EPY: Gross Up Functionality Used On Imputed Income With Commitment Accounting
(Doc ID 2534563.1)
Last updated on OCTOBER 04, 2019
Applies to:PeopleSoft Enterprise HCM Payroll for North America - Version 9.2 and later
Information in this document applies to any platform.
Payroll for NA: Gross up functionality used on imputed income
Our payroll department started to use the delivered gross up functionality for the first time in December to account for imputed income (taxable income) on wellness awards (gym reimbursements, gift cards, etc). So for example, employee has $140 wellness award that is now considered taxable income. Payroll used delivered functionality and grossed up to $151.59, to account for the $11.59 in taxes. They used an earn code (WGU) that was ADD_GROSS = N, but does maintain earning balances.
All works fine on the payroll side, their employee balances look correct and no paycheck issued. However, we use the delivered commitment accounting Actuals Distribution/TL Extract process (PY_PULL_COST). When this process completed, it saw $11.59 in gross pay and distributed it. However, it assigned the $11.59 to regular pay (erncd = REG) presumably because there was no earn code associated to it on the payroll earnings records. This caused issues as it was labeled incorrectly as regular pay and caused the percentages to be off.
The issue can be reproduced at will with the following steps:
1. Navigate to Payroll for North America > Payroll Processing USA > Update Paysheets > By Paysheet
2. Complete fields: Company, Pay Group, Pay End Date, Off-Cycle (checked), Page Nbr
3. Click button
4. Complete fields: Emplid, Empl_rcd (defaulted), Check Date, OK to pay (check), Gross-Up (check), Code (earnings code setup as ADD_GROSS = N), Amount
5. Click button
6. Navigate to Payroll for North America > Payroll Processing USA > Produce Payroll > Calculate Payroll
7. Create new run control ID or use existing run control ID and click button
8. Complete fields using values from off-cycle check: Company, Pay Group, Pay End Date, Process Page, Thru. Calculation Options: Preliminary Calculation Run (check), only calculate where needed (selected)
9. Complete any additional processing to confirm payroll and make eligible for Actuals Distribution process to run.
10. Navigate to Payroll for North America > Payroll Distribution > Commitment Accounting USA > Actuals Distrib/TL Extract
11. Run process for company via one pay run id that includes all On-Cycle and Off-Cycle checks.
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