EPY: CA OASDI/EE Tax Should Be Prioritized Before US Federal Withholding Tax. (Doc ID 3048739.1)

Last updated on SEPTEMBER 24, 2024

Applies to:

Symptoms

The employee has submitted a high income in the W-4 form, then there is not enough balance to withhold all taxes.
System prioritizes the Federal withholding instead of CA OASDI/EE tax.
Because there is not enough balance for all taxes, the OASDI/EE tax is not withheld.

Company table has "Federal Tax Deduction Priority" with 100 and "State Tax Deduction Priority" with 110.

Steps to reproduce the issue:

1. Navigate to Payroll for North America > Employee Pay Data USA > Tax Data > Update Employee Tax Data page, add a new row with the following information:

Effective Date: 09/01/2024

Federal
----
Form Version: W-4 - 2020 or Later
Tax Status: Married
Dependent Amount: $2000.00
Other Income: $400000.00

State
----
State: CA
Resident/ UI Jurisdiction
Exempt From SUT
Tax Status: Married
Withholding Allowances: 2

2. Navigate to Set Up HCM > Product Related > Foundation table > Company.

- Select the company then Default Settings page

- Verify that Federal Tax Deduction Priority is 100 and State Tax Deduction Priority is 110.

3. Navigate to Payroll for North America >Payroll Processing USA >  Create Online checks.

- Create the online check with a taxable gross of 3439.27

- Calculate the check

US Federal Withholding amount will be $ 3,176.17
CA OASDI Amount will be $ 0.00.


 

Changes

Cause

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