GP UK Incorrect Tax Code Used For Inter-company Transfers (Doc ID 2149920.1)

Last updated on JUNE 17, 2016

Applies to:

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

Symptoms

Customer statement
================
The incorrect tax code is been used for inter-company transfers in their final payment on their previous paygroup if a starter declaration is keyed for their new paygroup before the original paygroup has been finalised (despite the date effective for the start declaration been after the date of the inter-company transfer).

On investigation it has been discovered that this is as a result of the removal of GBR AR EE TAX from the GBR SE SETUP as the remaining tax arrays return the incorrect values:

/* GBR AR EE TAX */
select 'GBR AR EE TAX', *
FROM PS_GPGB_EE_TAX
WHERE EMPLID = '00401213'
AND EMPL_RCD = '0'
AND EFFDT <= '2016-04-15' -- payment date
and EFFDT <= '2016-04-10' -- segment end date
and EFFDT <= '2016-03-26'-- GBR FM TD TO PED if EE left, termination date, else period end date
order by EFFDT desc
;

/* GBR AR EE TAX EFDT */
select 'GBR AR EE TAX EFDT', *
FROM PS_GPGB_EE_TAX
WHERE EMPLID = '00401213'
AND EMPL_RCD = '0'
AND EFFDT <= '2016-04-15' -- payment date
order by EFFDT desc
;

/* GBR AR EE TAX RH */
select 'GBR AR EE TAX RH',*
FROM PS_GPGB_EE_TAX
WHERE EMPLID = '00401213'
AND EMPL_RCD = '0'
AND EFFDT <= '2016-04-15' -- payment date
and EFFDT >= '2014-02-23' -- GBR VR ACCDT
order by EFFDT desc
;

The only one that gives the right result for this employee is GBR AR EE TAX
It is believed that the removal of GBR AR EE TAX from the GBR SE SETUP is causing this issue and has had a knock on effect to other areas of tax calculation.
In light of this an alternative solution is also required for pulling tax codes that is robust and rigorous all through the tax year.

Replication steps
===============
1. Input inter-company transfer (effective 27/03/2016)
2. Input starter declaration for new employment (effective 12/04/2016)
3 Calculate payroll for original paygroup - incorrect tax code will be used


Business impact
==============
Incorrect calculation of tax in employees final payslip prior to an intercompany transfer.
It also has a knock on affect that this tax code (as it has been used) appears on the employees P45.

Cause

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