EPY: MA FLI NLG Calculating When EE In MA And WA Where MA Exempt From PFML And WA Subject (Doc ID 3004817.1)

Last updated on JUNE 10, 2024

Applies to:

Symptoms

This is a scenario for a Massachusetts Company which applies for and is granted an exemption from Massachusetts PFMLA, however is still subject to PFMLA in Washington.

When an employee has both Massachusetts(MA) and Washington (WA) on their State Tax Data and Tax Distribution, no WA taxes are being generated due to not enough income, but MA FLI No Limit Gross is being calculated.
No Taxable gross appears and no taxes are withheld, but this causes issues with tax filing.

FML/MLI follows UI Jurisdiction but in this scenario, the employee has MA set for both resident and UI Jurisdiction flags.
The employee is not a resident of WA so no localities are added.

The expectation is that the MA Family Leave Insurance (FLI) No Limit Gross should not be calculated.



Steps to Replicate

1. Set Company State Tax Table for Massachusetts Family Leave Plan and Medical Leave Plan to exempt.
Navigation: Set Up HCM > Product Related > Payroll for North America > Federal/State Taxes > Company State Tax Table
2. Set Company State Tax Table for Washington Family Leave Plan - Subject 100% Employee, Medical Leave Plan - Subject 45% Employee, 0 Employer
3. Navigate to Payroll for North America > Employee Pay Data USA > Tax Information > Update Employee Tax Data
- Choose the Federal Tax Data Tab
- Set Effective Date to a value similar to 12/23/2023
- Choose State Tax Data tab
- Enter MA for the Employee
- Turn on Resident and UI Jurisdiction check boxes
- Set FLI - Exempt
- Set MLI - Exempt
4. Add a new row for State Tax Data
- Enter WA for the Employee
- Resident and UI Jurisdiction check box remains Off
- Set FLI - Subject,
- Set MLI - Subject
- Set LTC not applicable
5. Employee Local Tax Table - remains empty
6. Navigate to Payroll for North America > Employee Pay Data USA > Tax Information > Tax Distribution
- Set to 100% Massachusetts (MA)
7. Navigate to Payroll for North America > Payroll Processing USA > Create and Load Paysheets > Create Paysheets
- Create paylines for a pay period after the effective date of the Federal/State Tax Data
8. Navigate to Payroll for North America > Payroll Processing USA > Update Paysheets > By Payline
- For the Employee affected,
- Set the Payline details for MA - Reg pay 3215.38,
- Set the payline details for WA 169.23
7. Navigate to Payroll for North America > Payroll Processing USA > Produce Payroll > Calculate Payroll
- Run the pay calculation
8. Navigate to Payroll for North America > Payroll Processing USA > Produce Payroll > Review Paycheck
- Notice that the calculated Tax for MA shows 169.23 No Limit Gross and nothing appears for WA.

Changes

Cause

My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.