Skip to Content
0
Former Member
Sep 02, 2010 at 06:50 PM

Cost distributions for ER taxes

45 Views

Hi,

Let me explain the issue with an example.

For-Period June u2013 Cost distribution 'C1'

In-Period July u2013 Cost distribution 'C2'

June salary 5000 was retroactively increased in July to 6000. The net

difference = 6000 - 5000 = 1000.

This difference of 1000 is posted as per the June cost distribution C1.

This net difference is added to July salary 6000 + 1000 = 7000. The

total taxes including the additional taxes (Example: ER Social Security

taxes) on retro amount 1000 are posted as per the July cost

distribution C2.

The taxes should have posted to June cost distribution C1.But since

they are calculated in July,they get posted to July cost distribution.

This is an issue. The salary and the taxes both are posted to

difference cost distibutions.

Just wanted to find out how you are handling this situation.

Thanks!

Ratna