NL-PAY: Wrong Pro Rato Calculated in NL_CALC_FOREIGN_TAX_REDUCTION When the Payroll for a Person With a 30% Rule Is Run in the Month After Termination (Doc ID 2884977.1)

Last updated on SEPTEMBER 06, 2023

Applies to:

Symptoms

Problem Statement:
When the payroll for a person with a 30% rule is run in the month after termination, the pro rato factor is not correctly calculated in fast formula NL_CALC_FOREIGN_TAX_REDUCTION and hence the Foreign Tax Calculations are incorrect.
The issue can be seen in the Statement Of Earnings (SOE) report, checking the Special Tax Deduction value.

Steps to Reproduce:
The issue can be reproduced at will with the following steps:
1. Go to NL HRMS Responsibility
2. Navigate to People > Enter and Maintain > search for one employee
3. Go to Assignment > Terminate the assignment in the middle of the month
4. Go to "Miscellaneous Tax Details" tab > Go to "30% Rule" = Yes and "30% Rule Expiry Date" = a date in future (example: 31-03-2025)
5. Navigate to View > Request > Submit a New Request
6. Run Payroll Run process
7. Check the SOE report >> the 'Special Tax Deduction' is calculated wrong. It skips the 30% rule

Cause

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