Pre-Tax Deduction Wrong Report

[ivan]

Hello,

I have been testing TimeTrex for some time now and everything seem to be working beautifully with one exception. I have the need to add a pre-tax deduction to certain employees. This is used for an accidental insurance plan and needs to be deducted before all taxes on the pay stub. I created a "Pay Stub Account" with type "Employee Deduction" and a "Pay Stub Deduction" linked to that Pay Stub Account. Under "Include Pay Stub Accounts" I have setup the "Total Gross."
Now to make this apply before the taxes, I excluded the new Deduction from all the tax Deductions. This is working just fine, and the calculations on the pay stubs are correct, however, the problem comes when I have to generate a report. Since TimeTrex does not support any state forms, I want to use the "Tax Summary" report to fill out my state forms. The Tax Summary report does not take into account the pre-tax deduction I added above, so the subject wages and the taxable wages only look at the Total Gross without subtracting the excluded ones. This generated wrong amounts since the actual taxable income should be the gross-(any pre-tax deductions).

Please let me know if I am doing something wrong or if thats a bug that will have to be fixed. Thank you!

Regards.

[shaunw]

What version of TimeTrex are you using? Please include a screenshot of your Tax/Deduction record for your State Tax, as well as the report that you are rerunning and the criteria used for it.

[ivan]

Thank you for the quick response @shaunw ! I am running TimeTrex 8.0.9 on a Debian machine. The requested screen shots are attached.

P.S. I was looking at the code in classes/modules/report/TaxSummaryReport.class.php

Code: Select all

//Subject wages are wages subject to taxes. Previously this was considered to be Total Gross, but that wouldn't take things like Expense Reimbursements into account.
$subject_wages_psea_ids = array_merge( $subject_wages_psea_ids, (array)$cd_obj->getCombinedIncludeExcludePayStubEntryAccount( $cd_obj->getIncludePayStubEntryAccount(), $cd_obj->getExcludePayStubEntryAccount() ) );

This is fine, however, the $cd_obj->getCombinedIncludeExcludePayStubEntryAccount would return an array of the accounts that need to be added to the subject wage. This means that $subject_wages_psea_ids would contain only what needs to be included in the subject wages, there is no logic to find the accounts that need to be excluded and subtracted.

I was thinking to add a $non_subject_wages_psea_ids array that would contain the excluded accounts and than subtract them in the same manner the addition is done

Code: Select all

bcsub( $this->tmp_data['pay_stub_entry'][$company_deduction_id][$date_stamp][$user_id]['taxable_wages'], $pse_obj->getColumn('amount') ); 

This is just my 2cents, in case my overall setup of the account is correct. Thanks!

[shaunw]

I will pass this on to the developers to investigate further.

[ivan]

Thank you @shaunw, is there any way I can find out what the outcome will be? Thank you again!

[shaunw]

Can you please upgrade to v9.0 and see if the issue persists in that version?

[ivan]

Hey @shaunw,
I am sorry it took me so long to reply.
I did try v9.0.0 and although the taxes were properly calculated now, there was a problem with the State Tax limits. Today, however, I upgraded to v9.0.1 and it is all working beautifully. Thank you so much for the quick replies and fixes. Much appreciated!