>>Payroll >Settings >Income Tax Types
Enable users to define various tax calculations tailored to their country or company's regulation.
KAMI automatically sets your country's standard tax rates and setting to get you started.
Configuring Income Tax Type
Follow the steps below to successfully configure the Income Tax Type!
Step 1: Go to Payroll> Income Tax Type
Step 2: Add Income Tax details
Name - Customize the name
Description - Add a simple description of the usage of the tax type
Estimated Net Annual Income Method - select which tax computation shall apply every payroll computation
Annualized - estimate Net Annual Income by multiplying current period taxable income by 12 months
Reconcile - use exact Net Annual Income to date by reconciling all previous payslips in the current tax year
Reconcile (Gross Up) - reconcile taxes that will be borne by the employee
Please set as ANNUALIZED for PH Companies
Gross Income - automatically includes all computed wages from Activity and all OP Types classified as "Regular"
Employer Contributions - Identify which Contribution types will be considered taxable
Employer Voluntary Contributions Income - enable if voluntary contribution will be considered taxable
Operational Expenses - input data if your expense type tagged as Operational Expense is deductible before the computation of the tax amount
For PH's Withholding Tax Setting, please put 1000 as the age limit & 0 value in Max Amount Rate
Pension Maintenance - input data if pension maintenance will be deducted from gross income
For PH's Withholding Tax setting, please put 1000 as the age limit & 0 value in Max Amount & Rate
Bonus Tax Deduction - add a Non-taxable Bonus threshold amount
Employee Contributions - Select which contribution types are deductible before the computation of the tax amount
For PH account, please add 90,000.00
Employee Voluntary Contributions Deduction - enable if voluntary contributions will be deducted before the computation of the tax amount
Tax Rate Table - specify the annual income & tax rate to be applied
Tax Bracket Tax Bracket Min Tax Bracket Max Tax Bracket Rate Add tax bracket level depending on the Government/company policy Minimum Income amount to consider in the computation Maximum Income amount to consider in the computation Applicable tax rate to apply on income specified in Tax Bracket Min & Max
DELETE option is available when added bracket is not needed
- Termination Tax Rate Table- specify the tax rate that will be used during termination payslips
Same Details as Tax Rate Table
Adding Additional Income Tax Type
You may also add other Income Tax Types if you have a special tax configuration that you want to implement.
Can be done when you want to add an income tax type with fix rate such as 10%, 15%.
To execute this:
- Click on Add Income Tax Type
- Then, configure the contribution type in accordance with your policies
Read the instructions above to know what needs to be encoded on each fields.
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