This topic describes each of the possible federal and state parameters that might apply to an employee. Not all states require additional parameters. The Jurisdiction drop-down list includes only the states with additional filing requirements.
Tax reporting parameters for employees are specified at the federal and state level. These parameters are configured by going to People, loading an employee profile, expanding the Payroll > Tax Definitions screen, and locating the Quarterly/Annual Reporting Parameters section.
The Quarterly/Annual Reporting Parameters section contains a section in which you can add to the list of quarterly/annual reporting parameters (if any) for the selected employee. When you create an entry, or select an existing entry, the entry expands and displays an additional two sections: General and Details. The choices you make in the General section determine what is displayed in the Details section. The General section contains the following fields:
- Jurisdiction: Drop-down list with federal and state options.
- Effective From: Mandatory field that indicates the start date of the parameter
- Effective To: Optional field that indicates the end-date of the parameter.
Standard Occupational Codes (SOC) are configured at the employer-level for each job in the SOC Occupational Code field in Org Setup > Jobs and Assignments in the Jobs and Job Assignments tab.
Federal
If you select Federal in the Jurisdiction field, the General section displays the following options:
Statutory Employee
Used for year end reporting, you need to select this checkbox for statutory employees whose earnings are subject to social security and Medicare taxes but not subject to federal income tax withholding.
Do not select this checkbox for common-law employees. There are workers who are independent contractors under the common-law rules but are treated by statute as employees. They are called statutory employees and include:
- A driver who distributes beverages (other than milk), or meat, vegetable, fruit, or bakery products; or who picks up and delivers laundry or dry cleaning if the driver is the employer's agent or is paid on commission.
- A full-time life insurance sales agent whose principal business activity is selling life insurance or annuity contracts, or both, primarily for one life insurance company.
- An individual who works at home on materials or goods that the employer supplies and that must be returned to the employer if the employer also furnishes specifications for the work to be done.
- A full-time traveling or city salesperson and turns in orders to the employer from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments. The goods sold must be merchandise for resale or supplies for use in the buyer's business operation. This work must be the salesperson's principal business activity.
SS/MED Religious Exemption (Form 4029)
Used for year end reporting, select this checkbox if the employee has submitted Federal Form 4029 (Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits).
Retirement Plan Eligible
Used for year end reporting, select 'Yes' if the employee is eligible for a retirement plan, or 'No' if they aren’t . Select '[None]', and the application determines the employee's availability based on their contributions to a deferred compensation plan within the tax year. This information populates the Box 13 – Retirement Plan checkbox on the employee's W-2 forms.
This can be used to override the parameter set at the legal entity level.
Alaska
If you select Alaska in the Jurisdiction field, the General section displays the following option:
Alaska Geo Area Code
Used for quarter end reporting, record the two-digit numeric geographic code in this field if the employee's primary worksite is in Alaska during the quarter. If the employee worked at different locations during the quarter, code for the most recent primary worksite. If the employee travels statewide, for example as a sales representative, specify the code for the location in which the employee spends the most time.
If you are unsure of the correct geographic code, see the Alaska Occupational Coding Manual, which can be found at https://live.laborstats.alaska.gov/erg/codehelp.cfm.
Arkansas
If you select Arkansas in the Jurisdiction field, the General section displays the following option:
Seasonal Employee Code
Used for quarter end reporting, record the seasonal employee code assigned by the state of Arkansas. These codes are given out by the Department of Workforce Services and can be 1-2 characters.
California
If you select California in the Jurisdiction field, the General section displays the following option:
State Disability Insurance
Used for quarterly reporting, select a combination of state disability insurance and state unemployment insurance (SUI):
- Select Personal Income Tax Only if the employee is having only personal income tax withheld.
- Select State Plan for Dis Ins and SUI if the employee has a state plan for disability insurance and state unemployment insurance.
- Note: Typically this will apply to the vast majority of the employees.
- Select State Plan for Dis Ins, exempt from SUI if the employee has a state plan for disability insurance, and is exempt from state unemployment insurance.
- Select State Plan for SUI –Public Entity Employees Only if the employee is a public entity employee, and has a state plan for unemployment insurance.
- Select State Plan for SUI, exempt from Dis Ins if the employee has a state plan for unemployment insurance, but is exempt from disability insurance.
- Select State Plan for SUI, Vol Plan for Dis Ins if the employee has a state plan for unemployment insurance, and a voluntary or private plan for disability insurance.
- Select Voluntary Plan for Disability Insurance, Exempt from SUI if the employee has a voluntary or private plan for disability insurance, and is exempt from state unemployment insurance.
This parameter is used for employees reporting Californian SUI or disability wages; typically an employee that has earned money and paid taxes in California during the quarter.
Indiana
If you select Indiana in the Jurisdiction field, the General section displays the following option:
Seasonal Employee Code
Used for quarter end reporting, record the seasonal employee code assigned by the state of Indiana. These codes are given out by the Department of Workforce Development and can be 1-2 characters.
