WS: 07: Taxable Gross is Understated in Tax History, F06136, When a Benefit, set up in P069117, as Exempt from Tax Types G2 & H2, and has Effect on Check 2, Taxable Cash Benefit or 3, Taxable Non-Cash Benefit (Doc ID 2888120.1)

Last updated on AUGUST 08, 2022

Applies to:

Symptoms

In DBA (deduction, benefit, accrual) Setup, P069117, a Benefit DBA  set up as Effect on Check 2, taxable cash benefit, or 3, taxable non-cash benefit and exempt from tax types G2 & H2 (paid family medical leave) F8 window on DBA Setup, is causing the taxable gross to be understated in Tax History, F06136 after Final Update, P063901, is processed.


STEPS:

1. Set up a benefit DBA with effect on check of 2 or 3 in DBA Setup, P069117.
2. Use the F8 window on DBA Set up to exempt this benefit from tax types G2 & H2.
3. Attach the benefit in the Employee DBA Instructions, P060181, to an employee who is responsible for paying tax types G2 and H2.  For example, a Washington employee, tax area 48.
4. From menu G0721, Interim Check Entry, choose option 2 to enter an interim check for this employee.
5. Review the interim check information and note the benefit DBA calculates as well as tax types G2 and H2.
6. The taxable gross is correct for G2 and H2 as it only includes the wages, not the benefit DBA, which is exempt from G2/H2.
7. Process the interim check in a Payroll, P06210 through Final Update, P063901.
8. Review the tax history file, F06136 and paycheck history, F06166.  The benefit amount is included in the excludable column for tax types G2 & H2. Because of this, the taxable gross for these pay types is understated when compared with the taxable gross from the interim check.

Changes

Cause

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