State Tax Withholding Is Being Withheld Incorrectly On a Tax Exempt Location (Doc ID 2215624.1)

Last updated on MARCH 27, 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
---------------
Texas (TX) employees who reside in Texarkana, Arkansas (AR) began having AR State income tax withheld

EXPECTED BEHAVIOR
-----------------------
No tax should be withheld

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


1. an organization/location in the state of TEXAS. TX employees are not subject to State withholding tax.
2- recently moved some of those employees to a new location in ARKANSAS, but some employees stayed at the TX location. The setup was completed and we were properly withholding AR State income tax on the AR employees.
3- We were not withholding AR State income tax on the TX employees. It worked correctly for two pay periods.
4- Year End Phase 1 and Q3 Statutory Update patch (24584952:R12.PAY.B) has been applied on November 20th
5- The third pay period, TX employees who reside in Texarkana, AR began having AR State income tax withheld.


Cause

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