EPY: In Massachusetts Family Leave Insurance the Employer Is Charged if the Employer Is Setup With a Zero Rate (Doc ID 2919726.1)

Last updated on APRIL 15, 2024

Applies to:

Symptoms

Massachusetts (MA)  Family Leave Insurance (FLI) Employer (ER) is charged if ER is setup with a zero rate.

In Company State Tax Table, Set EE and ER to Subject and 0 ratio to track but not charge the values, but it is refunding the Employee(EE) value and charging the ER value for anything taken in the quarter.

There should be a way to track but not charge this value.


Steps to Reproduce this issue:

1. Navigate to Set Up HCM > Product Related > Payroll for North America > Federal/State Taxes > Company State Tax Table
2. Go to the VDI/FLI tab
  - Set Family Leave Plan to Subject, Effective 1 quarter, Employee Ratio set to 0.00, Employer Ratio set to 0.00
  - Set Medical Leave Plan to Subject, Effective 1 quarter, Employee Ratio set to 0.00, Employer Ratio set to 0.00

3. Navigate to: Payroll for North America > Employee Pay Data USA > Tax Information > Update Employee Tax Data
4. Bring up a Massachusetts employee and Go to the State Tax Data tab
  - Resident and UI Jurisdiction in MA
  - Set FLI Status to Subject
  - Set MLI Status to Subject
  - Tax Status 'H'
  - Withholding Allowances 6
5. Run a pay
  - Navigate to Payroll for North America > Payroll Processing USA > Create and Load Paysheets > Create Paysheets
  - For the Company/Paygroup for the employee, create paysheets
  - Navigate to Payroll for North America > Payroll Processing USA > Produce Payroll > Calculate Payroll
  - Calculate the pay
6. Review the Paycheck
  - Navigate to Payroll for North America > Payroll Processing USA > Produce Payroll > Review Paycheck
  - Go to Taxes Tab
  - FLI/EE shows a negative value
  - FLI/ER shows a positive amount 
  - MLI/EE shows a negative value 
  - MLI/ER shows nothing.

Changes

Cause

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