Tax Group (Common Paymaster) Functionality Is Not Working For Additional Medicare Tax (Doc ID 1615370.1)

Last updated on JUNE 26, 2017

Applies to:

Oracle HRMS (US) - Version 12.1.3 and later
Information in this document applies to any platform.

Symptoms

On : 12.1.3 version, US Payroll Tax Issues

ACTUAL BEHAVIOR
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Additional Medicare Tax is not being withheld correctly with Common Paymaster and the employee moves back and forth between the two active GRE's.  Have numerous employees moving between these two GRE's and the SS and FUTA are being calculated accurately per the common paymaster rules, etc...  The Additional Medicare EE Tax of .9 for earnings in excess of 200,000 is NOT being withheld once the employee moves GRE's.

Example:

1st GRE > Employee earns Medicare Taxable of 286977.84. Taxes are 286977.84 x 1.45% = 4161.18 & 86977.84 x .9% = 782.80 for a total tax withholding of $4943.98
2nd GRE > Employee earns Medicare Taxable of 27880.61. System is calculating 27880.61 x 1.45% = 404.27 without regards to the fact that the EE has already exceeded the 200,000 and should have the additional .9% also withheld.

EXPECTED BEHAVIOR
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Expect the first GRE in the tax group is taken into consideration when determining the Medicare_EE_Over_Limit wages and Medicare Rate for the employee

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


Employee Medicare was not calculated correctly based on the Tax Group wage totals

YTD Wages in GRE1 = 122,800.00
YTD Wages prior to run in GRE 2 = 47,000.00
Total YTD Wages Prior to Run = 169,800.00

Gross Wages = 62,000.00

Total Wages = 231,800.00

Expected Medicare_EE_Over_Limit = 31,800.00

$31,800.00 x 0.9% = $286.20 EE Medicare shortfall

Cause

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