United Kingdom Legislation Incorrect NI Contribution For Redundancy Termination Payment
(Doc ID 2687043.1)
Last updated on JULY 03, 2020
Applies to:Oracle Fusion Global Payroll Cloud Service - Version 11.13.20.01.0 and later
Information in this document applies to any platform.
On : 11.13.20.01.0 version, UK - United Kingdom Legislation
When it remove Redundancy Payment from NIable Pay balance feed then NI Employee and NI Employer are getting calculated as zero as expected. However, ‘Real Time Class 1A NIC’ is not getting calculated.
When it process some other NIable earning along with the Redundancy payment then all three (i.e. NI Employee, NI Employer and ‘Class 1A NIC) are getting calculated as expected. NI Employee and NI Employer are based on the NIable Pay and 'Real Time Class 1A NICs' is based on 'Earnings for Real Time Class 1A NICs'.
Application is triggering ‘Real Time Class 1A NICs’ calculation only when there is some ‘NIable Pay’ to be processed. Expectation is ‘Real Time Class 1A NICs’ should be calculated based on ‘Earnings for Real Time Class 1A NIC’ even if there is no ‘NIable Pay’ for the employee to be processed.
Redundancy Termination Payment = £30,800
PAYE Due on amounts over £30,000 only = £160.00
Employees Class 1 NI none due on any of the termination payment = £0.00
Employers Class 1 NI none due on any of the termination payment = £0.00
Employers Class 1A NI on amounts over £30,000 only = 13.8% of 800.00 = 110.40
NIable Pay and NIable Earnings should be £ 0.00
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