GPAUS: HELP/SFSS DEDUCTION FOR ANNUAL LEAVE PAYOUT UPON TERMINATION
(Doc ID 2147001.1)
Last updated on NOVEMBER 26, 2021
Applies to:
PeopleSoft Enterprise HCM Global Payroll Australia - Version 9.1 to 9.2 [Release 9]Information in this document applies to any platform.
Symptoms
On: 9.2, PeopleSoft Enterprise HCM Global Payroll Australia, Legislative
Unused Leave on termination should not be included in the calculation for HELP & SFSS
When a staff member terminates and they have elected that they have a HELP/SFSS debt, we currently deduct a periodic version of these tax payments from their annual leave/LSL payout.
The amount of the HELP/SFSS tax to be deducted is calculated by the system.
We have just located a link on the ATO website which states that we are not to withhold unused leave on termination for HELP/SFSS. Please find the link below.
https://www.ato.gov.au/rates/schedule-7---tax-table-for-unused-leave-payments-on-termination-of-employment/
The delivered PeopleSoft elements TAX FM PST HELP and TAX FM PST SFSS includes Unused Leave which is incorrect.
EXPECTED BEHAVIOR:
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Lump sum leave termination payments should not effect HELP or SFSS deductions
STEPS:
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The issue can be reproduced with the following steps:
1. Create a termination business scenario for a employee
2. Run payroll process
3. Check Calendar results
BUSINESS IMPACT:
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The issue has the following business impact:
Due to this issue, users effected with HELP/SFSS is being over taxed
Changes
Cause
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In this Document
Symptoms |
Changes |
Cause |
Solution |
References |