HRMS-Payroll for North America-Third Party Sick Pay

Question:



We are starting to use 3rd party sick pay for some employees and are having a little trouble setting up the earnings code properly.Our 3rd party vendor takes EE FICA and OASDI, but not ER so when we process it in PeopleSoft we want to be able to caluculate the ER side, but not the EE. I seems to be an all or nothing set up in PS though.Has anyone else experienced this or have any ideas for a solution? Thanks


Answer:



In PeopleSoft Earning Code Setup, you can specify whether the earnings are subjected tp Federal Level taxes (FWT , FICA and FUT);

if all the Subject to FICA box is checked, then the EE and ER taxes are withheld from the Employee's paycheck; you cannot specify take only EE and dont take ER or vice-versa;

FICA includes Medicare and OASDI;

if you pay H32 earnings of 1000.00 USD, here's how the paycheck taxes look like:



If you see, both EE and ER taxes are withheld at FICA level; if you want to take only ER and not EE FICA taxes, you need to use One-Time Tax Setup at paysheet level:

if you have many employee's with this setup, then you might write a custom process to load data into PS_PAY_TAX_OVRD