E1: 07S: New Jersey (31) HSA 125 Benefit Is Not Calculating Tax As Expected (Doc ID 3005120.1)

Last updated on FEBRUARY 16, 2024

Applies to:

Symptoms

Employees living and working in New Jersey that has a Health Savings Account (HSA) with 125 flagged is not calculating tax as expected. Whether regular pay with our without a HSA 125 Benefit the State Unemployment Insurance (SUI) and State Disability Insurance calculate exactly the same.

The Tax Types involved include:

• SUI Tax Types G and H
  SDI Tax Types I and J
  FLI Tax Types G1

Steps To Duplicate

1. Set up an Employee for Tax Area work and resident for New Jersey (P0801)
2. Set up DBA for HSA Benefit and flag HSA 125 in U.S Leg/Reg (P059116)
3. Add the new HSA 125 DBA to the Employee's DBA setup
4. Next, test 2 times using Interim Payment (P07210i):
   1. First test: Interim payment Test W/HSA 125
      • regular pay 1,000
      • DBA 1075 500
      • Make note of the Tax Types G, H, I, J and G1
   2. Second test: Interim payment Test without HSA 125
      • regular pay 1,000
5. Notice the results between both tests are the same so JDE and Vertex are not calculating the DBA 1075 HSA 125 Benefit of $500.00.
   
   

Changes

Cause

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