Tax Difference Carryover for Independent YEA

When the tax difference that is calculated for an independent YEA represents an underpayment of income tax, the system uses the deduction element, YE TXDIF CY, to carry over the difference to the next object year. When you run the regular payroll process for January (using process list JPRSAL), the system deducts the amount from the payee's earnings. If the tax difference is greater than the payee's earnings in January or cannot be deducted from the January salary, the tax difference is carried over to the next month, until the deduction is taken.

By default, refunds are not carried forward but are paid to employees in the last payment of the year. To carry over refunds, set the value of variable YE VR CYOVR FLG to 1 (one).

The system reports the tax difference that is carried over on the YEA payslips, the Withholding Tax Register report, and the Tax Difference Carried Over from the Previous Year report.