KAMI provides default Other Payment Types to group your payments correctly in tax reports. Learn how to differentiate each types.

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Other Payment Types

Understand how these settings works:

Options

• Tax Status - determines if the OP must be part of taxable income or not
• Tax Gross Up - payment will be tax grossed up if profile Tax Gross Up is active
• Tardy Deduction - payment will proportionately be deducted by any tardy/absence versus expected working time
• Fixed Wage Basis - determines whether OP will be included in the Fixed Monthly Wage. Primarily used in Indonesia for Gross Daily Wage and Termination calculations as per country regulation
• Gross Wage Basis - determines if included in Gross Wage calculations, which is used for payment of various different activities
• Prorated - payment prorated if employee was only employed for part of any payroll period

Contributions

Check if contributions must be included in the calculations of contributions.

Here are the available OP Types:

Note that below descriptions are based on the default set up. It can always be modified based on your needs.

• Fixed Allowances
  • Applicable for fixed payments that needs to be automatically prorated 
  • Included in the employee income tax
  • Is prorated, if employee has a Fixed Allowances, system will automatically prorate it based on hire date or termination date set in their profiles
  • With enabled fixed and gross wage basis, will only apply if employee has fixed monthly wage and if any event activities used has active Gross Wage Basis
  • For Philippines, this OP will be part of SSS contribution
• Commissions 
  • Regular additional earnings in variable amounts, i.e., Sales Incentives or Commissions
  • Included in the employee income tax
  • With enabled gross wage basis, will only apply if employee has fixed monthly wage and if any event activities used has active Gross Wage Basis
  • For Philippines, this OP will be part of SSS contribution
• Bonus 
  • Periodic bonus payments, i.e., Annual Bonus, Performance Incentives
  • Included in the employee bonus tax. For Philippines, the 90k non-taxable bonus threshold set in Income Tax Type settings is automatically applicable here
  • With enabled gross wage basis, will only apply if employee has fixed monthly wage and if any event activities used has active Gross Wage Basis
  • For Philippines, this OP will be part of SSS contribution
• Non-Taxable 
  • Applicable for payments that are not wage-related or not subject to tax
  • This is not taxable, BUT will appear in tax reports
  • Is prorated, system will automatically prorate it based on hire date or termination date set in their profiles
• Loans 
  • Primarily being used for employee loan payments
  • This is not taxable, and will NOT appear in tax reports
• Attendance Policy 
  • Primarily being used on awards/penalties related to employee attendance. This is automated based on Attendance Policy Settings
  • Included in the employee income tax
  • For Philippines, this OP will be part of SSS contribution
• Wage Adjustment 
  • Applicable for retroactive payroll wage adjustments
  • Included in the employee income tax
  • For Philippines, this OP will be part of SSS contribution
• Expenses 
  • Mainly used for all employee expense claims or reimbursements
  • This is not taxable, and will NOT appear in tax reports
• Termination 
  • Applicable for any separation payments
  • This is not taxable, BUT will appear in tax reports
• Encashment 
  • Primary use for payments that can be converted to cash
  • This is not taxable, and will NOT appear in tax reports
• Others 
  • Open for use for any non-taxable payments
  • This is not taxable, BUT will appear in tax reports
    
• De Minimis 
  • Applicable for additional compensation of small value given by the employer apart from the basic salary
  • This is not taxable, BUT will appear in tax reports
  • Is prorated, system will automatically prorate it based on hire date or termination date set in their profiles
    
  • For Philippines, this OP will be part of SSS contribution
• Union Dues 
  • Applicable for union-related fees
  • This is not taxable, BUT will appear in tax reports
    
• Allowances 
  • Open for use for allowances that are not prorated based on hire/termination date
  • Included in the employee income tax
• Others (Taxable) 
  • Open for use for any other taxable payments
  • Is prorated, system will automatically prorate it based on hire date or termination date set in their profiles
• Bonus (Non-billable) 
  • Primary used for KAMI Invoicing
  • Works the same as the Bonus type above, but just tagged as non-billable