Hours Worked for State

Unemployment Insurance
Reporting
Technical Brief

May 19, 2022 | Version 3.00

Copyright © 2022, Oracle and/or its affiliates
Confidential: Public
PURPOSE STATEMENT
This document provides an overview of the necessary configurations to uptake new balances for reporting the state
unemployment hours worked on the quarterly tax file.

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TABLE OF CONTENTS
Purpose Statement 1
Disclaimer 1
Hours Worked 3
Calculate Hours Worked from Run Results 3
Calculate Hours Worked from Balances 3
Wage Basis Rules 4
Value Definitions 4
Configuration and Overrides 5

Configure Wage Basis Rules for Hours Worked 6

Define Balance Feeds 6
Configure the Wage Basis Rules 6

Weeks Worked for State Unemployment Reporting 7

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HOURS WORKED

Calculate Hours Worked from Run Results

Calculation of worked hours is required for state unemployment insurance (SUI) reporting. You report this data in positions
423-426 of the W record for SUI_ER taxcodes on the quarterly tax file.
NOTE: This result method will be discontinued effective January 1, 2023.
The payroll process derives hours worked from run results, based on the Hourly Paid or Salaried field on the employee’s
assignment. This method doesn't use balances, and prior to Q1 2021, this was the only method available to you.
 For hourly employees, the process excludes classifications and hours related to premium overtime, shift, and retroactive
earnings. Hours related to standard earnings are included.
 For salaried employees, the derivation excludes classifications and hours related to retroactive earnings and imputed
earnings and looks for elements with input values of either Hours Worked or Hours Calculated. The process uses the
maximum of either of these hours input values for the given effective dates in the quarter.
To adjust the hours worked using run results, you perform a balance adjustment using an element that includes the correct
input value for the hours. Perform this adjustment on a different effective date from any payroll runs. It creates a run result
that the payroll process uses in the derivations.
For salaried employees requiring an adjustment to their worked hours, you can use a SQL query to assist with reconciliation
prior to the adjustment. Depending on how you configured your elements, the hours could be calculated based on either
the Hours Worked or Hours Calculated input values. You need to determine which before doing the adjustment. Use the
SQL query to help you. For further info, see Fusion US Payroll: What Is the Logic of Reporting Hours Worked of a Salaried
Employee in the Quarterly Extract (2727786.1) on My Oracle Support.

Calculate Hours Worked from Balances

Calculation of worked hours is required for state unemployment insurance (SUI) reporting. You report this data in positions
423-426 of the W record for SUI_ER tax codes on the quarterly tax file.
Starting with Q1 2021 reporting, you can use balances to define what hours to include for state unemployment SUI reporting.
There are two balances for accumulating the hours worked for state unemployment reporting.

BALANCE NAME DESCRIPTION

SUI Eligible Hours This balance has no predefined feeds. If you don't define a feed, the payroll calculation doesn't
accumulate hours for this balance nor the State Worked Hours balance.
You must define the balance feeds using the elements with hours that are eligible for reporting of
state unemployment at the start of a quarter. During payroll calculation, this balance accumulates the
hours for any state using the elements fed to it.
If you perform these configurations after the start of the quarter, they apply to the hours worked on
the subsequent payroll runs only. You must perform balance adjustments to the State Worked Hours
balance to resolve this shortfall.

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 State Worked When you define a balance feed for SUI Eligible Hours, the payroll process accumulates the hours
Hours appropriately and feeds them to this balance.
During payroll calculation, this balance accumulates based on:
• SUI Eligible Hours balance
• SUI state
• Wage basis rules defined for the SUI state
• Setting of the SUI state specific value definition
The Quarterly Tax Filing extract first checks if the SUI Employer Reduced Subject Wages are greater
than 0 for the quarter and given state, then it checks if the State Worked Hours balance has a value
greater than 0. If not, the extract derives the hours using the run result method.
NOTE: The run result method will be discontinued effective January 1, 2023. If you have not
performed the necessary configurations, the Quarterly Tax Filing Extract reports the hours as 0.

