CPP is Over Withheld When There Are Multiple Assignments, but One has No Earnings
(Doc ID 2628856.1)
Last updated on MARCH 09, 2020
Applies to:Oracle HRMS (Canada) - Version 12.1 HRMS RUP12 and later
Information in this document applies to any platform.
After the application of HRMS 12.1 RUP12, or HRMS 12.2 RUP13, the CPP Retro Exemption calculation creates a large CPP deduction in situations where an employee has multiple assignments and one assignment does not receive earnings, but another does. Appears that the CPP_EE taxable amount of 0.01 that is passed in the first assignment (when assignment has no earnings) creates a large pay value for the assignment when retro is run. Appears that the system ignores any CPP Withheld YTD and calculates deduction on incorrect taxable amount.
Employee has bi-weekly assignment (XXXXX-2) which was put on leave of absence effective 01-Feb-19. User created a monthly assignment (XXXXX-3) effective 01-Feb-19. After installation of RUP, salary record in M1 assignment (XXXXX-3) effective 01-Jul-19 was deleted (employee should not have been entitled to salary increase. Payroll processed with this salary record for July, August and September 2019). When retro was run for this employee, it is expected to see CPP Retro Exemption Elements with negative taxable amounts of the difference in pay for the 3 months that the employee had been paid at the incorrect salary, along with the corresponding negative pay value for that taxable amount. What actually occurred is that that there are CPP Retro Exemption elements for every month back to Feb 2019 except for March. July, Aug and Sept amounts reduce the entire period's pay value, taxable and basic exemption. There are also elements for Apr, May and June that do not make any sense since there was no retro back to these dates. The element for Feb has only a pay value of 1538.73 with no taxable or basic exemption amounts. This resulted in the employee being over deducted 747.48. The income tax for this period also calculated over deduction by approx. 200.00.
The issue can be reproduced at will with the following steps:
See steps in description above.
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