EPY: Deferred Comp Deduction Refunded On Check With No Taxable Gross
(Doc ID 2780067.1)
Last updated on MAY 28, 2021
Applies to:PeopleSoft Enterprise HCM Payroll for North America - Version 9.2 and later
Information in this document applies to any platform.
Deferred Comp Deduction Refunded on Check with no Taxable Gross
An employee who was paid worker's comp wages had no taxable gross, but was refunded an amount of a deferred comp deduction.
The employee's deferred comp contribution is 2% based on Federal Gross
This check is the first occurrence of worker's comp for the employee.
The expected amount should have been positive.
The issue can be reproduced with the following steps:
1. Configure earning code "WCG" as all US Taxes checked on, Adds to Gross Pay is checked on, and Calc Sequence is 500 (Set Up HCM>Product Related>Payroll for North America>Compensation and Earnings>Earnings Table)
2. Configure earning code "WCN" as all the US taxes deselected but "Subject to Regular Rate, Adds to Gross Pay is checked on, and Calc Sequence is 500
3. Set up Deduction Code "DEFCMP" that is priority 500, Before Tax and the Taxable Component ID "125" (Set Up HCM>Product Related>Payroll for North America>Deductions>Deduction Table)
4. Set up General Deduction Code "DEFCMP" to "Flat Amount" (Set Up HCM>Product Related>Payroll for North America>Deductions>General Deduction Table)
5. Enroll employee into the General Deduction Data for Deduction Code "DEFCMP" has Percent of Federal Gross with 2% (Payroll for North America>Employee Pay Data USA>Deductions>Create General Deductions)
6. Create paysheet and advise earning code "WCG" as 1,346.86 and earning code "WCN" as <1,346.86> on Addl Nbr 0
7. Run the payroll calculation (Payroll for North America>Payroll Processing USA>Produce Payroll>Calculate Payroll)
8. Verify the results of deduction code "DEFCMP" on Review Paycheck Deductions (Payroll for North America>Payroll Processing USA>Produce Payroll>Review Paycheck)
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