Adhoc One Time Tax Deduction Upon the One Time Earnings Amount in Oracle HRMS R12.2.8

 

Business Needs:

     In Organization, One Time Earnings amount will be paid to an Employee with addition to the Regular Salary Earnings. In Such case, it is required to be deducted additional direct Tax for the Earnings amount Provided along with the regular Income Tax Deduction.

    Oracle HRMS for India uses the element classification Direct Payments to support the calculation of any ad hoc earnings such as taxable reimbursements.

 Step 1:Create a New Element (Name can be user defined. Please define as per Business Requirement).

As per the Screenshots Provided below, Create an Element for the Direct TDS with primary classification as Direct Payments.

Step 2: Create Input Values:

 Step 3: Add Balances in Feeds

    Pay Value : Direct Payments

    TDS         : TDS on Direct Payments

 

  Step 4: Provide the Element Link as required by the Business.

 Step 5: Assign One Time Earning Amount to the Employee

For giving the Earnings to Employee use the Element - Miscellaneous Earnings 1_New

 Step 6: Assign One Deduction Amount to the Employee

 For giving the Earnings to Employee use the Element - Miscellaneous Deductions 1_New.

 Step 7: For Adhoc Income Tax Deduction use Element - XX_DIRECT_PAY_TDS.

 

 

Step 8: Process Quick Pay Run & Verify the Results.