Oracle Payroll includes two types of payroll runs, Regular and Supplemental. A payroll normally has just one Regular run each period (to produce the employees' regular earnings), but it can have many Supplemental runs each period (to process supplemental earnings and final pay for terminating employees as needed).
The default tax withholding method for Supplemental runs is supplemental withholding. However when these runs process final pay, they always use regular withholding for any regular earnings included in the final pay.
The default withholding method for Regular runs is regular withholding (Percentage or Annualized Wages withholding), but these runs can use supplemental withholding for any included supplemental earnings.
The following table summarizes the withholding method and use of each run type.
| Run Type | Withholding Method | Frequency and Use |
|---|---|---|
| Regular | Default is regular. Can use supplemental for supplemental earnings. | Regular runs are scheduled in advance to process the employees' regular and imputed earnings once each period. |
| Supplemental | Default is supplemental. Uses regular to process regular and imputed earnings in final pay. | Supplemental runs occur whenever necessary to process supplemental earnings and final pay for terminating employees. |
To identify supplemental earnings that Regular runs should process using supplemental withholding, Oracle Payroll generates all earnings types in the Supplemental Earnings classification with a Tax Separately input value. This input value has a default entry of No. If you change this entry to Yes for a supplemental earnings type, Regular runs use supplemental withholding when processing the earnings.
Input Value for Supplemental Withholding
| Input Values Name | Purpose of Entry |
|---|---|
| Tax Separately | Default No means, apply run's default withholding method. Yes means, always apply supplemental withholding. |