Company: Link Technologies
Case No: L12061. Project: 12.20: LinkSOFT Version 12.2
Logged By: Alvis (Link Technologies) on 06 Nov 2020 10:59AM
Priority: High
Product: Payroll & HR
Group: Change Request
Time Taken: 8.00 (Weight: 8.00)
Version: 12.22.0113
Assigned To: Sanjay (Link Technologies)
Circulation: Alvis, Rashna
Resolve By: Friday, 06 November 2020 11:59 PM [1263 days since logged date]
Status: Closed
Subject: Employer super excess tax exemption
Summary:    

Legislative change to the amount of employer super excess.

Refer to the budget changes for 2020/2021 for Fiji

The Schedule to the Income Tax (Exempt Income) Regulations 2016 is amended by— (a) in Part 6 after paragraph (1), inserting the following new paragraph— “(1A) Notwithstanding paragraph (1), the amount of additional contribution made by an employer to the Fiji National Provident Fund or an approved fund in respect of an employee under the Fiji National Provident Fund Act 2011, provided that the additional contribution does not exceed 10% of the total salary or wages paid to the employee by the employer for a month.”

Changes required:

  1. Add an additional field in Pay Control to specify the percentage of employer super contribution that is tax-exempt.
  2. Change standard pay calculations to include pay code "HSUPEX - Employer Super Contribution Excess Tax Exempt"
  3. Change payroll processing -> super calculations to include pay code "HSUPEX - Employer Super Contribution Excess Tax Exempt"
  4. Change Payroll GL Integration to include pay code "HSUPEX - Employer Super Contribution Excess Tax Exempt"
  5. Change the super report to include employer super excess tax-exempt portion
  6. Change the super electronic file to include employer super excess tax-exempt portion
  7. Change all reports showing employer super excess to include employer super excess tax-exempt portion.
Audit Notes:Edited by alvis on 09/11/20 16:06. Edited by alvis on 06/11/20 10:59. Edited by alvis on 06/11/20 10:38. 
06 Nov 202002:44PM Comment 1 by Sanjay (Link Technologies) Assigned To: Alvis (Link Technologies) Followup Date: 06-11-2020 06:40 PM Time Taken: 4.00

Development work for this case has been completed.

The change will be available in version:12.2.1106

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

  1. Added an additional field in "Pay Control -> EmployerSuperContributionExcessTaxExempt"
  2. Changed super calculations to split employer super excess into taxable (DSUSP) and tax-exempt (HSUPEX) pay codes

2. Affected Areas:

  1. Pay Control
  2. Employee Pay Setup -> Standard Pay -> Super calculations
  3. Payroll Processing -> Super calculations
  4. Normal Pay Report -> Super Calculations
  5. Superannuation Report (Fiji FNPF)
  6. Superannuation Electronic File
  7. Reports that show super column now includes pay code HSUPEX.

3. The issue was caused by:

  1. Legislative Change

4. Notes
5. Next Step
: UAT & Documentation

----------------------

Development Reference:


09 Nov 202004:04PM Comment 2 by Rashna (Edge Business Solutions) Assigned To: Alvis (Link Technologies) Followup Date: 09-11-2020 02:53 PM Time Taken: 1.00
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
1Pay Control. Validate that the additional fields have been added for "Tax Exempt" employer super access. Users should be able to edit the values without errorsPass
2Employee Pay Setup -> Standard Pay -> Super calculations

Pass


Scenario 1

Normal Hours = $3000.

  1. Employee Mandatory Contribution - 8%
  2. Employer Mandatory Contribution - 10%
  3. Employee Excess Contribution - 2%
  4. Employer Excess Contribution - 10%
  5. Employer Super Contribution Excess Tax-Exempt - 0
Calculated values should be as below
  1. FSUPE - $240
  2. HSUPE - $300
  3. FESUPE - $60
  4. DSUSP - $300
  5. HSUPEX - Null

Scenario 2 

Normal Hours = $3000.

  1. Employee Mandatory Contribution - 8%
  2. Employer Mandatory Contribution - 10%
  3. Employee Excess Contribution - 2%
  4. Employer Excess Contribution - 10%
  5. Employer Super Contribution Excess Tax-Exempt - 5%
Calculated values should be as below
  1. FSUPE - $240
  2. HSUPE - $300
  3. FESUPE - $60
  4. DSUSP - $ 150.
  5. HSUPEX - $ 150
3Payroll Processing -> Super calculations
Pass
4Normal Pay Report -> Super Calculations
Pass
5Superannuation Report (Fiji FNPF)
Pass
6Superannuation Electronic File
Pass
7Reports that show super column now includes pay code HSUPEX

Pass. The following reports have been tested.

  1. Pay Summary
  2. Pay Slip
  3. Paycode Accumulator
  4. Pay Component/Deduction/Banking
  5. Pay Audit
  6. Pay Edit
  7. Pay GL Integration
  8. Employee Payment History
  9. Employee Normal Pay Report
  10. Employee Pay Register
  11. Pay Analysis Report


Environment Details

  1. OS version: Windows Server 2012
  2. Application version: 12.2.11.09
  3. Setup: Demo
  4. Server : 10.0.0.14
  5. Database: LINKSOFT-DEMO-12-RASHNA

Next Step

  1. Documentation

    09 Nov 202004:06PM Comment 3 by Alvis (Link Technologies) ETC was changed from 06/11/2020 to 06/11/2020
    10 Nov 202010:42AM Comment 4 by Alvis (Link Technologies) Assigned To: Sanjay (Link Technologies) Followup Date: 10-11-2020 02:42 PM Time Taken: 3.00
    Documentation Completed

    If you have any queries regarding this support incident, please email admin@linktechnologies.com.au and include the Case No: L12061 in the subject line of all emails regarding this issue.

    Document size: 14.4 KB
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