EPY: Tax is Calculated for The State Even If State Tax Calculation Type on Tax Table Is Set to No State Withholding. (Doc ID 2922176.1)

Last updated on APRIL 15, 2024

Applies to:

Goal

State Tax Calculation Type on Tax Table for every state is set to "No State Withholding".

Expected to not have taxable gross or tax amount withheld  for the state on the check, if employee has elected Tax Status "X" on Employee Tax Data Page.

Steps to reproduce the issue:

1. Navigate to Set Up HCM > Product Related > Payroll for North America > Tax Table

Select the state

Effective Date: 01/01/2023

State Tax Calculation Type : No State Withholding

2. Navigate to Payroll for North America > Employee Pay Data USA > Tax Information > Update Employee Tax Data

Select the employee

Add a new row with Effective Date: 01/01/2023

Federal Tax Data page:

Special Withholding Tax Status: Maintain taxable gross

Tax Status: Exempt

State Tax Data Page:

Special Withholding Tax Status: Maintain taxable gross

Tax Status: X - Claiming exemption from withholding

3. Navigate to Payroll for North America > Payroll Processing USA > Create and Load Paysheets > Create Paysheets and create the paysheet for a 2023 Pay Run ID

4. Navigate to Payroll for North America > Payroll Processing USA > Produce Payroll > Calculate Payroll and calculate the payroll for Pay Run ID

5. Navigate to Payroll for North America > Payroll Processing USA > Produce Payroll > Review Paycheck to see the results
 

Solution

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