>>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.

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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 employer

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.