Username
Forgot password?
Welcome to the SSDT Question and Answer Site!
Or Join with FTT

City Taxes and Deduction by Job

0

750 views
We have a district that called yesterday about how city tax is figured when deductions are set up by job. 

The employee has two jobs.  One of the jobs is fulltime in the city where the school is located.  The other job is a sub bus driver.  The city has agreed to charge taxes on 25% of the second job wages. 

After looking at the person, it looks like the annuities are deducted from both Job 1 and Job 2 before the city taxed are calculated on each job.  If this person would have family insurance coverage, no city taxes would be withheld on their second job. Employees could end up owing taxes at the end of the year.

Is that the way the program should work?  

Thanks,

Melody
 
asked February 5, 2015 09:01 AM

 

3 Answers

0
Best answer
 
Hi Melody,

There is currently a JIRA issue out there regarding this situation-USPSV-988. Until this has been addressed the district can either let the system calculate as is and the employee will pay the tax when they file or they could enter in an Additional withholding amount in the Addt'l withlhold field on the city DEDSCN record.

I am going to add your question to the JIRA issue.

Thanks,
Lori
flag
answered February 5, 2015 09:19 AM
Lori, It looks like the taxable wages on the city tax is incorrect for this person. How should the district handle that? Melody
flag
Feb 5, 2015 10:36 AM
0
 
Melody,

Is the taxable gross is less based on the section 125 being honored for both jobs? If so all districts that I know of have reported this to the cities as is. Until we determine if the way the system is calculating the taxable gross is not correct (honoring section 125's for each job) we have not had districts make any changes to this figure.

If this is not what you are referring to then we may need to see the district files in order to better to access the situation.

Thanks,
Lori
flag
Edited Feb 5, 2015 10:48 AM
typo
answered February 5, 2015 10:44 AM
Lori, The one person we are looking at has a taxable earnings less than the Medicare wages. We ran the W2proc to see what the W2 would look like. Medicare is 5353.34, Cities are 5244.13. Melody
flag
Feb 5, 2015 11:46 AM
Melody, We are probably going to need you to copy the files out to OECN_SSDT and give us the name of the employee so we can look into this further. Thanks, Lori
flag
Feb 5, 2015 03:47 PM
Lori, The files are out there. Let me know if you need anything else. Melody
flag
Feb 6, 2015 07:43 AM
I will need the employee name as well as the file name Lori
flag
Feb 6, 2015 08:33 AM
Melody, If I add up his pays from 1/5, 1/20 and 2/5 his gross for Job 1 on the 003 record should be 5368.00 (which it is on the 003 record and the taxable gross would be the 5168.00 - section 125 annuities (144.25) =5223.75 The same applies to Job 1 deduction code 004 the gross, taxable gross and tax withheld appears to be accurate. It appears that on the 2/5 pay deductions by job for the city were then setup: Job 2 deduction 003- Gross pay 129.59 this deduction only uses 25% of gross so gross on 003 would be 32.40 To determine taxable gross the system takes the original gross 129.59 minus section 125 annuities 480.08=81.51 and only 25% of this gets reported as taxable gross so 25% of 81.51=20.38 Tax on this deduction 20.38 x 1.75=.36 Job 2 deduction 004: Gross pay 129.59 this deduction only uses 25% of gross so gross on 004 would be 32.40 To determine taxable gross the system takes the original gross 129.59 minus section 125 annuities 480.08=81.51 and only 25% of this gets reported as taxable gross so 25% of 81.51=20.38 Tax on this deduction 20.38 x .75=.15 Job 2 deduction code 16: Gross pay 129.59 this deduction only uses 75% of gross so gross on 016 would be 97.19 To determine taxable gross the system takes the original gross 129.59 minus section 125 annuities 48.08=81.51 and only 75% of this gets reported as taxable gross so 75% of 81.51=61.13 Tax on this deduction 61.16 x 1.75=1.07 Since the cities are only charging on a percentage for Job 2, I am thinking that this is why there is a difference in the gross and taxable gross when comparing to the Medicare gross and taxable gross. The Medicare actual gross minus annuities equals the taxable gross is being used for the W2PROC calculations. The city gross and taxable gross has deflated figures because of the percentage of gross being used on the second job. Lori
flag
Feb 9, 2015 12:37 PM
Melody, What exactly is off on the quarter report for this employee? city Gross, taxable gross, higher/lower? contributions? Lori
flag
Mar 31, 2015 09:10 AM
0
 
Melody,

Can you please copy the files out to OECN_SSDT and give us the name of this employee so we can take a look at this?

Thanks,
Lori
flag
answered February 5, 2015 12:17 PM
I will let you know when they are out there. Melody
flag
Feb 5, 2015 04:27 PM
Lori, They are out there. The person is Karl Ford. Let me know if you have any questions. Thanks, Melody
flag
Feb 9, 2015 09:10 AM
Lori, I just got a call from my district. There quarter report for this person is off. What should I tell them? Melody
flag
Mar 31, 2015 08:35 AM

Your answer

Join with account you already have

FTT

Preview

Alert