EPY: Pension Override is Producing Incorrect CIT Calculation Using the Annualized and Bonus Tax Methods on Same Cheque
(Doc ID 2217156.1)
Last updated on SEPTEMBER 13, 2021
Applies to:PeopleSoft Enterprise HCM Payroll for North America - Version 9.2 and later
Information in this document applies to any platform.
There is a custom pension override calculation process which inserts an override row in the pay one time table. When we run our override process then run a pay calculation, it is no longer taking the pension amount out before calculating the taxes. Even though the taxable gross is on the review paycheck, the taxable gross is actually calculated on the taxable gross plus the pension so therefore all employees are overpaying their tax amount. Since the taxable gross for the employee is correct on the screen, the calculation is no longer based on taxable gross but on taxable gross plus the pension. The calculated based was removed from the pay check screen when we create an override, and were we were told this is working as designed.
It was indicated that the override to the before tax for Pension would have been considered in the pay period taxable gross for the Canadian Income Tax calculation.
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