TUB 88 modified the reciprocal formula data for Ohio local withholding to only tax wages where earned when the certificate parameter (RC:) is set to 0. It added a reciprocal formula data to offset the resident local tax with nonresident local tax. The offset will not exceed the resident local credit limit when courtesy withholding is requested by setting the certificate code (RC:) equal to 2.
The issue employee is a Cincinnati (OH59) resident. He works 90% of his time in Cincinnati and 10% in Texas. Texas has no state or local tax. Up through the Oct 31 payroll, 100% of his wages were reported to Cincinnati.
On the Nov 15 payroll, only 90% was reported to Cincinnati. Since he is a Cincinnati resident, we need to continue to report 100% to Cincinnati. We have checked the T5uTE,T5uTM,T5uty and there were no table configuration changes. The taxable wages are same for both medicare and Cincinnati taxes .
We have also tried by maintaining the value of OH59 in T5UTRC with NEXUS INDICATOR AS - Secondary -Business and courtesy with holding as - Use standard configuration to pass the RC code in BSI interface with value 2 , but unfortunately we were unsuccessful. when we manually updated the RC to 2 and executed the batch file, Results are as expected.
His Cincinnati taxable wages are $8,521.37 but should match Medicare wages of $9,468.19.
I have attached the remuneration statement for the issue employee.
could you please help me out...