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GSA SOLICITATION QMAD-JM-100001-N
August 23, 2010
GSA SOLICITATION QMAD-JM-100001-N
Attachment 16 – IRS Long-Term Taxable Travel and Income Tax Reimbursement Allowance August 23, 2010 Attachment 16 IRS Long-Term Taxable Travel (LTTT) and Income Tax Reimbursement Allowance (ITRA) Background Long-term travel reimbursements are considered income under the Internal Revenue Code and are subject to Federal, state, FICA and Medicare tax withholding. In addition, a withholding tax allowance (WTA) will be calculated and paid at the time an Agency pays the voucher claiming Long-Term Taxable Travel (LTTT) expenses. The WTA reimburses the employee for the Federal tax withholdings on the taxable travel reimbursements and it is also considered income to the employee; therefore, it too is subject to tax withholdings. Employees will be issued a Form W-2 for the taxable long-term travel reimbursements.
An Agency will pay an Income Tax Reimbursement Allowance (ITRA) to those employees incurring an additional income tax liability as a result of long-term travel reimbursements. The ITRA will be paid using the procedures and General Services Administration (GSA) formulas currently in place for reimbursing the Relocation Income Tax Allowance (RITA). Similar to RITA, the final ITRA will be calculated in the calendar year following the reimbursement of the taxable travel. The ITRA cannot be computed until the GSA publishes the marginal tax rates (Federal, state and Puerto Rico) needed for the ITRA formula in the Federal Register. In past years, publication occurred between January and April.
Long-Term Taxable Travel (LTTT) Types The typical kinds of long-term travel reimbursements are:
(a) Travel away from home for more than one (1) year to a single location, or for which there is a reasonable expectation that such travel will last for more than one (1) year, also described as “indefinite” travel; and
(b) Daily travel between residence and a “non-temporary” duty location which is for more than one (1) year, or for which there is a reasonable expectation that such travel will last for more than one (1) year.
Income Tax Reimbursement Allowance (ITRA) The ITRA includes three main portions of functionality:
(a) ITRA virtual Authorization - interfaced with taxable travel vouchers
(b) ITRA Reporting
(c) ITRA Vouchering
LTTT and ITRA Functional Objectives
GENERAL TAXABLE TRAVEL
| No. |
| IRS (internal) Objective Code |
| Functional Objective |
| 1 |
| TAX1 |
| ETS2 should process transactions resulting in W-2 postings in accordance with the latest tax laws. |
| 2 |
| TAX2 |
| ETS2 should provide online access to detail payment transactions used to create data which supports each of the W-2s. |
| 3 |
| TAX3 |
| ETS2 should provide a method at the taxable payment transaction (e.g. LTTT, taxable subsistence) level to record the W-2 reporting state regardless of withholdings to be used to process W-2s and report state wages and withheld amounts on W-2s. |
| 4 |
| TAX4 |
| ETS2 should provide a method of calculating the wage amount for each taxable payment transaction to be used to process W-2s. |
| 5 |
| TAX5 |
| ETS2 should report and send the employer's matching tax amounts (e.g. taxable subsistence, LTTT) for any taxable travel payment. |
| 6 |
| TAX6 |
| ETS2 should report, for any taxable travel payment, the following: |
| 7 |
| TAX6.1 |
| · WTA (only LTTT) |
| 9 |
| TAX6.3 |
| · State Tax (if applicable). |
| 10 |
| TAX6.4 |
| · Employer share of FICA (if applicable). |
| 11 |
| TAX6.5 |
| · Employee share of FICA (if applicable). |
| 12 |
| TAX6.6 |
| · Employer share of Medicare |
| 13 |
| TAX6.7 |
| · Employee share of Medicare |
| 14 |
| TAX7 |
| ETS2 should require the employee to identify, on the voucher, taxable claimed expenses and allow ETS2 to track such expenses in support of: |
| 15 |
| TAX7.1 |
| · The proper withholding amounts. |
| 16 |
| TAX7.2 |
| · The reporting on W-2s, (e.g. taxable subsistence, LTTT expenses) |
| 17 |
| TAX8 |
| ETS2 should provide the capability to maintain a record of taxable travel payments (for inclusion in the employee's Form W-2, Wage and Tax Statement). |
| 18 |
| TAX9 |
| ETS2 should track Federal (e.g. FICA (if applicable), Medicare, Federal) and State (if applicable) withholding based upon payment transactions made to employees for taxable travel. |
| 19 |
| TAX10 |
| ETS2 should provide the capability to send a record of taxable travel payments to the agency accounting system (for inclusion in the employee's Form W-2, Wage and Tax Statement |
| 20 |
| TAX11 |
| ETS2 should send for any taxable travel payment, the following: |
| 21 |
| TAX11.1 |
| WTA (only LTTT). |
| 23 |
| TAX11.3 |
| State Tax (if applicable). |
| 24 |
| TAX11.4 |
| Employer share of FICA (if applicable). |
| 25 |
| TAX11.5 |
| Employee share of FICA (if applicable). |
| 26 |
| TAX11.6 |
| Employer share of Medicare. |
| 27 |
| TAX11.7 |
| Employee share of Medicare |
| 393 |
| TT141 |
| ETS2 tax calculation page should display traveler’s name and the document number. |
| 394 |
| TT142 |
| ETS2 should display split disbursement amounts at the bottom lines of the tax calculation page as follows:: |
| 396 |
| TT142.2 |
| Third party payments i.e. Centrally Billed Account (CBA). |
| 397 |
| TT142.3 |
| Employee's credit card payments (GovCC). |
| 398 |
| TT142.4 |
| Amount due to traveler. |
| 399 |
| TT143 |
| ETS2 should separate expense lists for local and foreign travel to accommodate the lodging tax policy. |
| 224 |
| TT8 |
| The system should provide the capability to allocate between taxable and non-taxable LOAs. |
| 225 |
| TT9 |
| ETS2 must accommodate both taxable and non-taxable expenses on the same day and same voucher for the same trip. |
| 226 |
| TT10 |
| ETS2 should consider an expense as Long term taxable if a taxable line of accounting is used. |
| 233 |
| TT14 |
| ETS2 should compute, on the authorized taxable expenses, the following: |
| 234 |
| TT14.1 |
| WTA (LTTT only). |
| 236 |
| TT14.3 |
| State Tax (if applicable). |
| 237 |
| TT14.4 |
| Employer share of FICA (if applicable). |
| 238 |
| TT14.5 |
| Employee share of FICA (if applicable). |
| 239 |
| TT14.6 |
| Employer share of Medicare. |
| 240 |
| TT14.7 |
| Employee share of Medicare. |
| 222 |
| TT6 |
| ETS2 should not update tax calculations when a document is open in view only mode. |
| 102 |
| TT144 |
| ETS2 should limit the advance to the maximum amount of reimbursement after taxes when doing an authorization that is for taxable travel and the traveler is eligible for a 100% advance. |
| 247 |
| TT21 |
| ETS2 should display taxes, for taxable expenses on the transaction, including: |
