GP NZL: Payee On Tax Code STC Has No Tax Calc When Terminated And Get Extra Emolument Earning
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.
On : 9.2 version, Taxes
When an employee is on tax code ‘STC’ and they are terminated and then tax should be calculated correctly.
The issue can be reproduced at will with the following steps:
Scenario 1: Employee KZ0007.
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.
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