EPY: Incorrect Supplemental Tax Rate for Federal and VA State. (Doc ID 2914516.1)

Last updated on APRIL 15, 2024

Applies to:

Symptoms

Incorrect supplemental tax being taken for Federal and VA State.

We are trying to set up pay for the Public Defenders Office employees’ quarterly supplemental payments. The two tests that were ran were unsuccessful due to the incorrect flat tax rate for Federal and VA State for the new supplemental earnings code.

Federal taxes should be 22% and VA State should be 5.75%.


The issue can be reproduced with the following steps:

1. Create a new Pay Group to pay just Supplemental Earnings for employees - Set Up HCM>Product Related>Payroll for North America>Payroll Processing Controls>Pay Group Table

2. Create a new earnings code that is configured for "Supplemental" - Set Up HCM>Product Related>Payroll for North America>Compensation and Earnings>Earnings Table

3. Associate the new earnings to the Earnings Program - Set Up HCM>Product Related>Payroll for North America>Compensation and Earnings>Earnings Program

4. Hire employees that do not have a compensation amount - Workforce Administration>Personal Information>Add a Person

5. Enroll the employees into additional pay for the supplemental earnings - Payroll for North America>Employee Pay Data USA>Create Additional Pay

6. Create paysheets - Payroll for North America>Payroll Processing USA>Create and Load Paysheets>Create Paysheets

7. Run payroll calculation - Payroll for North America>Payroll Processing USA>Produce Payroll>Calculate Payroll

8. Review the paycheck taxes for the withholding - Payroll for North America>Payroll Processing USA>Produce Payroll>Review Paycheck

Changes

Cause

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