| 248 |
| TT21.1 |
| WTA (LTTT only). |
| 250 |
| TT21.3 |
| State Tax (if applicable). |
| 251 |
| TT21.4 |
| Employer share of FICA (if applicable). |
| 252 |
| TT21.5 |
| Employee share of FICA (if applicable). |
| 253 |
| TT21.6 |
| Employer share of Medicare. |
| 254 |
| TT21.7 |
| Employee share of Medicare. |
| 255 |
| TT22 |
| ETS2 should display: |
| 256 |
| TT22.1 |
| Taxable reimbursable amounts for long term taxable. |
| 257 |
| TT22.2 |
| Non-taxable reimbursable amounts for long term taxable. |
| 258 |
| TT22.3 |
| Taxable reimbursable amounts for one-day taxable subsistence documents. |
| 259 |
| TT22.4 |
| Non-taxable reimbursable amounts for one-day taxable subsistence documents. |
| 260 |
| TT23 |
| ETS2 should display net reimbursement to employee for: |
| 261 |
| TT23.1 |
| Taxable expenses. |
| 262 |
| TT23.2 |
| Nontaxable expenses. |
| 263 |
| TT24 |
| ETS2 should display total expenses before tax withholding. |
| 264 |
| TT25 |
| ETS2 should add WTA (LTTT only) and deduct Federal, State (if applicable), FICA (if applicable) and Medicare from the reimbursable amount. |
| 278 |
| TT37 |
| ETS2 should allocate between the LOAs (based on a ratio of the amount charged to each LOA as compared to the total taxable travel) when LTTT is charged to more than one LOA for: (Example: The employee has $500 long-term taxable travel, $200 charged to LOA1 and $300 charged to LOA2. 2/5 of the employer FICA (if applicable), Medicare and the WTA (LTTT only) would be charged to LOA1, 3/5 would be charged to LOA2). |
| 279 |
| TT37.1 |
| The employer FICA (if applicable). |
| 280 |
| TT37.2 |
| Employer Medicare contribution. |
| 282 |
| TT38 |
| ETS2 should withhold FICA for only those employees whose OASDI indicator in the agency accounting system is 'R'. |
| 266 |
| TT27 |
| ETS2 must recalculate WTA (LTTT only), Federal, State (if applicable), FICA (if applicable) and Medicare if taxable amount are changed by the employee, including: |
| 267 |
| TT27.1 |
| Adding Expenses |
| 268 |
| TT27.2 |
| Editing Expenses. |
| 269 |
| TT27.3 |
| Deleting Expenses. |
| 270 |
| TT28 |
| ETS2 should require the payroll state on the employee's profile record to be set to a valid state (i.e. cannot be blank). |
| 271 |
| TT29 |
| ETS2 should provide the capability to set the payroll state for an employee through the employee profile load interface. |
| 272 |
| TT30 |
| ETS2 should reject a profile record if the payroll state is blank (i.e. a valid payroll state is required). |
| 273 |
| TT32 |
| ETS2 should display the current payroll state on the employee’s profile screen. |
| 217 |
| TT2 |
| ETS2 should provide taxable amounts on the data output file to the agency accounting system. |
| 375 |
| TT119 |
| ETS2 should calculate the Employer share of FICA (if applicable). |
| 379 |
| TT121 |
| ETS2 should display total expenses after tax withholding. |
| 380 |
| TT122 |
| ETS2 should provide the capability to modify the payroll state for an employee through the vendor load interface. |
| 381 |
| TT124 |
| ETS2 should compute employer share of FICA for only those employees whose OASDI indicator in the agency accounting system is 'R'. |
| 354 |
| TT85 |
| ETS2 should add a configurable percentage amount to each authorized amount total |
| 355 |
| TT86 |
| ETS2 should send all virtual authorizations used to the agency accounting system with the taxable travel voucher. |
| 356 |
| TT87 |
| ETS2 should exclude the FICA tax amount from the ITRA authorization if current value of employee’s OASDI indicator does not allow FICA (value = Q). |
| 367 |
| TT108 |
| ETS2 should calculate an OV payment to the employee for FICA (if applicable) and/or Medicare withholdings on excess WTA (due US) amount. (Potential due US for OV portion (FICA and Medicare overpayment) and WTA corrections should be made by the ITRA). |
| 350 |
| TT81 |
| ETS2 should create virtual authorizations for each taxable travel voucher that contains one or more taxable line of accounting when the LTTT voucher is approved (so the funds are obligated for ITRA as the taxable travel vouchers are filed). |
| 344 |
| TT67 |
| ETS2 should differentiate between DUE US on the accounts receivable form for: |
| 345 |
| TT67.1 |
| Unpaid advances. |
| 346 |
| TT67.2 |
| Tax withholdings. |
| 347 |
| TT67.3 |
| ITRA vouchers. |
| 223 |
| TT7 |
| ETS2 should receive retirement system information for employees as a downloaded file (i.e. employee profile file) from the agency accounting system. |
| 241 |
| TT15 |
| ETS2 should identify retirement system (FERS or Civil Service) for each employee. |
| 242 |
| TT16 |
| ETS2 should provide the capability to set and modify OASDI indicator (FICA holding) for an employee through the vendor load interface. |
| 243 |
| TT17 |
| ETS2 employee profile screen should display the OASDI indicator of the employee. |
| 244 |
| TT18 |
| ETS2 should attach one and only one taxable state (if applicable) name to a document. |
| 245 |
| TT19 |
| ETS2 should interface as zero dollar lines on employee transactions for tickets purchased with 3rd party payments so the agency accounting system can pick them up as taxable. |
| 274 |
| TT33 |
| ETS2 should provide the ability for the high-level administrative employee to modify the payroll state on an employee’s profile. |
| 276 |
| TT35 |
| ETS2 should compute the WTA (LTTT only) on the sum of all expenses, including the ticket amount charged on corporate cards if the LOA of the expense contains a taxable line of accounting. |
| 288 |
| TT43 |
| ETS2 should display the Tax Calculations page when the authorized agency user selects the View Tax Calculations from the Trip Preview page. |
| 289 |
| TT44 |
| ETS2 should display on the GSA Form 87 the Federal Tax, WTA (LTTT only), Medicare tax, State (if applicable), and FICA (if applicable) tax amounts. |
| 290 |
| TT45 |
| ETS2 should display both taxable and nontaxable totals. |
| 348 |
| TT72 |
| ETS2 should allow agency authorized personnel to input accounting codes (Including the applicable FY) for the voucher. |
| 349 |
| TT75.4.1 |
| Period should be editable for prior year vouchers. |
ONE DAY TAXABLE TRAVEL
| 227 |
| TT11 |
| ETS2 should mark M&IE expenses on a city-to-city trip that is more than 12 hours, but less than 24 hours, long and lodging is not required (i.e. one-day taxable) as a taxable expense and treat it the same as a LTTT expense. (Will not have WTA and ITRA). |
| 228 |
| TT12 |
| When a user enters a one-day taxable subsistence expense, the system should: |
| 229 |
| TT12.1 |
| Display the optional nature and definition of the expense. |
| 230 |
| TT12.2 |
| Display taxability aspects. |
| 231 |
| TT12.3 |
