We have a situation where after updating our 6.04 HCM system to SP74, our bonus checks 401K pre-tax deductions are not being treated as tax-free. They show to be classified as pre-tax deductions in the display log:
Employee contribution pre-tax: 100.00 USD Semi-monthly
No rollover of pre-tax to post-tax contributions
Post-tax contributions start only after pre-tax limit is reached
But when you read down in the log to the tax result section:
Tax result for payment type Once-only payment
Regular income taxes
Tax authority FED Federal 0070
Tax Category Tax.inc Tax-free Inc.Declare Tax.earning Tax
01 Withholding Tax (REG) 400.00 0.00 400.00 400.00 100.00
The Tax-free inc. amount is 0.00.
My first thought was to check PCL 68, and it is a 1-regular payment for the 401K wage type. (It works fine for regular payment.) If I change PCL 68 to 2-Supplemental Payment, it works for bonuses and NOT for regular payments. This was working for both payment types before our updates.
I checked T512B and it is the same values as the current table.
Does anyone know what else I should check to see what got changed in the application of SP74 to cause the 401K to be considered as pre-tax on bonus checks?