Maine
If you select Maine in the Jurisdiction field, the General section displays the following options:
Seasonal Period Start
Used for quarter end reporting, select a start date for the seasonal period in this field.
Seasonal Period End
Used for quarter end reporting, select an end date for the seasonal period in this field.
Massachusetts
If you select Massachusetts in the Jurisdiction field, the General section displays the following option:
Corporate Officer
Used for year end reporting, select this checkbox if the employee is a corporate officer.
Minnesota
If you select Minnesota in the Jurisdiction field, the General section displays the following option:
Corporate Officer
Used for year end reporting, select this checkbox if the employee is a corporate officer.
New Jersey
If you select New Jersey in the Jurisdiction field, the General section displays the following option:
State Disability Insurance
Used for quarterly reporting, select this checkbox if the employee is eligible for state disability insurance.
New Mexico
If you select New Mexico in the Jurisdiction field, the General section displays the following option:
Corporate Officer
Used for year end reporting, select this checkbox if the employee is a corporate officer.
Puerto Rico
If you select Puerto Rico in the Jurisdiction field, the General section displays the following option:
State Disability Insurance
Used for quarterly reporting, select this checkbox if the employee is eligible for state disability insurance.
Date on Which Employee Started to Receive Puerto Rico Pension
The date when the employee started receiving their Puerto Rico Pension annuity.
Employee Classification
The following employee classifications are part of Form 499R-2/W-2PR. For more information about these classification types, go to the Puerto Rico Department of Treasury website https://hacienda.pr.gov.
| Employee Classification | Description |
|---|---|
| Employee Classification A: Qualified Physician | Indicates the employee was paid to provide services as a qualified physician. |
| Employee Classification B: Domestic Services | Indicates the employee was paid to provide domestic services. |
| Employee Classification C: Agricultural Labor | Indicates the employee was paid to do agricultural work. |
| Employee Classification D: Minister of a Church | Indicates the employee was paid to provide services as a church minister. |
| Employee Classification E: Health Professionals | Indicates the employee was paid as a licensed health professional. |
| Employee Classification F: Direct Employment | Indicates the employee was hired by a qualified business. |
| Employee Classification F: Total Hours Worked | The total number of hours in a year worked by the employee classified under Employee Classification F. |
| Employee Classification F: EIN of Exempt Business | The Employer Identification Number (EIN) of the employer of the employee classified under Employee Classification F. |
| Employee Classification G: Other | Indicates a classification group not covered by the A to F. |
Rhode Island
If you select Rhode Island in the Jurisdiction field, the General section displays the following option:
State Disability Insurance
Used for quarterly reporting, select this checkbox if the employee is eligible for state disability insurance.
Washington
If you select Washington in the Jurisdiction field, the General section displays the following options:
Corporate Officer
Used for year end reporting, select this checkbox if the employee is a corporate officer.
Wages with No Hours Code
Used for quarterly reporting, select this checkbox if the employee has current quarter-to-date State Unemployment Insurance (SUI) wages and zero work hours. The state of Washington requires you to add a reason for the zero work hours in the quarter end file.
Important: To ensure accurate reporting in Dayforce, this state parameter must have an effective end date. The end date must be the end of the current quarter.
Wyoming
If you select Wyoming in the Jurisdiction field, the General section displays the following options:
Employee Class Code
Drop-down list with quarter end reporting options for employees that are State Unemployment Insurance (SUI) exempt. Select an exemption class code in the drop-down list:
- Corporate Officer if the employee is exempt from state unemployment insurance because they are a corporate officer within the legal entity. If you select this, the application loads the Corporate Officer Type drop-down control.
- Government if the employee is exempt from state unemployment insurance because they are a government employee.
- Inmate if the employee is exempt from state unemployment insurance because they are an inmate.
- Job Training Program if the employee is exempt from state unemployment insurance because they are part of a job training program.
- School to Work if the employee is exempt from state unemployment insurance because they are part of a school to work program.
- Volunteer if the employee is exempt from state unemployment insurance because they are a volunteer.
- Welfare if the employee is exempt from state unemployment insurance because they are a welfare recipient.
Corporate Officer Type
Drop-down list that is displayed if the Corporate Officer option was selected from the Employee Class Code drop-down list. Select a corporate officer type:
- Other Officer if the employee is a corporate officer type that isn’t included in the list of options.
- President if the employee is President.
- Secretary if the employee is Secretary.
- Treasurer if the employee is Treasurer.
- Vice President if the employee is Vice President.
NAICS Employee Class Code
In the NAICS Employee Class Code field, enter the six-digit NAICS (North American Industry Classification System) code in this field. This code is assigned by the state of Wyoming and is specific to the primary nature of the employee's job.
Typically this is set at the legal entity level and applies to all employees of the legal entity. Populate this field only to override the legal entity value for the specific employee, if necessary.