Social Security and Medicare Arrears Calculated Incorrectly Over Multiple Periods

(Doc ID 1997405.1)

Last updated on DECEMBER 06, 2016

Applies to:

Oracle HRMS (US) - Version 12.1.2 and later
Information in this document applies to any platform.

Symptoms

On : 12.1.2 version, US Payroll Tax Issues

ACTUAL BEHAVIOR
---------------

Find that for employees that have imputed income only and no earnings to collect taxes from, the employee tax amount and arrears amount are calculating incorrectly.
The pay value amount (for SS EE, SS arrears, Medicare EE, and Medicare arrears) is increased by the monthly amount each month.

This is happening for SS and Medicare.


EXPECTED BEHAVIOR
-----------------------
For example if it should be $1 each month, it's 1 in Jan, 2 in Feb, 3 in March, for a total of 6. The total should be 3 (1 each month).

STEPS
-----------------------
The issue can be reproduced at will with the following steps:
1. employees that have imputed income only and no earnings to collect taxes from
2. Payroll is run for multiple periods
3. The pay value amount (for SS EE, SS arrears, Medicare EE, and Medicare arrears) is increased by the monthly amount each month.

BUSINESS IMPACT
-----------------------
The issue has the following business impact:
Due to this issue, this causes the uncollected amount reported on the W2 to be incorrect.

Cause

Sign In with your My Oracle Support account

Don't have a My Oracle Support account? Click to get started

My Oracle Support provides customers with access to over a
Million Knowledge Articles and hundreds of Community platforms