EPY: Colorado Family Leave Delivered for 01/01/2024 Not Working As Expected on Existing Earning Code After Tax Update 23-D Applied (Doc ID 3006109.1)

Last updated on APRIL 11, 2024

Applies to:

Symptoms

Changes to Taxable Gross Definition for CO FML after Tax Update 23-D

After we applied Tax Update 23D that delivered changes to the Colorado Paid Family Leave to “Total Gross” from “FUT effective 01/01/24, the existing earnings codes that are set up to not have taxes withheld are now subject to CO FML tax which has the new taxable gross component ID ”NOFML" to subtract from gross is not working as expected.

When we create a new earnings code to be used for 2024 with the new taxable gross component ID “NOFML”, it works as expected.

The issue can be reproduced with the following steps:

1. Apply Tax Update 23-D

2. Go to Taxable Gross Definition and indicate for Paid Leave a taxable gross component that "Subtracts From" - Set up HCM>Product Related>Payroll for North America>Federal/State Taxes>Taxable Gross Definition Table

3. Go to an existing earning code that is just an expense and indicate that taxable gross component id - Setup 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. Advise the expense earning code on paysheet for an employee - Payroll for North America>Payroll Processing USA>Update Paysheets>By Payline

6. Run payroll calculation - Payroll for North America>Payroll Processing USA>Produce Payroll>Calculate Payroll

7. Verify the review paycheck taxes that shows the unexpected results - Payroll for North America>Payroll Processing USA>Produce Payroll>Review Paycheck

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.