Additional CPF Deducted When There Is No Additional Wage
Last updated on FEBRUARY 21, 2018
Applies to:PeopleSoft Enterprise HCM Global Payroll Singapore - Version 9.1 and later
Information in this document applies to any platform.
When an additional payroll is run for a same month (whose regular payroll including both OW and AW is already completed) for other OW payment,
the Additional CPF is calculated incorrectly (negative value of the Addl. CPF calculated in the regular run). Please find below the sequence of events.
1. Regular payroll run was processed and finalized successfully. This contains both OW and AW.
2. Additional payroll run which contains only OW is run for the same period.
3. The Additional CPF (both EE and ER) are calculated incorrectly in the subsequent run which do not contain any AW.
The issue seems to be with the CPF FM CALCULATION formula, which do not seem to consider the AW for the same month from prior run.
This is resulting in ADD CPF to be computed as 0 and hence in the CPF FM ADD PAYEE/CPF FM ADD ER, when it tries to subtract the CMTDA value the negative value of the Addl.
CPF from the prior run is arrived. While this do not happen to OW (because there is a Historical Rule that handles the OW Wages from the prior run, which is passed to CPF FM CALCULATION correctly), this is happening only to AW.
The issue can be reproduced at will with the following steps:
1. For any employee, run and finalize regular payroll for July 2017, with both OW and AW.
2. For the same employee, kindly process another payroll for July 2017 with a positive input of OW (not regular salary but additional payment that is not AW) only.
3. The second payroll would have incorrect CPF ADD amounts, even though there is no AW for that run.
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