How to Set Up Allowances That Are Paid Outside of Payroll, But It Need to Be Added to Taxable Income For Income Tax Calculation and Withholding? (Doc ID 2022426.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle HRMS (China) - Version 12.1.3 to 12.2.4 [Release 12.1 to 12.2]
Information in this document applies to any platform.

Goal

Some allowances are distributed by Financial Department, e.g. meal allowance and transportation allowance, but subject to individual income tax calculation. They need to be taken into consideration while calculating the monthly tax for an employee, together with other taxable earnings, e.g. salary and bonus. However, since the actual payments are already made by Financial Department, they should not be added to Gross Pay.

How to achieve this in the system?
 

Solution

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