Tax not Computed on Whole Earnings Value for Tax Code = 'S'
(Doc ID 2334760.1)
Last updated on DECEMBER 11, 2023
Applies to:
Oracle HRMS (New Zealand) - Version 12.2 to 12.2 HRMS RUP11 [Release 12.2]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:
- Set tax Code = S
- Run Payroll
- Tax deductions is calculated based on taxable earnings.
Changes
Cause
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In this Document
| Symptoms |
| Changes |
| Cause |
| Solution |
| References |