E1: 07: Pennsylvania Exempt MR Tax Type (Employer) and K Tax Override (Employee) Causes Override Amount to Create a Credit Burden Tax Journal Entry (Doc ID 2939434.1)

Last updated on MARCH 31, 2023

Applies to:

Symptoms

A tax exemption is set up for MR tax type for Pennsylvania for a regular pay type. The user creates an Interim with a Tax Override for tax type K (override type F) for a different amount. The system then creates F07353
erroneously in the Residence Tax Amount column for the MR tax type for a negative amount of the K tax type amount. This causes an incorrect credit amount journal entry to be created for the burden tax account.

Steps:
1. Set up an employee with P0801US Employee National/Fiscal Data for Pennsylvania tax areas and school code.
2. Set up in P059116 a regular pay type with Tax Exemptions for for tax type H, C, and MR.
3. In P07210I add the employee to an Interim with the Pay Type and add a Tax Override for the employee paid K Tax Type, flat, to a different amount (example 6.00). Save the Interim.
4. Note in Databrowser that the Tax Detail table F07353 for the employee that the employer paid MR tax now incorrectly has Residence Tax set to negative 6.0.
5. Run the employee through an Interim Only payroll from P07210 Payroll Workbench. Submit Pre-Payroll. Submit Journals. Review the R05229 Payroll Journal Proof/Edit Report for T3. Incorrectly there is credit journal entry created for burden tax of 6.00-.

Cause

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