MPDX-9326 - 403b percentage deduction is only calculated on non 403b values

src/components/Reports/AdditionalSalaryRequest/CompleteForm/Deduction/Deduction.test.tsx

@@ -131,14 +131,14 @@ describe('Deduction', () => {
     });
 
     // 12% of $10,000 = $1,200
-    // 8% of $10,000 = $800
+    // 8% of ($10,000 - $1,200) = 8% of $8,800 = $704
     await waitFor(() => {
       expect(
         getByLabelText('Calculated traditional deduction amount'),
       ).toHaveTextContent('$1,200.00');
       expect(
         getByLabelText('Calculated roth deduction amount'),
-      ).toHaveTextContent('$800.00');
+      ).toHaveTextContent('$704.00');
     });
   });
 
@@ -213,21 +213,22 @@ describe('Deduction', () => {
     // Wait for GraphQL data to load
     await findByText(/12%/);
 
-    // 12% of ($10,000 + $3,000 + $2,000) = $1,800
-    // 8% of ($10,000 + $3,000 + $2,000) = $1,200
+    // 403b contributions excluded from base: totalWithout403b = $10,000
+    // 12% of $10,000 = $1,200
+    // 8% of ($10,000 - $1,200) = 8% of $8,800 = $704
     await waitFor(() => {
       expect(
         getByLabelText('Calculated traditional deduction amount'),
-      ).toHaveTextContent('$1,800.00');
+      ).toHaveTextContent('$1,200.00');
       expect(
         getByLabelText('Calculated roth deduction amount'),
-      ).toHaveTextContent('$1,200.00');
+      ).toHaveTextContent('$704.00');
     });
 
-    // Total should be $3,000 + ($3,000 + $2,000) = $8,000
+    // Total should be ($1,200 + $704) + ($3,000 + $2,000) = $6,904
     await waitFor(() => {
       expect(getByLabelText('Total requested amount')).toHaveTextContent(
-        '$8,000.00',
+        '$6,904.00',
       );
     });
   });
@@ -254,14 +255,14 @@ describe('Deduction', () => {
     await findByText(/12%/);
 
     // 12% of ($5,000 + $2,000 + $3,000) = 12% of $10,000 = $1,200
-    // 8% of ($5,000 + $2,000 + $3,000) = 8% of $10,000 = $800
+    // 8% of ($10,000 - $1,200) = 8% of $8,800 = $704
     await waitFor(() => {
       expect(
         getByLabelText('Calculated traditional deduction amount'),
       ).toHaveTextContent('$1,200.00');
       expect(
         getByLabelText('Calculated roth deduction amount'),
-      ).toHaveTextContent('$800.00');
+      ).toHaveTextContent('$704.00');
     });
   });
 

src/components/Reports/AdditionalSalaryRequest/CompleteForm/NetAdditionalSalary/NetAdditionalSalary.test.tsx

@@ -116,8 +116,10 @@ describe('NetAdditionalSalary', () => {
       />,
     );
 
-    // Net = $10,000 - (12% of $10,000 + 8% of $10,000) = $10,000 - $1,200 - $800 = $8,000
-    expect(await findByText('$8,000')).toBeInTheDocument();
+    // Traditional = 12% of $10,000 = $1,200
+    // Roth = 8% of ($10,000 - $1,200) = 8% of $8,800 = $704
+    // Net = $10,000 - $1,200 - $704 = $8,096
+    expect(await findByText('$8,096')).toBeInTheDocument();
   });
 
   it('calculates net salary with both percentage and traditional403b deductions', async () => {
@@ -139,10 +141,12 @@ describe('NetAdditionalSalary', () => {
     );
 
     // Total = $10,000 + $1,000 + $100 = $11,100
-    // Calculated deduction = 12% of $11,100 + 8% of $11,100 = $1,332 + $888 = $2,220
-    // Total deduction = $2,220 + $1,000 + $100 = $3,320
-    // Net = $11,100 - $3,320 = $7,780
-    expect(await findByText('$7,780')).toBeInTheDocument();
+    // totalWithout403b = $10,000
+    // Traditional = 12% of $10,000 = $1,200
+    // Roth = 8% of ($10,000 - $1,200) = 8% of $8,800 = $704
+    // Total deduction = ($1,200 + $704) + ($1,000 + $100) = $3,004
+    // Net = $11,100 - $3,004 = $8,096
+    expect(await findByText('$8,096')).toBeInTheDocument();
   });
 
