GPAU: Tax Withhold On Bonus Which Not Specified To One Pay Period Is Incorrect For Tax Scale 4N (Doc ID 2201676.1)

Last updated on NOVEMBER 07, 2016

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

STATEMENT:
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Tax withhold on Bonus which not specified to one pay period is incorrect for tax scale 4N
According to ATO website, Tax should be withhold for any payment at 47% for non resident. However, system withhold the tax at 49% for tax scale 4N for Bonus that apply to multiple period

STEPS TO REPLICATE:
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The issue can be reproduced with the following steps:
1. Go to Main Menu > Global Payroll & Absence Mgmt > Payee Data > Taxes > Maintain Tax Data AUS
2. Add a new row with Tax scale 4N
3. Calculate and Finalize July month Calendar
3. Go to Main Menu > Global Payroll & Absence Mgmt > Payee Data > Assign Earnings and Deductions > One Time (Positive Input)
4. For a employee Aug month add Bonus Quarterly element with specified value
5. Run and finalize Aug month calendar, review Periodic Tax value in August month

Cause

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