Pre paid Deductions - Provincial Sales Tax(PST)

[former_member185000]

     Hi All,

We have a issue with below scenario:

Employee when goes on Leave of Absence, their benefit deductions would not be deducted ( as there is no net pay). However, if employee would like to make contributions, he can submit a pre- paid deduction to the employer.

This is being maintained as a prep aid payment in IT0015.

Payroll picks this payment amount and processes the benefit deductions from the pre paid amount and stores the balance in balance wage type.

eg:

Pre paid amount : $500.00

Pre Paid deduction  == Benefit Deductions ($12.00 + $24.00+ $34.00)  + Provincial Sales Tax  ( $2.00) = $72.00

Pre paid balance = Pre paid amount - Benefit deductions = $500.00 - $72.00 = $428.00

When payroll processed the benefit deductions have been included to the deductions and is deducted from the pre paid amount and balance is getting stored in balance wage type.

The provincial sales tax is not getting included in to deductions. As mentioned in the  above example, the $2.00 of PST is not included in deductions.

IT was observed that PRPRI function is processing the deductions based on the T51P6 entries ( it was maintained as C 3 1 for PST wage type)  but all the other benefit deductions are being processed by the PRPRI function, whereas the PST is ignored.

T51P1 entries also been maintained.

Please advise.

[former_member185000]

Hi,

Any comments on the above.

[former_member298958]

Check processing class 71 or 72 for that wage type if set correctly.

Regards

Frederick

[former_member185000]

Hi Frederick,

Thanks for the reply.

Provincial sales tax wage type has been maintained with processing class 71 & 72 as blank. I tried with specification '3'  (other taxable benefit) for Processing class '71', but did not worked.

Please Advise.

Madhav.

[former_member298958]

Hi,

For specification 3, you need constant TS1A1 to be maintain and also link T51P1 S0 that will send the tax into another wage type (sales tax wage type).

Regards

Frederick

[former_member185000]

Hi Frederick,

Constant TS1A1 has been maintained as 3.00.

T51P1 - S0 - W/T TPST(provincial sales tax) is linked to TD20 (balance wage type).

TD10 is the pre-paid amount maintained in IT0015.

When payroll is executed,  all the benefit deductions are happening from TP10 Wage type but TPST is not getting deducted. When i verified in payroll log, PRDNT is processing and then PRPRI function is checking the priority of wage types maintained in T51P6. All the benefit wage types including TPST has been maintained as B 3 1.

The rule XRRS is processing and nullifying the TPST wage type where i'm seeing the -2.40 and 2.40 in the log and finally i'm not seeing WT TPST being processed by PRPRI function and nothing is displayed on Pay statement and payroll results.

Regards

Madhav

[former_member298958]

HI,

What I think is that the sale tax is a tax ben, so it should not be like a deduction. So it should be removed from T51P6 so maybe it's should have C in the arrears.

Regards

Frederick

[former_member185000]

Hi Frederick,

In the payroll processing, the WT  TPST is getting generated with a +ve and -ve value ( 0.24  & -0.24) when K013 rule is processed.

This rule is checking the Processing class 76 and adding it ot the output table.

All the benefit deduction wage types are also being added to output table but they are not being nullified with +ve & -ve value.

In the previous steps the KST1 and KST2 rules are calculating the Provncial sales tax of 0.24.

In the next steps it is processing a -0.24 vale.

Finally these are nullified and no deductions are happening when PRDNT & PRPRIO is processing.

Regards

Madhav.

[former_member298958]

Probably processing arrears so a plus and minus. Also link your tax to the prepaid deduction in T51p1 so it will not go to arrears.

Frederick

[former_member185000]

Hi Frederick,

I tried by changing the Wage type not to be included in to arrears.

Now the config in T51p6 for sales tax is    B  2  1 for Sales tax wage type.

Also sales tax wage  type is linked to pre paid deduction in T51p1 with p2 indicator.

When i maintained a pre paid payment through IT00015 and ran the payroll, it is processing the sales tax on the payment done and also the deductions not taken are also being processed.

However, the deductions not taken during previous period which are stored as positive amounts are nullified with the sales  tax calculated in the current pay period. Hence i'm not seeing any sales tax deductions in the current pay period as the expected result is that i should see a double amount of sales tax deductions (which includes previous and current deductions).

I have attached the screenshots on the issue.

PRDNT

Processing class for sales tax wt

3 4 6 10 20 30  31 41  50  70   73  80

0 6 0  0  1   T   0   3    B   0     1   0

Please advise.

Madhav