EPY: Negative Earnings Adjustment Subject to Withholding Entered on Paysheet Not Refunding State Withholding, However, Federal is Adjusted as Expected. (Doc ID 2029018.1)

Last updated on DECEMBER 18, 2015

Applies to:

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

Symptoms

Scenario:

Customer has earnings code used to impute a refund for withholding taxes as a part of the payroll on-cycle.

If they find that an employee's tax balances needs to be adjusted and taxes withheld needs to be refunded, they use a specific earnings code setup as 'Amounts
Only', 'Subject to FWT' and 'Withhold FWT' only. It does not add to gross. The earnings code along with a negative amount is added to the normal on-cycle
paysheet in addition to the regular pay.

The system calculates the negative taxes based on adjusted gross pay dollars and updates the balances when the check is confirmed.

After Tax Update 15-B when entering this earnings code on the paysheet as a negative amount greater than the regular being paid, all withholding taxes
are going to a negative amount as expected, with the exception of State withholding.

 

Cause

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