AU: Retro Earnings Included In Regular Earnings Causing Incorrect Tax Deduction
(Doc ID 3013306.1)
Last updated on APRIL 03, 2024
Applies to:
Oracle HRMS (Australia) - Version 12.1.3 and laterInformation in this document applies to any platform.
Symptoms
Problem Statement:
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Below is the issue using an example
Period#1
Elements:
Regular Earnings = 2628.49
Tax Deduction = 542.00
Period#2:
Elements:
Regular Earnings = 2759.91
Retro Earnings CY = 131.42
Tax Deduction = 632.00
As per Fortnightly Tax Table,
For Taxable Earnings of 2759.91, Tax Deduction is 586.00
For Taxable Earnings of 2891.33, Tax Deduction is 632.00
++ Retro earnings is considered part of regular earnings and tax is calculated as 632.00 instead of 586.00
Elements:
Regular Earnings = 2628.49
Tax Deduction = 542.00
Period#2:
Elements:
Regular Earnings = 2759.91
Retro Earnings CY = 131.42
Tax Deduction = 632.00
As per Fortnightly Tax Table,
For Taxable Earnings of 2759.91, Tax Deduction is 586.00
For Taxable Earnings of 2891.33, Tax Deduction is 632.00
++ Retro earnings is considered part of regular earnings and tax is calculated as 632.00 instead of 586.00
Steps:
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1) Responsibility: HRMS Manager
2) Navigate to View > Requests > Submit New Request
3) Run Payroll for first period
4) Perform a back dated change so as to trigger retro
5) Run Retropay (Enhanced) or Quick Retropay (Enhanced)
6) Run Payroll for next period
7) Check the results
Cause
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In this Document
| Symptoms |
| Cause |
| Solution |