E1: 07S: Enhancement Req - Add Ability To SUI Flag To Self-Adjust When Using Unemployment Insurance Rates (P079221) (Doc ID 2935541.1)

Last updated on MAY 01, 2023

Applies to:

Symptoms

Per 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), SUI Flag options are working as designed.  The enhancement request needs the ability to use the SUI Flag when using Unemployment Insurance Rates (P079221).  Currently it is recommended not to use the SUI Flag to self-adjust when using Unemployment Insurance Rates (P079221) which overrides Vertex state unemployment insurance calculations.  

For Reference, these specific sections from the online guide are listed below:

https://docs.oracle.com/en/applications/jd-edwards/human-capital/9.2/eoahf/options.html#u10065808

SUI Flag(State Unemployment Insurance) - Enter a value that determines how the system adjusts State Unemployment Insurance. Vertex can self-adjust the amount of tax calculated. Values are:

• 0: Self-adjust. This method always increases the tax to what it should be. The formula used is: Current period tax = (YTD gross + current gross) × SUI − YTD SUI tax.
• 1: Do not self-adjust. The tax is calculated only on the current period wages.
• 2: Self-adjust when maximum base is reached.
• Note - If employees work in multiple states, set this value to 1 (do not self-adjust).

State-Specific Records for Tax Type C Exist

https://docs.oracle.com/en/applications/jd-edwards/human-capital/9.2/eoapy/state-specific-records-for-tax-type-c-exist.html#u10068074

If the system does find state-specific records, the system prorates gross, excludable, and excess wages across each state in which the employee works during the pay cycle. The system then calculates the state-specific tax amount by multiplying the appropriate amount of wages by the state-specific rate. If no state-specific record exists for one or more states, the system calculates the tax amount for that state using the Federal rate. The system then totals all of the state tax amounts and updates the Federal tax amount with this total.

Note - The Unemployment Insurance Rate Revisions program (P079221) is the only method you can use to override state unemployment insurance rates. The system ignores state-specific tax type C overrides made at the employee-level or on interim payment tax overrides.

Additionally, the system does not self adjust state unemployment amounts, nor does it retroactively recalculate amounts that were calculated prior to entering the state-specific rates. If you calculated previous tax amounts incorrectly, you must manually correct those amounts using adjustment interim payments. 

https://docs.oracle.com/en/applications/jd-edwards/human-capital/9.2/eoapy/setting-up-unemployment-insurance-rates.html#u10068076

Note - For state-specific unemployment insurance, if you enter a past date, the system begins using the associated rate during the next payroll cycle. The system does not self-adjust or retroactively calculate tax amounts that have already calculated.

Cause

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