EPY: USF - OPM Guidelines for Tax/Deduction Priority is Different to Delivered PeopleSoft Payroll for North America (Doc ID 3044389.1)

Last updated on OCTOBER 21, 2024

Applies to:

Symptoms

OPM Guidance differences from Tax / Deduction priority of delivered PeopleSoft Pay NA

For Federal payroll calculation the guidance mixes Retirement, FEHB, and Fegli before all taxes have been prioritized:

1. Retirement – Deductions for Defined Benefit Plan (including Civil Service Retirement
System/Federal Employees Retirement System -- CSRS/FERS -- Basic Benefit, Foreign
Service Retirement System/Foreign Service Pension System Basic Benefit, or other
similar defined benefit plan) (see note 1)
2. Social Security (OASDI) Tax
3. Medicare Tax
4. Federal Income Tax
5. Basic Health Insurance Premium (including Federal Employees Health Benefits premium
-- pre-tax or post-tax -- or premium for similar benefit under another authority)
6. Basic Life Insurance Premium (including Federal Employees’ Group Life Insurance --
FEGLI -- Basic premium or premium for similar benefit under another authority)
7. State Income Tax
8. Local Income Tax

The current Payroll for North America is prioritizes as follows:
1. Social Security (OASDI) Tax
2. Medicare Tax
3. Federal Income Tax
4. State Income Tax
5. Local Income Tax

Then allows the priority of deductions / deduction classes to sequence the rest.

When there is not enough net pay, the system should be prioritizing Tax/Deductions for calculation based on the OPM policy.


The issue can be reproduced with the following steps:
1. Ensure that the employee has basic health - Benefits>Enroll in Benefits>Health Plan Enrollments
2. Ensure that the employee has basic life - Benefits>Enroll in Benefits>Life and AD/D Benefits
3. Ensure the employee has State and Local - Payroll for North America>Employee Pay Data USF>Tax Information>Employee Tax Data
4. Create paysheets and ensure there is not enough net pay to take all deductions - Payroll for North America>Payroll Processing USF>Create and Load Paysheets>Create Paysheets
5. Run the payroll calculation - Payroll for North America>Payroll Processing USF>Produce Payroll>Calculate Payroll
6. Verify the paycheck that shows it is not being taken in the expected order - Payroll for North America>Payroll Processing USF>Produce Payroll>Review Paycheck

Cause

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