Pre-Tax Deduction Is Not Reducing SIT Taxable Or Displaying On The SIT Tax Balance Screen. (Doc ID 2029683.1)

Last updated on AUGUST 15, 2024

Applies to:

Symptoms

On : 12.1.3 version, US Payroll Tax Issues

ACTUAL BEHAVIOR
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Employees are receiving nontaxble earnings with a pretax deduction. The Reduced Subj Withholdable for FIT is being reduced by the pretax deduction but the SIT Reduced Subj Withholdable is not

EXPECTED BEHAVIOR
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The FIT and SIT balances to match as they have the same Tax Withholding Rules for all the categories

STEPS
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The issue can be reproduced at will with the following steps:
1. Looked at the elements
Stock Option Gain > Imputed Earnings > Category - Imp No FIT SIT W/H > Tax Withholding Rules > FIT Not Withheld. SS and Medicare checked, SIT Not Withheld, and SDI and SUI are checked
Stock Tax Receivable > Supplemental Earnings > Category - Nontaxable > Tax Withholding Rules > FIT and SIT boxes are all blank
Hypo Tax Percentage - PreTax Deduction > Category - Hypo Tax > Tax Withholding Rules > federal are all blank except for FUTA > State are all blank except for SDI and SUI

2. Looked at employee #XXX

3. Tax Information
Federal and SIT - New York
Nothing special is set up
Single 0 Allowances

4. Quick Pay
Run as Regular

5. Reviewed SOE
Stock Tax Receivable 13000.00 Supplemental Earnings No All No
Stock Tax Receivable 37000.00 Imputed Earnings All No
FIT Withheld 0.00
Medicare 0.00
SS 2139.00
Hypo Pct 2500.00 PreTax Deduction 5% of all earnings
Gross 50000.00
NET Pay 7860.75

6. View Tax Balances

FIT
Gross 99683.77
Exempt 13000.00
Subject 86683.77
Subj Not WHable 37000.00
PreTax 6347.25 (401K 3847.25 Other 2500.00)
Reduced Subj WHable 43336.52

SIT - New York
Gross 99683.77
Exempt 13000.00
Subject 86683.77
Subj Not WHable 37000.00
PreTax 3847.25 (401K 3847.25 Other 0.00)
Reduced Subj WHable 45836.52

Changes

Cause

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