Local Taxes Withholding For Residence Location Even Though Locality is Marked EXEMPT for Resident Wage Accumulation (Doc ID 1297388.1)

Last updated on DECEMBER 06, 2016

Applies to:

Oracle HRMS (US) - Version 11.5.10.2 to 12.1.3 [Release 11.5 to 12.1]
Information in this document applies to any platform.
Form:PERWSDOR.FMB - F4 Define Organization


Symptoms

Find that local tax is being withheld for RESIDENCE location, even though that locality is marked as EXEMPT for Resident Wage Accumulation at GRE Local Tax Rules level.



Steps to Reproduce:
The issue can be reproduced at will with the following steps:

  1. Enter an employee with a home address in a state that is not in our State Tax rules where there are also local taxation rules.
  2. Employer Identification rules - Only States Under State Tax Rules, State - Michigan is not under state tax rules.
  3. Added Grand Rapids to the local tax rules and for Resident Wage accumulation for Grand Rapids and Grand Rapids TWP I marked the Resident Wage Accumulation as Exempt. The system is still withholding Grand Rapids taxes.
  4. Pay employee, no state tax is withheld but local or city taxes are.

 

Cause

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