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E1: 07: FUTA (Federal Unemployment Tax Act) Tax Not Following AAIs When Pay Type Is In A Different Tax Area Than The Labor Time Card. (Doc ID 2123224.1)

Last updated on AUGUST 10, 2016

Applies to:

JD Edwards EnterpriseOne US Payroll - Version 9.0 and later
Information in this document applies to any platform.


On : 9.0 version, Payroll General

Work With Burden Distribution AAIs / P069042
Work with Time Entry by Individual / P051121
Generate Payroll Journal Entries / R072902

Regarding a job cost payroll where tax areas are assigned to Business units.
When paying an employee a non-taxable reimbursement for a business unit that has a different tax area (state) than the state the employee is currently working in, the AAIs (Automatic Accounting Instruction) for the FUTA (Federal Unemployment Tax Act) tax are being ignored and causing an error in the Journal Entries.
The non-taxable reimbursement should have no effect on taxes – and it doesn’t; the taxes on the check are being calculated correctly. But for some reason the FUTA tax calculated on the labor worked is erroring in the Journal Entries.


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