Easily annualize the income tax data of employees using the KAMI Tax Reconciliation function.

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Use the Tax Reconcile function on the following situations.

Year-End Tax Computation

Enable the annual tax computation upon the creation of Payroll Batch.

Click the box under "Final Year Payslip" when creating a batch to automatically run a full year tax reconciliation.

A tax reconcile figure will automatically be calculated for every payslip, which is the amount of tax that should be added or refunded to reflect total tax payable for the year.

Tax Reconcile Calculation Basis

• Taxable Income - the sum of total taxable basic salary and additional income within the year
• Total Tax Due - calculated annual tax due based on taxable income
• Tax Paid - total tax deduction to the employee within the year
• Tax Reconcile - Total Tax Due - Tax Paid

Use the Fiscal Year Summary feature to view details on all Taxable Income and Tax Payable reported within the year. 

Termination Tax

The Final Yearly Payslip needs to be enabled upon creating of batch as well when there are terminated payslips on the payroll batch.

Data from the beginning of the year until date of termination will be included in the computation.

Tax Reconcile Per Period

Option to reconcile tax every payroll batch can also be applied. The same process as year-end tax reconciliation will be used to run period tax reconciliation.

Enabling tax reconcile every payroll cut-off will allow the system to compute for the Actual Tax based of current income data.

Previous Employer

If an employee was hired in the middle of the year and need to capture the complete income and tax data, you can import their previous employer data prior tax reconcile.

Previous Employer data can be added individually through Profile >Payroll or in bulk through Import.