Deduction not withholding on the total gross pay

Our city tax deduction is not taxing the employee on the total gross pay.

• Munis
• Earnings and Deductions
• Payroll Exceptions

Payroll exceptions were reducing the deduction gross.

System was calculating as expected. Payroll exceptions were set up to reduce the deduction gross and deduction gross was being reduced as expected.

To review the exceptions:

1. Access Deduction and Benefit Master: Payroll > Payroll Setup > Deduction and Benefit Master
2. Click Exceptions
3. Search for the deduction code

Processing Code 2 - All Deductions are Exempt Except, any deduction listed under this processing code will subtract the employee withholding amount from the total gross pay to determine the deduction gross.