EPY: Paycheck Modeler not Looking at the Tax Method on the Earnings Table when Calculating Bonus Checks
Last updated on MAY 23, 2016
Applies to:PeopleSoft Enterprise HCM Payroll for North America - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.
Paycheck modeler does not use the tax method associated with a bonus earnings when calculating the check. A customer has a bonus payment set up to use the supplemental tax rate. When using paycheck modeler and have only the bonus earnings, it is not using the supplemental rate for salaried employees. For hourly employees, however, it does appear to use the supplemental rate.
Paycheck Modeler is calculating withholding taxes incorrectly for an earnings with a supplemental tax rate if the employee is enrolled in a taxable benefit. The taxable benefit is getting added to the taxable gross even if all deductions are cleared from the modeled checked. For example, an employee had a bonus of $1000 and a taxable supplemental life benefit of $60. $1060 *.25 = $265 which is the tax that was being calculated. It should have been $250 since all deductions had been removed from the modeled check.
STEPS TO REPLICATE
1. Confirm a check with the employee enrolled in supplemental life which is a taxable benefit.
2. After check was modeled, the amount of the taxable benefit was included in the taxable gross.
3. Enter a new effective dated row to waive the supplemental life.
4. When the check was modeled, the withholding is correct since it only reflects the rate times the bonus amount and not the rate times the bonus +taxable benefit amount.
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