GP CHE - Wrong Source Tax Calculation For Partial Work In Canton VD (Doc ID 2103035.1)

Last updated on APRIL 28, 2016

Applies to:

PeopleSoft Enterprise HCM Global Payroll Switzerland - Version 9.2 and later
Information in this document applies to any platform.

Symptoms

The source tax calculation method has changed since january 2016

Employees with a partial time job can cumulate with other jobs and consequently the tax rate has to be increased to reach the full time equivalent. For example 1000 CHF for 15 days is equal to 2000 CHF for a full time equivalent of one month.
- This was in favor of the tax authority to ensure that the tax level is not always calculated on separate amounts with a reduced rate
However VDL employees do not cumulate and to avoid the highest tax, a manual adjustment is made each month to force the numbers of days with 30 days.

 VDL is missing for part time work :
Situation 1 : an employee with a monthly salary works 50 %, when the EFT check is uncheck, the calculation works - now OK
Situation 2 : an employee with a daily/hourly salary should pay the tax directly from the amount and it’s not. KO
Even if the EFT is unchecked – the calculation is the same.

Example : an employee works 80 hours which is the equivalent of 10 days of work
  His salary is 3200 CHF and the tax rate should be 3.3% for A0
  Currently, the system applies this formula : 10 days / 21 * 30 = 15 days
  Meaning that 15 is half of the month and the system calculate a tax rate of 13.21% which is wrong

Cause

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