Fusion HRMS(US): California (CA) Special Supplemental Rate for Commissions, Bonuses is not Calculating Correct Rate (Doc ID 1937093.1)

Last updated on MAY 06, 2015

Applies to:

Oracle Fusion Global Payroll Cloud Service - Version 11.1.8.0.0 and later
Oracle Fusion HRMS (US) - Version 11.1.8.0.0 and later
Information in this document applies to any platform.

Symptoms

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%

Cause

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