I'm working with a client who is running GP 18.3 and wanted to get verification the program is working as intended for lump sum payments.
We setup an Income Paycode for Severance pay with a Reference = Lump Sum Payment. We created a transaction with this pay code for $4000 and calculated the batch. The tax calculated was $400. We agree this is the correct amount (10%).
We reviewed the employees previous payroll check which consisted only of hourly pay and made note of the tax amount.
We then created a new batch with the Severance code for $4000 and the employees normal hourly pay code with an amount of $500. When we calculated the batch, the taxes appear to be much higher than when the pay is processed is a separate batch. It appears the calculation is taxing the entire $4500 at the normal tax rates.
I saw an article for GP 10.0 which stated the Lump Sum Payments needed to be paid in a separate batch. I wanted to verify the program is still designed this way, and the user will need to process their Lump Sum entries separately from any other pay.
Thanks - Ron