   it('includes all salary fields in the total calculation', async () => {

src/components/Reports/AdditionalSalaryRequest/Shared/Helper/getTotal.test.ts

@@ -1,5 +1,5 @@
 import { defaultCompleteFormValues } from '../CompleteForm.mock';
-import { getTotal } from './getTotal';
+import { getTotal, getTotalWithout403b } from './getTotal';
 
 describe('getTotal', () => {
   it('returns correct number', () => {
@@ -12,3 +12,31 @@ describe('getTotal', () => {
     ).toBe(20123);
   });
 });
+
+describe('getTotalWithout403b', () => {
+  it('excludes 403b contributions from total', () => {
+    expect(
+      getTotalWithout403b({
+        ...defaultCompleteFormValues,
+        autoPurchase: '20000',
+        movingExpense: '123',
+        traditional403bContribution: '5000',
+        roth403bContribution: '3000',
+      }),
+    ).toBe(20123);
+  });
+
+  it('returns same result as getTotal when 403b contributions are zero', () => {
+    const values = {
+      ...defaultCompleteFormValues,
+      currentYearSalaryNotReceived: '1000',
+      adoption: '500',
+    };
+
+    expect(getTotalWithout403b(values)).toBe(getTotal(values));
+  });
+
+  it('returns zero when all fields are zero', () => {
+    expect(getTotalWithout403b(defaultCompleteFormValues)).toBe(0);
+  });
+});

src/components/Reports/AdditionalSalaryRequest/Shared/Helper/getTotal.ts

@@ -26,3 +26,14 @@ export const getTotal = (values: TotalableValues): number => {
     return sum + Number(values[key] || 0);
   }, 0);
 };
+
+const fieldsWithout403b = numericFields.filter(
+  (field) =>
+    field !== 'traditional403bContribution' && field !== 'roth403bContribution',
+);
+
+export const getTotalWithout403b = (values: TotalableValues): number => {
+  return fieldsWithout403b.reduce((sum, key) => {
+    return sum + Number(values[key] || 0);
+  }, 0);
+};

src/components/Reports/AdditionalSalaryRequest/Shared/useSalaryCalculations.test.ts

@@ -1,4 +1,4 @@
 import React, { createElement } from 'react';
 import { renderHook } from '@testing-library/react';
 import { Formik } from 'formik';
 import { CompleteFormValues } from '../AdditionalSalaryRequest';
@@ -76,11 +76,13 @@
     });
 
     expect(result.current.total).toBe(11100); // 5000 + 3000 + 2000 + 1000 + 100
-    expect(result.current.calculatedTraditionalDeduction).toBe(1332); // 11100 * 0.12
-    expect(result.current.calculatedRothDeduction).toBe(1110); // 11100 * 0.10
+    // Deductions are based on totalWithout403b (10000 = 5000 + 3000 + 2000)
+    expect(result.current.calculatedTraditionalDeduction).toBe(1200); // 10000 * 0.12
+    // Roth is based on totalWithout403b minus traditional deduction: (10000 - 1200) * 0.10
+    expect(result.current.calculatedRothDeduction).toBe(880); // 8800 * 0.10
     expect(result.current.contribution403b).toBe(1100);
-    expect(result.current.totalDeduction).toBe(3542); // (1332 + 1110) + 1100
-    expect(result.current.netSalary).toBe(7558); // 11100 - 3542
+    expect(result.current.totalDeduction).toBe(3180); // (1200 + 880) + 1100
+    expect(result.current.netSalary).toBe(7920); // 11100 - 3180
     expect(result.current.totalAnnualSalary).toBe(11100); // No calculations data, so just total
   });
 

src/components/Reports/AdditionalSalaryRequest/Shared/useSalaryCalculations.ts

@@ -1,7 +1,7 @@
 import { useMemo } from 'react';
 import { CompleteFormValues } from '../AdditionalSalaryRequest';
 import { useAdditionalSalaryRequest } from './AdditionalSalaryRequestContext';
-import { getTotal } from './Helper/getTotal';
+import { getTotal, getTotalWithout403b } from './Helper/getTotal';
 
 export interface SalaryCalculations {
   total: number;
@@ -59,12 +59,14 @@ export const useSalaryCalculations = ({
   return useMemo(() => {
     const total = getTotal(values);
 
+    const totalWithout403b = getTotalWithout403b(values);
+
     const calculatedTraditionalDeduction = values.deductTaxDeferredPercent
-      ? total * traditional403bPercentage
+      ? totalWithout403b * traditional403bPercentage
       : 0;
 
     const calculatedRothDeduction = values.deductRothPercent
-      ? total * roth403bPercentage
+      ? (totalWithout403b - calculatedTraditionalDeduction) * roth403bPercentage
       : 0;
 
     const calculatedDeduction =