EPY: Setup Cincinnati Taxable Gross for earnings deduction in reducing the Medicare taxable wages. (Doc ID 1623232.1)

Last updated on JANUARY 14, 2016

Applies to:

PeopleSoft Enterprise HRMS Payroll for North America - Version 8.9 to 9.2 [Release 8.9 to 9]
Information in this document applies to any platform.

Goal

The Cincinnati taxable gross amount is incorrect. Peoplesoft Payroll is reducing the Cincinnati taxable wage by the amount of the deduction code VACBY1 (Vacation Buy Deduction) that is set up to be a before-tax deduction with no effect on FICA or Medicare wages.

The VACBY1 deduction is NOT reducing the Medicare taxable wages, which is correct. This is a special before tax deduction that is coded not to affect the Medicare taxable wages.

The VACBY1 deduction is reducing the Cincinnati taxable wages, which is incorrect.

Solution

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