E1: 07: Pre-Payroll (R07200) Writes Negative Excludable Non-Taxable Earnings for Tax Type C (Federal Unemployment) to Incorrect State in Tax Detail (Doc ID 3003853.1)

Last updated on JUNE 11, 2024

Applies to:

Symptoms

A weekly timecard for a Michigan-based employee contains 12 entries combining Regular Pay (Pay Type 1) Hours in multiple work tax areas in Michigan (23) and Wisconsin (50) with a Lump Sum Non-Taxable Reimbursement (Pay Type 630) amount of 180.00 in Michigan (23). When the timecard is processed in an Interim Payment (P07210I) or Pre-Payroll (P07210), the Tax Detail shows the Non-Taxable Amount as a Negative amount in the Tax Type C (Federal Unemployment) Excludable column against the Wisconsin (50) Regular Pay.

Steps to Duplicate:

1. Create a New Pay Type (P059116) for Non-Taxable Expense Reimbursement (631) and set Tax Exemptions (P05TAX) as follows:
   1. Tax Type 01 = * (Non Taxable)
   2. Tax Type 02 = C (Federal Unemployment)
2. Setup a Michigan-Based Union Employee (P0801) with Hourly Pay Frequency.
3. In Time Entry by Individual (P051121) enter a 12-line timecard as follows:
   1. For 1/8/2024 enter 10 hours Regular Pay (1) for Wisconsin
   2. For 1/8/2024 enter 2 hours Overtime Pay (100) for Wisconsin
   3. For 1/9/2024 there is 3.5 hours Regular Pay (1) for Michigan
   4. For 1/9/2024 enter 1 hour Regular Pay (1) for Michigan
   5. For 1/9/2024 enter 3.5 hours Regular Pay (1) for Michigan
   6. For 1/10/2024 enter 4.0 hours Regular Pay (1) for Michigan
   7. For 1/10/2024 enter 2.0 hours Regular Pay (1) for Michigan
   8. For 1/10/2024 enter 3.0 hours Regular Pay (1) for Michigan
   9. For 1/11/2024 enter 2.5 hours Regular Pay (1) for Michigan
   10. For 1/11/2024 enter 4.0 hours Regular Pay (1) for Michigan
   11. For 1/11/2024 enter 2.5 hours Regular Pay (1) for Wisconsin
   12. For 1/11/2024 enter an entry for a Lump Sum Reimbursement of $180.00 for Michigan.
4. Submit Pre-Payroll (P07210) for the timecard.
5. Go to Payment Review > Sub Detail
   1. Non-Taxable Reimbursement (Pay Type 631) of +180.00 appears in the earnings
6. Go to Payment Review > Tax Detail.
   1. Enter Tax Type C (Federal Unemployment) and click Find.
   2. Non-Taxable Lump Sum Amount of +180.00 on the timecard for Michigan appears as -96.50 in the Excludable column against Federal Unemployment the Wisconsin (50) Regular Pay.

Changes

Cause

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