E1: 07: Federal Levy Minimum Net Pay Exemptions Ignored (Doc ID 2756836.1)

Last updated on MAY 19, 2023

Applies to:

Symptoms

Federal Levy Exemptions Ignored
An employee is a weekly employee with Federal Marital status of S-single. A deduction DBA 1006 is set up with the source of calculation of 3 (gross-taxes) and the method of calculation is L-Levies. Wage attachment set up for Levy deduction with amount-due 9000 with an original balance of 9000, the amount field is blank and method field is blank and Tax Levy Exemptions is 2, Disability flag is 1 and pay frequency is W. Federal tax exemption table (P079312) Single is 12,550. The WA Disability Exemptions (P079311) for Single Weekly with disability flag of 1 is 32.69. Paid an employee with lump sum amount of. After taxes deduction, the leftover is disposable wages. The system took this entire amount of disposable wages for the levy deduction and left the employee with zero (.00) net pay to take home.


STEPS
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The issue can be reproduced at will with the following steps:
1. Set up a weekly employee with the marital status of Single
2. Setup the Levy deduction DBA with the source of calculation of 3 and the method of calculation is L
3. Set up the standard exemption via P079312 for Federal Single and weekly amount of 12,550
4. Setup the additional exemption via P079311 for Single, disability of 1, Weekly in the amount of 32.69.  Setup the pay frequency exemption via P079320 for exemption amount 1 of 82.69 and exemption amount 2 is 165.38 and so on
5. Fast path to P07107 and create a wage attachment for employee from step1 with DBA from step 2 above and create an interim check to test.
6. Confirmed the whole disposable amount of went to levy DBA from step 2 above and the employee has zero net pay for take-home amount.
BUSINESS IMPACT
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The issue has the following business impact:
Due to this issue, users have to manually calculate the deduction amount for levy and override it so that the employee has the correct net pay to take home. This is time-consuming for the user as well as the chance for miscalculation is high since it was done manually. Need to address this as soon as possible to avoid manual calculation every week.

Changes

Cause

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