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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:
================
 Lump sum leave termination payments should not effect HELP or SFSS deductions

 STEPS:
======
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:
==============
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


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