My Oracle Support Banner

Taxation Deduction with pay date as next month is not correct (Doc ID 2531130.1)

Last updated on JUNE 05, 2020

Applies to:

Oracle HRMS (China) - Version 12.1.3 to 12.1 HRMS RUP12 [Release 12.1]
Information in this document applies to any platform.

Symptoms

Problem Statement:
Februry month's Tax Deduction is not right.

/////
Correct Taxation Deduction in Febrary only can not be gotten if the pay date is the first day of next month.

Example case:
OK case:
- Period 12 2018
- Pay date 01-JAN-2019
- Taxable Earnings:19324 (Special Additional Deductions summary is 0)
- Taxation Deduction: 429.8700 and this is OK

NG(next month)
- Period 1 2019
- Pay date 01-FEB-2019
- Reduced Taxable Income : 25840.0000
25840 < 36000 , so Tax Rate is 0.03 , so 01-FEB-2019 Tax Payable is 25840*0.03=775.2000

but this employee 01-JAN-2019 had deduct Taxation Deduction 429.8700 .
so 01-FEB-2019 Taxation Deduction should be 775.2000 - 429.8700 = 345.33
but in EBS SYSTEM (01-FEB-2019 Taxation Deduction) is 775.2000.
they test 12-month tax deduction data, and only February tax deduction is problematic.

it seems that Taxation Deduction for 01-JAN-2019 was not considered when calculating in Feb, which means that the calculation might be 775.2000 - 0 = 775.2000.

 

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

  1.  Set the pay date as the first day of next month

  2.  Run payroll in Jan and Feb
     
  3.  Feb's calculation was wrong.

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!


In this Document
Symptoms
Cause
Solution
References


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