Two Checks Same Period End Date Should Not Be Taxed For PA LST (Head Tax)

(Doc ID 2089828.1)

Last updated on MARCH 08, 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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When the employee has no regular pay in the pay period but does have supplemental earnings, the Pennsylvania LST tax is being withheld from these supplemental earnings

STEPS
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The issue can be reproduced at will with the following steps:
1. If an associate has only supplemental (Bonus) earnings in a pay cycle, there should not be PA LST (Head Tax) withheld.
2. Currently this is not what is happening.
3. If an associate has Time Entry Wages, and a element in the tax category Bonus in a single payroll, the PA LST is only being withheld from Time Entry Wages (which is as it should be).
4. If the associate has only a Bonus element, the PA LST is still being withheld, which is not correct per the payroll tax manager
5. Unlike the City Tax, we cannot update the tax categories so that the LST is not withheld.
6. We have had instances where $14 was withheld in a 13 week quarter due to this.
7. When we make corrections, it makes it very difficult to reconcile the returns for both quarters, and some associates are ending up with a negative value in the quarter where the corrections are being made.


Cause

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