Adjust Tax Balance PAYUSTBA Does Not Use Employee Social Security Maximum Wages when Employee is in Tax Group, so Wages Exceed Limit (Doc ID 1908599.1)

Last updated on DECEMBER 20, 2016

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 - General

ACTUAL BEHAVIOR
---------------
After applying Release 12.1 RUP 6, the Adjust Tax Balance form PAYUSTBA does not recognize the SS Maximum on EE SS Wages that exceed the SS Limiit on a Tax Group Level

The TAX ADJUST form PAYUSTBA (Version 12.0.0.12010000.12) is not respecting the SS Wage Limitation. When an employee has exceeded the $113,700.00 2013 limit but then has a Tax Adjust Balance performed on them, the wages feed the Taxable causing the Employee's wages to exceed the limit.

The regular run does NOT do this so the two are behaving differently.

The Social Security Taxable Wages are overstated


EXPECTED BEHAVIOR
-----------------------
Expect the Limit to be recognized within the Tax Group

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


GRE 1 = DET GRE Tax Group 1
GRE 2 = DET GRE Tax Group 2

Tax Group = DET TAX GROUP

Assignment Number = 13837

GRE / Legal Entity = DET GRE Tax Group 1

Run QuickPay to establish baseline

31-DEC-2012 - 13-JAN-2013

Gross = 10800.00
FIT Withheld = 2925.72
Medicare Withheld = 156.60
SS Wthheld = 669.90
NET PAY = 7048.08


Date Track to 14-JAN-2013

Assign DET FLSA Bonus
Amount = 100,000.00

Run QuickPay

14-JAN-2013 - 27-JAN-2013

Gross = 112,000.00
FIT Withheld = 42694.02
Medicare Withheld = 1624.00
SS Wthheld = 6379.80
NET PAY = 61,302.18

-------------------------------------------

View Tax Balance Summary
GRE = DET GRE Tax Group 1

Balance Period Year to Date
---------------------------------------------------
FIT Taxable 112,000.00 122,800.00
FIT Withheld 42,694.02 45,619.74
SS Taxable 102,900.00 113,700.00
SS Withheld 6,379.80 7,049.40
Medicare Taxable 112,000.00 122,800.00
Medicare Withheld 1,624.00 1,780.60

------------------------------------------------------

Date Track to 28-JAN-2013

Change GRE to DET GRE Tax Group 2

Run QuickPay

28-JAN-2013 - 10-FEB-2013

Gross = 12,000.00
FIT Withheld =3321.72
Medicare Withheld = 174.00
SS Wthheld = 0.00
NET PAY = 8504.28

-------------------------------------------

View Tax Balance Summary
GRE = DET GRE Tax Group 2

Balance Period Year to Date
---------------------------------------------------
FIT Taxable 12,000.00 12,000.00
FIT Withheld 3.321.72 3,321.72
SS Taxable 0.00 0.00
SS Withheld 0.00 0.00
Medicare Taxable 12,000.00 12,000.00
Medicare Withheld 174.00 170.00

------------------------------------------------------------

Date Track to 11-FEB-2013

Assign Element DET Adjust Earnings

Amount = 10,000.00

Run QuickPay

11-FEB-2013 - 24-FEB-2013

Regular Wages = 12000.00
 DET Adjust Earnings = 10000.00

Gross = 22,000.00
FIT Withheld =7054.02
Medicare Withheld = 319.00
SS Wthheld = 0.00
NET PAY = 14626.98
-------------------------------------------

View Tax Balances

GRE = DET GRE Tax Group 2

Tax Name = SS

Balance Period Year to Date
---------------------------------------------------
SS Taxable 0.00 0.00
SS Excess 22,0 0.00 34,000.00
SS Withheld 0.00 0.00

------------------------------------------------------------

Date Track to 01-MAR-2013

Post a Balance Adjustment

Gross = 1000.00
Net = 985.50

EE Medicare = 14.50
ER Medicare = 14.50

----------------------------------------

View Tax Balances

GRE = DET GRE Tax Group 2
Tax Name = SS

Balance Period Year to Date
---------------------------------------------------
SS Taxable 1,000.00 1,000.00
SS Excess 0.00 34,000.00
SS Withheld 0.00 0.00

------------------------------------------------------------

View Tax Balances

Tax Group = DET GRE TAX GROUP
Tax Name = SS

Balance Period Year to Date
---------------------------------------------------
SS Taxable 1,000.00 114,700.00
SS Excess 0.00 43,100.00
SS Withheld 0.00 7,049.40


BUSINESS IMPACT
-----------------------
The issue has the following business impact:

Due to this issue, users cannot accurately report and collect Social Security for employees with Balance Adjustments in a Tax Group

Cause

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