Building the Reconciliation Tax Summary

The MasterTax RTS (Reconciliation Tax Summary) file build process reviews the various tax registers and generates a file in a specific format for a third party vendor called MasterTax. Run this process quarterly and use it to reconcile the check amounts that were imported throughout the previous three months. Now, positive and or negative adjustments made in the grid in the FUTA Credit Adjustment Entry form displays on the MasterTax Reconciliation Tax Summary (RTS). The values entered in the grid adjust the state XX-17 total YTD value in the RTS. This will not require a register rebuild, instead when you run the RTS, any value in the grid will offset either the E or F code record based on the Employet and/or Client setup.

Adjustments to the xx-17 record will be saved and stored to the Futa Credit Adjustment Entry grid for each employee.

The 501 record is reduced in statistic four (which is the employee count) by any employee in which an adjustment reduces their FUTA taxable wages to 0 for the state, or increase the 501 record by any employee in which an adjustment adds fUTA taxable wages that were not originally to be reported.

There are multiple versions of this form as well as a NON SBEA and SBEA build that look to different tax registers when generating the values on the file. These build types are controlled by the MasterTax Interface parameter form.

Note:  This form does not use Client Access Group Security.

To build the RTS file:

1. On the Work Centers panel, click MasterTax Processing > File Exports > Mastertax RTS File Build.
2. Complete these fields as required:
Table 56: Tax-Related Fields and Descriptions

Field

Description

Tax  Year

Tax year for this build.

Tax Quarter

Tax quarter for this build.

Limit to Employer

Filters so that the file generated only contains tax information for a specific employer.

Include client reportable taxes for PEO clients

Client-reported taxes that are under the client's FEIN or unemployment ID. This only displays when the Limit to Employer field has a set value.

Limit to Client

Client ID that this build is limited to. This only applies to client SUTA reporting states.

Build FUTA Exempt Records

This only applies when running an RTS build for the fourth quarter.

Exclude Pennsylvania local taxes when no tax has been withheld

Enable to exclude PA local taxes if no tax has been withheld.

Include zero taxable wages for Ohio non-resident local tax

Enable to include zero taxable wages for Ohio non-resident local tax.

Limit to ASO/ASA/PAY service types

Enable to limit this build to ASO/ASA/PAY service types.

Build SBEA certified relationship file

Enable to build an SBEA certified relationship file.

Use tax code 00-87 to determine SS credit within MasterTax?

Note:  This setting applies to 2021 COVID-19 tax reporting.

If selected, the system performs the following calculation during the RTS build: (00-87 tax amount associated with line item) / (0.062).

After computing this value, the system uses this value to fill in Statistic 1 of the 501 record for tax code 00-81, up to the value reported under 00-81 on the 500 record.

If any amount remains after reaching the 00-81 reporting value, the system enters the remainder into Statistic 1 of the 501 record for tax code 00-80.

For more details about these tax codes, see the COVID-19 Feature Guide.

Use COVID Credits as post March 31?

Note:  This setting applies to 2021 COVID-19 tax reporting.

The federal government makes a distinction, for reporting purposes, between COVID-19 credits accrued before and after April 1 2021, since this is the date the American Rescue Plan Act (ARP or ARPA) took effect.

Select this option to consider any COVID-19 credits accrued in Q2 2021 as "post-March 31" credits, which means they were accrued subject to the American Rescue Plan Act. These credits will be reported accordingly on the RTS file.

On the file itself, this means:

• On 501 records for 00-80 and 00-81, the full value under these tax codes populates under statistic 1.
• On FE0000-116H and FE0000-117H records, statistic 1 is set to 0.

For more details about reporting COVID-19 tax credits, see the COVID-19 Feature Guide.

RTS File History

You can save and download historical files with the following information:

• The date and time the process was started
• The user who started the process
• A hyperlink to download the file
• SBEA Relationship file
• RTS file summary report
• RTS file detail report

Configuration Information

Displays the MasterTax version number. You cannot build an RTS file unless you are using MasterTax Version 39 or greater.
3. Click Build. A progress window displays. You can download an RTS file, or view an audit detail or summary report.

Note:  If an RTS build process is already running when you attempt to build the file, the system displays a message stating that the process is currently running for <user> and was started at <start date/time>. You cannot build the file until the current process has finished.