21. Settling tax from Sales Rep’s remuneration to the Tax Office - Financials
Reference :
• Appendix A – Billing & Collection - 150
• ISP Report – No reference
• Discovery Workshop Session – No reference.
Original Requirement :
• Settling tax from Sales Rep's remuneration to the Tax Office
Current Understanding :
• During the RFP process, the requirement was understood that the solution should be able to take care of the Tax calculation/deduction from Sales representative’s remuneration.
• The complexity was that for Claw back commissions processing: The tax on recovery of commissions, overrides, incentive for the entire hierarchy will have be calculated and adjusted based on the taxable income of the tax year effective from the period when the original commission transaction took place. This was clarified by the TLI users during the workshop discussion.
• Whenever there is a Claw back on Agency Commission, DMS will provide the Claw back along with the Agent Payable. Income Tax will be based on the period in which Payable is generated.
Revised Solution (if applicable) :
• The Requirement is to generate the Claw back and the Tax Rate should be actual rate in which Original Payable was generated. The General approach is Agency commission Payable is based on Payment frequency and claw back will be the consolidated Claw back for the particular period. The Gap is identify the Claw back at the each policy level and identify the tax of the Original commission Invoice.
• Identify the Interface Logic with DMS to generate the Payable by individual transaction
• Develop the Interface to check for the Original Tax Rate and process Credit for the Claw back
• Look at the other scenarios as part of the detailed requirement gathering.
• Perform the Unit Testing
Original Estimation :
• Standard – No effort was estimated.
Effort Estimation :
• 35 man days of development effort.