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Incorrect Tax Code Reported In P45 For PAYE Aggregated Employees. (Doc ID 2035023.1)

Last updated on FEBRUARY 24, 2019

Applies to:

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


Incorrect tax code reported in P45 for PAYE aggregated employees.

When an employee with PAYE aggregated assignments is terminated, it appears that the P45 uses the assignment with the lowest assignment_id (providing the assignments have the same end date ) to retrieve the Tax Code to be reported. If that assignment has no payment in the final period ( but other assignments are paid ), the code is taken from the last period in which the assignment was paid. If a change of code has been entered between these periods, an incorrect code can be reported in for P45.

The code attempts to get the Tax Code (and Tax Basis, previous pay and previous tax) from three different places:
  (1) Initially, it tries to get it from the latest "PAYE" run results.
  (2) If unsuccessful, it then tries to get it from the "PAYE Details" run results.
  (3) If still unsuccessful, it tries to get it from the PAYE Element.

It appears that Run Results aren't created for element "PAYE" if the pay value is 0.

In the case of the employee referred to in the attachment, the PAYE value was 0 for the -5 assignment in Period 6 2013 (this is the assignment with the lowest assignment_id) hence a run result wasn't created for the period. However, as the value wasn't 0 in Period 5, a run result was created for “PAYE”, hence the latest “PAYE” run result comes from this period.
In Period 5, the Tax Code was still 944L so it is this that appears on the P45.

The logic operating here is from standard Oracle code (package.procedure PAY_P45_PKG.get_tax_details).

When assignments are aggregated for PAYE, the tax code displayed in form P45 should be that used in the final payment to the employee, irrespective of which assignment that payment is made against.




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