E1: 07: During Pre Payroll (P07200/R07200), Oregon Metro SHS (F3) & Multnomah County PSA (L) Taxes are Incorrectly Triggered to Calculate with Overtime/Doubletime Pay (Doc ID 2867405.1)

Last updated on SEPTEMBER 21, 2023

Applies to:

Symptoms

The Oregon Metro SHS (F3 – 380510460) and Multnomah County (L - 380510000) taxes should be calculated on annual wages over $200K. These taxes are being calculated during Pre-Payroll (P07200) for some employees who make less than $200K annually if the employee is paid overtime and/or double time in a pay period. Since the employee’s Gross Wages for the pay period are being annualized (52 weeks for weekly payroll) it makes it seem like the employee may make over $200K a year, when in fact they may never have over $200K in wages for the year and should not have had the two taxes calculate.

Steps:

1. In Employee Master (P0801) set up hourly/weekly Oregon employee ($53/hr) with Work Tax area = 380510460
2. Add Interim (P07210I) for Oregon employee with regular pay type = 40 hrs, OT pay type = 20 hours, and Double time pay type = 10 hours.
3. Calculate Interim with calculate button.
4. Review Tax Detail from Form exit to see that Tax Types F3 and L incorrectly calculate because the gross wages (including OT and double time) are being annualized, as it appears the EE makes over $200k/year, when in fact they may never have gross wages over $200k.

Changes

Cause

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