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US PAY: February 2015 Vertex Data Modifications re: taxability rules for Section 409A Non-qualified
The February 2015 Vertex Data Modifications refers to an update that will occur in June 2015 as shown below.
* With the June 2015 update, taxability rules for Section
409A Non-qualified Deferred Compensation Deferral (Compensation ID 13) have
been determined to be invalid and will be removed from our payroll data.
* Deduction IDs
42 (409A Deferral - Regular) and 43 (409A Deferral - Supplemental) should be
used when an employee elects this deferral.
* Compensation ID
14 (Section 409A Non-qualified Deferred Compensation Distribution) should be
used when the employee receives a distribution payment.
I contacted Vertex asking for additional information on this and was told the following:
The answer is – it’s the functionality. The system doesn’t work properly with adding or subtracting from gross wagesfor W2 purposes for deferrals when using compensation ID’s. In