Retrospective Payments & Taxation for AU

The Australian localisation now supports the taxation of retrospective payments
for Australia.

There are three methods of taxation:

1. Retrospective payments greater than 12 months
- Displays in Lump Sum E on Payment Summary.
- Taxed at a flat rate of 21.5%
2. Retrospective payments less than 12 months in current financial year
- Taxed at employees current marginal tax rate.
- Marginal rate determined by the number of pay periods the
payment is for.
3. Retro payments less than 12 months in previous financial year.
- Taxed at employees current marginal tax rate
- Marginal rate determined by the number of pay
periods in last financial year.

Earnings:
Any element that is to be included as a retro element must have
the AU_RETRO_PAY formula attached to it or, the formula incorporated in any existing
formulas attached to that element.

This formula will populate the Retrospective Balances depending
on when the retrospective payments were effective. That is, greater than 12 months,
less than 12 months..Etc.

Formula results need to be created to feed the retrospective
balances.

The balances are:

- Lump Sum E Payment (Retropay GT 12 Mths Amount Element)
- Retro LT 12 Mths Curr Yr Amount (Retropay LT 12 Mths Curr Yr Amount Element)
- Retro LT 12 Mths Prev Yr Amount (Retropay LT 12 Mths Prev Yr Amount Element)

Pre-tax deduction:
Any element that is to be included as a retro element must have the AU_SEEDED_PRETAX_RETRO_PAY formula attached to it or, the formula incorporated in any existing formulas attached to that element.

Voluntary Deduction:
No retroformula required

Direct payments:
No retroformula required

Employer Charges:
No retroformula required

Create a new Business Group

• Create an Organization with Classification "Business Group"
• Enter the Business Group Information from Others
• Edit the profile options at Responsibility Level listed below:

1. HR:Business Group = Business Group Name
2. HR:User Type = HR with Payroll User
3. MO: Operating Unit
4. HR: Security Profile