WS: 07: Negative In Excess and Overstated Excludable When Paying With Pay Type That is Exempt From Tax and has a Pretax Deduction
(Doc ID 2695884.1)
Last updated on JULY 29, 2020
Applies to:JD Edwards World U.S. Payroll Processing - Version A9.4 and later
Information in this document applies to any platform.
A pay type is set up for Covid-19 which is exempt from the employer portion of the Social Security tax (tax type Federal E). The employee also has pretax DBA that is exempt from tax type E. When paying the employee with this pay type and the employee has the pretax DBA that is also exempt from this tax type (E), the system does not calculate the excludable and excess amount for this tax type, Federal E, correctly. For example, the employee is paid $1000.00 with pay type XXX that has Federal E exempt in the F8 window of the Pay Type Setup. The employee has the pretax deductions in the amount of $100 and $5. Currently the system places a -100.00 in the taxable gross of the Federal E and -5.00 in the excess amount for the same tax type. System update the gross amount of $1000.00 and the excludable amount is 1105.00 (1000 +100 +5) and the in-excess of -5 thus making the taxable gross for Federal E of $110.00 (1000-1105 - (-5)).
The issue can be reproduced at will with the following steps:
1. Set up a pay type with Federal E exempt from this pay type
2. Set up 2 pretax DBAs: one for 100.00 and the other for 5.00
3. Create an interim check for the pay type from step 1 above.
4. Run the payroll thru the final update. Check the F06136 for the Federal E records and note the excess column now shows -5.00 and the excludable column is overstated by the pretax amount of 1105.00.
5. Verify that Federal E taxable gross is showing -110.00 in the F06166.
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