EPY:WA LTC Tax Exempt Status Is Not Carried Forward For Transfers. (Doc ID 2836207.1)

Last updated on JULY 29, 2022

Applies to:

Symptoms

Scenario 1: Employee's exempt status for WA LTC is not retained if the employee transfers to a work location outside of WA then later transfers back to work in WA.
Scenario 2: Exempt WA LTC status is not carried forward when employee is transferred from one company to other and both companies are LTC applicable.

Once an employee's exemption is on file, it is needed to ensure that employee does not have the WA LTC tax taken.

Steps to reproduce the issue:

Scenario 1
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- Company 100 and 105 has LTC not applicable unchecked on 01/01/2022.

- Employee tax data
Effective date: 01/01/22 Company :100 State: WA WA LTC status= Exempt

- Job Data
New row, effective date 1/4/2022, which transfers them to a work location (and home address) outside of WA.

State tax data is updated to remove WA and add the new work/resident state (MT).

Same employee gets another job data row, effective date 1/24/2022, which transfers them back to WA.

State tax data is updated to WA, but LTC status is NOT carried forward – it resets to Subject rather than carrying forward the employee’s exempt status.

Scenario 2
-------
- Company 100 and 105 has LTC not applicable unchecked on 01/01/2022.

- Employee tax data
Effective date: 01/01/22 Company :150 State: WA LTC status= Exempt

Effective date: 01/01/19 Company :100 State: WA LTC status= Not Applicable

- Job Data
Effective Date : 01/10/22 employee was transferred to company 100.

Employee Tax Data was updated automatically with :
Effective Date: 01/10/2021 State:WA WA LTC Status: Subject


 

Changes

Cause

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