AU: Tax Calculation On Retro GT12 (Lump Sum E Payments) In Case Of Legal Employer And Payroll Change (Doc ID 3033828.1)

Last updated on JULY 18, 2024

Applies to:

Oracle HRMS (Australia) - Version 12.1.3 and later
Information in this document applies to any platform.

Symptoms

When there is Legal Employer and Payroll change, Lump Sum E under previous Legal Employer does not have tax and Additional Tax Deduction for Lump Sum E under the current legal employer.

Example:

Periods:
Pay1
15 2023 Bi-Week 02-JAN-2023 to 15-JAN-2023
16 2023 Bi-Week 16-JAN-2023 to 29-JAN-2023
17 2023 Bi-Week 30-JAN-2023 to 12-FEB-2023

Pay2:
16 2023 Bi-Week 21-JAN-2023 to 03-FEB-2023
18 2024 Bi-Week 17-FEB-2024 to 01-MAR-2024

Quickpay for 02-JAN-2023 to 15-JAN-2023
LE1 & Pay1
Taxable Earnings = 10000.00

From 16-JAN-2023, changed LE1 to LE2

Quickpay for 16-JAN-2023 to 29-JAN-2023
LE2 & Pay1
Taxable Earnings = 10000.00

From 30-JAN-2023, changed Pay1 to Pay2

Quickpay for 20-JAN-2023 to 03-FEB-2023
LE2 & Pay2
Taxable Earnings = 10000.00

Backdated changes/insert

02-JAN-2023 to 15-JAN-2023
XX Ordinary Earnings = 10000.00

16-JAN-2023 to 29-JAN-2023
XX Ordinary Earnings = 20000.00

21-JAN-2023 to 03-FEB-2023
XX Ordinary Earnings = 30000.00

Quickretro for 17-FEB-2024

Three retro entries got generated for the respective back dated changes.

Quickpay for 17-FEB-2024 to 01-MAR-2024
LE2 & Pay2

View > Assignment Process Results shows 2 SOEs

1st SOE:
Retro Earnings GT12 = 10000.00
Taxable Gross = 10000.00
Tax Deductions = 0.00

2nd SOE:
Retro Earnings GT12 = 50000.00
Taxable Gross = 50000.00
Tax Deductions = 7696.00

Run Results:
Additional Tax Deduction = 7696.00

a) Is Lump Sum E under previous legal employer not expected to attract any tax?
b) Is Additional Tax Deduction value correct for Lump Sum E under the current legal employer?

Steps:
-------
1) Responsibility: AU HRMS Manager

2) Navigate to People > Enter and Maintain > Assignment

3) Make the required Legal Employer and Payroll changes

4) Navigate to View > Requests > Submit New Request

5) Run Rretropay and Payroll/Quickpay

6) Check the results