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Fusion Global Payroll (US): Employee Earnings Distribution Overrides is not Honoring State Reciprocity Agreements (Doc ID 2148115.1)

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.


When entering an earnings distribution override, reciprocity is ignored.

Reciprocity should be honored
Ohio does not require withholding from Ohio residents working in other states that collect withholding tax.
Residents of Ohio who work in Indiana, Kentucky, Michigan, Pennsylvania, West Virginia are exempt from withholding of Indiana, Kentucky, Michigan, Pennsylvania, West Virginia

The issue can be reproduced at will with the following steps:
1. Hire an employee in OH and set Works from Home to Yes
2. Navigator>Payroll>Payroll Calculation
2. Select the Manage Calculation Cards task
3. Click the create icon
4. Create an Earnings Distribution card to allocate 40% to KY
5. Run a payroll or QuickPay and validate the results
6. Note that KY state income tax is calculated.


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