EPY: Missouri Taxes Not Calculating Correctly (Doc ID 2915195.1)

Last updated on APRIL 15, 2024

Applies to:

Symptoms

Missouri taxes taken increased despite taxable wages decreasing

User is reporting Missouri taxes are too high when paying (1) reg for MO, (2) do not add to gross supplemental for MO and also have (3) regular wages for KS. Customer provided a simplified demo test showing issue.

The supplemental payment needs to be setup as do not add to gross to trigger this issue.

The issue can be reproduced with the following steps:

1. Employee Tax Distribution is set "MO" at 100% - Payroll for North America>Employee Pay Data USA>Tax Information>Update Tax Distribution

2. Employee Tax Data is set to Resident for "MO" and "KS" for UI Jurisdiction - Payroll for North America>Employee Pay Data USA>Tax Information>Update Employee Tax Data

3. Ensure that the earning code for Bonus is set to "Supplemental" and the "Adds to Gross Pay" is deselected - Set Up HCM>Product Related>Payroll for North America>Compensation and Earnings>Earnings Table

4. Ensure that the regular earning code is set to "Specified on Paysheet" and the "Adds to Gross Pay" is checked on

5. Create an online check for the test employee - Payroll for North America>Payroll Processing USA>Create Online Checks>Create Online Check

6. Enter on the first row for "KS" with REG earnings amount (ie. $774.42)

7. Insert another row for "MO" and enter REG earnings amount (ie. $8,076)

8. Insert another row for "MO" and enter BNS earnings amount (ie. $930.48) and click save & calculate

9. MO withholding too high

Changes

Cause

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