Fusion HRMS(US): California (CA) Special Supplemental Rate for Commissions, Bonuses is not Calculating Correct Rate
Last updated on MAY 06, 2015
Applies to:Oracle Fusion Global Payroll Cloud Service - Version 18.104.22.168.0 and later
Oracle Fusion HRMS (US) - Version 22.214.171.124.0 and later
Information in this document applies to any platform.
California requires a 10.23% supplemental tax rate on stock options and bonuses. Currently 6.6% is being used which applies to all other types of supplemental wages.
The issue can be reproduced at will with the following steps:
1. Set up a bonus earnings element
2. Assign the element to an employee via Manage Element Entries
3. Run a QuickPay and verify the tax withholding calculations. California state income tax is 6.6% versus 10.23%
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