Pennsylvania Taxes Conversion Tool

Task Sheet Pennsylvania Taxes Conversion Tool The Pennsylvania Taxes Conversion tool assists you with converting a Millennium database from using the current (or old ) local taxes to the new method of taxation set forth by Act 32. The tool does not change payroll history. Notes Due to the nature of the new districting and the information provided by the state of Pennsylvania to date, it is impossible to cleanly convert all taxes from the old method to the new. This tool automates the process as much as possible, but human intervention is required. Also, Philadelphia is not covered under Act 32 and is not subject to the new changes. Therefore, the existing locals for Philadelphia (PA PHI1 and PA PHI2) will not be converted. IMPORTANT The purpose of this tool is not to move payroll history from one code to the other. It is only to end the use of old codes and start the use of new ones. Due to filing and reporting purposes, ending old local tax codes and beginning the new codes take place at quarter end. As you will see later, the tool includes a field to select the effective date. The effective date is the first day of the quarter for which you will start using the new codes. All new taxes will start on this date. All old codes will be end dated as of the day prior to this date. The list is limited to the first day of Q3 and Q4 2011, as well as Q1 Q4 2012. Valid entries are: 07/01/2011, 10/01/2011 01/01/2012, 04/01/2012, 07/01/2012, 10/01/2012 Installing the Tool To install the tool, perform the following steps: 1. Go to the knowledge base. 2. Open KB article 1200. M3-TaxPAConv-TS-SB-549-01 1

Pennsylvania Taxes Conversion Tool 3. Click the link at the bottom of the article to download the installation file (PAToolInstall.zip). 4. Save or copy PAToolInstall.zip to the machine on which Millennium resides. 5. Unzip PAToolInstall.zip. 6. Double click setup.exe to install the tool and follow the prompts. Editing the Configuration File After you install the tool, you must edit the configuration file to inform the tool on: Where to Find the Root Directory Whether to Include Non Active Employees How the Tool Should Handle Missing PSD Codes To edit the configuration file, perform the following: A. Locate the configuration file, PAConversionTool.exe.config. It is installed in the same directory you specified during installation. The default is: C:\Program Files\MPAY\PAConversionTool B. Open the configuration file using any text editor, such as Notepad, TextPad, or Notepad++. If your editor can display line numbers, it is helpful to turn them on. C. Find the <appsettings> section in lines 25 29, as shown below: 25 <appsettings> 26 <add key="rootdirectory" value="" /> 27 <add key="includenonactiveemps" value="false" /> 28 <add key="blankcodeoption" value="leaveblank" /> 29 </appsettings> D. Perform the steps explained in the following sections to configure the tool according to your needs. Where to Find the Root Directory The first step in configuring the tool is to specify a root directory. The application automatically creates four sub directories under the root directory in which it will store all the files it creates. This setting indicates where the sub directories will be created. To specify the root directory, perform the following: 1. Open the configuration file and go to the <appsettings> section (see steps A C). 2. To specify a new root directory, edit the value parameter on line 26. You can do one of the following: 2 Millennium 3 Task Sheet

Release 3.29 a. Enter the path to the folder you wish to use as the root directory between the double quote marks, as shown below: 25 <appsettings> 26 <add key="rootdirectory" value="c:\myfolder\subfolder" /> 27 <add key="includenonactiveemps" value="false" /> 28 <add key="blankcodeoption" value="leaveblank" /> 29 </appsettings> or b. Leave the value blank, which defaults to the Millennium Temp sub directory, as shown below: 25 <appsettings> 26 <add key="rootdirectory" value="" /> 27 <add key="includenonactiveemps" value="false" /> 28 <add key="blankcodeoption" value="leaveblank" /> 29 </appsettings> Whether to Include Non-Active Employees The second step in configuring the tool is to determine whether non active employees will be included. By default, the tool modifies only those employees who are active. This setting indicates whether you want the tool to include terminated and other non active employees. To determine whether non active employees will be included, perform the following: 1. Open the configuration file and go to the <appsettings> section (see steps A C on page 2). 2. Edit the value parameter on line 27: 25 <appsettings> 26 <add key="rootdirectory" value="" /> 27 <add key="includenonactiveemps" value="false" /> 28 <add key="blankcodeoption" value="leaveblank" /> 29 </appsettings> Valid entries are: False Exclude non active employees [default value] True Include the non active employees How the Tool Should Handle Missing PSD Codes The third step in configuring the tool is to set how the tool handles missing PSD codes. By default, the tool leaves the code blank if the tool is unable to determine the PSD code for an employee who lives in Pennsylvania. This setting allows you to supply the PSD code. M3-TaxPAConv-TS-SB-549-01 3

