GP UK DC Refund-Gross Up Calculations ofr Active Employee is Not Working as Expected (Doc ID 2058674.1)

Last updated on SEPTEMBER 22, 2015

## Applies to:

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

## Goal

The gross up calculation is not working as expected. The gross up amount generated by the system is higher than expected.

After the analysis, it was found out GU FM 2 (DC Refund formula) is having an extra line causing the gross up calculation for the DC refund is not working as expected for the active employee.

Please find the below line that causing gross up calculation not working as expected:

Formula:
IF ER[GU ER TAXNI] = 0 THEN
EXIT
ELSE
FM[TAX FM PAYE] >> VR[TAX VR TEMP1]
IF AC[GBR AC GRTX SEG] = 0 THEN
0 >> VR[TAX VR TEMP1]
ENDIF
FM[NI FM SWITCH TST] >> VR[GBR VR DUMMY]
VR[TAX VR TEMP1] + VR[NI VR EES TOT] - VR[NI VR EES RBT TOT] >> VR[GU VR STDEDS]
AC[GBR AC GRTX SEG] - VR[GU VR STDEDS] >> VR[GU VR NETT]
VR[GU VR NETT] + ER[GU ER TAXNI] >> VR[GU VR TARGET]
VR[GU VR TARGET] + VR[GU VR STDEDS] >> VR[GU VR TARGET]
( 1 - ( ( VR[GU VR NETT] - ER[GU ER TAXNI] ) / ( AC[GBR AC GRTX SEG] + ER[GU ER TAXNI] ) ) ) * ER[GU ER TAXNI] >> VR[GU VR GUESS][GBR RR UP 2DP]
IF VR[GU VR GUESS] = 0 THEN
ER[GU ER TAXNI] * 0.33 >> VR[GU VR GUESS][GBR RR UP 2DP]
ENDIF
1 >> VR[GU VR IND]
ENDIF
1 >> FM[GU FM 2]

Description:
VR[GU VR TARGET] + VR[GU VR STDEDS] >> VR[GU VR TARGET]

The line highlighted showing value has been deducted from Generic Gross Taxable amount and pass the value Net to Gross. In the later part of the formula, deducted value again added back to the Net to Gross and assigns it to the processing variable.