E1: 77: Pay Types For "Pay In Lieu" and Vacation Pay Together Causes Canadian Federal Income Tax To Calculate Incorrectly
(Doc ID 3002926.1)
Last updated on FEBRUARY 07, 2024
Applies to:
JD Edwards EnterpriseOne Canadian Payroll - Version 9.2 and laterInformation in this document applies to any platform.
Symptoms
If payroll has a "Pay In Lieu" pay type and Vacation pay type in either an interim payment or pre-payroll cycle payment, the Canadian Federal Income Tax calculates incorrectly. If you remove the "Pay In Lieu" pay type it works correctly.
Steps To Duplicate
- Create Pay Type for "Pay In Lieu":
- Pay Type = 740
- Print method= Y
- Pay Ty Category = R
- Pay Source = 7
- Pay Ty Multi = 1.00
- Auto Pay Method = B
- Canadian Leg/Reg screen ensure Bonus (annualized) payment (PB=7)
- EI Allocation ensure Allocate Earnings to the Current Pay Period is checked
- PDBA Setup - Tax Exemptions set Tax Type 01 = CI (Exempt hours)
- Create Pay Type 802 Vacation Pay Type:
- Print Method = Y
- Pay Type Category=A
- Pay Source=F
- Pay Ty multiplier=1.00
- Auto Pay Method = N
- Canadian Leg/Reg Screen ensure the radio button "None Of The Above" is set
- EI Allocation ensure Allocate Earnings To the Current Pay Period is checked
- Tax Exemptions set Tax Type 01 = CI (exempt hours)
- Update a test Canadian Employee (P0801) National & Fiscal Data Tax Area work and residence to 700030000
- Create an Interim Payment (P07210i) and enter 2 pay type lines:
- Row 1 for Pay Type 740 "Pay In Lieu" for 11,106.00 lump sum
- Row 2 for Pay type 802 vacation pay for 384.62 lump sum
- Click the purple calculator
- Notice Canadian Federal Income Tax is under $1,000 (too low)
- Cancel and remove the 2nd row Pay Type 802 Vacation pay, tab down to refresh
- Click the purple calculator again
- Notice on the pay stub the Canadian Federal Income Tax is now calculated correctly over $4k
Changes
Cause
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In this Document
Symptoms |
Changes |
Cause |
Solution |
References |