Pennsylvania Taxes Conversion Tool You can also specify that missing codes shall be replaced with the Unknown PSD code (990000). In addition, you can specify that missing codes shall be replaced with the PSD selected for the company. To set the default action for missing PSD codes, perform the following: 1. Open the configuration file and go to the <appsettings> section (see steps A C on page 2). 2. Edit the value parameter on line 28: 25 <appsettings> 26 <add key="rootdirectory" value="" /> 27 <add key="includenonactiveemps" value="false" /> 28 <add key="blankcodeoption" value="leaveblank" /> 29 </appsettings> Overview Valid entries are: LeaveBlank Do not fill in a PSD code [default value] DefaultToUnknown Use PSD Code 990000 UseCompanyDefault Use the PSD code selected for the company The tool follows a three step process for converting items to use the Pennsylvania Act 32 method of taxation. Each major step, or task, is explained below. Task 1: Create a CSV File The first step is to use the tool to create one comma separated value (CSV) file per company. The file contains information about the following items being converted: The company All employees The new tax districts Any departments or jobs that may require override PSD codes This step is primarily handled by the tool. When you use the tool, you are required to select a company and fill in some basic information. The tool then automatically generates a CSV file containing all of the information required to convert the company. For more information, see Creating a CSV File on page 8. Task 2: Review/Update the CSV File The second step is for you to manually review the CSV file. You must make any necessary changes and updates. 4 Millennium 3 Task Sheet

Release 3.29 To make the edits, you can use Microsoft Excel or any standard text editor, such as Notepad. For more information, see Editing the CSV File on page 11. Task 3: Apply the File to Millennium 3 The final step is to make the appropriate changes in Millennium 3 based on the values in the spreadsheet. This step is handled entirely by the tool. You simply use the tool to select the file or files you are going to apply. For more information, see Applying the File on page 14. Running the Tool To use the Pennsylvania conversion tool, perform the following steps: 1. In Windows, select Start > PAConversionTool. The system displays a login dialog to log into Millennium, as shown in Figure 1: Figure 1: Logging into Millennium 2. Enter the appropriate values for Username and Password. 3. Use the Database drop down list to select the database on which you must run the tool. Note You must run this tool on each company separately. Once you have logged in, the system displays the PA Conversion Helper dialog, as shown in Figure 2: M3-TaxPAConv-TS-SB-549-01 5

Pennsylvania Taxes Conversion Tool Figure 2: PA Conversion Helper dialog The explanation of the fields in the Generate Files area are as follows: Company Use this drop down list to select the company you want to convert. The list includes all companies in the database that can be converted. Companies with the following criteria will not be included: Those with a Nolog status (Master Company Setup > Status tab > Status field) Those with an end date (Master Company Setup > Status tab > End field) before 7/1/2011 Those that have conversion files already created Effective Add new locals to non-pa employees Use this drop down list to select the effective date. The effective date is the first day of the quarter for which you will start using the new codes. All new taxes will start on this date. All old codes will be end dated as of the day prior to this date. The list is limited to the first day of Q3 and Q4 2011, as well as Q1 Q4 2012. Valid entries are: 07/01/2011, 10/01/2011 01/01/2012, 04/01/2012, 07/01/2012, 10/01/2012 By default, this tool will add the new local codes to all employees who currently have existing Pennsylvania local codes. Put a check in this check box to also add a new Pennsylvania local code to all employees who do not have existing Pennsylvania local tax codes, whether they live in Pennsylvania or not. 6 Millennium 3 Task Sheet

