GP AUS: Calculation Of Whole Of Income Cap And ETP Tax Are Incorrect On Termination (Doc ID 2201049.1)

Last updated on NOVEMBER 05, 2016

Applies to:

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

Symptoms

ACTUAL BEHAVIOR:
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Calculation of Whole of Income Cap and ETP Tax are incorrect on Termination
While processing Termination for employee in monthly pay, it was found that Whole of Income Cap ( for year 2014-2015 set at $180000) is not calculated correctly and ETP Tax is resolving incorrectly.
Whole of Income cap is expected to be reduced by Taxable earnings which are not happening in present system.Lump Sum
 
EXPECTED BEHAVIOR:
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Whole of Income cap is $180000
All taxable earnings = $ 133773.62
Reduced WOI = $180000 - $112136.82 = $46226.38 this amount should be taxed at 31.5%
Remaining amount of ETP earnings = $100000 - $46226.38 = $53773.62 should be taxed at 49%

STEPS:
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The issue can be reproduced with the following steps:
1. Run Payroll for Calendar Group ID KA 2014M01
2. Review the Employee Results in Results by Calendar Group
3. Now Terminate employee by choosing Action Termination with Reason Resignation in Job Data Page
4. Enter Positive Input for Employee in same Calendar ID with two Earning Elements - EX GRATIA and REGPAY STDHR
5. Recalculate Payroll by Running the Calendar Group ID and Check the results of employee in Result by Calendar Group
6. Now in results LUMP C TAX was calculated at the rate of 31.5% on whole ETP Payment

BUSINESS IMPACT:
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The issue has the following business impact:
Due to this issue, users LUMP C TAX was calculated at the rate of 31.5% on whole ETP Payment

Cause

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