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US Taxes - use of UPAR1 DIF in payroll schema

Hello,

I am looking for some advice on how people are using the UPAR1 DIF parameter in the payroll schema. We were using the below setup in our payroll schema:

Function Par. 1 Par. 2 Par. 3 Par.4

UPAR1 DIF NODF 22 B

The issue we faced was in the scenario when a Regular payroll run was reversed (out-of-sequence reversal) and a correction check was processed for the same period. We want to pay the amount immediately instead of waiting for the next Regular run. In this case, the taxes were calculated using the separate aggregation method per our configuration which is incorrect as these are for the Regular payroll run only.

We then changed the parameters as below (Changed Par. 3 from 22 to 1):

Function Par. 1 Par. 2 Par. 3 Par.4

UPAR1 DIF NODF 1 B

Now the above issue with correction run for reversed regular payroll run was resolved and the taxes were calculated using the Regular payment method. However, we noticed that in a scenario where bonus wage type was entered in a retro period, the tax was calculated using the Regular payment method only even if the processing class 68 value was 2. This is incorrect.

I am now confused as to which is the best option of using UPAR1 DIF that will work for all the scenarios. Has anyone tried using the below combination (use blank in Par. 3)? If yes, could you please let me know if this is working as expected in all scenarios?

Function Par. 1 Par. 2 Par. 3 Par.4

UPAR1 DIF NODF B

Thanks,

Mitesh

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