Additional County Tax Deducted Before Pre-tax Deduction When Low Gross Pay (Doc ID 2254415.1)

Last updated on APRIL 12, 2017

Applies to:

Oracle HRMS (US) - Version 12.1.2 and later
Information in this document applies to any platform.

Symptoms

On :  12.1.2 version, US Payroll Tax Issues

ACTUAL BEHAVIOR  
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Have an employee that has elected additional FIT, SIT, and Indiana county tax. If they have low earnings, the additional county tax is being withheld before the pretax 401K deduction and before the other taxes that also have an additional tax.
 
EXPECTED BEHAVIOR
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It appears that the county additional is processed before the 401k deduction. If that is correct, then why
is it taken before/instead of the Federal and State additional?

STEPS
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The issue can be reproduced at will with the following steps:
1. Have an employee with additional tax elected on the Federal, State, and County tax information
2. The employee also has a 50% 401K deduction
3. When the employee has low earnings, the additional county tax is withheld with the remainder of the money going to the 401K deduction
4. Only the additional for the county is being withheld, the Federal and State additional is going to arrears
5. The employee's net pay is correct

 

Cause

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