Employees Tax Under Withheld if There is an Increase In Pennsylvania Local Services Tax (LST) Tax which Retros Back to January 1st (Doc ID 2159153.1)

Last updated on AUGUST 22, 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 Tax Issues

ACTUAL BEHAVIOR
---------------
The Local Tax Services (LST) for Harrisburg and Aliquippa are underwithheld for the Local Services Tax (LST)

EXPECTED BEHAVIOR
-----------------------
The vertex update for 17-JUN-2016  includes the following:


Pennsylvania
Harrisburg, Dauphin County (39-043-1590)

and

Aliquippa, Beaver County (39-007-0030)

Increased the Local Services Tax from $52.00 to $156.00/$104.00, effective 1-JAN-16. Note: This increase is retroactive to 01-JAN-16. Employers are required to withhold an additional amount based on the pay period to make up the difference for previous payroll periods.

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

1. Applied the June interim vertex monthly update
2. Current employees deductions are stopping at the original annual LST tax of $52.00

BUSINESS IMPACT
-----------------------
The issue has the following business impact:
Due to this issue, users cannot deduct the full annual LST tax from the employees

Changes

 Increase in LST tax

Cause

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