FIT CALCULATES EXACTLY 0.07 CENTS MORE THAN IT SHOULD BASED ON IRS TABLES (Doc ID 1309072.1)

Last updated on DECEMBER 06, 2016

Applies to:

Oracle HRMS (US) - Version 11.5.10.2 and later
Information in this document applies to any platform.

Symptoms


Find that the calculated FIT is 0.07 higher than it should be for Regular Earnings and non Supplemental Earnings.

Example:

System calculation:

Bi Weekly Pay Period
Single - 6 Allowances

Gross Pay = 2927.55
Pre-tax Deductions = 471.53
Taxable Wages = 2456.02

FIT Withheld = 231.31


Manual calculation based on IRS Publication 15 (Circular E), Employer's Tax Guide for 2011

TABLE 2—BIWEEKLY Payroll Period
Single

Exemption amount 142.31

Minimum Amount Maximum Amount Tax Percent Flat Amount

81 408 10 0
408 1408 15 32.70
1408 3296 25 182.70 <<<<<
3296 6788 28 654.70
6788 14663 33 1632.45
14663 200000 35 4231.21



Total Gross Pay = 2927.55
Pre Tax Deductions = 471.53
FIT Taxable Wages = 2456.02
ALLOWANCE = 6
Exemption amount (142.31 x 6) = 853.86
TAXABLE wages - Exemption amount = 1602.16
Taxable - Table Minimum amount 1602.16 - 1408 = 194.16
Taxable Remaining amount x 25% = 194.16 x 0.25 = 48.54
182.70 + 48.54 = 231.24

IRS FIT Calculated amount = 231.24
System FIT Calculated Amount = 231.31

Difference = 0.07

 

Cause

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