Company: Link Technologies
Case No: L13038. Project: 15.40: LinkSOFT Version 15.40
Logged By: Vineshwar Prasad (Edge Business Solutions) on behalf of Sanjay (Link Technologies) on 16 May 2024 10:06AM
Priority: Low
Product: Payroll & HR
Group: Enhancement
Time Taken: 17.00 (Weight: 16.00)
Assigned To: Sanjay (Link Technologies)
Circulation: Development, Sanjay, Sitla, Vineshwar Prasad
Resolve By: Friday, 31 May 2024 07:00 AM [155 days since logged date]
Status: Closed
Subject: Employer Excess FNPF to be based on "GROSS PAY" or "Total Emoluments"
Summary:    Business Scenario

Company ABC has recently started using the LinkSOFT Payroll solution. Employees get the following in their Pay;
  1. Normal Hours
  2. Employee Compulsory 8%
  3. Employer Compulsory 10%
  4. Employer Excess Taxable 3%
  5. Taxable Allowance

Current Practice as per FNPF Legislation

Employee has the following setup;

  1. Gross Pay - $35,000
  2. Employee Compulsory 8%
  3. Employer Compulsory 10%
  4. Employer Excess Taxable 3%
  5. Taxable Allowance - $50.00 (has "Includes Super" Active on Paycode (BCA - Communication Allowance)

Table 1: Payroll data as per details above

Employee Setup

 

Gross Pay

                   35,000.00

Employee Compulsory 8%

Yes

Employer Compulsory 10%

Yes

Employer Excess Taxable 3%

Yes

 

 

Taxable Allowance Setup

 

Pay Code Type

Taxable Allowance

Include Taxable Allowance in Pay

Yes

Includes Super - Active on Paycode

Yes

 

 

Pay

 

Normal Hours

                      2,916.67

Communication Allowance

                           50.00

PAYE

-                        100.02

Employee Compulsory 8%

-                        237.33

Employer Compulsory 10%

                         296.67

Employer Excess Taxable 3%

                           89.00

Net Pay

-                    2,629.32

The system calculates the PAYE, Compulsory FNPF and Excess FNPF correctly.

Request from Client

The client has requested that Employee Excess Taxable 3% not be deducted from the Taxable Allowance

Table 2: Payroll data from multiple tests

 

Test 1

Test 2

Test 3

Test 4

Test 4 - Expectation

Employee Setup

 

 

 

 

 

 

Gross Pay

                        35,000.00

                               35,000.00

                               35,000.00

                                  35,000.00

                        35,000.00

 

Employee Compulsory 8%

Yes

Yes

Yes

Yes

Yes

 

Employer Compulsory 10%

Yes

Yes

Yes

Yes

Yes

 

Employer Excess Taxable 3%

No

No

No

Yes

Yes

 

 

 

 

 

 

 

 

Taxable Allowance Setup

 

 

 

 

 

 

Pay Code Type

Taxable Allowance

Taxable Allowance

Taxable Allowance

Taxable Allowance

Taxable Allowance

 

Include Taxable Allowance in Pay

No

Yes

Yes

Yes

Yes

 

Includes Super - Active on Paycode

No

No

Yes

Yes

Yes

 

 

 

 

 

 

 

 

Pay

 

 

 

 

 

 

Normal Hours

                           2,916.67

                                 2,916.67

                                 2,916.67

                                   2,916.67

                           2,916.67

Correct

Communication Allowance

                                       -  

                                      50.00

                                      50.00

                                        50.00

                               50.00

Correct

PAYE

-                               75.00

-                                     84.00

-                                     84.00

-                                     100.02

-                             100.02

Correct

Employee Compulsory 8%

-                             233.33

-                                   233.33

-                                   237.33

-                                     237.33

-                             237.33

Correct

Employer Compulsory 10%

                              291.67

                                    291.67

                                    296.67

                                      296.67

                              296.67

Correct

Employer Excess Taxable 3%

                                       -  

                                             -  

                                             -  

                                         89.00

                                87.50

Need to change

Net Pay

-                         2,608.34

-                                2,649.34

-                                2,645.34

-                                  2,629.32

-                         2,629.32

 

 

 

 

 

 

 

 

 

 

PAYE Increases from 75 to 84 because of Taxable Allowance

PAYE remains same at 84 because No changes to Gross

PAYE Increases from 84 to 100.02 because Employer Excess Taxable 3%

 

 

FNPF 8% - No change because Inculde Super on Taxable Allowance Paycode is Inactive

FNPF 8% Increases from 233.33 to 237.33 because Inculde Super on Allowance Paycode is Active

FNPF 8% remain same

 

 

 

 

FNPF 10% - No change because Inculde Super on Taxable Allowance Paycode is Inactive

FNPF 10% Increases from 291.67 to 296.67 because Inculde Super on Allowance Paycode is Active

FNPF 10% remain same

 

 

 

 

 

 

FNPF Employer Taxable is added at 3% of Gross = (2916.67 + 50)

Test 4 - Employer Access is based on Total Emoluments (2916.67 + 50) * 0.03 = 89.00. We need a configuration so that clients can choose to have Employer Excess based on Total Gross, i.e. (2916.67 * 0.03) = 87.50

    Environment Details
    1. URL: https://linktechnologies.com.au/DEMO-LinkSOFT-EDGE
    2. Company: 1003
    3. Employee ID: 1001
    4. Payrun ID: 502
    Regards
    Vineshwar Prasad

