I configured a employer contribution wagetype that would not add to gross and that would be taxable for Alabama and NJ.
But I notice that federal tax gets bumped up as well. The new processing class Z was done for AL and Tax type 1.
Should a HSA WT be expected to deduct taxes like this as shown in Case 2 ?
Please explain the reasoning behind this behavior?
Thank you in advance for your attention to this matter.
Case 1) When PCRL 68, 69 and 71 are all blank on the wagetype and no taxes are deducted; below is the calculation I see
BSI interface
ADC TC: FED NR: 0 RP: 0
HUD TT: 01 FN: 01 PW: 4484.90 HW: 88.00 MS: 02 NE: 01
ADD TE: 0 YW: 4799.47 YT: 718.10 RN: 0 PW: 1.00 YG: 5757.58
VDC AT: 0
SDC SM: 9 BW: 4364.82
LUD MW: 4799.47 MT: 718.10 SA: 0 QW: 4799.47 QT: 718.10 PND: 0.00
ADC TC: FED NR: 0 RP: 0
HUD TT: 55 FN: 01 PW: 5661.40 HW: 88.00 MS: 02 NE: 01
ADD TE: 0 YW: 5475.97 YT: 339.51 RN: 0 PW: 1.00 YG: 5757.58
VDC AT: 0
SDC SM: 9 BW: 5541.32
LUD MW: 5475.97 MT: 339.51 SA: 0 QW: 5475.97 QT: 339.51 PND: 0.00
ADC TC: FED NR: 0 RP: 0
HUD TT: 56 FN: 01 PW: 5661.40 HW: 88.00 MS: 02 NE: 01
ADD TE: 0 YW: 5475.97 YT: 268.32 RN: 0 PW: 1.00 YG: 5757.58
VDC AT: 0
SDC SM: 9 BW: 5541.32
LUD MW: 5475.97 MT: 268.32 SA: 0 QW: 5475.97 QT: 268.32 PND: 0.00
ADC TC: FED NR: 0 RP: 0
HUD TT: 57 FN: 01 PW: 5661.40 HW: 88.00 MS: 02 NE: 01
ADD TE: 0 YW: 5475.97 YT: 339.51 RN: 0 PW: 1.00 YG: 5757.58
VDC AT: 0
SDC SM: 9 BW: 5541.32
LUD MW: 5475.97 MT: 339.51 SA: 0 QW: 5475.97 QT: 339.51 PND: 0.00
ADC TC: FED NR: 0 RP: 0
HUD TT: 58 FN: 01 PW: 5661.40 HW: 88.00 MS: 02 NE: 01
ADD TE: 0 YW: 5475.97 YT: 717.35 RN: 0 PW: 1.00 YG: 5757.58
VDC AT: 0
SDC SM: 9 BW: 5541.32
LUD MW: 5475.97 MT: 717.35 SA: 0 QW: 5475.97 QT: 717.35 PND: 0.00
ADC TC: FED NR: 0 RP: 0
HUD TT: 59 FN: 01 PW: 5661.40 HW: 88.00 MS: 02 NE: 01
ADD TE: 0 YW: 5475.97 YT: 79.40 RN: 0 PW: 1.00 YG: 5757.58
VDC AT: 0
SDC SM: 9 BW: 5541.32
LUD MW: 5475.97 MT: 79.40 SA: 0 QW: 5475.97 QT: 79.40 PND: 0.00
ADC TC: FED NR: 0 RP: 0
HUD TT: 60 FN: 01 PW: 5661.40 HW: 88.00 MS: 02 NE: 01
ADD TE: 0 YW: 5475.97 YT: 79.40 RN: 0 PW: 1.00 YG: 5757.58
VDC AT: 0
SDC SM: 9 BW: 5541.32
