E1: 07: After ESU JN20197, Multi State With Regular Pay Plus Either Overtime or Non Taxable Pay Type Causes Tax Type F, H, and H1 Incorrect Gross Amt (P07210, P07210I) (Doc ID 2949408.1)

Last updated on JULY 24, 2024

Applies to:

Symptoms

Multi-State timecards in an Interim payment for regular and either Overtime pay or non-tax pay type cause Gross Amounts to calculate incorrectly for Tax Types F, H, and H1.  This occurs with any two different states.  This began after ESU JN20197 and after Vertex releases 4.4.8 with April 2023 monthly tax update and after running the R0701730 to update the F0701730 Vertex filing status table which now has 3,062 records.

The below steps are an example only (all states are impacted):

1. Create a test Employee (P0801) with these details (click Row Exit and select National Fiscal Data):
TAX AREA WORK = 442011440
TAX AREA RESID = 443394455
WORK TAX AREA SOURCE = BLANK
RESIDENCY STATUS = N
MARITAL STATUS
FED = S
STATE, RESID, LOCAL = M
SOURCE OF SUI = BLANK
WORKER’S COMP = 5190
D/V/D all = N

2. With or without SUI Rate revisions, (P079221) can duplicate the reported issue:
SUI RATE REVISION (OVERRIDES VERTEX IF USED):
CO= 01816
TAX AUTHORITY = 19
(NOT ON EE NAT’L SO TRANSACTIONS ARE BEING OVERWRITTEN)
11 RECORDS
YEARS 2013 THRU 2023
THE YEAR 2023 RECORD
TAX TYPE = H
RATE = .035800
EXC PRM. = N
BEGIN TO END = 1/1/23 TO 12/31/23
ANNUAL LIMIT = 7700.00

and
COMPANY = 01816
TAX AUTH = 44
11 RECORDS
2023 RECORD
TAX TYPE = H
RATE = .062000
EXC PRM = N
BEG TO END = 1/1/23 THRU 12/31/2023
ANNUAL LIMIT = 9000.00

3. Create an Interim Payment (P07210I) With the following 4 time entry lines:

line 1 - Reg pay,  hr = 1, lump sum = 1,500.00 and override work tax area to 19
line 2 - Reg pay,  hr = 1, lump sum = 1,000.00 and let work tax area default to 442011440
line 3 - Overtime, hr = 1, lump sum =   150.00 and override work tax area to 19
line 4 - Overtime, hr = 1, lump sum =   100.00 and let work tax area default to 442011440

4. Click the purple calculator
5. Go to Form exit> Tax Details and notice the following:

All Federal records are correct, State tax type C Gross Amounts are correct, however, all overtime has been incorrectly added to State 44, causing both for 44 and 19 to have the incorrect Gross amounts for Tax Types F, H, and H1 and for some states' other tax types such as HM, G2/H2.

Changes

Applied ESU JN20197  

Cause

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