What Are Limit Taxes

The payroll process enforces most tax limits at the payroll relationship level. This means it tracks them across the tax reporting units (TRUs) within their parent payroll statutory unit (PSU).

By default, the payroll process enforces the maximum wage and tax limits for all federal limit taxes at the PSU level. For state limit taxes, it does this at the TRU level.

However, you can override how the process tracks these limits.

Note:

If you must have multiple PSUs, and you want the payroll process to access person-level balances across them, you can import balances from one PSU to another. For further info, see Oracle Cloud Human Capital Management for United States: Balance Adjustments (1600728.1) on My Oracle Support.