ISR Tax Over Deducting In The Month Where Christmas Bonus or Profit Sharing Payment Is Made (Doc ID 2097562.1)

Last updated on JANUARY 15, 2016

Applies to:

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

Symptoms

On : 12.1.3 version, ISR issues

ACTUAL BEHAVIOR
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ISR Tax over withheld in the month where Christmas bonus payment is made. Employees are deducted higher taxes using Monthly Tax Adjustment run type on 30-Dec-2015 because system is trying to include Christmas Bonus payments paid during the month again in ISR Taxation.

EXPECTED BEHAVIOR
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Expect that no matter if the last payroll of the month is processed as a Monthly Tax Adjustment or Regular, the Christmas Bonus should not be used in the calculation of ISR tax for the month

STEPS
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The issue can be reproduced at will with the following steps:
1. Run the Christmas Bonus the first pay in December
2. Process a payroll run for the 1st payroll of a semi monthly payroll using a Process Type - Regular
3. Process a payroll run for the 2nd payroll of a semi monthly payroll using a Process Type - Monthly Tax Adjustment
4. See the ISR tax is higher when processed as a Monthly Tax Adjustment than when using the Regular Run type
5. The Christmas Bonus is being used in the ISR calculation when the payroll is run with the process type Monthly Tax Adjustment


Cause

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