GP NZL: Payee On Tax Code STC Has No Tax Calc When Terminated And Get Extra Emolument Earning (Doc ID 2230580.1)

Last updated on FEBRUARY 06, 2017

Applies to:

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

Symptoms

On : 9.2 version, Taxes

EXPECTED BEHAVIOR
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When an employee is on tax code ‘STC’ and they are terminated and then tax should be calculated correctly.

STEPS
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The issue can be reproduced at will with the following steps:

Scenario 1: Employee KZ0007.
Earnings used:
Extra Emolument earnings code is BONUS, as this contributes to EXTRA EMOL GROSS accumulator.
 
Employee is on tax code STC, with a tax rate of 0.1661:
 
Employee was terminated on 2/4/2014:
 
Results from calendar group KZ 2014M04 - Annual Leave was paid out and taxed as expected:
 
Results from calendar group KZ 2014M05 – None present, as expected:
 
Insert BONUS of $30,909.22 for calendar group KZ 2014M06:
 
Results from calendar group KZ 2014M06 – BONUS is visible, but no tax calculated:
 
You can see that the BONUS amount was added to the EXTRA EMOL GROSS accumulator:
 

The expected result according to the New Zealand I.R.D. Payroll Specification Document in section 6.9 or 6.10 is:
Pay for period (including normal and extra pay) is $30909.22.
Truncate to $30909.
Deduct tax at the S.T.C. rate:
Tax = 30909 * 0.1661 = $5133.9849
Which truncated to whole cents = $5133.98.
This amount should appear as a deduction in the results.


Cause

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