| Confirm the employee wants to claim the optional expense. |
| 232 |
| TT12.4 |
| Confirm the employee agrees to tax withholdings on the claimed expense amount. |
| 369 |
| TT113 |
| ETS2 should record M&IE expenses on a city-to-city trip that is more than 12 hours, but less than 24 hours long and lodging is not required (i.e. one-day taxable) as a taxable expense and treat it the same as a LTTT expense. (Will not have WTA and ITRA). |
| 370 |
| TT114 |
| ETS2 should report M&IE expenses on a city-to-city trip that is more than 12 hours, but less than 24 hours, long and lodging is not required (i.e. one-day taxable) as a taxable expense and treat it the same as a LTTT expense. (Will not have WTA and ITRA). |
| 371 |
| TT115 |
| ETS2 should mark M&IE expenses on a foreign travel city-to-city trip that is more than 12 hours, but less than 24 hours, long and lodging is not required (i.e. one-day taxable) as a taxable expense and treat it the same as a LTTT expense. (Will not have WTA and ITRA). |
| 372 |
| TT116 |
| ETS2 should record M&IE expenses on a foreign travel city-to-city trip that is more than 12 hours, but less than 24 hours, long and lodging is not required (i.e. one-day taxable) as a taxable expense and treat it the same as a LTTT expense. (Will not have WTA and ITRA). |
| 373 |
| TT117 |
| ETS2 should report M&IE expenses on a foreign travel city-to-city trip that is more than 12 hours, but less than 24 hours, long and lodging is not required (i.e. one-day taxable) as a taxable expense and treat it the same as a LTTT expense. (Will not have WTA and ITRA). |
NON-TAXABLE ETS2 FEE (ON TAXABLE AUTHORIZATION AND VOUCHER)
| 352 |
| TT83 |
| ETS2 should include the ETS2 fee on the first virtual ITRA Authorization that is created. |
| 103 |
| TT145 |
| ETS2 should prevent an ETS2 Fee from being allocated to a taxable line of accounting. |
| 104 |
| TT146 |
| ETS2 should allocate the ETS2 Fee to the first non-taxable line of accounting added to the authorization. |
| 105 |
| TT147 |
| ETS2 should prevent the signing of a document without a non-taxable line of accounting. |
| 106 |
| TT148 |
| ETS2 should provide the ability to allocate the ETS2 Fee to any non-taxable line of accounting on a document. |
| 107 |
| TT149 |
| ETS2 should exclude the ETS2 Fee from the taxable voucher total in tax calculations. |
| 108 |
| TT150 |
| ETS2 should include the ETS2 Fee in the non-taxable (reimbursable) total in tax calculations. |
| 109 |
| TT151 |
| ETS2 should exclude the ETS2 Fee in taxable totals sent to agency accounting system. |
| 110 |
| TT152 |
| ETS2 should systematically create a non-taxable LOA when creating the first taxable LOA (and the corresponding non-taxable LOA does not already exist) by duplicating the taxable LOA elements and replacing the applicable taxable portion of the line of accounting with a non-taxable portion according to agency configurable LOA requirements. |
| 111 |
| TT152.1 |
| At the time ETS2 creates a non-taxable LOA from the first taxable LOA, ETS2 should create the non-taxable LOA without verifying the LOA is valid. |
| 112 |
| TT153 |
| When ETS2 creates a non-taxable LOA from the first taxable LOA, ETS2 should allocate the ETS2 Fee to the non-taxable LOA, regardless of whether the ETS2 Fee is already allocated to another non-taxable LOA. |
| 113 |
| TT155 |
| ETS2 should verify at signing that the ETS2 Fee is allocated to a VALID non-taxable LOA. |
| 366 |
| TT104 |
| ETS2 should only use accounting codes that are taxable on ITRA documents excluding the ETS2 fee. |
| 368 |
| TT112 |
| ETS2 should prevent specific taxable lines of accounting from being used in foreign locations. |
| 374 |
| TT118 |
| The ETS2 fee must be applied to the line of accounting (LOA) on the first non-taxable line. |
| 246 |
| TT20 |
| ETS2 should generate a separate CBA ETS2 fee line from a CBA ticket/reservation line. |
| 265 |
| TT26 |
| ETS2 should follow the same order of payment as the interface file in ordering the ETS2 fee, taxes, and advance. |
ITRA (INCOME TAX REIMBURSEMENT ALLOWANCE)
ITRA Authorization (Virtual Authorization) and Reporting
| 70 |
| TT97 |
| ETS2 should provide an Open ITRA Authorizations report containing ITRA authorizations where an ITRA voucher has not been approved (including vouchers with a RETURNED status). |
| 71 |
| TT98 |
| ETS2 should include the following information on the Open ITRA Authorizations report: |
| 72 |
| TT98.1 |
| Traveler's Unique ID/EIN |
| 73 |
| TT98.2 |
| Traveler's Name |
| 75 |
| TT98.5 |
| Current Authorization Balance (sum of ITRA expense lines on the virtual ITRA authorization, i.e., sum of 8% set asides) |
| 76 |
| TT98.6 |
| Traveler's Organization |
| 77 |
| TT98.7 |
| Document Status (of ITRA voucher) |
| 78 |
| TT98.8 |
| Employment Status (Active = Y; Inactive = N) |
| 114 |
| TT156 |
| ETS2 should restrict access to the Open ITRA Authorizations report to the members of the ITRA approval path (i.e., ITRA Reviewers and ITRA Approvers). |
| 359 |
| TT91 |
| ETS2 must update the running amounts on the virtual ITRA authorization when any changes are made to a taxable document. |
| 390 |
| TT131 |
| ETS2 should calculate and authorize the employer's share of FICA (if applicable) and Medicare based on the authorized total. |
| 193 |
| TT208 |
| ETS2 should retain the virtual ITRA Authorizations and travel documents linked to an employee when an employee’s profile is deleted (i.e. a delete is sent on the employee profile interface file). |
| 29 |
| TT175 |
| ETS2 should provide a capability to create a CSV or Excel file containing the withholdings report displayed to the user. |
| 295 |
| TT51 |
| ETS2 should provide an option to the agency for access to the Potential Non-LTTT Travel Reports. |
| 296 |
| TT52 |
| ETS2 should provide the following Potential Non-LTTT Travel Reports: |
| 297 |
| TT52.1 |
| Number of Repeated Expense Amounts. |
| 298 |
| TT52.2 |
| Number of Vouchers. |
| 299 |
| TT52.3 |
| Dollar Amount of Vouchers. |
| 300 |
| TT53 |
| ETS2 should format each report as a CSV or Excel file. |
| 301 |
| TT54 |
| ETS2 should include the report input parameter selections in the report header for each of the reports. |
| 302 |
| TT55 |
| ETS2 should only include data from approved vouchers in the all reports. |
| 303 |
| TT56 |
| ETS2 should include data from all three types of vouchers (i.e. final voucher, supplemental and interim) on all reports. |
| 305 |
| TT58 |
| ETS2 should use the start date of the voucher to determine the expenses and/or vouchers that fall within the user input report period dates for each of the reports. |
| 351 |
| TT82 |
