SCT Banner Human Resources / Release Guide / 7.0

Section 7 Support for 1099-R Changes - Functional1099-R Processing7. Complete the following fields on the Tax Reporting Rule Form (PXAREPT):• Enter 1099 in the Tax Report Code field in the Key block of the form.• Complete the Box Identification, Benefit/Deduction Code, and EarningsCode blocks for each box on the 1099-R form. (Instructions for enteringinformation on this form are given in Chapter 17, Time Entry and PayrollProcessing.)The rules for the earnings and benefit/deduction codes listed for box 1determine what is loaded into the 1099-R form. The 1099-R forms will becompleted according to the following rules:• An employee will receive one 1099-R form for each distribution codeassociated with a deduction or earnings type listed for box 1. Thedistribution code is specified in box 7 of each 1099-R form.• Only the deductions and earnings defined with the distribution code inbox 7 of a 1099-R form are included in the calculations for the boxes ofthat form.• A deduction or earning will be included in the calculations for aparticular box for an employee's 1099-R only if the following conditionsare true:–The benefit or earnings has been defined for the employee.–The benefit or earnings has been listed for the box.–The benefit or earnings has been defined with the distribution codespecified in box 7 of the 1099-R form.For example, if REG is entered as an earn code for box 1 and the 1099 Codefield in the PTREARN form for REG contains a distribution code of 1, eachemployee will receive a 1099-R form for distribution code 1. A 1 will appear inbox 7 of each of these forms. As described below, the 1099-R Load Process(PXP1099) will populate the PXR1099 table. In calculating the entry for box 1in the forms for distribution code 1, PXP1099 will consider each employee’sregular salary as well as each of the employee’s other earnings and deductionsthat has been listed for box 1 and defined with a distribution code of 1. Incalculating the entries for each of the other boxes on the form for a particularemployee, PXP1099 will consider each of the employee’s earnings anddeductions that has been listed for that box and defined with a distributioncode of 1.If another distribution code has been specified for another deduction orearning listed for box 1, each employee will also receive a 1099-R form for thatdistribution code. For example, if FED is entered as a deduction code for box1 and the 1099 Code field in the PTRBDCA form for FED contains adistribution code of 5, each employee will receive a 1099-R form fordistribution code 5. A 5 will appear in box 7 of each of these forms. Incalculating the entry for box 1 in these forms, PXP1099 will consider eachemployee’s federal tax as well as each of the employee’s other earnings anddeductions that has been listed for box 1 and defined with a distribution codeHuman Resources/Position Control Release 7.0 January 2005138 Release Guide Confidential