When adding a Secondary Base Pay in Payroll Earnings and Deductions the Taxes change from an Amount to Zero

Owned by Knowledge Assistant
Apr 03, 2023
2 min read



Description of Issue

When adding a secondary base pay into Earnings and Deductions in the payroll, it's changing the Tax Withholdings (Federal and State) from an Employee Withholding amount to 0.00. 



Context

  • Payroll

  • Payroll Start and Status

  • Earnings and Deductions

  • Employee Job/Salary

  • Payroll Control Settings

  • Employee Master



Cause

  • The Payroll Control Setting for, General - Use Frequency when Annualizing, was set to N. This looks to the Employee Job/Salary Base Pay Num Pays field to annualize the wages for the Tax calculations.

  • The secondary base pay record for the employee was marked as the Primary so the Num Pays field is used for that base pay in the calculations, which was set to 1.

    • The first base pay/Job Class entered into the payroll was defined with 24 Num Pays, which is why it was calculating correctly prior to adding the secondary Base Pay/Job Class. 



Resolution

Either update the Num Pays field to the correct amount on the secondary base pay in Employee Job/Salary or Set the Payroll Control Setting, General - Use Frequency when Annualizing to Y.

  • To update the Num Pays in Employee Job/Salary

    1. Go to Employee Job/Salary (Payroll>Employee Maintenance>Employee Job/Salary). 

    2. Search for the employee and the secondary base pay/Job. Click Update. 

    3. Define the correct number in the Num Pays field. Click Accept. 

      1. Example, from 1 to 24. 

  • To change the Payroll Control Setting

    1. Go to Payroll Control Settings (Payroll>Payroll Setup>Payroll Control Settings)

    2. Find and click the line for Category and Label,  General - Use Frequency when Annualizing. 

    3. Click Accept. 

    4. Click Update. Change the Value from a N to a Y. Click Accept. 



Additional Information

When updating the Payroll Control Setting to Y, the system will then look to the Pay Frequency in Employee Master (Semi-Monthly would be 24, Biweekly 26, etc.)

If there are two Job Classes/Base Pays, the system will use the Primary Num Pays field to annualize the taxes.Â