No CanadianTaxes Processed On Non Periodic Payments / Lump Sum Payments (for Severance)
(Doc ID 1529643.1)
Last updated on JULY 07, 2020
Applies to:Oracle HRMS (Canada) - Version 12.1.1 and later
Information in this document applies to any platform.
No Canadian taxes are processed on Severance payments starting 2013 (a year where there are no other payments made for the employee)
There is a terminated employee receiving Severance payments. Severance element is a Supplemental nonrecurring earning with Separate payment set to Yes and Tax Separate as set to No. Beginning 2013 the taxes are not getting processed in the payroll.
Expect taxes to be deducted from severance payments in the new year
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