Troubleshooting Slight Tax Variation on Identical Employees

Troubleshooting Slight Tax Variation on Identical Employees

ISSUE: Two employees with identical position setup and earnings on Pay Register are getting slightly different tax calculations ever since May 31^st, but was just caught now. 

STAFFING > POSITION & ASSIGNMENT > EID1

**Position ID = 4300 since 2015, open ended**

STAFFING > POSITION & ASSIGNMENT > EID2

**Position ID = 4300 since 2014, open ended**

NOTE: Identical Position ID records being held since 2014-2015 for each. Identical positions. 

PAYROLL > PAY RUN MENU > SCHEDULE GROUP > SECTEAC

**Submit > Pay Run Debug > Submit**

PROCESS > COMPLETED > PAY REGISTER

EID1

EID2

PAYROLL > EMPLOYEE> STATUTORY DEDUCTIONS > EID1

**Exemption Amounts match EID 9932**

PAYROLL > EMPLOYEE> STATUTORY DEDUCTIONS > EID2

**Exemption Amounts match EID 5097**

PAYROLL > PAY PROCESS > YTD RECORD ADJUSTMENT > EID1

NOTE: Since the Audit Trail in the Changed = '00000', this implies there was no data of change from a user. Therefore, it was a system-generated change.

PAYROLL > PAY PROCESS > YTD RECORD ADJUSTMENT > EID2

NOTE: Here we can see additional lines for REG_TAX_GROSS and it thinks the remaining earnings are only 19.4k

PAY RUN DEBUG FILE > EID2 > Annualized Tax Gros section > TOTREGGROSS

**Here we confirm the EID only has 19k being Annualized**

PAY RUN DEBUG FILE > EID1 > Annualized Tax Gros section > TOTREGGROSS

**Here we can see this EID has 59.5k annualized** 

ROOT CAUSE ANALYSIS:

This would indicate that the S1 Factor is likely different as well because one reset in 202321 and the other reset in 202319. 

So essentially the reset happened at different points between each Employees and is now leading to more or less YTD REG_TAX_GROSS being annualized, depending on how high or low the TotRegGross is. 

SUMMARY:

So, what we have here is when the S1 factor resets, and the system can automatically trigger this for a variety of normal reasons as per CRA Tax Method calculation requirements, the YTD REG_TAX_GROSS that is used and shown above, is also reset. 

One of them is when the Employee skips pay periods in another Group (usually a casual group)

In this case the Annualized Tax Gross is based on both and can be affected. 

The slight tax differences we have here can be attributed to the S1 Factor resetting at slightly different Pay Periods for each employee.