E1: 07S: SUI Self Adjust Settings For Quarterly And Semi-annual Calculation Is Not Working With State SUI Rate Overrides That Flow To Job Cost and Billing (Doc ID 2916657.1)

Last updated on AUGUST 20, 2024

Applies to:

Symptoms

Support recommends to use the SUI flag only when rates change, usually at the first of the year.   Currently, these options are offered, however, they do not work as they state to allow correct values to flow through to Job Cost and Billing. 

Field Explanation (SUI/SDI/CPP/QPP) (Data Item = SUIC) - Via Employee Profile (P0801) Under Row Exit, National and Fiscal Data - USA:

"This value determines how the system adjusts State Unemployment Insurance, State Disability Insurance, Canadian Pension Plan, or Quebec Pension Plan. Vertex can self-adjust or not self-adjust the amount of tax calculated."  Valid values are:

• 0 (Self-adjust)
  • This method always brings the tax up to what it should be. The formula used is as follows: Current period tax = (YTD gross + current gross) x SUI rate - YTD SUI tax.
• 1 (Do not self-adjust)
  • The No Self-Adjust method compares the Year-to-Date wages against the maximum wage limit for a tax stored in the Payroll Tax database. No adjustment is made if an employee has not paid sufficient taxes to date.
• 2 (Self-adjust when the maximum base is reached)
  • The Self-Adjust at a Maximum method performs the same calculation as a Self-Adjust method when the employee’s Year-To-Date gross has reached the maximum wage base. After a maximum wage base is reached, no taxes are withheld.
• 3 (Self-adjust Quarterly)
  • The Self-Adjust Quarter method first calculates the wage base for the quarter by subtracting the prior quarter's wages from the state's wage base. It then compares the Quarter-To-Date wages against this calculation. An adjustment is made, if necessary, to "catch up" on an employee’s taxes. After a maximum wage limit is reached, no taxes are withheld.
• 4 (Self-adjust Quarterly at Maximum)
  • The Self-Adjust Quarter at maximum method performs the same calculation as the Self-Adjust Quarter method when the employee’s Year-To-Date gross has reached the maximum wage base.
• 5 (Self-adjust Semi-annual)
  • The Self-Adjust Semiannual method first calculates the wage base for the semiannual period by subtracting the prior semiannual period wages from the state's wage base. It then compares the semiannual-to-date wages against this calculation. An adjustment is made, if necessary, to "catch up" on an employee’s taxes. After a maximum wage limit is reached, no taxes are withheld.
• 6 (Self-adjust Semi-annual at Maximum)
  • The Self-Adjust Semiannual at maximum method performs the same calculation as the Self-Adjust Semiannual method when the employee’s Year-To-Date gross has reached the maximum wage base.
    If you have employees working in multiple states, set this value to 1 (Do not self-adjust).

Desired Outcome:

1. The system is designed to allow override rates because companies do not pay the max rates set by the states in most instances.
2. Self Adjust option 0 - self adjust - Adjusts for the entire year and uses the override rate not the max rate from Vertex. The other SUI Flag options should be as well.

Business Impact:

This issue impacts approximately 500 transactions per month, impacts the inability to self-adjust on a schedule other than annually using SUI overrides.   This impacts mid-year tax changes, impacts manual work to get around this calculation issue. 

Steps To Duplicate:

1. Set up an Employee for any State, and meet that state's SUI limit by running Payroll.  
2. Set up the state used above in the SUI rates table
3. Test each SUI Flag option (listed above) and notice that they are not calculating per their described functionality.   
4. If you remove the SUI rates table and allow Vertex to calculate these appear to calculate correctly on the Payroll side, but this is not an option to flow to Job Cost and Billing.

Support Testing Without Specific State SUI Rate Overrides:

• Initial testing set the base SUI calculation to compare to.  185.60 per paycheck and created one in each quarter for testing. Updated Company overrides (P05001C) Tested each option in the SUI Flag (SUIC):
• 0 – Self-Adjust - The 928.00 total is correct as this is the 4 paycheck taxes PLUS current interim to view calculation. (185.60 x 5 = 928.00)
• 1 - Do not self-adjust - This 185.60 is just for this interim.  It does not go back to the previous paychecks to add those taxes in.
• 2 - Self-adjust when the maximum base is reached - The 185.60 appears to be the same as using 1.
• 3 - Self-adjust Quarterly - The 371.20 total is 185.60 x2. This is quarterly (Jan, Feb, March) Plus this interim.
• 4 - Self-adjust Quarterly at Maximum - This is 185.60 for the 1st quarter (Jan, Feb & Mar) = only 1 SUI amount, it does not include this interim.
• 5 - Self-adjust Semi-annual - The 556.80 covers prior semi-annual (6mos). This is Jan thru June. Jan, May, and this Interim.  185.60 x 3 = 556.80.
• 6 - Self-adjust Semi-annual at Maximum - The 185.60 seems incorrect, I would expect it to be at least Jan & May’s 185.60 x 2 for a total of 371.20.

Cause

My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.