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Fusion US Payroll: Federal Income Tax Deducted Very Low In The First Payroll Of 2020 Using the New 2020 W4 (Doc ID 2625736.1)

Last updated on OCTOBER 06, 2020

Applies to:

Oracle Fusion Global Payroll Cloud Service - Version 11.13.19.10.0 and later
Information in this document applies to any platform.

Symptoms

On : 11.13.19.10.0 version, Global Payroll

ACTUAL BEHAVIOR
---------------
Federal Income Tax deducted very low in the first payroll of 2020

Are concerned this issue might be due to the new 2020 W4 fields.
.

EXPECTED BEHAVIOR
-----------------------

The FIT amount that should have been calculated is 70.23
The system calculated 20.61

Difference = 49.62


STEPS
-----------------------
The issue can be reproduced at will with the following steps:


Payroll = Bi-Weekly (26 Pay Periods)
Married Filing Jointly

W4 is for 2020 and Box 2 (Multiple Jobs) is NOT checked
Multiple Jobs = No

Submit Quickpay

FIT Reduced Subject Withholdable Wages = 1,159.98
Federal Income Tax - Tax Calculated = 20.61

============================

Manual Calculation based on Publication 15T 2020
2020 Percentage Method Tables for Automated Payroll Systems
STANDARD Withholding Rate Schedules
Married Filing Jointly

Adjusted Annual Wage Amount = 11,900.00
Tax Rate = 10%


1,159.98 x 26 = 30,159.48 Annualized Earnings
30,159.48 - 11,900.00 = 18,259.48
18,259.95 x 10% = 1,825.95
1,825.95 / 26 = 70.23

The FIT amount that should have been calculated is 70.23

The system calculated 20.61

Difference = 49.62


BUSINESS IMPACT
-----------------------
The issue has the following business impact:
Due to this issue, the correct Federal Income Tax (FIT) is Not being calculated

Cause

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In this Document
Symptoms
Cause
Solution
References


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