| ETS2 should set the year for an ITRA authorization to when the taxable voucher is approved and the pre-determined date of the calendar year end is not met (i.e. not during the calendar year end hold process). |
ITRA VOUCHER NOTICES/EMAILS
| 86 |
| TT137 |
| ETS2 should send a first notice email on DATE2 (an agency configurable number of days from the day the GSA marginal tax rates are loaded into ETS2 (DATE1)), to all travelers that have a virtual ITRA Authorization for the calendar year (i.e. they have filed at least one LTTT Voucher within the calendar year), including: |
| 87 |
| TT137.1 |
| Notification that the marginal tax rates are now available in ETS2. |
| 88 |
| TT137.2 |
| Notification that traveler can now complete an ITRA Voucher for the calendar year. |
| 89 |
| TT137.3 |
| Notification that traveler has until DATE5 to complete an ITRA Voucher for the calendar year. |
| 90 |
| TT138 |
| ETS2 should send a second notice (reminder) email on DATE3 (an agency configurable number of days from the first notice (DATE2)), to all travelers that have not signed an ITRA Voucher, including: |
| 91 |
| TT138.1 |
| Notification that traveler has failed to file an ITRA Voucher. |
| 92 |
| TT138.2 |
| Notification that traveler can now complete an ITRA Voucher for the calendar year. |
| 93 |
| TT138.3 |
| Notification that traveler has until DATE5 to complete an ITRA Voucher for the calendar year and that failure to file ITRA Voucher by DATE5 will result in a debt due to the agency. |
| 94 |
| TT139 |
| ETS2 should send a third notice email on DATE4 (an agency configurable number of days from the first notice (DATE2)), to all travelers that have not signed an ITRA Voucher, including: |
| 95 |
| TT139.1 |
| Notification that traveler has failed to file an ITRA Voucher. |
| 96 |
| TT139.2 |
| Notification that traveler should now complete an ITRA Voucher for the calendar year. |
| 97 |
| TT139.3 |
| Notification that traveler has until DATE5 to complete an ITRA Voucher for the calendar year and that failure to file ITRA Voucher by DATE5 will result in the entire taxable amount becoming a debt due to the agency. |
| 98 |
| TT140 |
| ETS2 should send a final notice email on DATE5 (an agency configurable number of days from the first notice (DATE2)), to all travelers that have not signed an ITRA Voucher, including: |
| 99 |
| TT140.1 |
| Notification that the traveler has failed to file an ITRA Voucher. |
| 100 |
| TT140.2 |
| Notification that traveler missed the opportunity to complete an ITRA Voucher for the calendar year. |
| 101 |
| TT140.3 |
| Notification that traveler taxable amount is a debt (as outlined in requirement 367) and they will be billed for the outstanding balance. |
ITRA VOUCHER DISPLAY AND TRAVELER SIGNATURE
| 42 |
| TT75 |
| ETS2 should provide the capability to capture the following required information for ITRA Voucher: |
| 43 |
| TT75.1 |
| Prepared Date - date document created, read only. |
| 44 |
| TT75.2 |
| ETS2 should display the status of the ITRA Voucher from the standard ETS2 list: |
Voucher Prepared
| 50 |
| TT75.3 |
| ETS2 should display the Employee Name, residence city, state, and zip from the traveler's profile on the ITRA Voucher. |
| 51 |
| TT75.4 |
| ETS2 should display the travel period on the ITRA Voucher as January 1 of the prior calendar year to December 31 of the prior calendar year. |
| 30 |
| TT68 |
| ETS2 should provide the capability to file only one ITRA Voucher per user per calendar year. |
| 194 |
| TT209 |
| ETS2 should restrict each traveler to only have one ITRA Voucher per current ITRA year. |
| 52 |
| TT75.6 |
| ETS2 should provide a capability to enter employee income on the ITRA Voucher with direction to the user to include W2s, military 1099 retirement, and self-employment income. |
| 53 |
| TT75.7 |
| ETS2 should calculate the Federal Withholding Tax on the ITRA Voucher based on the Gross Amount and the Federal Tax Rate. |
| 54 |
| TT75.8 |
| ETS2 should set the default Payroll State on an ITRA Voucher to the traveler's Payroll State in the traveler's profile. |
| 55 |
| TT75.9 |
| ETS2 should calculate the State Withholding Tax on the ITRA Voucher based on the Gross Amount and the State tax rate for the traveler's Payroll State. |
| 56 |
| TT75.10 |
| ETS2 should calculate the employee share of Medicare on the ITRA Voucher based on the Gross Amount and the Employee Medicare Tax Rate. |
| 57 |
| TT75.11 |
| ETS2 should calculate the employee share of FICA on the ITRA Voucher based on the Gross Amount and the Employee FICA Tax Rate when the traveler is in FERS (i.e., profile indicates withhold FICA). |
| 58 |
| TT75.13 |
| ETS2 should display the Net Amount Due to the Traveler on the ITRA Voucher. |
| 65 |
| TT94 |
| ETS2 should require entry of a value in the following fields on the ITRA Voucher overview page and display an agency defined message when a required field is blank: |
| 66 |
| TT94.1 |
| Income to employee |
| 67 |
| TT94.2 |
| State (at least 1 state where traveler resided during travel period) |
| 79 |
| TT99 |
| ETS2 should provide option to display the document status history of ITRA Vouchers. |
| 135 |
| TT171 |
| ETS2 should require on ITRA Vouchers that traveler's verify they have viewed, signed, and attached the agency 8445 form when the filing status is - 'Married -filing jointly'. |
| 136 |
| TT172 |
| ETS2 should only allow the adjusted total taxable reimbursement amount to be zero or greater. |
| 137 |
| TT173 |
| ETS2 should restrict view/edit access to ITRA Vouchers to include: |
| 139 |
| TT173.2 |
| ITRA User (possible roles: ITRA Preparer, ITRA Reviewer, ITRA Approver) |
| 140 |
| TT174 |
| ETS2 should provide the ability for a traveler to view the entire ITRA Voucher, including the combined marginal tax rate calculations, after an ITRA Voucher is approved. |
| 171 |
| TT192 |
| ETS2 should provide a print option for the ITRA Voucher. |
| 172 |
| TT193 |
| ETS2 should provide the capability to view all ITRA Authorization information and ITRA Voucher data on the ITRA Voucher. |
| 173 |
| TT194 |
| ETS2 should provide the ability for travelers to fax and scan documents to attach to the ITRA Voucher. |
| 174 |
| TT195 |
| ETS2 should prompt the user with instructions (agency provided wording), if the user selects married filing jointly, including: |
| 175 |
| TT195.1 |
| Instruction to print the agency 8445 form |
| 176 |
| TT195.2 |
| Instruction to have the traveler's spouse sign the agency 8445 form. |
| 177 |
| TT195.3 |
| Instruction to scan the signed agency 8445 form into ETS2. |
| 179 |
| TT197 |
| ETS2 should provide the ability for an ITRA Preparer to create and sign an ITRA Voucher for an active employee. |
| 180 |
| TT198 |
