Seniority Premium Should Be Exempt For Employer State Tax In Guanajuato (GTO)

(Doc ID 1998302.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle HRMS (Mexico) - Version 12.1.3 and later
Information in this document applies to any platform.


On : 12.1.3 version, Tax Issues

According to last update on State Tax Law for Guanajuato (GTO), Art 4, section IV, the Indemnities and premiums given for rescission or termination of employment are exempt for State Tax.

The Indemnities and premiums elements to not calculate a state tax liability for Guanajuato when the employee is terminated

The issue can be reproduced at will with the following steps:
1. Go to People > Enter and Maintain
2. Search for a terminated employee which will receive a severance payment
3. Go to Assignment > Others > Quickpay
4. Process the Quickpay
5. See an Employer Liability for state tax is not calculated correctly


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