We have Implemented free of tax for GB payroll.
The Employer has to pay 512.82 GBP as net pay to the employee as shift allowance and the tax will be bearable by employer. We have configured the Free of tax and it is working fine for employees who are in 20% and 40 % tax for the whole year. But the employees who are moving to the range from 20% - 40% in the tax year only with basic salary it is working fine. But when the annual allowance is entered to the employee then the business feels that the calculation done by SAP is not what expected.
The scenarios are mentioned below:
Annual Bonus is 4000 GBP which is entered in P05/2015.
Allowance Amt: 512.82 GBP for 4 weeks (13 Months).
With Bonus and no allowance:PeriodGross PayTaxNINet1P1 20152000238.2166.561595.24P2 20152000238.4166.561595.04P3 20152000238.2166.561595.24P4 20152000238.4166.561595.04P5 201560001038.2368.664593.14P6 20152000238.4166.561595.04P7 20152000238.2166.561595.24P8 20152000238.4166.561595.04P9 20152000238.4166.561595.04P10 20152000238.2166.561595.24P11 20152000238.4166.561595.04P12 20152000238.2166.561595.24P13 20152000238.2166.561595.24
With Bonus and with Net Pay allowance:PeriodGross PayTaxNINet2
Net2 - Net 1P1 20152754.11389257.052108.06512.82P2 20152754.11389.2257.052107.86512.82P3 20152754.34389.2257.082108.06512.82P4 20152754.11389257.052108.06513.02P5 20156884.11535.64386.344962.12368.98P6 20153067.75413.37294.692359.69764.65P7 20153068.2413.77294.742359.69764.45P8 20153051.33406.97292.722351.64756.6P9 20152,964.48372.17282.32,310.01714.97P10 20152,841.49322.97267.542,250.98655.74P11 20152,754.11329.71257.052,167.35572.31P12 20152,754.11389257.052108.06512.82P13 20152754.11389.2257.052107.86512.62
As per the business, both the other scenarios are same other than net allowance: 512.82 GBP, so they expects that each periods they has to get the difference of 512.82 ,ore or less difference in pence. In the difference tab it is acheived for 1st 4 periods and after the bonus has been paid it collapsed. I thought that the bonus may be calculated for 13 or 12 months and SAP is providing it in later periods once it understood it is not regular income. In that case the Net difference for a year should be (512.82 * 13) = 6666.66 but the difference in net pay for yearly between the employees are 7674.62
I have debugged the program but unable to get any hint due to complex calculation.
Can any one help me on this.