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E1: 07: Exempting Tax Type G1 For an Oregon Employee is Doubling The Gross Wages (Doc ID 2836304.1)

Last updated on JANUARY 26, 2022

Applies to:

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


Trying to stop the Tax Type G1 Transit Tax for Oregon (Tax Area 38) employees who are working out of the country.  A special Pay Type has been set up that excludes Tax Types F, F1, F2, G1 and G2.  The Tax Area 38 F and G1 Tax Types have also been set to a flat zero amount on the Employee Tax Overrides screen. The Gross Wages for both Tax Types should be treated as Excludable Wages.

When calculating a check, the F Tax Type doesn't calculate the tax and the Gross Wages are treated as Excludable Wages; this is correct.  The G1 Tax Type doesn't calculate the tax; however, the Gross Wages are doubled and some of the wages are being treated as Taxable Wages and some as Excludable.

Steps to Duplicate:
1. From P069012 add G1 record for OR Transit Tax to Tax Area 38
2. From P0801US assign an employee to Tax Area (Residence and Work) 38
3. From the P060120 Employee Tax Overrides screen create records for Tax Area 38 for Tax Types F and G1 with Additional Federal Withholding = 0.00 and FT = F
4. From P059116 Create a Pay Type and exempt it from Tax Types F, F1, F2, G1, G2
5. Use P07210I to calculate an Interim for the Employee using Pay Code 501 for 40 Reg hours.  
6. Review Tax Detail and notice G1 Gross Pay is doubled and there is a Taxable Gross amount.  
The Gross Pay should not be doubled, and the entire Gross Pay should be Excludable.




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