EPY: Taxable Gross Definition For Specific Earning Is Impacting State Withholding For All Employees (Doc ID 2953276.1)

Last updated on APRIL 15, 2024

Applies to:

Symptoms

Taxable Gross Definition for specific earning is impacting State withholding for all employees

A new taxable gross definition (WRP) was created to exempt earn code WRP from State withholdings.  Earning code "WRP" was paid to a third of the population as a separate check (SepChk 4) attached to an on cycle pay calendar. The WRP payment was taxed correctly where there is no effect on the State withholding taxable gross but the regular check is not calculating the expected taxable gross for CA Withholding.

The State withholding taxable gross on the primary check, as well checks where WRP was not paid, appears to be disregarding the 403B (reduces both FIT and SIT) and imputed income from GTL and LTD (adds to FIT and SIT).


The issue can be reproduced at will with the following steps:
1. Taxable Gross Component for CA has a base gross of "FUT" - Set Up HCM>Product Related>Payroll for North America>Federal/State Taxes>Taxable Gross Definition Table
2. Go to the Withholding row and indicate a new component ID (ie. WRP) that subtracts
3. Create a new earning code (ie. WRP) that is tied to the component ID "WRP" - Set Up HCM>Product Related>Payroll for North America>Compensation and Earnings>Earnings Table
4. Create paysheets - Payroll for North America>Payroll Processing USA>Create and Load Paysheets>Create Paysheets
5. Go to payline and enter a separate check for the earnings "WRP" with an amount - Payroll for North America>Payroll Processing USA>Update Paysheets>By Payline
6. Run the payroll calculation - Payroll for North America>Payroll Processing USA>Produce Payroll>Calculate Payroll
7. Verify the results on Review Paycheck Taxes - Payroll for North America>Payroll Processing USA>Produce Payroll>Review Paycheck

Changes

Cause

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