ETP Excluded Not Included in the Taxable Income for Non Excluded
(Doc ID 2141420.1)
Last updated on NOVEMBER 12, 2023
Applies to:
Oracle HRMS (Australia) - Version 12.1.3 to 12.1 HRMS RUP8 [Release 12.1]Information in this document applies to any platform.
This note provides a brief overview of
Symptoms
Problem Statement:
Any Employment Termination Payment (ETP) that has both excluded and non-excluded payments, the excluded part is not included in the taxable income when calculating the whole-of-income-cap for the non excluded component of the ETP.
Steps to Reproduce:
The issue can be reproduced at will with the following steps:
- Create employee with date of birth 01-JAN-1947.
- Create element entry of "ETP on Termination" with the information below.
Effective Start Date: 01-JAN-2016
GoldenHandshake: 200000
Unused Sick Leave: 50000
Further Entry Information
Golden Handshake: Yes (Non Excluded)
Unused Sick Leave: No (Excluded) - Terminate employee on 01-JAN-2016.
Further Information - Termination Type: Normal Termination
Actual Termination date: 01-JAN-2016
Final Process Date: 31-JAN-2016
Last Standard Process: 31-JAN-2016 - Run "Payroll Run" for Jan 2016 after the termination.
Assume Income for the Fiscal Year is 0. - Results of the payroll run is as follows.
ETP Unused Sick Leave 50000.00
ETP Golden Handshake 200000.00
ETP Payment 250000.00
ETP Payments Excluded 50000.00
ETP Payments Non Excluded 200000.00
ETP Taxable Payments Excluded 50000.00
ETP Taxable Payments Non Excluded 200000.00
ETP Deduction Excluded 8500.00
ETP Deduction Non Excluded 56400.00
ETP Taxable Non Excluded Under Cap 130000.00
The results should be as follows. (Expected results)
ETP Deduction Non Excluded 51600.00
ETP Taxable Non Excluded Under Cap 145000.00
Changes
Cause
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In this Document
Symptoms |
Changes |
Cause |
Solution |
References |