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E1:07: Oregon Transit Tax (38/G1) Should Calculate Similar to State Income Tax (tax type F) (Doc ID 2502078.1)

Last updated on JANUARY 09, 2020

Applies to:

JD Edwards EnterpriseOne US Payroll - Version 9.1 and later
Information in this document applies to any platform.

Symptoms

system: E1 with 9.1 release
actual behavior: Currently, in order to have the Oregon transit tax (38/G1) to come in correctly, constantly have to change the source of SUI/SDI under the employee National Fiscal Data back and forth to achieve the desire result.
Oregon rule stated: employers must start withholding the tax (one-tenth of 1 percent) from:
• Wages of Oregon residents (regardless of where the work is performed).
• Wages of nonresidents who perform services in Oregon.

There are two separate issue but revolving the same tax type.
1. Employee reside (live) in 38, but work elsewhere in mulitple states (say 31) and the Source of SUI/SDI is flag with N (use tax area work from timecard), G1 calculated but not for resident tax area 38. It is creating for the tax area work. For example, employee live in 38, work for 31 and 33. System created a G1 for both 31 and 33 but not for 38. To get the 38/G1, you need to change the Source of SUI/SDI from N to R.
2. Employee master setup with emploee reside and work in 06 with a Source of SUI as R (because the employee usually live and work in say 06). However, the employee work in Oregon (38) sometime so timecard is for work tax area 38. When this scenario is present, G1 won’t calculated for 38/G1. The Oregon Transit Tax should be taken because employee works in Oregon, but still needs to have all the Resident State SUI Calculated. To get the 38/G1 to work, you would need to change the Source of SUI/SDI from R, to N. However, by changing this flag to N, 38/G1 is now calculated but then SUI also calculate for 38 instead of the resident state (in this case 06)

Cause

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In this Document
Symptoms
Cause
Solution
References


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