Name Description
Month
The month you wish to report upon. Enter 2 for March.
Year
The 4-digit year you wish to report upon. Enter 2011.
3. Submit the process.

4. Review the audit report for totals sent on the file.
Periodic Tax Reporting

This extract uses payroll data captured by the periodic archive process to report tax liabilities on an asneeded basis. Use the Run Third-Party Periodic Tax Filing Extract task to extract the payroll data to an
output file.
1. Run the necessary prerequisites for the Periodic Archive process (such as, payroll and prepayments).
2. Run the Periodic Archive process.
3. From the Manage Regulatory and Tax Reporting work area, select the Run Third-Party Periodic Tax
Field Name
Description
Periodic Extract Start Date Start date of the reporting period. Enter 3/1/2011.
Periodic Extract End Date End date of the reporting period. Enter 4/1/2011.
5. Submit the process. Upon successful completion, two output files are created: the tax file and an
audit report.
6. Review the Audit report for totals sent on the file.
Tax-Filing Interface Error Recovery: Examples

The Oracle Fusion Tax-Filing Interface keeps no records of what files you send to ADP Transporter or
when you send them. It is up to you to ensure the accuracy of the Oracle Fusion HRMS (US) data you
capture and upload to ADP. The data maintained in Fusion must remain your source of truth.
Correcting Data After Periodic Archive Processing

For periodic tax filing, if you find an error in your payroll data after you have run the periodic archive, but
before you have submitted the extract process, you must:
1.
2.
3.
4.
Roll back the periodic archive.

Correct your information.
Rerun the archive process.
Run the tax-filing extract process.
Correcting Data Before Upload

In this case, you need to make corrections to your payroll data, but you have already generated the
extract file. If you have not yet uploaded the file to ADP, you must:
1. For periodic tax filing, roll back the tax-filing extract process and the periodic archive.
Note:
This assumes you have not run any post processes that are dependent on the periodic archive (such
as the payslip).
2. Correct your information.
3. For periodic tax filing, rerun the periodic archive process (periodic tax filing only).
4. Run the tax-filing extract process.
Correcting Data After Upload

Once you have uploaded your tax-filing extract to ADP, you must work with ADP to resolve issues and
correct any errors. You must also ensure all corrections are reflected in the data maintained in Fusion.
Form W-2 Box Information

The following describes each of the balances assigned to various Form W-2 boxes.
The Oracle HRMS Third-Party Tax Filing Interface requires that you feed these balances for end-of-year
reporting.
Form W-2 Box Information

Box 7
Box Label
Fusion Balance
Social Security Tips
W2 Social Security Tips
Additional Information
Box 8
Box Label
Fusion Balance
Allocated Tips
W2 Allocated Tips
Box 10
Box Label
Fusion Balance
Dependent Care Benefits
W2 Dependent Care
Box 11
Box Label
Fusion Balance
Nonqualified Plans
W2 Nonqualified Plan
Nonqualified Plans
W2 Nonqualified 457
Box 12
Box Label
Fusion Balance
10
Codes
Varies
See "Form W-2 Box 12

Balances," below.
Box Label
Fusion Balance
Statutory Employee
N/A
Yes/No field on Federal

Employee Withholding
Certificate
Retirement Plan
N/A
Checks the following balances

for values greater than zero:
Box 13
Displays a checkbox on the W2, with selection indicating

participation, depending on the
results listed in the Additional
Information column.
W2 401k
W2 403b
W2 408k
W2 501c
W2 Pension Plan
W2 Roth 401k
W2 Roth 403b
Also checks the Reporting Card

field for a value of Y.
Third-party Sick Pay
N/A
Displays a checkbox on the W2, with selection indicating
receipt of pay, depending on
the results listed in the
Additional Information column.
Checks the W2 Third Party Sick

Pay balance for a value greater
than zero.
Box 14A
Box Label
Fusion Balance
Varies
W2 Box 14A
The label for this box is

determined by the value you
provide in the W2 Box 14A
lookup code Meaning of the
US_W2 BOX 14 USER-
11
DEFINED lookup type.
Box 14B
Box Label
Fusion Balance
Varies
W2 Box 14B

provide in the W2 Box 14B
US_W2 BOX 14 USERDEFINED lookup type.
Box 14C
Box Label
Fusion Balance
Varies
W2 Box 14C

provide in the W2 Box 14C
Box 14D
Box Label
Fusion Balance
Varies
W2 Box 14D

provide in the W2 Box 14D
12
Box 14E
Box Label
Fusion Balance
Varies
W2 Box 14E

provide in the W2 Box 14E
Box 14F
Box Label
Fusion Balance
Varies
W2 Box 14F

provide in the W2 Box 14F
Box 14G
Box Label
Fusion Balance
Varies
W2 Box 14G

provide in the W2 Box 14G
Box 14H
Box Label
Fusion Balance
13
Varies
W2 Box 14H

provide in the W2 Box 14H
Box 14I
Box Label
Fusion Balance
Varies
W2 Box 14I

provide in the W2 Box 14I
Box 14J
Box Label
Fusion Balance
Varies
W2 Box 14J

provide in the W2 Box 14J
Box 14X
Box Label
Fusion Balance
Varies
W2 Box 14X
For Oracle Fusion Third-Party