Release 3.29 Explanations of the fields in the Mode area are as follows: Mode You can run the tool in one of three modes. Select the radio button that matches the scenario for this company: Single Location Employer [Also called Mode 1 ] The company is in one location and reports to one district. Multi Location Employer Report to Single District [Also called Mode 2 ] The company is located in several locations, but reports to just one district. Multi Location Employer Report to Multi Districts [Also called Mode 3 ] The company is located in several locations and reports to several districts. The mode you select will determine the other fields that are required to create the company conversion file. Explanations of the fields in the District area are as follows: District PSD Use this drop down list to select the Pennsylvania district to which the company remits its taxes. Use this drop down list to select the default work location PSD for the district you selected in the District field. EE Filter This field is only available if you have selected Mode 3. Use this drop down list to assign the district code selected in the District field to a subset of employees. You create employee filters for the selected company under Company Setup > Misc tab > Emp Filters option. If you select Mode 1 or 2, the company is reporting to a single district; therefore, filtering is unnecessary because all employees are assigned to the tax code for that district. However, in Mode 3, there are multiple districts. Different groups of employees are assigned to one of the districts. Use this filter to define the district/employee assignments. If you leave this field blank, all employees will be assigned the district. district list These unmarked controls are only available if you have selected Mode 3. The following controls appear to the right of fields in the District area of the tool, as shown in Figure 3: M3-TaxPAConv-TS-SB-549-01 7

Pennsylvania Taxes Conversion Tool Figure 3: District list These controls allow you to enter multiple districts. After selecting the appropriate information in the district fields (District, PSD, EE Filter, and Work Loc), click the top [>>>] button to save the district to the list area at the right. To remove a district from the list, select the district in the list on the right and press the bottom [<<<] button. Offsite Employees Work Loc If you have employees who work (and need to be taxed) at a location that differs from the one defined by the default work location associated with the district (the value in the PSD field), you can use override work PSD codes on a department (CC) level or on a job level in Millennium. If this company fits that scenario, put a check in this check box. You will be allowed to specify which level to use for the override. This check box will be automatically checked (and you will be unable to uncheck it) if you are running in Mode 2. In that mode, you will be required to enter an override location. Use this drop down list to select where override work PSD codes will be stored in the company. Valid entries are: None no overrides CC1 CC2 each department (CC level), as defined in the company job codes each job code, as defined in the company If you are running in Mode 2, the entry for job codes will not be included. Explanation of the button in the Create File area is as follows: Create File Click this button to create the CSV file. Creating a CSV File Use the left side of the tool (Generate Files), shown in Figure 4, to create a file: 8 Millennium 3 Task Sheet

Release 3.29 Figure 4: Left side of the conversion dialog Fill in the fields in the Generate Files area (the left side of the tool). After you are satisfied with your entries, click the Create File button to create the CSV file. The system performs the following validation checks: Ensure that a company code has been selected. Ensure that an effective date has been entered. Ensure that at least one district has been added: The district must have a district code. The district must have a valid PSD. If running in Mode 2 (or if you checked the Offsite Employees box), the district must have a work location. Ensure that a file for the company has not already been created. If any of these validation checks fail, the tool displays an error and no file is created. If validation succeeds, the system creates a file for that company. The file contains all of the districts you specified in Figure 4. To create the file, the tool connects to Millennium and populates the file with all employees who need to have new taxes added. For each employee, it lists the appropriate district code and attempts to provide the correct PSD. To determine a PSD, the tool performs the following: A. It looks at the existing Pennsylvania tax codes on the employee. Millennium s tax database has a new PSD code associated for most of the current ( old ) Pennsylvania codes. In some cases, it is impossible for the tool to make the determination, based on the data provided by Pennsylvania. M3-TaxPAConv-TS-SB-549-01 9

