EPY:l After Tax Update 17-A, FICA (OASDI) Tax Calculating Incorrectly In Certain Scenarios
Last updated on MAY 11, 2017
Applies to:PeopleSoft Enterprise HCM Payroll for North America - Version 9.1 to 9.1 [Release 9]
Information in this document applies to any platform.
After implementing tax update 17-A, we experienced incorrect FICA/OASDI taxation for an employee who was receiving bonus payments on multiple checks in the same off-cycle pay calculation.
This same scenarios calculated correctly prior to implementing tax update 17-A.
Our suspicion is that code changes in tax update 17-A have caused this incorrect taxation on the OASDI (tax class 'D') for the employee.
The scenario is that the EE had a taxable gross balance which was less than the OASDI annual taxable gross limit of $127,200 and was given earnings on five separate checks which would exceed the employee's OASDI annual tax limit of $127,200.
The pay calculation resulted in withholding MORE than the OASDI annual tax limit of $7,886.40 ($127,200 x 6.2%).
When the five separate checks were calculated and confirmed invidually (separate pages), the tax calculated correctly.
The problem only appears when the checks are all calculated on the same PAGE.
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