| ETS2 should require selection of a checkbox on the Digital Signature page for the traveler/ITRA Preparer to indicate uploaded documents do not display a social security number. |
| 181 |
| TT199 |
| ETS2 should display text on the receipts/documentation upload page to remind the user that social security numbers should not be visible on uploaded documents. |
| 182 |
| TT200 |
| ETS2 should trigger a pre-audit when no documents have been attached to an ITRA Voucher. |
| 360 |
| TT95 |
| ETS2 should provide a print option for the ITRA: |
| 361 |
| TT95.1 |
| Authorization. |
| 363 |
| TT96 |
| ETS2 should provide the capability to view the ITRA data input by the agency authorized personnel for: |
| 364 |
| TT96.1 |
| Authorizations. |
| 37 |
| TT70 |
| ETS2 should provide the capability for a Traveler and ITRA User to download configurable ITRA related documentation to include: |
| 38 |
| TT70.1 |
| agency 8445 Form |
| 391 |
| TT134 |
| ETS2 should provide a screen to enter ITRA forms. |
| 211 |
| TT226 |
| ETS2 should allow for entering total income on an ITRA Voucher. |
| 212 |
| TT227 |
| ETS2 should provide the ability for the traveler to view the pre-audits and justifications from the ITRA Reviewer after the ITRA Voucher is approved. |
| 213 |
| TT228 |
| ETS2 should provide the ability for the traveler to view the adjustments made by the ITRA Reviewer after the ITRA Voucher is approved. |
| 208 |
| TT223 |
| ETS2 should allow travelers without taxable travel (i.e. no virtual ITRA Authorizations) to process ITRA Vouchers in ETS2 (including ability for ITRA Preparers to search and create for a traveler). |
| 210 |
| TT225 |
| ETS2 should allow one and only one LOA (not including the non-taxable ETS2 fee LOA) to be added to a manually created ITRA Voucher (i.e. no virtual ITRA Authorization exists in ETS2). |
| 382 |
| TT125 |
| ETS2 should include a complete accounting for withheld taxes and the adjusted balance due to the employee on the printed voucher. |
| 388 |
| TT128 |
| ETS2 should provide all required calculations to allow the employee to determine the final tax allowance amount |
ITRA VOUCHER ADJUSTMENTS, REVIEW, and APPROVAL
| 39 |
| TT71 |
| ETS2 should provide the capability to attach a unique approval path for ITRA Vouchers. |
| 59 |
| TT76 |
| ETS2 should pre-populate the values in the following fields and allow the ITRA User/Reviewer to edit these values in separate fields. |
| 60 |
| TT76.1 |
| Total covered taxable reimbursement amount. |
| 62 |
| TT79 |
| ETS2 should prevent updates to the ITRA Voucher once an ITRA Voucher is approved. |
| 63 |
| TT88 |
| ETS2 should display the Net Amount due to the traveler on the ITRA Voucher as the Gross Amount minus withholdings. |
| 64 |
| TT93 |
| ETS2 should prevent an ITRA Voucher from be edited or deleted after final approval if the Voucher has interfaced into agency accounting/financial system. |
| 115 |
| TT157 |
| ETS2 should display both original amount and the adjusted amount on an ITRA Voucher when the ITRA-Expert User adjusts either: |
| 116 |
| TT157.1 |
| Total taxable reimbursement on the ITRA Voucher. |
| 117 |
| TT157.2 |
| WTA field on the ITRA Voucher |
| 118 |
| TT158 |
| ETS2 should have a pre-audit flag on the ITRA Voucher if either of the following is found: |
| 119 |
| TT158.1 |
| Total taxable reimbursement on the ITRA Voucher is adjusted. |
| 120 |
| TT158.2 |
| WTA field on the ITRA Voucher is adjusted. |
| 121 |
| TT159 |
| ETS2 should allocate the Gross Amount (WTA) on the ITRA Voucher on a percentage basis of the corresponding GL Account on the LOAs on the ITRA Authorization. |
| 122 |
| TT160 |
| ETS2 should allocate employer share of Medicare on the ITRA Voucher on a percentage basis of the corresponding GL Account on the LOAs on the ITRA Authorization. |
| 123 |
| TT161 |
| ETS2 should allocate employer share of FICA on the ITRA Voucher on a percentage basis of the corresponding GL Account on the LOAs on the ITRA Authorization. |
| 124 |
| TT162 |
| ETS2 should allocate (Due US) Billing Document amount on the ITRA Voucher on a percentage basis of the corresponding GL Account on the LOAs on the ITRA Authorization. |
| 125 |
| TT163 |
| ETS2 should validate LOA(s) upon signature by a ITRA Reviewer or ITRA Approver on an ITRA Voucher by: |
| 126 |
| TT163.1 |
| Validating that the LOA is a valid agency accounting code. |
| 127 |
| TT163.2 |
| Validating that only taxable lines of accounting are used on an ITRA Voucher (except for the ETS2 fee). |
| 128 |
| TT164 |
| ETS2 should provide the ability for an ITRA Reviewer to add an LOA on an ITRA Voucher when no LOAs exist and delete LOAs that have been added. |
| 129 |
| TT165 |
| ETS2 should ensure only taxable LOAs are valid for selection on ITRA Vouchers. |
| 130 |
| TT166 |
| ETS2 should recalculate the employer's FICA tax amount based on the computed Gross Amount on the ITRA Voucher and send a delta amount to agency accounting system via a virtual authorization. |
| 131 |
| TT167 |
| ETS2 should recalculate the employer's Medicare tax amount based on the computed Gross Amount on the ITRA Voucher and send a delta amount to agency accounting system via a virtual authorization. |
| 133 |
| TT169 |
| ETS2 should automatically allocate Gross Amount of the ITRA Voucher, FICA, and Medicare. |
| 134 |
| TT170 |
| When an ITRA Voucher is approved and a virtual authorization is sent to agency accounting system, ETS2 should indicate the virtual authorization as an original when the ITRA Authorization does not exist. Reference objective #31 regarding the creation of the virtual ITRA Authorization. |
| 141 |
| TT176 |
| ETS2 should provide the ability for an ITRA Reviewer to enter an adjustment to the Total Taxable Reimbursement Amount on the ITRA Voucher. |
| 142 |
| TT177 |
| ETS2 should provide the ability for an ITRA Reviewer to enter an adjustment to the Total WTA on the ITRA Voucher. |
| 143 |
| TT178 |
| ETS2 should display the adjusted Total Taxable Reimbursement Amount and adjusted Total WTA on the ITRA Voucher. |
| 144 |
| TT179 |
| ETS2 should provide the ability for an ITRA Reviewer and ITRA Approver to search for a traveler's ITRA Voucher. |
| 178 |
| TT196 |
| ETS2 should provide the ability for ITRA Reviewers and ITRA Approvers to view a list of ITRA Vouchers awaiting review and approval. |
| 184 |
| TT203 |
| ETS2 should trigger a pre-audit when the Payroll State is different than the default Payroll State. |
| 191 |
| TT206 |
| ETS2 should use four decimal places for all values when computing ITRA. |
| 192 |
| TT207 |
| ETS2 should trigger a pre-audit for each adjustment made by the ITRA Reviewer and require justification (provide a different pre-audit for all possible adjustments). |
| 195 |
| TT210 |
