How the annualized pay amount for taxes is calculated when number of pays is set to 0



Description of Issue

Site has Use Frequency When Annualizing set to N, but for employees with 0 defined as number of pays, the system is calculating their Federal Tax Withholdings based on their pay frequency of Biweekly.



Context
  • Payroll

  • Payroll Start and Status

  • Employee Job/Salary

  • Tax Tables

  • Payroll Control Settings



Cause

System is using Annualized Tax Tables either based on the Payroll Control Settings or with Annual Tax Table checked on the Deduction and Benefit Master for the deduction itself. 



Resolution

If an employee has 0 for number of pays defined on their Employee Job/Salary record, regardless of their setting for Use Frequency When Annualizing, the system will default to their pay frequency when annualizing the deduction gross for the purposes of calculating Federal Tax withholdings. 



Additional Information