Imputed Earnings should be included in Reduced Subject Withholdable but no Tax should be deducted — Cloud Customer Connect
You're almost there! Please answer a few more questions for access to the Applications content. Complete registration
Interested in joining? Complete your registration by providing Areas of Interest here. Register

Imputed Earnings should be included in Reduced Subject Withholdable but no Tax should be deducted

edited Aug 11, 2025 1:03PM in Payroll and Global Payroll Interface (GPI) 2 comments

Summary:

Goal : Imputed Earnings should be included in Reduced Subject Withholdable but no Tax should be deducted
Suppose, we have 4037 of Regular Earnings, 500$ imputed and 291 as pretax deductions.

Reduced Subject WIthholdable = (Regular Earnings +imputed earnings) - pretax deductions

Reduced Subject WIthholdable = (4037+500)-291 = 4246$(correct amount)

But how system is behaving,

If we configure Federal Tax Wage Basis Rule for imputed earnings as Yes : (4037+500)-291 = 4246$(correct amount) but extra tax is deducted on 500$ of imputed earnings.
If we configure Federal Tax Wage Basis Rule for imputed earnings as No : 4037-291 = 3746$(wrong amount)

Our Goal here is :

Reduced Subject WIthholdable = (4037+500)-291 = 4246$(correct amount) but no extra Federal Tax is deducted on 500$.

Tagged:

Howdy, Stranger!

Log In

To view full details, sign in.

Register

Don't have an account? Click here to get started!