Pennsylvania Taxes Conversion Tool B. It uses the PSD associations to match a PSD with the tax on the employee. If the employee has multiple old codes, each with different PSDs, the tool does not enter a PSD for the employee; instead, it shows a warning. If the employee does not have any old Pennsylvania codes, it looks at the employee s state. If the state is Pennsylvania, the tool does not post a PSD for the employee; instead, it shows a warning. If the state is not Pennsylvania, the tool uses the Out of State PSD code. If an employee has a Philadelphia local code (PA PHI1 or PA PHI2) and no other local codes, the tool skips the employee and creates a warning. If an employee has a Philadelphia local code and other old Pennsylvania locals, the tool leaves the employee in the file, marks the employee for review, and creates a warning. Note If you selected the DefaultToUnknown option and the system cannot determine the proper PSD, the tool sets the field to 99000 instead of blank. If you selected UseCompanyDefault, the tool sets the field to the PSD associated with the company. See How the Tool Should Handle Missing PSD Codes on page 3 for more information. If any of the districts use an override work location, the system dumps all of the codes from that location into the file as well. When the tool adds districts to a company and updates employees, the old codes are given an end date. The exceptions are the Philadelphia codes (PA PHI1, PA PHI2), which are not end dated because they do not fall under Act 32 and will continue to be used. The file is named PA_Conversion_[company code].csv and is located in a sub directory named Active under the root directory you specified during setup. The company is displayed in the list on the right hand side of the tool, as shown in Figure 5: Figure 5: Sub-directories and conversion files Once it saves the newly created conversion file, the tool displays any informational, warning, or error messages it generated while it created the file. The tool stores the messages in a log file located in the Log sub directory (see Figure 5). 10 Millennium 3 Task Sheet

Release 3.29 Editing the CSV File IMPORTANT Do not import the CSV file created by the tool into Millennium without reviewing and editing it. This section explains why. This task in the conversion process requires you to review and edit each CSV file created by the tool. The tool does not include an undo feature; therefore, this file is your best chance to find and correct data errors before you update the Millennium database. You can open the CSV file in Microsoft Excel or any text editing program. An example of the file, with columns expanded in Excel, is shown in Figure 6: Figure 6: An example of a CSV in Excel The file contains multiple sections of data: Each section starts with a line containing a double pound sign and the section s name (for example, ##COMPANY). The second line in each section contains column headings. The remaining rows below the column headings contain the data that will be modified in Millennium. The first column in each section is named STATUS. It contains a code that indicates the condition of the data record. The status codes are as follows: blank Ready Record is ready to apply to Millennium. The example in Figure 6 shows every line item is ready. M3-TaxPAConv-TS-SB-549-01 11

Pennsylvania Taxes Conversion Tool P Processed Record has already been processed and will not be applied to Millennium. > Review Record has a potential issue and should be reviewed (as illustrated in Figure 7). For information on what to do, see If a PSD Code Is Missing or Undetermined on page 13. X Error Record is invalid or has a serious error. The last field in each section is named NOTES. It contains additional information about rows with a review or error status. Figure 7: An example of rows that need to be reviewed Explanations of each section are as follows: ##COMPANY ##DISTRICT ##EMPLOYEE This section is listed once in every file. It has a single row of data that contains the company code and effective date. You should not need to edit this section. This section is listed once in every file. It has a row of data for each new district being added to the company. Each row contains the district code, PSD code, and override location. The information in this section comes directly from the values you supplied in Figure 4. You should not need to edit this section. This section is listed once in every file. It has a row of data for each employee who needs to have new Pennsylvania codes added. Each row contains the employee ID, the tax district in which they will be placed, and a Resident PSD (if one could be determined). IMPORTANT Review all employees in this section to ensure that the district code and PSD codes are correct. You will most likely need to add codes to some employees and edit codes on others. 12 Millennium 3 Task Sheet

Release 3.29 The additional fields in the file (name, department, city, state, and zip) are for reference only. Editing these fields has no effect. ##CC1 ##CC5, ##JOB CODE One or more of these sections may be included in the file, based on the override work locations entered on the district codes. These sections contain rows of codes (department or job) and a blank column that you can use to enter a PSD code to associate with each department or job. The additional fields in the file (name, department, city, state, and zip), are for reference only. Editing these fields will have no effect. Important Points About Modifying the File You can modify the values stored in the data fields of the file, but you should never modify the section heading (##...) or the column headings. When you have finished modifying the file you should save it as a CSV file. Tip If you open and edit the CSV file in Excel, be sure you save it as a.csv file and not as a workbook, as shown in Figure 8: Figure 8: Saving the CSV as a.csv, not a workbook If a PSD Code Is Missing or Undetermined Sometimes, as shown in Figure 7 on page 12, the tool creates the CSV with a message in the NOTES column that states either Unable to determine PSD or Missing PSD code. If the tool is unable to assign a PSD code according to the configuration file and the data in your system, you must research and determine the appropriate action to take. Here are the possible scenarios you may encounter: A. The employee lives out of state. In this case, you must assign the employee the out of state PSD code (880000). B. The employee lives in the state, but otherwise received a Missing PSD code or Unable to determine PSD message. In this case, you must research the situation and manually enter the appropriate PSD code for the employee. C. The employee should not receive a PSD code. In this case, you must remove the employee from the CSV file. M3-TaxPAConv-TS-SB-549-01 13

