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OHIO Local - Taxable Wages - Incorrect calculations

Hi All,

We have an issue with OHIO local tax calculations. The taxable wages are calculated incorrectly as described below but the withholding tax calculations are fine.We trying to find what exactly changed this behaviour as the issue is from Feb 2014 and recently identified this issue.

Description:

OH59 - Taxable Wages of Cincinnati is incorrect.

Current Calculation

Gross Earnings - $10,601.34 ➕

Pre Tax Deductions - $61.72 ➖

401K regular contribution - $643.62 ➖

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Total Taxable Wages - $9896.00

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OHIO local Withholding tax - 9896.00 * 2% = $197.92 -- Incorrect

Expected Calculation :

Gross Earnings - $10,601.34 ➕

Pre Tax Deductions - $61.72 ➖

401K regular contribution - $643.62 ➖ (to be excluded)

---------------------------------------------------------------------------------------

Total Taxable Wages - $10539.62

------------------------------------------------------------------------------------

OHIO local Withholding tax - 10539.62 * 2% = $210.79 - Correct


For some employees where there is no 401K contribution, the pre tax deductions ( Benefit deductions are not being deducted from taxable earnings)


Also this is happening for local tax authority OH43 as well.

Please suggest what might have went wrong.

Regards

Madhav.

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3 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Dec 02, 2014 at 10:30 AM

    Hi Madhav

    Even we are facing the same issue for one of the localities. Ex, it's working well for Twinsburg, but not for Twinsburg - ReminderVille. Still trying to figure out the solution. Await experts comments here.

    Regards

    Neha

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 02, 2014 at 01:58 PM

    Hi all!

    We are also experiencing issues with OH locals however the situation that I have sent to BSI for a resolution is where I have two employees who are set up exactly the same in SAP (IT's 207, 208, 209 & 210 are all the same for both EE's) one has both OHIK (resident) and OHBT (work) withheld as expected however the second person is only having OHIK withheld since September. I can only assume that one of the TUB's that we applied during that time (30-33) broke this. I have compared the BSI call and all of the parameters being passed are identical.

    BSI has had a ticket opened for this since late October - anyone have any thoughts on what else I can check or try??

    Thanks

    Tonya

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 12, 2014 at 03:05 PM

    Hi Experts

    Any update on this please ? Did BSI / SAP respond to the given query ?

    Regards

    Neha

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