Company: Link Technologies
Case No: L09844. Project: 10.10: LinkSOFT Version 10.1
Logged By: Rashna (Edge Business Solutions) on 15 Jan 2019 11:58AM
Priority: High
Product: Payroll & HR
Group: Enhancement
Time Taken: 9.00 (Weight: 9.00)
Version: 10.155.0117
Assigned To: Sanjay (Link Technologies)
Circulation: Alvis, Rashna, Sanjay
Resolve By: Wednesday, 16 January 2019 12:00 AM [1901 days since logged date]
Status: Closed
Subject: Improve the PAYE design to accommodate for scenarios where number of actual pays exceeds the default number of pays in a "Pay Team".
Summary:    

1.Scenario

  1. There are companies who create their first pay on the first day of the year where the payrun date is 01/01/XXXX.
    1. Some companies pay the remaining hours from the previous year on the first.
    2. Few companies follow the pre-pay system, where the employees are paid on first for the work they will do in the future.
  2. With the above case, the number of actual pay exceeds the default number of pays in a "Pay Team". For example,
    1. Pay No 1, for FTN is dated as 01/01/2018
    2. Pay No 2 , for FTN is dated as 15/01/2018 (Pay No 1 date plus 14 days). This sequence continues.
    3. The final pay of the year falls on 31/12/2018 where the pay number equals to 27, however, the number of pays for FTN should only 26.
    4. PAYE FRCS Regulations has only 26 pays for FTN payteam for PAYE calculations.
2.Issue
  1. If the pay is created with date 01/01/2018. PAYE is not deducted for the employee. 
  2. We provided the workaround in versions 949 and prior to change the date for the last day of the year to be 17/12/2018. Based on this date there would be 26 pays in the system.
    1. The issue with item 2.2, is that clients failed to change the date before rollover. This did not rollover leave with calendar setup as the last date "31/12/2018" of the year was not reached.
    2. In version 10, users can not change the calendar dates. Hence the workaround is now not valid.
  3. Therefore, the system fails to deduct PAYE in above in scenario.


3. Steps to Replicate (Tested in version 10.1.3.8)

  1. In the demo database. Set the pay team for E019 to FTN.
  2. Set the pay date to 01/01/2019.
  3. Create the pay for the employee.
  4. Verify pay, PAYE is not depicted.
  5. Change the pay date to 15/01/2019 and create pay. PAYE component is added to pay.
Audit Notes:Edited by sanjay on 05/03/19 10:34. Edited by rashna on 25/01/19 13:15. Edited by rashna on 15/01/19 11:58. Edited by rashna on 15/01/19 11:44. Edited by rashna on 15/01/19 11:43. Edited by rashna on 15/01/19 11:41. Edited by rashna on 15/01/19 11:38. Edited by rashna on 15/01/19 11:38. Edited by rashna on 15/01/19 11:36. Edited by rashna on 15/01/19 11:27. Edited by rashna on 15/01/19 08:41. 
25 Jan 201901:15PM Comment 1 by Rashna (Edge Business Solutions) Case 9844 added to project 10.1
25 Jan 201901:32PM Comment 2 by Sanjay (Link Technologies) Assigned To: Rashna (Edge Business Solutions) Followup Date: 25-01-2019 01:32 PM Time Taken: 1.00

Development work for this case has been completed.

The change will be available in version: 10.139

1. The following changes were made(Include Database object names, Program classes and any other relevant information):|

  1. Changed the PAYE calculation to limit the "No of Pays" to "Pay frequency". For example, a fortnight pay cannot exceed 26 "No of Pays".

2. The issue was caused by:

  1. "No of Pays" exceeded the "Pay frequency" which caused PAYE to be incorrectly calculated.

3. Next Step:

  1. UAT


28 Jan 201910:50AM Comment 3 by Rashna (Edge Business Solutions) Assigned To: Alvis (Link Technologies) Followup Date: 28-01-2019 10:50 AM Time Taken: 4.00

Hi Alvis, 

I have tested this case and below are results.

