EPY: Local Taxable Gross Incorrect For Non Taxable Expenses Payment For Washington State, Locality /63000. (Doc ID 2933278.1)

Last updated on APRIL 15, 2024

Applies to:

Symptoms

For Washington state the taxable gross should not include non-taxable expense payments. To accommodate this, customer created a  withholding Taxable Gross Component ID for WA state, locality 63000 using the same set up from Paid Leave Taxable Gross, but the taxable gross is not calculating correctly.

Steps to reproduce the issue:

1. Navigate to Set Up HCM > Product Related > Payroll for North America > Compensation and Earnings > Earnings Table and create the following earning for the non-taxable expense payment:

Earning Code: EZX
Effective Date: 02/18/2019
Tax Method: Specified on Paysheet
Taxable Gross Component ID NTEX
Add o Gross Pay checked
Maintain Earnings Balances checked.

2. Navigate to Set Up HCM > Product Related > Payroll for North America > Federal/State Taxes > Taxable Gross Definition Table and create the taxable gross definition for the Component ID NTEX

- State WA

Taxable Gross: Withhoding
Base Gross: All
Taxable Gross Component ID: NTEX
Tax Gross Effect: Subtracts From
Deduction Code: $DFLT

- State WA
Locality 63000 SEATTLE ER TAX

Taxable Gross: Withhoding
Base Gross: AllTaxable Gross Component ID: NTEX
Withholding Follows Fed Rules
Tax Gross Effect: Subtracts From
Deduction Code: $DFLT

3. Calculate payroll for an employee who works in WA/63000 and review the check:

WA State taxable gross calculated correctly but did not for locality 63000.

Changes

Cause

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