Tax calculation issues for rehired employees (INDONESIA)
I'm facing an issue with the tax calculations for Rehired EE's
When the EE is rehired within the same tax year,the system generates /4P* WT's which contains total taxable regular income from previous employment period.
However cumulated year-to-date income is stored in CRT and is observed to be carried across employment periods within the year.
During tax calculation the generated /4P* amounts are added to cumulated year-to-date income evaluated in CRT. This result in doubling of the taxable annual regular net income
It is observed that the /4P* wage types are carried forward into each subsequent payroll period after re-hire, causing this doubling to be repeated for each payroll period to the end of the calendar year. It is the same amount in /4P*.
Below is the annual income projection formula..
annual_reg_net_income = annual_factor * projection_factor * ( reg_net_income
+ reg_net_income_ytd ) + prev_reg_net_income.