Tax Filing Interface users, this
information is not passed on the

14
provide in the W2 Box 14X

output file.
Box 14Z
Box Label
Fusion Balance
Varies
W2 Box 14Z
For Oracle Fusion Third-Party

Tax Filing Interface users, this
information is not passed on the
output file.

provide in the W2 Box 14Z
Form W-2 Box 12 Balances

Code
Balance
Description
W2 Uncollected Social
Security Tax Tips
Uncollected social security or RRTA tax on tips.
W2 Uncollected Medicare
Tips
Uncollected Medicare tax on tips.
W2 Group Term Life
Taxable cost of group-term life insurance over 50,000

USD.
A balance for Code A includes the amount of social

security tax on an employee's tips that could not be
collected because of insufficient funds.
A balance for Code B includes the amount of Medicare

tax on an employee's tips that could not be collected
because of insufficient employee funds.
A balance for Code C includes the value of employerprovided group-term life insurance coverage over
50,000 USD minus the employee's after-tax
contributions.
D
W2 401k
Elective deferrals to a section 401 (k) cash or deferred

arrangement.
A balance for Code D includes the employee's total
elective deferrals to a 401 (k) cash or deferred
15
arrangement, even if the employee exceeds the annual

elective deferral limit. Note:
When feeding this balance, you must include any catchup deductions.
E
W2 403b
Elective deferrals to a section 403 (b) salary reduction

agreement.
A balance for Code E includes the employee's total
elective deferrals to a 403 (b) salary reduction
agreement to purchase an annuity contract, even if the
employee exceeds the annual elective deferral limit.
Note:
W2 408k
Elective deferrals to a section 408 (k) (6) salary

reduction SEP.
A balance for Code F includes the employee's total
elective deferrals to a 408 (k) (6) salary reduction
Simplified Employee Pension plan, even if the employee
exceeds the annual elective deferral limit.
W2 457
Elective deferrals and employers contributions

(including nonelective deferrals) to any governmental or
nongovernmental section 457 (b) deferred
compensation plan.
A balance for Code G includes the total elective and
nonelective contributions made to a 457 (b) deferred
compensation plan for government employees or tax
exempt organizations, even if the employee exceeds the
annual elective deferral limit.
Note:
W2 501c
Elective deferrals to a section 50 (c) (18) (D) tax-exempt

organization plan.
A balance for Code H includes the total elective
deferrals to a 501 (c) (18) (D) tax-exempt organization
plan (not employer nonelective contributions or
employee after-tax contributions).
16
W2 Nontax Sick
Nontaxable sick pay.

A balance for Code J includes the amount of third-party
sick pay that is not subject to federal income tax
because of the employee's after-tax contributions to the
sick pay plan.
W2 Excise Parachute
20% excise tax on excess golden parachute payments.

A balance for Code K includes a 20% excise tax on
excess golden parachute payments made to key
corporate employees after a merger or acquisition.
W2 Expense
Reimbursement
Substantiated employee business expense

reimbursements.
A balance for Code L includes the amount of employee
business expense treated as substantiated (nontaxable)
only if the employer reimburses its employees for
expenses under a per diem or mileage allowance that
exceeds the government-approved rates.
Security Group Term Life
Uncollected social security or RRTA tax on taxable cost

of group-term life insurance over $50,000 (for former
employees).
A balance for Code M includes the amount of
uncollected social security tax on the value of excess
group-term life insurance coverage for former
employees.
Security Group Term Life
Uncollected social security or RRTA tax on taxable cost

of group-term life insurance over $50,000 (for former
employees).
A balance for Code M includes the amount of
uncollected social security tax on the value of excess
group-term life insurance coverage for former
employees.
W2 Qualified Move
Excludable moving expense reimbursements paid

directly to employees.
A balance for Code P includes the amount of moving
expense reimbursements paid to employees that were
not included in the employee's income because they
were paid for qualified moving expenses.
W2 Nontax Combat
Nontaxable combat pay.
17
You can elect to have your non taxable combat pay

included in earned income for the earned income credit.
R
W2 Medical Saving
Account
Employer contributions to an Archer MSA.
W2 408p
Employee salary reduction contributions under a section