  1. Created weekly pay for employee E069. Pay rate is $38000 fixed.
  2. First pay was created on the 01/01/2018. Normal Hours $730.77. PAYE was correctly calculated as $27.69 (38000-30000*.18/52).
  3. Second pay was created on the 08/01/2018. PAYE amount was $2.52 (30.22-27.69). System adjusted the PAYE amount based on the new gross.
    1. Since pay 1 was created on 01/01/2018, the system calculated 53 pays till 31/12/2018.
    2. System calculated a new gross 730.77 * 53 = $38730.81. Based on the new gross system calculated PAYE as $30.22 (38730.81-30000*.18/52).
Issue:
  1. In the case where 52 pays are created with gross as 38000. The PAYE is incorrect.
    1. The user creates 52 pays as at 24/12/2018. Remaining hours are paid in the first pay in the next year.
    2. PAYE amount as at 24/12/2018 is currently calculated as 1541.32 (30.22 *51). This is incorrect. PAYE for 52 pays with a gross of $38000 should be $1440 (38000-30000*.18). 
We can GTM  tomorrow at 8.30am AEST and discuss the case.

Test Environment

Version: 10.1.3.9
Database : LINKSOFT10_WKL_52PAYS and LINKSOFT10_WKL_53PAYS
Server: 10.0.0.14

Thanks
Rashna


29 Jan 201911:05AM Comment 4 by Sanjay (Link Technologies) Assigned To: Rashna (Edge Business Solutions) Followup Date: 29-01-2019 11:05 AM Time Taken: 3.00

Development work for this case has been completed.

The change will be available in version: 10.139

1. The following changes were made(Include Database object names, Program classes and any other relevant information):|

  1. For Weekly and Fortnightly pay teams, the remaining pay formula has been changed. Remaining pays is used to calculate the forecasted chargeable income for the year. 
    For Example, an employee with $38K gross and 1st pay starts on 01/01/2018:
    1. Fortnight pay team will deduct $55.38 PAYE for 26 fortnights until 17/12/2018. If the employer decides to make 27th pay on 31/12/2018, then the system will deduct $263.08 PAYE since the total chargeable for the year is $39,461.58

2. The issue was caused by:

  1. "No of Pays" exceeded the "Pay frequency" which caused PAYE to be incorrectly calculated.

3. Next Step:

  1. UAT
4. Notes:
  1. Please test Weekly and Fortnightly pay frequency

30 Jan 201912:00PM Comment 5 by Rashna (Edge Business Solutions) Assigned To: Sanjay (Link Technologies) Followup Date: 30-01-2019 12:00 PM Notes: Edited by rashna on 30/01/19 13:31. 
QA Results
Tests carried out according to requirements specified on the case header

Test Results Summary

Table 1 - Summarised list of issues
NoTest DescriptionPass/Fail
1

Create pay for employee E069on 01/01/2018. Pay Frequency is FTN and rate 39000.

  1. PAYE amount should be $62.31 in the first pay.
  2. Create all 26 pays. Pay date for the 26th pay falls on 17/12/2018. Total PAYE should be $1620 (39000-30000*.18).
  3. Create a pay on 31/12/2018, this becomes the 27th pay. The system calculates new gross as 40500. PAYE on the new gross should be $270. [(40500-30000*.18)-1620]. 
  4. Rollover and create pay for 2019 and the results should be the same
Pass
2

Create pay for employee E070 on 14/01/2018. Pay Frequency is FTN and rate 39000.

  1. PAYE amount should be $62.31 in the first pay.
  2. Create all 26 pays. Pay date for the 26th pay falls on 30/12/2018. Total PAYE should be $1620 (39000-30000*.18).
  3. Rollover and create pay for 2019 and the results should be the same

Pass
3

Create pay for employee E072 on 13/01/2018. Pay Frequency is FTN and rate 39000.

