Hi All,
We have a situation with Bonus processing where an employee is enrolled with 100% Deferred Comp plan. On processing bonus payment, the deferred comp WT amount is not getting deducted at all from the pay check and is being moved into DDNTK table. We are having this issue only for contributions more than 90%.
On further check within the tax section,we found that EE Medicare tax (/405 ) is being generated which is actually reducing the gross amount before the deferred comp WT amount is reduced within the Net calculation section. Not sure why this is happening ? The Federal taxes are not generated since due to the 100% deferral, which is fine.
The Bonus WT is setup as supplemental payment in PC68 and Deferred Comp WT is set as a pre-tax deduction in PC65.
Has anyone come across such issue and resolved them ? This is currently urgent for us. So appreciate your quick responses.