My Oracle Support Banner

Tax not Computed on Whole Earnings Value for Tax Code = 'S' (Doc ID 2334760.1)

Last updated on FEBRUARY 03, 2019

Applies to:

Oracle HRMS (New Zealand) - Version 12.2 to 12.2 HRMS RUP 11 [Release 12.2]
Information in this document applies to any platform.
This note provides a brief overview of .


Problem Statement:

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


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.


To view full details, sign in with your My Oracle Support account.

Don't have a My Oracle Support account? Click to get started!

In this Document

My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.