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Fusion Global Payroll (US): Employees Who Work in Ohio (OH) and Live in Kentucky (KY) Should Not Have OH State Income Tax Withheld (Doc ID 2109544.1)

Last updated on OCTOBER 06, 2020

Applies to:

Oracle Fusion Global Payroll Cloud Service - Version and later
Oracle Fusion Global Payroll - Version and later
Information in this document applies to any platform.


Employees who work in Ohio and live in Kentucky are being withheld state income tax for both states
Per reciprocity agreement between Ohio and Kentucky, Kentucky residents are exempt from Ohio income tax.

The issue can be reproduced at will with the following steps:
1. Navigator>Workforce Structures
2. Select the Manage Locations tab
3. Create a location in Miami Township, OH
4. Submit
5. Navigator>New Person
6. Select the Hire an Employee task
7. Hire an employee with a home address in Independence, KY
8. Navigator>Payroll>Payroll Calculations
9. Select the Calculate QuickPay task
10. Process a QuickPay for the employee
11. Verify the results and note the employee is taxed in both states


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