The Unacceptable Tax Balance report identifies employees with potential incorrect withheld amounts for the following taxes:
Federal Income Tax (FIT)
State Income Tax (SIT)
Local Income Tax (LIT)
Social Security
Medicare
FUTA
SUI
SDI
This report ignores the SDI tax type for Hawaii and New York. This report calculates the Medicare Employee amount to be withheld based on the applicable rate and report differences. Note: Effective for 2013 and later, differences will only be reported where there is a difference between Medicare EE Withheld and Medicare ER liability for employees whose Medicare YTD wages are less than $200,000.
This report identifies Quarter to Date or Year to Date balances that are different than the calculated taxes as of a specific date. When the process finds a balance error, it adds the offending balance name and value to the report beneath the employee's name, along with a message identifying the problem. The following warning messages can appear on the report:
| Tax Type | Possible Warning Messages |
| FIT | FIT gross earnings < FIT reduced subject whable |
| FIT | FIT reduced subject whable = 0 and FIT withheld > 0 |
| FIT | FIT subject whable <= 0 and FIT withheld > 0 |
| FIT | FIT subject whable < FIT reduced subject whable |
| FIT | FIT gross earnings not = Medicare taxable + Section 125 pretax + Dependent care +401k pretax |
| FUTA | FIT gross earnings < FUTA taxable |
| Medicare | FIT gross earnings < Medicare EE taxable |
| Medicare | Medicare EE withheld not equal to Medicare ER liability
Note: Effective for 2013 and later, this error will only be reported where there is a difference between Medicare EE withheld and Medicare ER liability for employees whose Medicare YTD wages are less than $200,000. |
| Medicare | FIT gross earnings not equal to Medicare taxable + Section 125 pretax + Dependent care +401k pretax |
| Social Security | FIT gross earnings < SS EE taxable |
| Social Security | SS EE withheld not equal to Social Security ER liability |
| SIT | SIT subject whable <= 0 and SIT withheld > 0 |
| SIT | FIT subject whable <= 0 and SIT withheld > 0 |
| SIT | SIT subject whable < SIT reduced subject whable |
| SIT | FIT subject < SIT subject |
| SIT | Ensure SIT Withheld = 0 when State has no SIT withheld rule |
| SUI | SUI EE/ER subject whable <=0 and SUI EE/ER witheld > 0 |
| SUI | FIT gross earnings < SUI ER taxable |
| SUI | FIT subject whable <= 0 and SDI EE/ER withheld > 0 |
| SDI | FIT gross earnings < SDI EE taxable |
| SDI | SDI EE subject whable = 0 and SDI EE withheld > 0 |
| SDI | FIT subject whable <= 0 and SDI EE/ER withheld > 0 |
| LIT | LIT subject = 0 and LIT withheld > 0 |
| LIT | FIT subject whable <= 0 and LIT withheld > 0 |
| LIT | LIT subject whable < LIT reduced sbject whable |
The following error messages highlight issues with incorrect balance loads or balance adjustments:
SS Withheld does not = 6.2% of Taxable Balance
Medicare Withheld does not = 1.45% of Taxable Balance
FUTA Withheld does not = X% of ER FUTA Liability (X = value derived from JIT)
SUI Withheld does not = X% of SUI ER Liability (X = value derived from JIT)
SDI Withheld does not = X% of SDI Liability (X = value derived from JIT)
The Unacceptable Tax Balance program reports the Federal Income Tax (FIT) wages as zero, if you have selected the FIT Exempt from Wage Accumulation check box for an employee at the assignment level or selected Yes in the FIT Exempt from Wage Accumulation (PR) field in the Federal Tax Rules window for a Puerto Rico employee. As the Unacceptable Tax Balance report uses FIT wages as the base to validate other wages, the report skips for such employees and reports that manual reconciliation is required.
You organize the Unacceptable Tax Balance Report according to user-defined criteria or sort options. Oracle Payroll does not require you to use sort options to generate your Unacceptable Tax Balance Report, but they are the best way to configure the report to your specific needs. You can sort the report by any three of the following options:
Employee Name
Location
Organization
Social Security Number
Note: You cannot choose to sort by Social Security Number and then Employee Name. If you select Social Security Number as a sort option, Employee Name does not appear in the List of Values for the remaining sort options.
The sort options are hierarchical in nature. Making a selection to the Sort Option One field enables Sort Option Two. Making a selection to the Sort Option Two field enables Sort Option Three.
If you do not select any sort options, the report uses Organization and Employee Name as the default.
Example of Sort OptionsThe following is an example of how to use sort options to customize the Unacceptable Tax Balance Report.
If you want to create an Unacceptable Tax Balance Report sorted by Organization, Location, and Employee Name:
Enter Organization into the Sort Option One field.
Enter Location into the Sort Option Two field.
Enter Employee Name into the Sort Option Three field.
Using these Sort Options, Oracle Payroll generates the report listing each employee by location within each organization for the selected GRE or business group.
Note: The application nests the sort options. Using the previous example, if you change Sort Option Two from Location to Employee Name, the change automatically clears Sort Option Three.
When printed, the Unacceptable Tax Balance Report inserts a page break between each selected sort option, with the exception of Employee Name or Social Security Number.
For Example, if you choose Organization, Location, and Employee Name as sort options, the report contains a page break every time the Organization or the Location changes. The report does not have page breaks between the individual employees.
The following parameters exist for the Unacceptable Tax Balance Report:
| As of Date (required) | Last date you want the report to include. The Unacceptable Tax Balance Report will check balances between January 1 and the As of Date, or the start of the quarter and the As of Date. The balance dimension you select will control the starting date of the report. |
| Balance Dimension | Dimension you want to report on:
If you leave this field blank, the report uses YTD as the Balance Dimension. |
| GRE(required) | GRE you want included in the Unacceptable Tax Balance Report. |
| Selection Criteria Type | To restrict the report to a specific organization or location, select the appropriate value. If you select Organization, the Organization field becomes active. If you select Location, the Location field becomes active. If you leave this field blank, the report includes all organizations and locations. |
| Organization | If you have selected Organization in the Selection Criteria field, choose an organization from the List of Values. |
| Location | If you have selected Location in the Selection Criteria field, choose a location from the List of Values. |
| Tax Type | Limits the report to a specific type of tax or leave this field blank to include all Tax Types (FIT, SIT, LIT, Social Security, Medicare, FUTA, SUI, and SDI) in the report. |
| Tax Type State | This field is disabled unless you select a state-level tax (SUI, SDI, or SIT) in the Tax Type field. Select a value to limit this report to a specific state, or leave the field blank to include all states applicable to the selected Tax Type in the report. |
| Balance Verification SDI EE Rate | To override the system-defined Employee SDI rate, enter a new rate into the field; otherwise, leave the field blank. This field accepts values between 0 and 100. Do not use this field unless you have selected a state in the Tax Type State field. |
| Balance Verification SDI ER Rate | To overrides the system defined Employer SDI rate, enter a new rate into the field, otherwise leave the field blank. This field accepts values between 0 and 100. Do not use this field unless you have selected a state in the Tax Type State field. |
| Sort Options | There are three fields for sort options. See the Sort Options section for more information on how to properly use these parameters. If you do not select any sort options, the report uses Organization and Employee Name as the default. |
The parameters selected control the printing of the Unacceptable Tax Balance Report. The first page of the report displays the Report Parameters. The report prints in landscape fashion and is designed to fit on 8.5" x 11" paper.