EAP WTHD16: In IRS File B Record Total Does Not Match The C Record for Class 4 (Physical Withholding) (AP_APY1099)
Last updated on FEBRUARY 10, 2017
Applies to:PeopleSoft Enterprise FIN Payables - Version 9.1 to 9.2 [Release 9]
Information in this document applies to any platform.
For 1099 applicable Supplier/Vendors and physical withholding has been done,the total sum of B Record Amount and C Record amount in the IRS Tax file does not match for Class 04 (Federal Income Tax Withheld).
This only happens in following scenario:
Vendor/Supplier A set for Withholding Class 07 (Non Employee Compensation)and Vendor/Supplier B set for Withholding Class other than 07.
For example Vendor/Supplier B is set for Withholding Class 03(Other Income). Both these Vendors/Suppliers have physical withholding (amount withheld and paid to IRS).
When the 1099 Job is run with option either 'Include Non Employee Compensation' or 'Exclude Non Employee Compensation' , the IRS file has incorrect total in C record for Class 04(Federal Income Tax Withheld)
Note: If 'Combined Federal State Filing' is included then the IRS file has incorrect total in K record for Class 04 as well.
1. Supplier/Vendor SHARE/1099-03 has Withholding Class 03 and Supplier configured for physical withholding.
2. Supplier SHARE/1099-07 has Withholding Class 07 and Supplier configured for physical withholding.
3. Vouchers for above two Suppliers were entered and paid.
Also the IRS payment was paid.
4. Payment Posted and Post Withholding was run.
5. Data after Post Withholding
Basis Amount = 10000
Liability Amount = 3100
Basis Amount = 5000
Liability Amount = 1550
6. Setup Withholding 1099 Job with following details:
Check Include Manual Overrides (if any manual overrides done)
Type of File/Return: Original/Correction
File Generate Option = Include Non Employee Compensation.
7. Run Withholding 1099 Job process
8. Reviewed the IRS text file generated -
Supplier SHARE/1099-7 included in the file. (this is correct)
Supplier SHARE/1099-3 excluded in the file (this is correct)
The B Record Amount for Supplier SHARE/1099-7 is 1550 for Class 04 and 5000 for Class 07 (this is correct)
The C Record Amount for Class 04 = 4650 and Class O7 = 5000. This is incorrect.
Total should be 1550 only as there is only one Supplier in the file that has Class 04 and that is SHARE/1099-7.
The process is adding the Liability Amount for Supplier SHARE/1099-3 to the C record.
Similar issue with K record if 'Combined Federal State Filing' is checked
Note: Similar results when 1099 Job is run with IRS File Generate Option = Exclude Non Employee Compensation. In this case it will add the Liability Amount for Suppliers for Class 07 though these Suppliers are not in the file.
Note: If the 1099 Job is run with IRS File Generate Option = All then there is no issue
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