| ETS2 should restrict each ITRA User from applying more than one stamp to a single ITRA Voucher including: Voucher Prepared, Voucher Reviewed, or Voucher Approved (i.e. cannot prepare and review, prepare and approve, or review and approve). |
| 196 |
| TT211 |
| ETS2 should restrict access to ITRA related information to ITRA Users, no administrative employees can access ITRA related information. |
| 197 |
| TT212 |
| ETS2 should require selection of a checkbox on the Digital Signature page for the ITRA Reviewer to indicate the uploaded documents do not display a social security number. |
| 198 |
| TT213 |
| ETS2 should remove all edits/adjustments made by the ITRA User when a document is Returned to the Traveler. |
| 199 |
| TT214 |
| ETS2 should provide the capability to include the average of all state tax rates added by the user in the computing the Combined Marginal Tax Rate. |
| 205 |
| TT220 |
| ETS2 should prevent an ITRA User from having more than one stamping ability on the unique ITRA approval path (i.e. an ITRA User cannot be an ITRA Approver and an ITRA Reviewer). |
| 206 |
| TT221 |
| ETS2 should give ITRA Approvers view-only access to ITRA Vouchers (i.e. a ITRA Approver can never create or edit ITRA Vouchers). |
| 207 |
| TT222 |
| ETS2 should display a message to the ITRA User when stamping an ITRA Voucher Return to Traveler describing that all adjustments will be lost. |
| 214 |
| TT230 |
| ETS2 should not allow Income to be entered that is less than $20,000, including: |
| 215 |
| TT230.1 |
| When the Traveler/ITRA Preparer is creating the ITRA Voucher |
| 216 |
| TT230.2 |
| When the ITRA Reviewer is adjusting Income on the ITRA Voucher |
| 209 |
| TT224 |
| ETS2 should allow only the ITRA Reviewer can change Payroll State, the Traveler and ITRA Preparer cannot change Payroll State on the ITRA Voucher. |
ITRA SUPER USER, AGENCY ITRA CONTROL AND TAX RATES
| 183 |
| TT201 |
| ETS2 should archive marginal tax rates. |
| 185 |
| TT204 |
| ETS2 should provide for another level of access to ITRA documents restricted to a 'Super ITRA User' to include: |
| 186 |
| TT204.1 |
| View/Edit access to the unique ITRA Voucher approval path |
| 187 |
| TT204.2 |
| Marking the ITRA-Expert User/Super ITRA User checkbox in the profile. |
| 188 |
| TT204.3 |
| Turning On/Off ITRA Vouchering capability |
| 189 |
| TT204.4 |
| Selecting the Date to send out the first ITRA email notification after the Marginal Tax Rates are loaded and reviewed. |
| 190 |
| TT205 |
| ETS2 should verify that the ITRA User check box has a yes value in the profile when adding a approver element to the unique ITRA approval path. |
| 31 |
| TT69 |
| When the ITRA Voucher is approved, ETS2 should create an ITRA virtual authorization for upward and downward adjustments. Reference #134 relating to virtual ITRA Authorizations |
| 32 |
| TT69.1 |
| ETS2 should calculate withholdings for the following on the ITRA Voucher: (Note: WTA is not calculated on the ITRA Voucher) |
| 34 |
| TT69.1.2 |
| State Tax (if applicable) |
| 36 |
| TT69.1.4 |
| FICA Tax (if applicable) |
| 200 |
| TT215 |
| ETS2 should provide the ability for a Super ITRA User to set the date (DATE5) for the last notice email to be sent out. |
| 202 |
| TT217 |
| ETS2 should provide the ability for a Super ITRA User to review the Marginal Tax Rates that were loaded and set the date (DATE2) for the first notice email to be sent out. |
| 203 |
| TT218 |
| ETS2 should provide a configurable table entry to define which year of ITRA data to use for the ITRA Voucher. |
| 204 |
| TT219 |
| ETS2 should provide a configurable table entry for the agency that will turn on or off the ability for employees to create ITRA Vouchers. |
| 28 |
| TT74 |
| ETS2 should provide the ability to load marginal tax rates from an electronic file. |
| 392 |
| TT135 |
| ETS2 should use marginal tax rates issued by GSA (each year) to calculate the ITRA vouchers. |
| 40 |
| TT73 |
| ETS2 should provide a capability to load and store marginal tax rates issued by General Services Administration and use them when calculating an ITRA Voucher. |
| 41 |
| TT73.1 |
| ETS2 should use the stored state tax rates to calculate state withholding. |
| 389 |
| TT129 |
| ETS2 should store state tax rates (if applicable). |
| 387 |
| TT127 |
| ETS2 should use stored state tax rates (if applicable) to calculate ITRA. |
| 283 |
| TT42 |
| ETS2 should provide a screen for high-level administrative employees to update tax rates, using information provided by government websites, to include: |
| 284 |
| TT42.1 |
| State Tax Rates (if applicable). |
| 285 |
| TT42.2 |
| Federal Tax Rates. |
| 286 |
| TT42.3 |
| Medicate Rates. |
| 287 |
| TT42.4 |
| FICA Tax Rates. |
| 383 |
| TT126 |
| ETS2 should allow an administrative employee (FATA) to print the past history of tax rates between dates selected by the user, to include: |
| 384 |
| TT126.1 |
| Type of tax and literal description. |
| 385 |
| TT126.2 |
| Current tax rate for all tax types. |
| 386 |
| TT126.3 |
| Any changes that have not taken effect yet with the effective (beginning) date. |
| 291 |
| TT50 |
| ETS2 should allow an administrative employee (FATA) to view the past history of tax rates between dates selected by the user, to include: |
| 292 |
| TT50.1 |
| Type of tax and literal description. |
| 293 |
| TT50.2 |
| Current tax rate for all tax types. |
| 294 |
| TT50.3 |
| Any changes that have not taken effect yet with the effective (beginning) date. |
| 219 |
| TT5 |
| ETS2 should base the effective dates for tax rates on: |
| 220 |
| TT5.1 |
| The creation date for authorizations. |
| 221 |
| TT5.2 |
| The system date on vouchers |
| 218 |
| TT4 |
| ETS2 will provide the ability for tax rate maintenance in the Vendor administrative Maintenance section by the high-level administrative employee. |
| 275 |
| TT34 |
| ETS2 tax calculations and withholdings should use the rates in effect on the voucher document employee signature date. |
ITRA VOUCHER PROCESSING AND TAXABLE REPORTS
| 80 |
| TT100 |
| ETS2 should interface to agency accounting system all ITRA Vouchers set in the approved status with a net amount greater than .99 cents. |
| 81 |
| TT105 |
| ETS2 should produce a "Due US" notice (i.e. agency defined email) for repayment of excess WTA amounts. |
| 82 |
| TT107 |
| ETS2 should differentiate between repayment types when sending a DUE US record to agency accounting system. |
| 83 |
| TT107.1 |
| Unpaid advance. |
| 85 |
| TT107.3 |
| ITRA repayments (if applicable). |
| 145 |
| TT180 |
| ETS2 should send a virtual authorization to agency accounting system to adjust the obligation when an ITRA Voucher is approved. Note: There are no other means of de-obligating ITRA amounts. |
