Hi, This is Nicoleta in continuation of the other message. I could not log all my message above.
Continued below...
So A1 formula says:
A1 = [(IYTD-FYTD-F2YTD-U1YTD)-(PR X ( I -F -F2 - U1)) - F1 - HD]* + (B - F3) ** + (B1-f4)**.
We do not care in math terms where A2 formula goes to at this point.
A1 formula is not really what CRA defines.
All pension and union dues tax exempt deductions carry via arrears table into the current pay, and they are applied in the formula in F in the above formula. However, that does not follow CRA guide. The is supposed to be only current period's pension/UD exemption. IN SAP terms, that is current just because of the mechanism of carrying all retro into current. But that SAP value represents current plus all retro portion that came from arrears table.
The portion that came from the retro which represents the deduction from irregular earnings is supposed to be plugged in F3 in the formula.
That is not achievable in SAP at this time, as this would represent a large re-design, possibly re-design of how tax exempt deductions are flowing cross-taxation period.
However, SAP not being able to follow this formula, does give grief to customers that use SAP for payroll, sometimes, at the last moment, such as not having proper tax deducted from large irregual r earninngs within a pay period, early in the year, although all SAP configuration to assigure that is in place.
I would like that I finally see a proper formula implemented to bonus/irregular tax in SAP. I struggled with that for year, and, as a programmer, I would think it is not that hard to do. All we need to do is just implement a formula in the code. I do understand some flow of tax exempt dedutions may have to be put in place, but hey... today is a better day to fix what is not working. Cause taxable earnings flow is NOT working. It is buried in one document and no one knows about it. Further more, it is driven by /101 which is not taxable.
It is time for SAP Canada to really review taxable flow of earnings as well as how tax is calculated in SAP.
It is all so simple... Just formulas...
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