Payroll Taxes
Employee Taxes define the salary bands used to calculate payroll tax, with the offset applied at each band. They are set against a tax allowance and a fiscal year, so rates can change year to year without disturbing history.
Where to find it
Go to HRM > Settings > Taxes.
Setting up a band
| Field | Description |
|---|---|
| Tax Allowance | The allowance the tax is calculated against. Created in Allowances Setup. |
| Fiscal Year | The year these rates apply to. |
| Salary Range | The band, from and to. |
| Rate | The percentage applied within the band. |
| Offset | The fixed adjustment applied at that band. |
Viewing the bands
Select a tax allowance and fiscal year to see the bands defined. Show Per month displays the figures monthly rather than annually, which is how they appear on a payslip.
Set up the new year's bands before the first payroll of that year. Payroll uses the rates on file for the fiscal year it is processing, so a missing set produces tax calculated on last year's rules.
Related pages
- Allowances Setup — the tax allowance
- Payroll Process — where tax is calculated
- Payslip Process — where it appears
- Financial Years — the years available