Using these balances and their associated wage basis rules and value definitions, you can control what hours are reported
on the quarterly tax file.
NOTE: The quarterly file for SUI reporting includes only quarter-to-date hours. It doesn't include year-to-date hours.

Wage Basis Rules

The Component Group Rules task provides the State Unemployment Hours component under the Regional component
group. Use this component to define any wage basis rule overrides for calculating hours worked. Because there are no
predefined wage basis rules for hours worked accumulation, all hours fed to the SUI Eligible Hours balance are accumulated.
The payroll process applies these wage basis rules to the State Worked Hours balance accumulation during its calculations.
It doesn't apply them to the SUI Eligible Hours balance.

Value Definitions
State and territory-based calculation value definitions are available in support of calculating hours worked based on
balances.
These value definitions have this naming convention:
<state abbrev> SUI Include Hours Worked in All States

Use them to define if hours worked in other states are counted towards the SUI state worked hours.
The default for these value definitions is to allow hours in other states to count towards the given SUI state worked hours.
The payroll process accumulates these hours in the SUI state's State Worked Hours balance. If you change a state's default
value definition, the process accumulates only the hours for that state into the balance.
NOTE: This value definition setting has no impact on SUI Eligible Hours balance accumulation.
For example, assume an hourly employee is paid in a weekly pay period and their SUI state is California. They have 32
regular hours in California and 8 regular hours in Idaho. You have fed your regular hours element to the SUI Eligible Hours
balance. You have left the default for the CA value definition to allow accumulation of hours from other states. In this case:
1. The payroll process would feed 32 hours to California's SUI Eligible Hours balance.
2. It would feed 8 hours to Idaho's SUI Eligible Hours balance.
3. As a result, it would feed 40 hours to California's State Worked Hours balance (32 CA hours + 8 ID hours).
Because California is the person's SUI state, no SUI wages or worked hours are accumulated for Idaho.
However, if you set CA value definition to exclude accumulation for other states:
1. The payroll process would feed 32 hours to California's SUI Eligible Hours balance.
2. It would feed 8 hours to Idaho's SUI Eligible Hours balance.
3. As a result, it would feed 32 hours to California's State Worked Hours balance (32 CA hours).
Because California is the person's SUI state, no SUI wages or worked hours are accumulated for Idaho.

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Configuration and Overrides
Perform this configuration effective as of a calendar quarter start or calendar year start. If you perform these configurations
after the start of the quarter, they apply to the hours worked on the subsequent payroll runs only. You must perform
balance adjustments to the State Worked Hours balance to resolve this shortfall.
By default, the payroll process accumulates all hours fed to the SUI state's Eligible Hours balance. As a result, it accumulates
those hours into the State Worked Hours balance.
You can override this behavior using:
 Regional wage basis rules
 Value definition
To calculate hours worked based on balances:
1. Define balance feeds to SUI Eligible Hours with a proper effective date. Determine which elements with hours that you
want to feed to the balance, such as salary elements, overtime elements, vacation elements, and so on.
You don't need to feed the State Worked Hours balance. It already has a feed predefined and is populated during
payroll calculation by the State Unemployment Hours element.
NOTE: You can use this element for balance adjustments to the State Worked Hours balance. If you create your
own balance adjustment element, then you would need to define a feed for it to the State Worked Hours balance.
2. Define wage basis rules if any of your SUI states require exclusion from certain types of earnings hours.
This configuration is necessary if you are feeding SUI Eligible Hours from an Earnings element that has hours counted
for some states but not others.
Some states have specific requirements for what type of hours to include for state unemployment reporting. For all
other states and territories, there is no special requirement of what to include.

STATE REGULAR OVERTIME VACATION SICK HOURS HOLIDAY

HOURS HOURS HOURS HOURS

DC X X

MA X X X X X

MN X X X X X

OR X X

RI X X X X

WA X X X X

WY X X

An X indicates the hours are subject to state unemployment reporting for that state.
3. Review the state-specific Hours Worked value definitions, and update them as needed to account for hours worked in
other states.
For example, by default, Illinois allows hours worked in other states to count towards the hours worked for Illinois. You
would perform these steps to exclude hours worked in other states.
a) From My Client Groups, click Show More.
b) Click Calculation Value Definitions under Payroll.
c) Select your US legislative data group (LDG), and enter State Unemployment as the value definition group.
d) As the name, enter the 2-character abbreviation of the state you are changing and "SUI Include Hours Worked in All
States".

