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

Last updated on APRIL 09, 2021

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.


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.


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