| 146 |
| TT181 |
| ETS2 should create a virtual authorization that de-obligates all open obligated line amounts when the gross amount on the approved ITRA Voucher is zero or less. |
| 147 |
| TT182 |
| ETS2 should send an accounts receivable (AR) transaction file if the gross amount on the approved ITRA Voucher is negative and the negative amount is greater than or equal to -$5.00 (e.g., do not send for -$4.99). |
| 148 |
| TT183 |
| ETS2 should de-obligate with a virtual authorization any remaining funds on the ITRA Authorization when the ITRA Voucher has not been signed within agency configurable number of days from the ITRA first notice. |
| 149 |
| TT184 |
| ETS2 should provide a Paid ITRA Voucher report available by organization with the budget amounts paid to date within a calendar year for ITRA Vouchers (bottom line figures) and include the following data: |
| 153 |
| TT184.4 |
| Amount of LTTT (taxable reimbursement) |
| 154 |
| TT184.5 |
| Amount of withholdings |
| 155 |
| TT184.6 |
| Amount of ITRA (gross amount). |
| 156 |
| TT185 |
| ETS2 should provide the ability to request the Paid ITRA Voucher report by providing an organization and calendar year. |
| 157 |
| TT186 |
| ETS2 should interface Type 3 Due US transactions to the agency accounting system. |
| 158 |
| TT187 |
| ETS2 should include the ITRA ETS2 Fee on a separate transaction to agency accounting system. |
| 159 |
| TT188 |
| ETS2 should provide an Approved ITRA Vouchers report containing all approved ITRA Vouchers for a calendar year. |
| 160 |
| TT189 |
| ETS2 should include the following data on the Approved ITRA Vouchers report: |
| 161 |
| TT189.1 |
| Traveler's Name |
| 162 |
| TT189.2 |
| EIN / Vendor ID |
| 163 |
| TT189.3 |
| Net Dollar Amount (if payment is 0 or greater; otherwise blank) |
| 164 |
| TT189.4 |
| Gross Dollar Amount (if DUE US; otherwise blank) |
| 165 |
| TT189.5 |
| FICA (if DUE US; otherwise blank) |
| 166 |
| TT189.6 |
| Medicare (if DUE US; otherwise blank) |
| 167 |
| TT189.7 |
| OV Amount (if DUE US; otherwise blank) |
| 168 |
| TT189.8 |
| Created by (last name, first name) |
| 169 |
| TT190 |
| ETS2 should provide the following filtering parameter for the Approved ITRA Vouchers report: |
| 170 |
| TT190.1 |
| ITRA Payment Year (default to current calendar year). |
| 357 |
| TT89 |
| If ETS2 should set the authorized amount to zero, if the net amount on the ITRA voucher is less than zero. |
| 358 |
| TT90 |
| ETS2 should de-obligate any remaining funds on the ITRA authorization when the ITRA voucher is filed via a virtual authorization. |
| 376 |
| TT120 |
| ETS2 should interface as zero dollar lines (so the agency accounting system can pick them up as taxable) employee transaction expenses including: |
| 377 |
| TT120.1 |
| Individually Billed Account (IBA) transactions |
| 378 |
| TT120.2 |
| ETS2 transactions. |
| 306 |
| TT59 |
| ETS2 should include the following input parameters on The Number of Repeated Expense Amounts report input screen: |
| 307 |
| TT59.1 |
| Report Period (not to exceed 365 days) |
| 308 |
| TT59.2 |
| The Organization |
| 309 |
| TT59.3 |
| Check Box to include Sub-Organizations |
| 310 |
| TT59.4 |
| The Expense Count (i.e. This is the minimum number of how many times an expense amount is repeated within the report period. The limit will be set to 1000) |
| 311 |
| TT59.5 |
| Expense Drop Down - All local and city-to-city expenses will appear in the drop down with the default set to Privately-Owned Auto (Local) when this page is first displayed. |
| 312 |
| TT60 |
| ETS2 should display the following information on the number of Repeated Expense Amounts report: |
| 313 |
| TT60.1 |
| The Employee's Name |
| 314 |
| TT60.2 |
| Employee's Unique ID |
| 315 |
| TT60.3 |
| Employee's Organization at the time the report is run |
| 316 |
| TT60.4 |
| Number of expenses - number of times during the report period that the selected expense was claimed with the same dollar amount and the expense travel date falls within the report period |
| 317 |
| TT60.5 |
| Number of vouchers that the selected expense was claimed on with the same dollar amount |
| 318 |
| TT60.6 |
| Amount of Repeated Expense - dollar amount of the selected expense. |
| 319 |
| TT61 |
| ETS2 should include the following input parameters on the Number of Vouchers report input screen: |
| 320 |
| TT61.1 |
| Report Period (not to exceed 365 days) |
| 321 |
| TT61.2 |
| The Organization |
| 322 |
| TT61.3 |
| Check Box to include Sub-Organizations |
| 323 |
| TT61.4 |
| Trip Type - (Drop Down to select City-to-City or Local Vouchers) with default selection to Local. |
| 324 |
| TT61.5 |
| Number of Vouchers (Number of minimum Vouchers to be included on the report. Limit will be set to 99). |
| 325 |
| TT62 |
| ETS2 should display the following information on the Number of Vouchers report: |
| 326 |
| TT62.1 |
| The Employee’s Name |
| 327 |
| TT62.2 |
| Employee’s Unique ID |
| 328 |
| TT62.3 |
| Employee’s Organization at the time the report is run |
| 329 |
| TT62.4 |
| Number of Vouchers (number of vouchers during the report period where the start date of the voucher falls within the report period). |
| 330 |
| TT63 |
| ETS2 should include the following information on the Dollar Amount of Vouchers report input screen: |
| 331 |
| TT63.1 |
| Report Period (not to exceed 365 days) |
| 332 |
| TT63.2 |
| The Organization |
| 333 |
| TT63.3 |
| Check Box to include Sub-Organizations |
| 334 |
| TT63.4 |
| Dollar Amount of the voucher to include on the report |
| 335 |
| TT64 |
| ETS2 should display the following information on the Dollar Amount of Vouchers report: |
| 336 |
| TT64.1 |
| The Employee’s Name |
| 337 |
| TT64.2 |
| Employee’s Unique ID |
| 338 |
| TT64.3 |
| Employee’s Organization at the time the report is run |
| 339 |
| TT64.4 |
| Number of Vouchers - (number of vouchers during the report period where the start date of the voucher falls with the report period with this voucher dollar amount). |
| 340 |
| TT65 |
| Upon request the System should submit the Dollar Amount of Vouchers report. |
| 341 |
| TT66 |
| ETS2 should generate a Due US billing, or Accounts Receivable (AR) form, with: |
| 342 |
| TT66.1 |
| The agency requested address. |
| 343 |
| TT66.2 |
| Instructions for an employee to printout and return with a check if the tax withholding exceeds the amount to be reimbursed to the employee. |
| 201 |
| TT216 |
| ETS2 should provide the ability for the agency to pull reports for historical ITRA data (at least 3 years). |
ETS2 should provide a report that lists all employees who have authorizations for 365 days of travel or more and it is not flagged as taxable.
