Company: Link Technologies
Case No: L12336. Project: 12.51: LinkSOFT version 12.51
Logged By: Sanjay (Link Technologies) on 23 Jul 2021 02:22PM
Priority: High
Product: Payroll & HR
Group: Software Defect
Time Taken: 90.00 (Weight: 90.00)
Version: 12.51.0813
Assigned To: Sanjay (Link Technologies)
Circulation: Alvis, Rashna, Sanjay
Resolve By: Friday, 30 July 2021 11:59 PM [1004 days since logged date]
Status: Closed
Subject: Payroll Tax Calculations for "Additional Tax" does not work. Tax scales are based on Country Specific Pay Codes
Summary:    

Payroll Tax Calculations for "Additional Tax" does not work. Tax scales are based on Country-Specific Pay Codes. This was done as each country had specific requirements.

We are changing this design so that the system can be configured to each country-specific requirement without hard-coding the codes.

Proposed changes are:

  1. Use the "tax scales" allocated to Employees to determine Payroll tax
  2. Store the breakdown of each tax code used in the "Pay Detail -> Transactions" table
  3. Refactor the tax calculation formula to break it into smaller testable units
  4. Remove hardcoded rules for FPAYE, FPAYESRL, FPAYEOTH and FPAYEECAL

Important Notes:

  1. Customisations are not part of this process. Each customer-specific customisation will need to be tested during the trial upgrade. We do not expect there to be any issues arising from customer-specific customisations as they are Paycode specific and the configuration would not change.
  2. Upgrade scripts will autocorrect customer setup, however, we recommend consultants review the change and verify this during the trial upgrade
  3. OLD country-specific Reports utilising specific Pay Codes will not be changed as these are rarely used and the values s not expected to change since the pay codes are already setup

For all Upgrades - please ensure you perform the Trial Upgrade and verify any customisations and calculations to match with required values.

Audit Notes:Edited by sanjay on 05/08/21 11:24. Edited by sanjay on 05/08/21 11:24. Edited by alvis on 23/07/21 14:22. Edited by alvis on 23/07/21 14:10. Edited by alvis on 23/07/21 14:10. Edited by sanjay on 23/07/21 11:54. Edited by sanjay on 23/07/21 11:53. Edited by sanjay on 23/07/21 09:30. 
23 Jul 202111:53AM Comment 1 by Sanjay (Link Technologies) ETC was changed from 30/07/2021 to 30/07/2021
23 Jul 202105:02PM Comment 2 by Alvis (Link Technologies) Assigned To: Sanjay (Link Technologies) Followup Date: 23-07-2021 10:58 PM Time Taken: 2.00

The following has been completed:

  1. Added company ID separation to payroll tax maintenance
  2. Data migration to cross apply the data to all companies
  3. Changed tax maintenance dependencies to refactor and use company separation.

Next Step:'

  1. Remove hardcoding of tax codes in pay calculations
  2. Show breakdown of tax calculation in payroll using the main and additional tax setups.

05 Aug 202111:12AM Comment 3 by Alvis (Link Technologies) Assigned To: Sanjay (Link Technologies) Followup Date: 05-08-2021 02:47 PM

The following areas are hardcoded to use paycodes: FPAYE, FPAYEOTH, FPAYESRL, FPAYEECAL

  1. FRCS Employee PAYE Certificate
  2. Fiji Tax Reconciliation Report > 2012
  3. FRCS Tax Submission Output File
  4. Papua New Guinea Tax Report
  5. Fiji Tax Reconciliation Report < 2012
  6. Samoa Tax Report
  7. Australia Tax Report by State

06 Aug 202112:06PM Comment 4 by Sanjay (Link Technologies) Assigned To: Rashna (Edge Business Solutions) Followup Date: 06-08-2021 05:48 PM Time Taken: 75.00

Hi Rashna, can you run the Fiji Payroll verification on this version to confirm the calculations.

In addition, please note the following for testing:

  1. Superannuation Fund - Menu: "Payroll and HR Maintenance ~> Superannuation Fund". Changes are:
    1. Added a DEFAULT option. This option will allow users to automatically ADD super funds to new employees. Previously this was handled through configuration
    2. Added Pay Code Mapping. When creating a Superannuation Fund, the 5 entries are automatically created and allocated a Pay Code with the relevant abbreviations. Default Contribution Percentages are also allocated.
    3. User has the option to EDIT a Fund Paycode and select the option to "Update all Active" employees
  2. Changes to menu "Employee Profile ~> Employee Pay Setup"
    1. Added Superannuation "Super Details" where each employee can have different amounts for Super Contribution
    2. Super settings have been removed from the Employee Profile and allocated at Employee Pay Setup
    3. Primary Tax is available at Employee Profile, and additional tax has been moved to the Detail Level
  3. Changes to Pay Calculations
    1. Payroll Tax is based on Tax Scales located at Employee Profile level, Plus any additional Tax setup on the employee Profile
    2. Super is calculated based on Standard Pay and can be amended in the Current Pay
    3. All HARD CODING of Pay codes for SUPER has been removed. Pay codes are used purely from the configurations
    4. All HARD CODING of TAX Scales has been removed. Tax scales are used purely from the configurations
    5. Pay Processing will display the tax breakdown for each tax scale
    6. Pay processing will display a line for each Super contribution

