EPY: SIT Withholding Calculation Issus With All FWT Credit States When Aggregate ID Set on Pay Calendar, but Paysheets Produced with Tax Method of Annualized (Doc ID 1636589.1)

Last updated on MARCH 09, 2017

Applies to:

PeopleSoft Enterprise HRMS Payroll for North America - Version 9.1 and later
Information in this document applies to any platform.

Goal

Sporadic state withholding tax calculations for same taxable gross on FWT Credit states can vary from pay period to pay period, all else remaining the same.

Scenario:

1.  Create two On-cycle pay calendars.   Add the Aggregate ID at the same time the Pay Run ID is added.
2.  Process an off-cycle payment against the first paygroup calendar (alphabetically) through to confirm
3.  Run T&L load creating on-cycle paysheets  -  Paysheet Tax Method is set to Annualized  (Note:  paysheets created by the Paysheet Create process would create the paysheets with a Tax Method of Aggregate)
4.  Add further pay to the employee who also had an off-cycle attached to the first paygroup On-cycle calendar
5.  Change the Tax Method from Annualized to Aggregate for this employee
6.  Run Paycalc,
7.  View Calculation results

The state taxes for employees in any FWT Tax Credit state in the first paygroup will be accurate.  However, employees in any FWT Tax Credit states in the subsequent paygroup will have incorrect state tax calculated.

 

Solution

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