Supplemental Tax Rate Is Incorrect For Bonuses In California (Doc ID 415568.1)

Last updated on JULY 13, 2016

Applies to:

Oracle HRMS (US) - Version 11.5.10.2 to 12.2.4 [Release 11.5 to 12.2]
Information in this document applies to any platform.

Symptoms

-- Problem Statement:
On 11.5.10.2 and above
Find that both Bonuses and Commissions for are being taxed for SIT for the state of California at 10.23%.

EXPECTED BEHAVIOR
Expect that Commissions would be taxed at 6.6% while Bonuses were taxed at 10.23%

-- Steps To Reproduce:
The issue can be reproduced at will with the following steps:
1. Create employee that lives and works in California.
2. Select the 09 Alternative Flat Rate method
3. Run quick pay for the employee.
4. Commissions and Bonuses will both be taxed at 10.23%

-- Business Impact:
The issue has the following business impact:
Due to this issue, California SIT is being withheld incorrectly causing refunds to be required.


Cause

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