EPY: Federal/State Taxes & Taxable Gross Are Created For 100% Pre-Tax Deduction (Doc ID 3041261.1)

Last updated on AUGUST 13, 2024

Applies to:

Symptoms

Federal/State Taxes and Taxable Gross are created for a 100% pre tax deduction.

We allow employees to sell their annual leave to fund their 401k's Typically, the 401k deductions are pre taxed - Federal/State, therefore only taxable gross should be based on OASDI/Medicare and not Withholding tax for these checks.


The issue can be reproduced with the following steps:
1. Ensure the payline has REG 80HRS and an earning code to payout their annual leave to fund the 401K - Payroll for North America>Payroll Processing USA>Update Paysheets>By Payline
2. Click on the One Time Deductions and indicate subset ID that is tied to the 401K only
3. Enter the deduction for the 401K that is taking a 100% percent of the total gross
4. Run the payroll calculation - Payroll for North America>Payroll Processing USA>Produce Payroll>Calculate Payroll
5. Verify on the Review Paycheck that there is a taxable gross for FWT and SWT being calculated on the paycheck that includes OASDI, Medicare, and Withholding - Payroll for North America>Payroll Processing USA>Produce Payroll>Review Paycheck

Changes

Cause

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