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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 later
Information in this document applies to any platform.


Problem Statement:
Below is the issue using an example

Regular Earnings = 2628.49
Tax Deduction = 542.00

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

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


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