2015 WA Diminishing Tax-Free Threshold Not Implemented (Doc ID 2055848.1)

Last updated on MARCH 08, 2017

Applies to:

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

Symptoms

SOURCE INFORMATION
https://www.finance.wa.gov.au/cms/State_Revenue/Payroll_Tax/Diminishing_Threshold.aspx

The Payroll Tax Assessment Act 2002 has been amended to introduce a gradual diminishing tax-free threshold.    

From 1 July 2015, the tax-free threshold gradually phases out for employers or groups of employers with annual taxable wages in Australia between $800,000 and $7.5m.  Employers with annual Australia-wide taxable wages of $7.5m or more will pay payroll tax on their entire taxable wages.  

Your payroll tax liability is calculated by the Office of State Revenue (OSR) after you have declared your taxable wages through Revenue Online (ROL).    


ISSUE DESCRIPTION
The seeded
EPYAUPYT_XML: Payroll Tax Report by Legal Employer (Australia) (XML)
report does not appear to be taking this state requirement into account.
The existing global formula for WA_STATE_TAX_THRESHOLD still offsets the $66667 from the total payroll taxable payable calculation.

Global Value still being applied: WA_STATE_TAX_THRESHOLD for amount $66667
The state payroll tax dictates additional conditions, and client is now no longer applicable to receive any.


TEST DATA
Total Taxable Income = 4,160,666.91
Total Payroll Tax Payable = 225,170.00


EXPECTED  DATA
Using the Payroll Tax Calculator from
https://www.finance.wa.gov.au/cms/State_Revenue/Payroll_Tax/Diminishing_Threshold.aspx

Frequency = Monthly
Client Status = Local Group
Start Date = 01-JUL-2015
End Date = 31-JUL-2015
WA Taxable Wages = $4,160,666.91
-------------
WA Taxable Wages = $4,160,666.00
Tax Rate = 5.5%
Tax Calculated = $228,836.63


CALCULATIONS / PROOF
Actual Payroll Tax Calculated + (Threshold x Tax Rate)
= 225,170.00 + (66,667 x 5.5%)
= 225,170.00 + 3,666.685
= 228,836.67
= Expected Tax Calculated (228,836.63)

This proves that the State Tax Threshold is still being factored into the calculations, when it should not be.


STEPS TO REPRODUCE
(1) Run Concurrent Request: Payroll Tax Report by Legal Employer (Australia) (XML)
Parameters:
> Date =  31st July 2015
> Legal Employer = KCGM
> All other parameters are set to default

(2) Review outputs

Cause

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