E1: 07: Vertex State Withholding for Wisconsin Despite Residency Status = N Reciprocity or W Work State, Employee Taxes Calculate for Tax Work Area Illinois State Withholding (Doc ID 2945286.1)

Last updated on JULY 11, 2023

Applies to:

Symptoms

Regardless of the Residency status setting = W or N in Employee Information/National Fiscal Data, for a Wisconsin state (50) Employee where an Interim (P07210i) is entered with a work tax area for Illinois state (14), Illinois taxes are calculated incorrectly. Per the Vertex Guide, Wisconsin residents who work in Illinois should not calculate Illinois withholding. They should only calculate for Wisconsin state withholding.

Steps to Duplicate:
1. Create Wisconsin Employee (50) in Employee Information (P0801) for work and residence tax area = 50 for Wisconsin.
2. Employee Information / Row Exit for National Fiscal Data (P0801) and field Residency Status = W and N for respective tests. 
3. Enter an Interim Check (P07210i) for Wisconsin employee for regular time and work tax area = Illinois (14) on the detail line.
4. Click Calculate icon.
5. Review Pay Stub Detail and can see only Illinois taxes calculating for residency status = W. For residency status = N both WI & IL calculate.
6. Click Form Exit for Tax Detail and can see the same.
Illinois taxes should not calculate. The Illinois work state should not calculate state taxes per the Vertex Guide for a Wisconsin employee despite the Residency flag setting.

Cause

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