EPY: EXCESSIVE PA TAX ON SUPPL EARNS WHEN 2ND CHECK & STAND ALONE OFF-CYCLE CALENDAR (Doc ID 1915440.1)

Last updated on AUGUST 05, 2016

Applies to:

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

Goal

EXCESSIVE SWT TAX ON SUPPL EARNS WHEN 2ND CHECK & STAND ALONE OFF-CYCLE CALENDAR

When a employee is working/living in PA and is paid in an off-cycle calendar. The employee is getting two payments(checks) in the same off-cycle calendar. One check is for the overtime(O15) and another check is for special payment for FLSA True Up payment(FTU earncode).   

Both the checks have deductions to be taken. O15 earning code is setup for Annualized taxing and FTU is setup for Supplemental taxing.
The issue is the check with FTU payment is going net zero. System is incorrectly calculating PA tax withholding.  PA tax withholding rate is 3.07%, so the tax withholding for the FTU $1 Gross payment should be $.03, instead the sytem is calculating it to be way high. 


 

Solution

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