My Oracle Support Banner

AU: ETP Tax Calculation Should Not Include The Medicare Levy (Doc ID 2356060.1)

Last updated on FEBRUARY 01, 2018

Applies to:

Oracle HRMS (Australia) - Version 12.2.5 and later
Information in this document applies to any platform.

Symptoms

On : 12.2.5 version, Australian Payroll

ACTUAL BEHAVIOR
---------------
We have identified an issue with the AU_ETP_TAX_CALCULATION formula where it is still including the medicare_levy of 2%

Line 88
l_etp_tax_excluded = etp_excluded_run * (ETP_DEATH_NO_TFN + MEDICARE_LEVY)

It needs to be changed to
l_etp_tax_excluded = etp_excluded_run * ETP_DEATH_NO_TFN

The old rules stated 49% (all the way at the bottom of the page)
https://www.ato.gov.au/Rates/PAYG-withholding-2015-16/Schedule-11---Tax-table-for-employment-termination-payments/?page=7

The new rules state 47% (all the way at the bottom of the page)
https://www.ato.gov.au/Rates/Schedule-11---Tax-table-for-employment-termination-payments/?anchor=Table_A#Table_A

As an aside, there’s a global value called “MEDICARE_LEVY” that’s set at 2%
 

EXPECTED BEHAVIOR
-----------------------
Calculation should not include the medicare levy.

STEPS
-----------------------
The issue can be reproduced at will with the following steps:
1.Login to AU HRMS Super User

2. Process a termination for an employee:
    Death Benefit Type is Non-Dependent; pay ETPs over $200,000.
2. Check the SOE


Changes

 

Cause

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

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


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