408 (p) SIMPLE.
A balance for Code R includes employer contributions to

your medical savings account (MSA).
A balance for Code S includes employee salary

reduction contributions under a section 408 (p) SIMPLE
(not included in box 1).
T
W2 Adoption
Adoption benefits.
A balance for Code T includes adoption benefits not
included in box 1.
W2 Nonqualified Stock
Income from the exercise of nonstatutory stock option(s)

(included in boxes 1, 3, and 5).
A balance for Code V includes income from the exercise
of nonstatutory stock options.
W2 Health Saving Account
Employer contributions (including employee

contributions through a cafeteria plan) to an employee's
health savings account.
W2 Nonqualified Deferred
Compensation
Deferrals under a section 409A nonqualified deferred

compensation plan.
The amount set aside under a nonqualified deferred
compensation plan. This includes the current year
deferrals and earnings on the current year and prior
year deferrals.
W2 409a Nonqualified
Income
Income under section 409A on a nonqualified deferred

compensation plan.
The amount set aside under a nonqualified deferred
compensation plan that is taxable in the year of deferral
due to the failure of the employer's plan to meet certain
qualifications under section 409a. Can also be used to
report amounts deferred into a nonqualified plan in prior
years if the employer's plan was not modified.
AA
W2 Roth 401k
Designated Roth contributions to a Section 401 (k) plan.
18
If an employee participates in a Section 401 (k) plan that

includes a qualified Roth contribution program, the
employee may elect to make a designated Roth
contribution to the plan or program in lieu of elective
deferrals.
Note:
BB
W2 Roth 403b
Designated Roth contributions to a Section 403 (b) plan.

If an employee participates in a 403 (b) salary reduction
program that includes a qualified Roth contribution
program, the employee may elect to make a designated
Roth contribution to the plan or program in lieu of
elective deferrals.
Note:
DD
W2 Health Coverage
Cost of employer-sponsored health coverage. Refer to

the IRS guidelines on what values should be included in
this box.
EE
W2 Roth 457B
Designated Roth contributions under a governmental

section 457 (b) plan.
This amount does not apply to contributions under a taxexempt organization section 457 (b) plan.
Note:
19

February 2014
Author: John Lawson
Contributing Authors:
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An Oracle White Paper

Fusion: US Third-Party Tax Filing Interface

Fusion: US Third-Party Tax Filing Interface

Fusion: US Third-Party Tax Filing Interface

Fusion: US Third-Party Tax Filing Interface

Third-Party Tax Filing: Explained

Fusion: US Third-Party Tax Filing Interface

Tax-Filing Setup for US ADP Transporter: Critical Choices

Organizations and Locations

For locations in participating states:

Fusion: US Third-Party Tax Filing Interface

Reporting Information Card

ADP Special Sort

Identifies employees who are corporate officers of the employer.

Designates if the employee owns majority interest of this business.

Fusion: US Third-Party Tax Filing Interface

Health Care Status

Designates if the employee is considered covered or not covered. Used in the

Identifies employees hired on a trial basis.

Identifies employees as seasonal workers. Required for Maine and North

Wage Plan Code

State Unemployment Insurance

State Disability Insurance

State Disability Insurance

Boone County Occupational

Boone County Mental Health

State Disability Insurance

State Disability Insurance

State Disability Insurance

Fusion: US Third-Party Tax Filing Interface

Local Services Tax

State Disability Insurance

Fusion: US Third-Party Tax Filing Interface

Running the Third-Party Tax Interface: Worked Examples

Quarterly Tax Reporting

The 4-digit year you wish to report upon. Enter 2011.

3. Submit the process.

Monthly Tax Reporting

The month you wish to report upon. Enter 2 for March.

Fusion: US Third-Party Tax Filing Interface

The 4-digit year you wish to report upon. Enter 2011.

3. Submit the process.

Periodic Tax Reporting

Fusion: US Third-Party Tax Filing Interface

Tax-Filing Interface Error Recovery: Examples

Correcting Data After Periodic Archive Processing

Roll back the periodic archive.

Correcting Data Before Upload

Correcting Data After Upload

Fusion: US Third-Party Tax Filing Interface

Form W-2 Box Information

Form W-2 Box Information

Social Security Tips

W2 Social Security Tips

Dependent Care Benefits

Fusion: US Third-Party Tax Filing Interface

See "Form W-2 Box 12

Yes/No field on Federal

Checks the following balances

Displays a checkbox on the W2, with selection indicating

Also checks the Reporting Card

Checks the W2 Third Party Sick

The label for this box is

Fusion: US Third-Party Tax Filing Interface