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Fusion UK Payroll: UK Legislation - Tax Calculation for Week 53/56 (Doc ID 2537063.1)

Last updated on OCTOBER 17, 2020

Applies to:

Oracle Fusion Global Payroll Cloud Service - Version 11.13.20.10.0 and later
Oracle Fusion Global Payroll - Version 11.12.1.0.0 and later
Information in this document applies to any platform.
This note was created for Release 11.13.19.01.0. The note has been reviewed and is current for release 11.13.20.10.0.

Symptoms

ACTUAL BEHAVIOR
---------------
Per HMRC specifications for
https://www.gov.uk/government/publications/cwg2-further-guide-to-paye-and-national-insurance-contributions/2017-to-2018-employer-further-guide-to-paye-and-nics >1.13.1 Week 53 and suffix codes.
"For employees on a cumulative code, take the following action. If the total free pay to date at week 52 is:
1. Equal to or more than the total pay for the year (that is the week 52 total plus the extra payday amount) - do not deduct any PAYE from the payment
to the employee
2. Less than the total pay for the year - work out how much PAYE to deduct by
reference to the pay for week 53, 54 or 56 less the amount of pay adjustment
(that is, free pay) shown in Tax Tables A"

For an employee that falls under " 1. equal to or more than the total pay for the year (that is the week 52 total plus the extra payday amount)" yet PAYE is still calculated for period 56 (payroll frequency is 4 weekly)

EXPECTED BEHAVIOR
-----------------------
For employees on a cumulative code, take the following action. If the total free pay to date at week 52 is:
1. Equal to or more than the total pay for the year (that is the week 52
total plus the extra payday amount) - do not deduct any PAYE from the payment
to the employee
2. Less than the total pay for the year - work out how much PAYE to deduct by reference to the pay for week 53, 54 or 56 less the amount of pay adjustment (that is, free pay) shown in Tax Tables A"

STEPS
-----------------------
The issue can be reproduced at will with the following steps:
Emp #12345678
Tax code: 1185L
Tax free: 11859
Taxable pay YTD: 10248, 47
PAYE calculated for period 56: 456,40
Expected PAYE: 0

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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