  1. PAYE amount should be $62.31 in the first pay.
  2. Create all 26 pays. Pay date for the 26th pay falls on 30/12/2018. Total PAYE should be $1620 (39000-30000*.18).
  3. Rollover and create pay for 2019 and the results should be the same

Pass
4

Create pay for employee E071 on 15/01/2018. Pay Frequency is FTN and rate 39000.

  1. PAYE amount should be $62.31 in the first pay. System calcula
  2. te the PAYE as 103.85 and then adjusts. 
  3. Create all 26 pays. Pay date for the 26th pay falls on 30/12/2018. Total PAYE should be $1620 (39000-30000*.18). 
  4. Rollover and create pay for 2019 and the results should be the same
Pass
5

Create pay for employee E073 on 01/01/2018. Pay Frequency is WKL and rate 39000.

  1. PAYE amount should be $31.15 in the first pay.
  2. Create all 52 pays. Pay date for the 52nd pay falls on 24/12/2018. Total PAYE should be $1620 (39000-30000*.18).
  3. Create a pay on 31/12/2018, this becomes the 53rd pay. The system calculates new gross as 39750.20. PAYE on the new gross should be $135. [(39750.20-30000*.18)-1620]. 
  4. Rollover and create pay for 2019 and the results should be the same

Pass
6

Create pay for employee E074 on 08/01/2018. Pay Frequency is WKL and rate 39000.

  1. PAYE amount should be $31.15 in the first pay.  System calculate the PAYE as 57.12  and then adjusts.  
  2. Create all 52 pays. Pay date for the 52nd pay falls on 31/12/2018. Total PAYE should be $1620 (39000-30000*.18).. 
  3. Rollover and create pay for 2019 and the results should be the same

Pass
7

Create pay for employee E075 on 05/01/2018. Pay Frequency is WKL and rate 39000.

  1. PAYE amount should be $31.15 in the first pay.  
  2. Create all 52 pays. Pay date for the 52nd pay falls on 31/12/2018. Total PAYE should be $1620 (39000-30000*.18).
  3. Rollover and create pay for 2019 and the results should be the same

Pass

Notes:

Test results are attached to the case.

Environment Details

  1. OS version: Windows 7
  2. Application version: 10 Beta 4
  3. Setup: Demo
  4. Server : 10.0.0.10
  5. Database: UAT-LINKSOFT-DemoData

Steps to reproduce failed scenarios:

Next Step: for closure


    30 Jan 201901:34PM Comment 6 by Rashna (Edge Business Solutions) Assigned To: Sanjay (Link Technologies) Followup Date: 01-02-2019 12:00 AM Time Taken: 1.00

    Hi Sanjay, 

    I have tested the case as per comment 5. 

    Thanks
    Rashna


    04 Feb 201909:13AM Comment 7 by Sanjay (Link Technologies) Assigned To: Sanjay (Link Technologies) Followup Date: 04-02-2019 09:13 AM
    thanks Rashna 

    09 Oct 201908:14AM Comment 8 by Sanjay (Link Technologies) Quality control status: Pass. QC Not required - This case was created before quality check was implemented in version 11 on 30/06/2019
    Attachments:
    General Documents - Case: 9844:Test1_FirstPayDate0101_beforeandafterrollover.pdf
    Test2_FirstPayDate01401_beforeandafterrollover.pdf
    Test3_FirstPayDate1301_beforeandafterrollover.pdf
    Test4_FirstPayDate1501_beforeandafterrollover.pdf
    Test5_FirstPayDate0101_beforeandafterrolloverWKL.pdf
    Test6_FirstPayDate0801_beforeandafterrollover.pdf
    Test7_FirstPayDate0501_beforeandafterrollover.pdf
    If you have any queries regarding this support incident, please email admin@linktechnologies.com.au and include the Case No: L09844 in the subject line of all emails regarding this issue.

    Document size: 16.9 KB
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