PY-CA :why no limit check for Quebec Tax Calculation in SAP

[former_member773757]

Hi Experts,

i found that there are differences between SAP system and Manual excel for Quebec tax calculation.

here is the formula published by QRA in document TP-1015.F-V(2022-01) (Page-11)

the problem is in SAP there is no "H", i don't know why.

I = Annual taxable income = P × (G – F – H) – J – J1 If the result is negative, enter 0.

where

P = Number of pay periods in the year

G = Gross remuneration subject to source deductions of income tax for the pay period. Do not include gratuities, retroactive pay or similar lump-sum payments

F = Total of the following amounts for the pay period

• the contribution to an RPP;

• the contribution to an RRSP;

• the contribution to a VRSP or to a PRPP; ......

H = Deduction for employment income

= (0.06 × D), up to a maximum of $1,235 / P

D = Gross salary or wages subject to source deductions of income tax for the pay period. Do not include gratuities, retroactive pay or similar lump-sum payments. P = Number of pay periods in the year

......

the following picture is the one i searched online, obviously H exists

while in my system, there is no H existing

The constants TXQC8 and TXQCH are OK in V_T511K

i don't know how to trigger this....

Federal Tax is align with CRA but Quebec is different from the result from QRA because of the missing of this function.

Could anyone help me with this?

Thanks in Advance

QRA result is 91.74

H: =Min of 1280*6%=76.8 and 1235/26=47.5, so H=47.5

(1280-47.5)*26=32045 32045*15%=4806.75 4806.75-16143*15%=2385.3 2385.3/26=91.74

SAP result is 98.87

1280*26=33280 33280*15%=4992 4992-16143*15%=2570.55 2570.55/26=98.87

[jimso101]

Please check the cumulation class 65 and 66 for the wage type and most likley rule K023 will be forming the /165//166

[former_member773757]

Thank you very much Michael, it's ok now

[sergeboulay3]

Hi,

You just need to set Cumulation 65 on wage types. I would start by setting all wage types that are accumulated in /152 (cumulation 52) to also accumulate in /165.

I hope this is helpful.

Serge

[former_member773757]

Thank you very much Serge, now i can see /165 existing in Payroll log and the tax amount is ok now.

[sergeboulay3]

Hi,

Do you have anything in /165 ? This is what triggers the calculation.

Regards,

Serge

[former_member773757]

Hello Mr. Serge,

i don't have /165 or /166 in payroll log, and here is the attribute of the wage type i used to calculate the regular amount,

Could you please kindly advise how to trigger /165 out? Thanks~