Tax not Computed on Whole Earnings Value for Tax Code = 'S'

(Doc ID 2334760.1)

Last updated on DECEMBER 01, 2017

Applies to:

Oracle HRMS (New Zealand) - Version 12.1.1 and later
Information in this document applies to any platform.
This note provides a brief overview of .

Symptoms

Problem Statement:

With NZ Tax S Code (Secondary Employment), tax is computed on the whole earnings value, which result in incorrect "PAYE Tax Deduction".

Example:

Oracle Tax Calculation:
Tax = 748.26 * (17.5% + 1.39%) = 748.26 *18.89% = $141.34

IRD Tax Calculation:
Tax = 748.00 * (17.5% + 1.39%) = 748.00 *18.89% = $141.29

Steps to Reproduce:

The issue can be reproduced at will with the following steps:

  1.  Set tax Code = S
  2.  Run Payroll
  3.  Tax deductions is calculated based on taxable earnings.



Cause

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