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 For example, to view the value definition for Illinois, enter IL SUI Include Hours Worked in All States.
e) Click Search.
f) Click the value definition in the search results.
g) Enter an appropriate effective as-of date.
h) In Calculation Values, click Add Row.
i) Enter the following to exclude hours worked in other states.

COLUMN WHAT YOU ENTER

From Value 0

To Value 999999999

Text N

j) Click Submit.

CONFIGURE WAGE BASIS RULES FOR HOURS WORKED

In this example, you need to feed all your applicable earnings elements to SUI Eligible Hours as of the start of the next
calendar year and configure tax wage basis rules appropriately.
For this example, assume you are:
 Registered for state unemployment insurance (SUI) taxes in Alabama, Massachusetts, and Oregon
 To track vacation hours, you use elements with the Absence primary classification and Vacation secondary classification
 To track sick hours, you use elements with the Absence primary classification and Sick secondary classification
 To track holiday hours, you use elements with the Absence primary classification and Other secondary classification
Alabama has no specific requirement on what hours to include for SUI reporting.
Massachusetts requires you include these hours for SUI reporting:
 Regular hours
 Overtime hours
 Vacation hours
 Sick hours
 Holiday hours
Oregon requires you include these hours for SUI reporting:
 Regular hours
 Overtime hours

Define Balance Feeds

By default, the payroll process includes all hours fed to the SUI state’s Eligible Hours balance. In this example, you need to
define wage basis rules that exclude Oregon's vacation, sick, and holiday hours from SUI hours calculation and reduce the
hours from the State Worked Hours reporting balance.
1. Define feeds to the SUI Eligible Hours balance for all applicable regular hours, overtime hours, vacation hours, sick
hours, and holiday hours elements.
These earnings hours now accumulate in the SUI Eligible Hours and State Worked Hours balances for Alabama,
Massachusetts, and Oregon.

Configure the Wage Basis Rules

Because Oregon requires only regular and overtime hours for SUI reporting, you must define special wage basis rules for
Oregon.
You don't need any configuration for for Alabama or Massachusetts.

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This ensures the payroll process reports the correct hours in the State Worked Hours balance. You configure these rules as
subject to the wage basis rule in order to exclude vacation, sick, and holiday hours from SUI calculations for Oregon.
1. From My Client Groups, click Show More.
2. Click Component Groups Rules.
3. Search for your US legislative data group (LDG).
4. Under Component Group, click Regional.
5. In Calculation Component Group Overview, expand Regional, Related Deductions, and State Unemployment Hours.
6. Click Wage Basis Rules.
7. Enter an appropriate effective date.
8. In State Unemployment Hours: Wage Basis Rules, click Create.
9. Select OR as the state.
10. Select the Absences primary classification and Vacation secondary classification.
11. Select Yes to make this subject to wage basis rules.
12. This excludes the vacation hours from SUI hours calculation and reduces the hours from the State Worked Hours
reporting balance.
13. Click Submit.
14. Repeat these steps for the elements that track sick and holiday hours.
When you complete these steps, you will have three Oregon wage basis rules for the Absences primary classification.
Each is marked as Use in Wage Basis.

WEEKS WORKED FOR STATE UNEMPLOYMENT REPORTING

Some states require weeks worked for state unemployment reporting. The quarterly tax file reports this info on the W
record for SUI_ER taxcodes in positions 420-421. The payroll process derives weeks worked from the SUI hours reported on
the quarterly tax file.
However, you can alternatively use the State Worked Weeks balance to track this info. You can perform balance
adjustments on this balance. The quarterly tax filing extract will first check this balance for a non-zero value. If there is a
value in this balance, the extract passes it on the quarterly tax file for the appropriate state. If it finds no value, the extract
derives the weeks worked from the SUI hours reported on the quarterly tax file.

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Hours Worked for State Unemployment Reporting

May, 2022
Author: Mary Nell Mclaurine
Contributing Authors: John Lawson