I have been trying to set up gross up functionality in Canada Payroll by copying the SAP delivered wage types M350, M351, M352 and M353. However, it looks like tax calculated in M353 is too big. For example, for an employee who has a biweekly pay of $4158 then a gift card in the amount of $100 is given, the gross up amount for this gift card becomes $176.70 - a tax rate of about 70%. Can someone be able to shed light if this is reallly how the gross up functionality works in SAP?
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