Hello Experts,
For the part of FED Withholding tax to be calculated from the bonus wages in /115 we require that the percentage specified in IT 0169 for 401K Pre-Tax bonus deduction be subtracted from the total bonus amount and for the rest the 25% standard rate be applied. However, system is not behaving like wise and taking the entire /115 amount for calculating tax at 25%. In testing client surprisingly we are not facing this issue and calculation is as per requirement. Can you please something here or are we missing any check as such?