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Former Member
Jan 25, 2012 at 07:50 PM

US - Tax override for off-cycle bonus payroll for FED exempt employees

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Hi All,

I know that this topic has come up before, but I have a slightly different spin on it. 😊 We have employees that are exempt from FED taxes, but we need to deduct FED tax when paying out certain bonuses.

Example:

period 01 2012 1/1/12 - 1/31/12

Off-cycle Bonus 1/30/12

period 02 2012 2/1/2012 - 2/29/12

I have done the group override on IT234 with the same setup on the BSI side, but the fact that the person is exempt (R) on IT210 makes that the override doesn't work.

I changed the IT210 record not to be exempt for 1/30/12 - 1/30/12 and then the override works correctly. The problem though is that when the system retro's back to period 01 2012, it calculates the taxes slightly different because it has the one day in there as not exempt from taxes.

Anybody had to do this type of payment before?

Thanks for your time!