    Updated by Sanjay on 22/05/2024

    Audit Notes:Edited by sanjay on 24/07/24 12:13. Edited by sanjay on 23/07/24 15:09. Edited by sanjay on 28/05/24 10:31. Edited by sanjay on 22/05/24 15:24. Edited by sanjay on 20/05/24 14:43. 
    17 May 202403:05PM Comment 1 by Sanjay (Link Technologies) This comment has been removed
    21 May 202403:34PM Comment 2 by Sanjay (Link Technologies) This comment has been removed
    21 May 202403:36PM Comment 3 by Sanjay (Link Technologies) This comment has been removed
    22 May 202407:07AM Comment 4 by Sitla (Edge Business Solutions) This comment has been removed
    22 May 202402:54PM Comment 5 by Vineshwar Prasad (Edge Business Solutions) Assigned To: Sanjay (Link Technologies) Followup Date: 31-05-2024 02:14 PM Time Taken: 1.00
    The current Employer Excess of 3 percent is based on Total Emoluments which is 89.00 as per Table 2 Test 4.
    1. Gross Pay + Taxable Allowance = Total Emoluments
    2. 2916.67 + 50.00 = 2966.67 x 3% = 89.00
    We want the Employer Excess to be based on Gross Pay only which is 87.50 as per Table 2 Test 4 - Expectation
    1. Gross Pay = 2916.67 x 3% = 87.50
    We need a Configuration as below;
    1. "Calculate the excess portion of employee and employer superannuation" on "Total Emoluments" which is "Gross Pay" plus "Taxable Allowance"
    2. "Calculate the excess portion of employee and employer superannuation" on "Gross Pay" only

    22 May 202403:20PM Comment 6 by Sanjay (Link Technologies) Case L13038 added to project 15.40
    22 May 202405:48PM Comment 7 by Sanjay (Link Technologies) Assigned To: Development Followup Date: 31-05-2024 05:43 PM Time Taken: 12.00
    PART A - Development work for this case has been completed.

    1. The change will be available in version: 15.40 and 15.30.240523

    2. The following changes were made (Include Database object names, Program classes, and any other relevant information):

    1. Added a new configuration for calculating Employee/Employer Excess Super Contribution
      1. Configuration Code: CalculateSuperExcessMethod
      2. Configuration Descriportion: Calculate Method for the excess portion of employee and employer superannuation. Use G for "Gross Pay" or E for "Total Emoluments".
      3. Default Value: E (Total Emoluments)
    2. When the value is set to "G", the system uses the "Gross Amount" for the employee Pay to determine the Super Excess calculations

    3. Affected Areas:

    1. Pay Calculation - Employee/Employer Excess

    4. The issue was caused by:

    1. Enhancement, Add Configuration for Excess Super Calculation.

    5. Other Relevant Notes: 
    6. Next Step     (Review and System Test (Developer) -> UAT (Quality) -> Documentation):

    1. Patch Release
    2. UAT


    23 May 202402:01PM Comment 8 by Vineshwar Prasad (Edge Business Solutions) Assigned To: Sanjay (Link Technologies) Followup Date: 31-05-2024 01:35 PM Time Taken: 1.00 Notes: Edited by vineshwar on 23/05/24 14:05. 
    The following tests were performed:

    Test Setup Instructions:

    Table 1 - Test Results
    NoTest CaseExpected ResultPass/FailComments
    1Calculate Method for the excess portion of employee and employer superannuation = E
    		Deduct Excess FNPF
    		Pass

    2Calculate Method for the excess portion of employee and employer superannuation = G
    		Do not deduct Excess FNPF
    		Pass

    3



    Table 2 - Test Result

    CalculateSuperExcessMethod

    G

    E

     

     

     

    Employee Setup

     

     

    Gross Pay

                       35,000.00

                       35,000.00

    Employee Compulsory 8%

    Yes

    Yes

    Employer Compulsory 10%

    Yes

    Yes

    Employer Excess Taxable 3%

    Yes

    Yes

     

     

     

    Taxable Allowance Setup

     

     

    Pay Code Type

    Taxable Allowance

    Taxable Allowance

    Include Taxable Allowance in Pay

    Yes

    Yes

    Includes Super - Active on Paycode

    Yes

    Yes

     

     

     

    Pay

     

     

    Normal Hours

                          2,916.67

                          2,916.67

    Communication Allowance

                               50.00

                               50.00

    PAYE

                               99.75

                             100.02

    Employee Compulsory 8%

                             237.33

                             237.33

    Employer Compulsory 10%

                             296.67

                             296.67

    Employer Excess Taxable 3%

                               87.50

                               89.00

    Net Pay

                          2,629.59

                          2,929.32

    Environment Details

    1. OS version: Win11
    2. Application version: 15.30.240523P.GA
    3. Setup on:
      1. Server: LinkAD
      2. Database: DEMO-LinkSOFT-EDGE
      3. LinkSOFT URL: HTTP://LinkQA4/LinkSOFT
    4. Login Details: Standard username and password for user "admin"

    Next Step: Closure


    23 May 202404:20PM Comment 9 by Sanjay (Link Technologies) Assigned To: Sanjay (Link Technologies) Followup Date: 31-05-2024 04:19 PM Time Taken: 1.00
    *** Skype Discussion ***
    Sanjay 4:12 PM
    Hi Vineshwar, Re: L13038. This change will also affect Employer and Employee Excess. Employee Excess is not in the example but just FYI so you are aware

    Sitla, 4:14 PM
    Yes, that is perfect


    28 May 202410:31AM Comment 10 by Sanjay (Link Technologies) Assigned To: Sanjay (Link Technologies) Followup Date: 07-06-2024 10:30 AM Time Taken: 2.00
    Thanks guys, I will close this case.

    If you have any queries regarding this support incident, please email admin@linktechnologies.com.au and include the Case No: L13038 in the subject line of all emails regarding this issue.

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