LUD MW: 5475.97 MT: 79.40 SA: 0 QW: 5475.97 QT: 79.40 PND: 0.00
ADC TC: AL NR: 0 RP: 1 RC: 1
HUD TT: 01 FN: 01 PW: 4484.90 HW: 88.00 MS: 01 NE: 00
ADD TE: 0 RN: 0 PW: 1.00
VDC AT: 0
SDC SM: 9 BW: 4364.82
ETC
Case 2) when PCRL 68=1, 69=2 and 71=Z are set on the new WT to deduct state tax for AL below is the calculation I see
BSI interface
ADC TC: FED NR: 0 RP: 0
HUD TT: 01 FN: 01 PW: 4484.90 HW: 88.00 MS: 02 NE: 01
ADD TE: 0 YW: 4799.47 YT: 718.10 RN: 0 PW: 1.00 YG: 5757.58
VDC AT: 0
SDC SM: 9 BW: 4364.82
LUD MW: 4799.47 MT: 718.10 SA: 0 QW: 4799.47 QT: 718.10 PND: 0.00
ADC TC: FED NR: 0 RP: 0
HUD TT: 55 FN: 01 PW: 5661.40 HW: 88.00 MS: 02 NE: 01
ADD TE: 0 YW: 5475.97 YT: 339.51 RN: 0 PW: 1.00 YG: 5757.58
VDC AT: 0
SDC SM: 9 BW: 5541.32
LUD MW: 5475.97 MT: 339.51 SA: 0 QW: 5475.97 QT: 339.51 PND: 0.00
ADC TC: FED NR: 0 RP: 0
HUD TT: 56 FN: 01 PW: 5661.40 HW: 88.00 MS: 02 NE: 01
ADD TE: 0 YW: 5475.97 YT: 268.32 RN: 0 PW: 1.00 YG: 5757.58
VDC AT: 0
SDC SM: 9 BW: 5541.32
LUD MW: 5475.97 MT: 268.32 SA: 0 QW: 5475.97 QT: 268.32 PND: 0.00
ADC TC: FED NR: 0 RP: 0
HUD TT: 57 FN: 01 PW: 5661.40 HW: 88.00 MS: 02 NE: 01
ADD TE: 0 YW: 5475.97 YT: 339.51 RN: 0 PW: 1.00 YG: 5757.58
VDC AT: 0
SDC SM: 9 BW: 5541.32
LUD MW: 5475.97 MT: 339.51 SA: 0 QW: 5475.97 QT: 339.51 PND: 0.00
ADC TC: FED NR: 0 RP: 0
HUD TT: 58 FN: 01 PW: 5661.40 HW: 88.00 MS: 02 NE: 01
ADD TE: 0 YW: 5475.97 YT: 717.35 RN: 0 PW: 1.00 YG: 5757.58
VDC AT: 0
SDC SM: 9 BW: 5541.32
LUD MW: 5475.97 MT: 717.35 SA: 0 QW: 5475.97 QT: 717.35 PND: 0.00
ADC TC: FED NR: 0 RP: 0
HUD TT: 59 FN: 01 PW: 5661.40 HW: 88.00 MS: 02 NE: 01
ADD TE: 0 YW: 5475.97 YT: 79.40 RN: 0 PW: 1.00 YG: 5757.58
VDC AT: 0
SDC SM: 9 BW: 5541.32
LUD MW: 5475.97 MT: 79.40 SA: 0 QW: 5475.97 QT: 79.40 PND: 0.00
ADC TC: FED NR: 0 RP: 0
HUD TT: 60 FN: 01 PW: 5661.40 HW: 88.00 MS: 02 NE: 01
ADD TE: 0 YW: 5475.97 YT: 79.40 RN: 0 PW: 1.00 YG: 5757.58
VDC AT: 0
SDC SM: 9 BW: 5541.32
LUD MW: 5475.97 MT: 79.40 SA: 0 QW: 5475.97 QT: 79.40 PND: 0.00
ADC TC: AL NR: 0 RP: 1 RC: 1
HUD TT: 01 FN: 01 PW: 5484.90 HW: 88.00 MS: 01 NE: 00
ADD TE: 0 RN: 0 PW: 1.00
VDC AT: 0
SDC SM: 9 BW: 5364.82
ETC