Pennsylvania Taxes Conversion Tool Note If you include an employee in the CSV file, the employee must be assigned a valid PSD code. Otherwise, leaving an employee assigned to the unknown PSD (990000) or excluding an employee that otherwise should be included in the CSV file does not correct the issue it only delays the problem. Waiting means you will have to perform Nocalc adjustments later. Applying the File Use the right side of the tool (Apply Files To M3), shown in Figure 9, to apply previously created files to Millennium: Figure 9: Right side of the conversion dialog The list shows all files in the Active directory that can be applied to Millennium. If the color of the line in the list is: Red, the file has one or more errors Placing your cursor over the company code will give you the first error encountered. Yellow, the file has one or more warnings White, the file is ready for applying the changes Explanations of the controls in the Apply Files To M3 area are as follows: 14 Millennium 3 Task Sheet

Release 3.29 refresh button Select All, Unselect All Click the small button in the top right hand corner to refresh the list area. This is useful after you have manually edited a file; the tool validates the file again and updates the color of the line item accordingly. Click these two buttons to either check or uncheck all items in the list, respectively. You can select one or more companies in the list, indicating which one(s) will be applied to Millennium. The tool allows you to put a check next to any company that does not have an error (a red background). Note It is recommended that you apply companies one at a time. Also, it is recommended that you review the converted company after the conversion. Test Selected Click this button to perform a dry run through the selected file or files. It is recommended that you use this before applying the file to Millennium. For each file, the tool: Validates the file (if it fails, nothing else will be done) Uses the validated file to step through your Millennium database Lists any warnings or errors Lists what it will perform if you later use the file to apply changes If you click this button, the tool does not apply or save any changes to the database. An example of the dialog that lists all data that will be changed is shown in Figure 10 on page 16: M3-TaxPAConv-TS-SB-549-01 15

Pennsylvania Taxes Conversion Tool Figure 10: Conversion Results after clicking the Test Selected button Apply Selected Click this button to implement changes in your Millennium database using the data in the selected conversion file(s). After you click the button, the system requires you to confirm your choice (just in case you pressed the button by accident). Once you have confirmed your intention, the tool: Validates the file (if it fails, nothing else will be done) Determines if any old Pennsylvania codes have already been deposited in the quarter, including the effective date (if deposits are found, nothing else will be done) Adds all district codes specified in the file to the company (if they do not already exist) Adds the new district codes to the employees based on the information in the file End dates all existing ( old ) Pennsylvania codes defined for both the company (unless there is outstanding tax liability for those codes) and the employees Note: The exceptions are the Philadelphia codes (PA PHI1, PA PHI2), which are not end dated because they do not fall under Act 32 and will continue to be used. Updates each department/job code with any PSD codes associated with them in the file 16 Millennium 3 Task Sheet

Release 3.29 Once Millennium has been updated, the file is saved with a.complete extension and moved to the Complete sub directory. If a Nocalc file is required (see Nocalc Files on page 17), it is created and saved to the Nocalc sub directory. Any informational, warning, or error messages encountered are displayed. These records are also placed in the company s log file located in the Log sub directory. Nocalc Files During the conversion process on each company, the tool determines if any tax liabilities or deposits exist for the old tax codes. If it finds deposits, it skips the company. You must manually handle the deposits before a conversion can be completed. If the tool finds liabilities, it generates a time import file that you can use to create Nocalc checks. The file contains records to subtract wages and amounts from the old codes and to apply those wages/amounts to the new codes. The file is automatically created and placed in the NoCalc sub directory. The tool does not include Philadelphia locals (PA PHI1, PA PHI2) when it creates the Nocalc file. Note Neither the tool nor Millennium automatically applies this file. You are responsible for verifying the contents of the file and processing it. For more information, see the How to Use Nocalc Adjustments task sheet. M3-TaxPAConv-TS-SB-549-01 17

Pennsylvania Taxes Conversion Tool 18 Millennium 3 Task Sheet