GPMYS: Incorrect Tax Amount Resolved for Employee with Multiple Pay Cycles Per Period and Employee with Zakat Deduction (Doc ID 1937769.1)

Last updated on JUNE 02, 2016

Applies to:

PeopleSoft Enterprise HRMS Global Payroll Malaysia - Version 9.1 to 9.2 [Release 9]
Information in this document applies to any platform.

Symptoms

On : Global Payroll Malaysia 9.2 version, Taxes

ACTUAL BEHAVIOR
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Incorrect Tax amount resolved for employee with multiple Pay Cycles per period and employee with Zakat deduction.

EXPECTED BEHAVIOR
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Correct Tax amount should be resolved for employee with multiple Pay Cycles per period and employee with Zakat deduction.

STEPS
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The issue can be reproduced at will with the following steps:
1.Run Pay Calendar – KM 2014M01 (January 2014)
 
2.Pay Calendar – KM 2014M02 (February 2014)

3.Pay Calendar – KM 2014M02BONUS (February 2014)

4.When we run thru the same scenario using LHDN PCB calculator in the website, we managed to get the tax computed for off-cycle was only RM5152 after adding zakat deduction in normal cycle into the computation.

Therefore, it concludes that during bonus processing in off-cycle after normal cycle in the same month payroll cycle, zakat that had already been deducted in normal cycle was not taken into calculation during tax computation in off-cycle resulting to the tax amount in off-cycle in excess equivalent to the zakat amount.


BUSINESS IMPACT
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The issue has the following business impact:
Due to this issue, users cannot have correct Tax amount deducted for the employees.

Changes

 N.A

Cause

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