Enable Taxable Wage Adjustment for Negative Pre‑Tax Retroactive Deductions in Oracle HCM Payroll

Summary:

Oracle HCM Payroll currently does not include negative pre‑tax retroactive deductions (such as refunds or retroactive benefit premiums) in taxable wages, resulting in incorrect FIT/SIT/RRTA calculations and YTD balances. Legal and IRS guidance require these retroactive premiums to be taxed when collected after the fact.

Content (please ensure you mask any confidential information):

Currently, Oracle HCM Payroll does not include negative pre‑tax retroactive deductions (e.g., refunds or retroactive benefit premiums) in taxable wages for FIT, SIT, RRTA, and other applicable taxes. This creates compliance issues when retroactive premiums for pre‑tax benefits (Medical, Dental, etc.) must be collected on an