Mandatory Pre-tax Retirement Deduction Not Coming Out When Federal Additional Tax Entered And There Is Not Enough Money For All Taxes And Deductions (Doc ID 1969864.1)

Last updated on APRIL 04, 2025

Applies to:

Symptoms

On : 12.1.3 version, Pension/PreTax Processing

ACTUAL BEHAVIOR
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When an employee has elected Additional Federal Tax and does not have enough in earnings, the system is taking the taxes before a mandatory retirement plan deduction.

EXPECTED BEHAVIOR
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This deduction is mandated by Illinois state law and must be withheld first as it is deducted in lew of Social Security tax

STEPS
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The issue can be reproduced at will with the following steps:
1. The employee has elected Additional Federal Tax be withheld
2. The employee has low earnings for the period
3. They have a mandatory SERS retirement deduction that must be withheld in lew of Social Security tax
4. The retirement deduction is not withheld when the taxes take up the entire check
5. They need a way for this retirement deduction to be a pretax deduction but then be deducted before any other taxes

BUSINESS IMPACT
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The issue has the following business impact:
Due to this issue, users cannot ensure that every employee has this mandatory retirement deduction calculated and deducted based on all earnings

Changes

Cause

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