E1: 07: Interim P07210I Taxes Do Not Calculate Correctly on a Interim Zero Net Pay for a Supplemental Pay Type for a Lumpsum Amount (Doc ID 2963395.1)

Last updated on JULY 25, 2023

Applies to:

Symptoms

Starting with Vertex 4.4.0 when processing an Interim zero dollar net pay with a $0.01/-$0.01 supplemental pay type, with non-cash taxable DBA lump sums, the system does not calculate taxes based the supplemental tax rate, it calculates based on the employee tax override set up. It should calculate at the supplemental tax rate if associated with a supplemental pay type.

Steps:
1. P050181 Employee DBA Instructions attach a non-cash taxable benefit
2. P059116 PDBA set up or use existing Supplemental Pay Type (Auto Pay Method B)
3. P07210I Add Interim for the employee in step 1 with Supplemental Pay Type for a penny (.01) lump sum, add an additional row with Supplemental Pay type for a negative penny (-.01) lump sum
4. Calculate the Interim and review pay stub/tax calculations with Vertex Before & After report and note that the Supplemental tax rate is not used as expected.
5. Run another test Interim calculation with only a positive penny (.01) entry and calculate the interim. Now see that the Supplemental tax rate is used. Prior to Vertex 4.4.0 the system would calculate with the Supplemental rate when a zero dollar net pay was used with a Supplemental Pay Type.

Cause

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