E1: 07: Alabama Overtime Tax Exemption and State/Local W-2 Setup Incorrectly Reduces Gross Pay and Taxable Gross for Non-Exempt State in Interim P07210I Tax Detail (Doc ID 2993344.1)

Last updated on DECEMBER 10, 2024

Applies to:

Symptoms

A setup is done for Alabama overtime which includes setting an overtime pay type as tax exempt for tax type F and setting the State/Local W-2 Additions Detail to state 01.
When an employee with a work/residence setup of Indiana (15) works in Alabama (01) for regular and overtime pay the Indiana Gross Pay and Taxable Gross is incorrectly reduced by the Alabama (01) overtime amount.

Steps:
1. PDBA P059116, create a pay type for Alabama Overtime. Set Tax Exempt for state tax type F. Set State/Local W2 (form exit) to tax type F and work tax area to 01 (Alabama).
2. P0801US National Fiscal Data, set employee works and residence to tax area 15 (Indiana).
3. P07210I Interim, enter an Interim for an employee for regular pay with tax area override 01 (Alabama) and overtime pay (using Alabama Overtime pay type) with tax area override 01. Calculate.
The Tax Detail correctly shows Work Tax Area 01 for tax type F with Taxable Gross amount reduced by the overtime pay, excludable amount of the overtime pay.
The Tax Detail incorrectly shows Work Tax Area 15 for tax type F with Gross Pay and Taxable Gross reduced by the overtime pay.

Cause

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