EPY: What Effective Dates does Paycalc Use for Tax Purposes? (Doc ID 608773.1)

Last updated on MAY 02, 2016

Applies to:

PeopleSoft Enterprise HCM Payroll for North America - Version 8.8 SP1 and later
Information in this document applies to any platform.
Checked for relevance May 2, 2016


Symptoms

Questions:

  1. What dates does the pay calculation look at for tax purposes?

  2. How does PeopleSoft calculate taxes when an employee transfers, after the pay end date and before the check date.

  3. When using 'Create Single Check' functionality, the calculation of taxes is based on the paycheck issue date from the on-cycle pay calendar that the check is processed against. The program is ignoring the actual issue date and using the maximum effective dated row from FED_TAX_DATA and STATE_TAX_DATA based on the check date from the calendar. There are common cases where an employee may have tax data that would be future dated based on the online check's issue date and the checks taxes are calculated incorrectly. We know that payroll uses the issue date to determine tax withholdings for the on-cycle where the issue date is determined from the pay calendar but client would like the logic to be changed for off -cycle.

    Will PeopleSoft consider changing this functionality so that the system uses the date of the check not the check date on the pay calendar.

      

Cause

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