WS: 07: Vertex Update 4.3.7 Requires JD Edwards Interface for new CNMI Chapter 2 Tax Withholding for Northern Mariana Islands
(Doc ID 2760100.1)
Last updated on MARCH 12, 2021
Applies to:JD Edwards World U.S. Payroll Processing - Version A9.4 and later
Information in this document applies to any platform.
With Vertex 4.3.7, there is a new tax calculation for Northern Mariana Islands that will need an interface from JD Edwards. The CNMI Finance and Public School System are in the Northern Mariana Islands (NMI) and will be affected by this Vertex Update, 4.3.7.
The Chapter 2 tax should calculate through Vertex, not with a DBA set up.
In program P062021, build logic to compute taxes for both the federal (Federal A) and Chapter 2 Tax. Then check for the greater of the two taxes. If chapter 2 tax is greater than federal tax, the federal tax is zero and only chapter 2 tax is deducted from the employee. If the federal tax is greater than the chapter 2 tax, the federal tax is reduced by the amount of the chapter 2 tax. Both chapter 2 tax and leftover federal tax are deducted from the employee.
i.e Chapter 2 Tax $100.00 and Federal Tax Computed is $75.00 - Employee will be taxed $100 for chapter 2 and federal tax is $0.
i.3 Chapter 2 Tax $100.00 and Federal Tax Computed is $110.00 - Employee will be taxed $100 for chapter 2 and federal tax is $10.00.
The total tax, Chapter 2 plus Federal Tax must not be greater than the greater of the two taxes.
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