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E1: 77: Federal CA does not Include the Additional Tax when an Employee is Paid with Regular Pay Type Along with Non-Taxable Pay Type that Includes an Additional Federal Tax (Doc ID 2827312.1)

Last updated on JANUARY 13, 2022

Applies to:

JD Edwards EnterpriseOne Canadian Payroll - Version 9.2 and later
Information in this document applies to any platform.

Symptoms

The Federal income tax (tax type CA) is not including the Additional Federal Tax when the employee paycheck is included both regular pay type and non-taxable pay type.
For example, An employee that has an additional tax amount of $95. The taxable gross is 2166.92. This employee also has a non-taxable gross pay type in the lump sum of $5000. The Federal CA taxable gross is 2166.92 and the Federal tax amount is 253.99. However, when remove the non-taxable pay type, the Federal taxable gross remain unchanged at 2166.92 but this time the tax amount is 348.99, which take in account of the additional $95.


STEPS
-----------------------
1. From Employee P0801 setup a Canadian employee with the above criteria
2. From DBA P059116 set up a non-taxable pay type
3. In P07210I create an interim check with regular pay plus the non-taxable lump sum amount. make note of the federal CA tax amount and taxable gross.
4. Repeat step 3 but this time remove the non-taxable pay type. make note of the federal CA tax amount and taxable gross
5. Confirm that when pay the employee with the non-taxable pay type, even though the taxable gross is unchanged, the system do not take the $95 into consideration.

 

Cause

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In this Document
Symptoms
Cause
Solution
References


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