ETS2 should display the following information on the Authorizations not flagged as taxable report:
The Employee’s Name
Employee’s Unique ID
Employee’s Organization at the time the report is run
Document Name
CALENDAR YEAR END HOLD - LTTT and ITRA
| 400 |
| ETS400 |
| ETS2 Vendor should create (modify) a Virtual ITRA Authorization with each long term taxable voucher submitted by an agency traveler. |
| 401 |
| ETS401 |
| ETS2 Vendor should process the first long term taxable voucher of the calendar year as an original virtual ITRA authorization and all other long term taxable vouchers for an agency traveler during the calendar year as modifications to the original. |
| 402 |
| ETS402 |
| ETS2 vendor should provide functionality for calendar year end hold to restrict processing of long term taxable travel vouchers (virtual ITRA authorizations) to allow agencies time to process employee W2s. |
| 403 |
| ETS403 |
| ETS2 Vendor should hold any taxable vouchers approved during the calendar year end hold period along with their corresponding Virtual ITRA Authorization and release them during the next calendar year. |
| 404 |
| ETS404 |
| ETS2 vendor should included any long term taxable travel documents paid in the next calendar year on the employee’s ITRA for the next calendar year (even if travel dates are the previous calendar year). |
| 405 |
| ETS405 |
| ETS2 vendor should update the creation and subsequent modification of the virtual ITRA authorization documents to be based on a configurable date. |
| 406 |
| ETS406 |
| ETS2 vendor should ensure Long Term Taxable Vouchers are based on a configurable date for reporting and ITRA calculation purposes. |
LTTT Formula Example
Tax Calculations for all taxable travel:
| Federal Withholding Tax Allowance (WTA) |
| (Taxable Expenses) x (WTA Rate) Current Rate: 0.333333 |
| Federal Tax |
| (Taxable Expenses + WTA) x (Federal Tax Rate) Current Rate : 0.25 |
| Medicare |
| ((Taxable Expenses) + (WTA)) x (Medicare Rate) Current Medicate Rate: 0.0145 |
| FICA |
| ((Taxable Expenses) + (WTA)) x (FICA Rate)) Current FICA Rate: 0.0620 |
| State Withholding Tax Allowance |
| ((Taxable Expenses) + (WTA)) x (State Withholding Rate) |
| Line 1a. Non-taxable reimbursable voucher total |
| $0.00 |
| Line1b. Taxable voucher total |
| $48.00 |
| Line 2. Taxable Third Party Payments (i.e. airline payments charged to corporate accounts and TAV FEE) |
| $13.50 |
| Line 3. Total Amount of Taxable Reimbursements (Line 1b plus Line 2) |
| $61.50 |
| Line 4. Withholding Tax Allowance (WTA) (Line 3 multiplied by .333333) |
| $20.50 |
| Line 5. Total Income to Employee (Line 3 plus Line 4) |
| $82.00 |
| Line 6. Federal Tax Withholding on Total Income (Line 5 multiplied by .25) |
| $20.50 |
Tax Rate
| Line 7. State Tax Withholding on Total Income (Line 5 multiplied by State Tax Rate) |
| $4.51 |
| District of Columbia, DC |
| 0.055 |
| Line 8. Medicare Tax on Total Income (Line 5 multiplied by .0145) |
| $1.19 |
Employee Retirement
| Line 9. FICA Taxes on Total Income (Line 5 multiplied by .062; if FERS Employee) |
| $0.00 |
CSRS
| Line 10. Total Withholding on Income (Total of lines 6 through 9) |
| $26.20 |
| Line 11. Net taxable amount due to traveler (Line 1b plus Line 4 minus Line 10) |
| $42.30 |
| Line 12. Net amount due to traveler (Line 1a plus Line 11) |
| $42.30 |
| Line 12a. Reimbursable amount (Line 12) |
| $42.30 |
| Line 12b. Advance Amount |
| $100.00 |
| Line 12c. Advance amount over Reimbursable amount (Due US) |
| $57.70 |
Line 13. Non-taxable reimbursable amount (Line 1a minus Line 12b) If Line 12b > Line 1a then Line 12b minus Line 1a equals remaining advance and set line 13 to zero.
$0.00
| Remaining Advance |
| $100.00 |
Line 14. Taxable reimbursable amount (Line 11 minus remaining Line 12b) If remaining Advance Amount (Cell C21) then -$57.70
| Line 15. Net reimbursable amount due to traveler (Line 13 plus Line 14) |
| -$57.70 |
Instructions: All green cells are editable and must be updated for each test case. All other fields will be calculated from the entries into the green cells.
Tax Rates examples:
| District of Columbia, DC |
| 0.085 |
ITRA Formula Example
CALCULATING THE INCOME TAX ALLOWANCE FOR LTTT AND RELOCATION
Year 1 Column a Year 2 Column b
| Line |
| STEP 1 (COMPUTATION OF COMBINED MARGINAL TAX RATE) |
| 1 |
| Enter federal tax rate from federal tax table for income tax allowance |
| 2 |
| Deduct federal tax rate item 1 from 1.00 (for both Years 1 and 2) |
| 3 |
| Enter State tax rate from state tax table for income tax allowance |
| 4 |
| Multiply Line 3 by Line 2 |
| 6 |
| Multiply Line 5 by Line 2 |
| 7 |
| Add Lines 1, 4, and 6 (Columns a and b). Result is the combined marginal tax rate for Year 1 and Year 2 |
STEP II (INCOME TAX ALLOWANCE COMPUTATION - YEAR 2)
| 1 |
| Enter combined marginal tax rate for Year 1 (Column 7a above) |
0.0000%
| 2 |
| Deduct combined marginal tax rate (Line 1) from 1.00 |
100.0000%
| 3 |
| Enter combined marginal tax rate for Year 2 (Column 7b above) |
0.0000%
| 4 |
| Deduct combined marginal tax rate (Line 3) from 1.00 |
100.0000%
| 5 |
| Divide combined marginal tax rate Line 1 by Line 4 |
0.0000%
| 6 |
| Divide Line 2 by Line 4 |
1.0000
| 7 |
| Enter total covered taxable reimbursements |
| 8 |
| Multiply Line 7 by Line 5 - This represents the Income Tax Allowance |
$0.00
| 9 |
| Enter total WTA paid in Year 1 |
| 10 |
| Multiply Line 9 by Line 6 |
$0.00
| 11 |
| Deduct Line 10 from Line 8 (Income Tax Allowance payable to employee or amount subject to collection from employee) |
$0.00
Note: Enter percents as decimals
Glossary
Line Type “E” will be used when recording the traveler’s expenses. The expenses are those items that have a sub-object class code (SOC) assigned.
Line Type “T” will be used when recording the withholding taxes for federal, state and the employee’s share of FICA and/or Medicare Line Type “O” will be used when recording the amount owed the employee or “Net to Traveler.”
The Tax Type will be determined from information provided by the employee and the travel voucher. Tax Types record the type of taxes being withheld and paid. The following is a list of valid tax types:
Total Verified – The amount determined as Total Certified Correct and Proper for Payment plus the employer’s share of FICA and Medicare. This amount includes the amount claimed, any differences found during audit, third-party airline ticket amounts and WTA amount.
Taxable - Amount determined as Total Certified Correct and Proper for Payment. This amount includes third-party airline tickets and the WTA amounts, but it does not include the employer’s share of FICA and Medicare.
Tax Withheld - Sum of all taxes deducted plus employer’s share (State, Federal, Medicare Employee and Employer’s shares and FICA Employee and Employer’s shares) or the amount on Line 10 plus the amounts shown in the For Beckley Use Only box on the “Report of Long-Term Travel Voucher Payment”.
WTA - The amount recorded for SOC 1245 (Domestic) or 1246 (Foreign) WTA amount or the amount of Line 4 on the “Report of Long-Term Travel Voucher Payment”.
Ticket Amount - The airline ticket amount purchased from the corporate account (third-party) or Line 2 on the “Report of Long-Term Travel Voucher Payment”.
Owed Employee - Net to Traveler amount or Line 15 on the “Report of Long-Term Travel Voucher Payment”.
Line No: - There are no special numbering requirements other than the voucher line numbers should be sequentially numbered (001, 002, 003, etc.)
A new line must be entered for each expense (SOCs 2102, 2103, 2109, 2121, 1245/1246, 1212, 1215) and each type of tax deducted from the employee’s payment (tax withholdings - Federal, State, FICA…
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