Indiana (40%) and Texas (60%) work split is not calculating correctly

[Former Member]

Hi All,

I am working on one issue which is related to the Work tax area split.

Indiana 40% work split is not calculating wages correctly.

We have an employee who's work tax area (IT 208) is split between Indiana (40%) and Texas (60%) effective
5-1-14.  The system is  calculating Indiana wages based on 40% of gross wages rather than 40% of taxable wages as it
should.

I have done the tax model changes and which resolved my issue, but as per the business Indiana has the same taxability rules as Federal. So we have reverted the changes in Tax model.

Thanking You in Advance.

Sri

[VamsiK]

Hi,

Please elaborate what you mean by Indiana has the same taxability rules as Federal.

the taxability rules of an employee are governed by the IT0210 properties, verify if you have manitained IT0210 entries and it looks like you have already maintained IT0208 correctly by splitting the percentage of work for state.

[Former Member]

Hi,

Thanks for your reply.

What I mean to say is Indiana has the same tax model as federal.

I tried to modify the tax model and it worked for me, as per the business we should not modify the tax model for this issue.

Thanks,

Sri.

[VamsiK]

Please verify all the wagetypes accumulating to your taxable wages by checking wagetype propoerties in Processing class 71 of each wagtype.

[former_member235056]

Hi Sri,

Please provide details on what you changed in tax model set-up.

It all starts with taxable gross and then taxable income.

It could be a problem with your tax model if changing tax model worked.

Please have separate combos used for Indiana and Federal in case they share common taxability and then proceed making changes to Indiana tax model.

Thanks,

Ameet

[Former Member]

Hi Ameet,

Thanks for your reply.

When the same tax model setup is working fine for Indian Withhoding, if work tax allocation is 100%.

Why it is not working when the Indiana Withholding work tax has split  i.e. (Indiana 40% and Texas 60%) ?

As per the guidelines of client, we should not modify tax model changes for this issue

Regards,

Sri..

[former_member235056]

Hi Sri,

Can you share details on what did you change as part of taxability model changes that you are saying helped fix issue.

Also, please share your payroll results and actual taxable earnings and gross wages.

Thanks,

Ameet