3rd Party RetroTaxes - After Organization Assignment Transfer

Question

Hello All,
We have an issue with posting 3rd party retro tax payments when an employee transfer from one company/payroll area to another company /payroll area. For example, we have a employee transfer from "old" company code 2008/Payroll area U1 to "new" company code 2009/Payroll area U2. The employee has retro taxes from the "old" company which needs to be posted; because the employee has transferred to the "new" company code; the system has issues mapping the retro taxes to the correct company code, vendor, and HR payee.  I have this issue despite the system been configured with the correct mappings for both company codes.  Also, I discovered the system will not allow multiple mapping of the same wage type too.
Has anyone experienced this issue?  I need to help. Willing to grant reward points for a helpful answer.
Kind Regards,
Brenda Goodwin

Answer 1

Thanks Arti,  your resolution is helpful if the payroll dept knows there is going to be a retro adjustment coming through which took effect in the previous tax company.
How do you catch all retro tax payments that that ocurr due to a change in a employee's record that is effective in the pass which causes a retro to the employee's taxes in the previous tax company?  The payroll don't know there is a retro until they exit payroll and then, start processing the 3rd party payments.  They run into the issue of the system not linking the retro tax amount to the correct company code, vendor and HR payee for posting.
Regards,
Brenda Goodwin