EPY:l After Tax Update 17-A, FICA (OASDI) Tax Calculating Incorrectly In Certain Scenarios (Doc ID 2264843.1)

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.

Symptoms

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.


Cause

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