If we try to pay a Bonus or any paycode with PayType of "Bonus" OR any paycode with a Reference of "Lump Sum Payout" on a Batch without their regular pay then only 10% tax is deducted. We paid a Lump Sum type a year ago in a batch by itself and proper taxes were deducted but now it only takes 10%.
Here are the results of my testing:
Taxes for paycode set up with PayType "Bonus"
Bonus+Salary Salary only Difference Bonus Only
Emp1 (40K/yr) 576 248 328 125
Emp2 (85K/yr) 1340 849 493 125
Taxes for paycode set up with PayType "Regular Pay"
Bonus+Salary Salary only Difference Bonus Only
Emp1 (40K/yr) 670 248 422 193
Emp2 (85K/yr) 1385 849 536 189
I get the same results if I use any PayType with Reference of "Lump Sum Payout".
I have instructed the user to use PayType of "Bonus" if paying on a separate batch in which case the add'l taxes on the Bonus amount would be $328 and $493. If she wants to pay it as part of a regular payroll batch, to change the PayType to "Regular Pay" or use a separate pay code to deduct $193 and $189. Still a huge difference!
I believe this to be an issue with Canadian Payroll, possibly in GP2010 or later.
Has anyone else noticed this or found a solution to this?