New York State Tax Levy Overwithholding With Child Support Deductions

(Doc ID 2208106.1)

Last updated on MARCH 03, 2017

Applies to:

Oracle HRMS (US) - Version 12.1.3 and later
Information in this document applies to any platform.


On : 12.1.3 version, US Payroll Tax Issues

The employee has two child support deductions and a state tax levy. The state tax levy is still deducting 10% of gross causing the employee to go over the 25% of disposable for all involuntary deductions.

The system to deduct the Child Support deductions first. Then calculation 25% of disposable. If there is any money left, after the calculation of 25% of disposable, the system should then take the lessor of 10% of gross or 25% of disposable for the state tax levy

The issue can be reproduced at will with the following steps:
1. First child support is deducted at 164
2. Second child support is deducted at 309.
3. The State Levy is still being deducted at 10% of gross
4. The employee's disposable earnings are 1620.77 - 329.73 = 1291.04


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