Pays being taxed at supplemental rate when pay master is using Tax Table

During payroll processing, the deduction reconciliation tab is showing stipend pays taxed at a supplemental rate. Even with the pay master set to Tax Table as the tax method.

• Enterprise ERP

• Human Capital Management

• Payroll

• Tax Tables

• Payroll Processing

The Federal Tax Table had the stipend pays defined in the yellow folder next to the Supplemental Rate on the Calc Screen of the Tax Table. 

If the Deduction Reconciliation Tab of the Federal Income Tax deduction is showing Pays taxed using the Supplemental rate and they should not be, you will need to remove them from the Supplemental Folder of the Calc Screen.

1. Navigate to Tax Tables: Payroll>Payroll Setup>Income Tax Setup>Tax Tables.

2.  Select Search and enter the effective date of the current tax tables, and a State Code of XX.

3. Select Calc to enter the calculation screen of the table.

4. Select Update, and click into the Yellow Folder next to the Supplemental Rate.

5. Highlight the pay code that should not be taxed using the supplemental calculation and select Delete.

6. Repeat this process with the remaining Federal Income Tax Tables for this tax year.

7. Return to Payroll Processing, and delete and add the Federal Income Tax Deduction to the Employee.

The Stipend pays should now be taxed using the Tax Table Calculation, not the supplemental Rate.