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EPY: Pay Calculation is Calculating the US Federal FICA/ER X Tax (Tax Class 8) For an Employee (Doc ID 2713219.1)

Last updated on SEPTEMBER 22, 2020

Applies to:

PeopleSoft Enterprise HCM Payroll for North America - Version 9.2 and later
Information in this document applies to any platform.

Symptoms

The System is calculating a refund of Wages and Taxes for FICA - ER- Exempt (8) for one employee.

The Employee has both taxes US Federal OASDI/ER and US Federal FICA/ER X on their calculated check. 

US Federal OASDI/ER is positive and US Federal FICA/ER X is negative.

The net effect is that the employer is exempting from FICA-OASDI ER Tax.

The employee is still having FICA-OASDI EE being withheld from their check.



Steps to Reproduce Issue:

1. Setup Employee as Fica Status = 'ER FICA Exmpt' on Job Data.
2. Apply Tax Update 20-B to environment.
3. Create On-Cycle paysheet for employee.
4. Calculate Paysheet

Changes

Tax Update 20-B was applied to the environment.

The table entry is updated with a new row dated 04/01/2020, which updates the Additional Rates page to include a row for Tax Class = FICA - ER – Exempt.

Tax Class FICA - ER – Exempt will be used to exclude payments of qualified leave payments made under the Families First Coronavirus Relief Act (FFCRA) from taxable wages subject to the employer paid portion of Social Security (OASDI) tax, as per Sec. 7005(a) of the Act.

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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