06 Aug 202112:59PM Comment 5 by Sanjay (Link Technologies) Assigned To: Sanjay (Link Technologies) Followup Date: 06-08-2021 06:06 PM Time Taken: 4.00

Additional Notes

  1. Upgrade scripts will convert the relevant Super and Tax setup for existing clients
  2. Fiji Payroll Reports requiring specific Tax Codes and Super Codes have not been changed. These are Statutory reports and will be re-designed in the next release. This will not affect report content

13 Aug 202104:27PM Comment 6 by Rashna (Edge Business Solutions) Assigned To: Sanjay (Link Technologies) Followup Date: 13-08-2021 06:50 PM Time Taken: 3.00
The following tests were performed:

Table 1 - Test Results
#Test Case DetailsPass/FailComments
 1
  1. Create an employee profile and set the superannuation as below
    1. Employee contribution - 8 %
    2. Employer Contribution - 10 %
    3. Employee Access - 2 %
    4. Employer Access - 3 %
 Pass 
 2
  1. Create standard pay and validate that the super components are included
 Pass 
 3
  1. Employee rate is 35000, validate PAYE of $76 is deduction in the standard pay
 Pass 
 4
  1. Add a fringe benefit to the standard pay with a value of $20. The fringe benefits tax should calculate to $5.00
Pass  
5
  1. Validate that the standard details are correct
Fails
The "Deductions" and "Net Pay" on the screen is incorrect 
6
  1. Create the normal of the employee and verify the pay details
  2. Update Pay
Pass

7
  1. Test below items:
    1. PAYE Reconciliation Report
    2. Superannuation Report - Validate all 4 components from 1 above are included in the pay.
    3. Tax Submission File
    4. Super Submission File - Validate all 4 components from 1 above are included in the pay.
Pass

8
  1. Test the PAYE scenarios for Fiji Accreditation
    1. Tested pay 1 and 2
Pass

Environment Details

  1. OS version:
  2. Application version: 12.51.0812
  3. Setup on:
    1. Server:LinkQA4
    2. Database: LINKSOFT-DEMO-RASHNA
    3. LinkSOFT URL: HTTP://10.0.0.13/LinkSOFT
  4. Login Details: Standard username and password for user "admin"

Next Step: Review


16 Aug 202108:06AM Comment 7 by Sanjay (Link Technologies) Assigned To: Rashna (Edge Business Solutions) Followup Date: 16-08-2021 02:04 PM Time Taken: 1.00
PART A - Development work for this case has been completed.

1. The change will be available in version:12.51.0813

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

  1. Corrected the deduction summary in standard pay menu

3. Affected Areas:

  1. Standard pay

4. The issue was caused by:

  1. coding refactor

5. Other Relevant Notes
6. Next Step
(Review and System Test (Developer) -> UAT (Quality) -> Documentation):UAT


16 Aug 202108:14AM Comment 8 by Rashna (Edge Business Solutions) Assigned To: Alvis (Link Technologies) Followup Date: 16-08-2021 02:11 PM Time Taken: 1.00
The following tests were performed:

Table 1 - Test Results
#Test Case DetailsPass/FailComments
 1
  1. Validate the "Standard" pay for employee E001.
  2. Verify that the "Total, Deductions, and Net Pay" are correctly calculated. 
 Pass 

Environment Details

  1. OS version:
  2. Application version: 12.51.0813GA
  3. Setup on:
    1. Server:LinkQA4
    2. Database: LINKSOFT-DEMO-RASHNA
    3. LinkSOFT URL: HTTP://10.0.0.13/LinkSOFT
  4. Login Details: Standard username and password for user "admin"

Next Step:

  1. Documentation 

16 Aug 202102:29PM Comment 9 by Sanjay (Link Technologies) Assigned To: Sanjay (Link Technologies) Followup Date: 16-08-2021 08:22 PM Time Taken: 4.00
Documentation completed and published.

If you have any queries regarding this support incident, please email admin@linktechnologies.com.au and include the Case No: L12336 in the subject line of all emails regarding this issue.

Document size: 20.5 KB
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