Previous topicNext topic
 Link Technologies - LinkSOFT Documentation 
Help > Link Web Applications Portal > Human Resource Management > Payroll & HR Maintenance > Payroll Tax >
Employee Payroll Tax
Employee Payroll Tax  is used to maintain income tax rates based on income brackets. These rates are used compute the income tax payable for an employee.

Steps to create payroll tax:

  1. Click on the "Green Plus Sign". This will open the "Edit Form".
  2. Enter below details
    1. Code - Enter a code which can be a set of alphanumeric values to uniquely identify each tax type. 
    2. Description - Enter the detailed description of the tax.
    3. Effective Date - Enter the date on which the tax should be effective and used for tax calculations.
    4. Pay Code - Select the pay code from the list. This loads paycodes that have "Is Tax Paycode" enabled.
      1. Pay codes are maintained under "Linkweb - Payroll Maintenance - Pay Codes". 
    5. Calculate Method
      1. Straight Line - Fixed Tax will be deducted based on the income and tax rate.
      2. Cumulative - Tax will deducted based on the accumulated Gross Amount.
    6. Notes  - This is an open text field, users can enter desired content.
    7. Void - Void records will be "Disabled" and will not appear in any lookups . Edit the record and "UN-tick" void to activate a record.
    8. Save. Click on the "Floppy Icon".
  3. Click on the "Grey Arrow" next to the tax code. This will expand the tax details.
    1. Click on the "Green Plus Sign". This will open the "Edit Form".
    2. Enter below details
      1. Annual Earning (Low)  and Annual Earning (High) - Enter the income range which is taxable.
      2. Tax Rate - Enter the tax rate in percent.
      3. Base Tax - Enter the base tax chargeable.

Figure 1: Employee Payroll Tax

Rules applicable to Papua New Guinea only

Papua New Guinea has the following additional fields for calculating employee payroll tax. These additional fields are automatically created when the company address has country as "Papua New Guinea".

Field Name

Description

 1 Dependant - A

Dependants Rebate = Max of ([A] or Min of ([B]%*Gross Tax or [C])
Enter the value for [A] 

 1 Dependant - B Dependants Rebate = Max of ([A] or Min of ([B]%*Gross Tax or [C])
Enter the value for [B] 
 1 Dependant - C Dependants Rebate = Max of ([A] or Min of ([B]%*Gross Tax or [C])
Enter the value for [C] 
 2 Dependant - A Dependants Rebate = Max of ([A] or Min of ([B]%*Gross Tax or [C])
Enter the value for [A] 
 2 Dependant - B Dependants Rebate = Max of ([A] or Min of ([B]%*Gross Tax or [C])
Enter the value for [B] 
 2 Dependant - C Dependants Rebate = Max of ([A] or Min of ([B]%*Gross Tax or [C])
Enter the value for [C] 
 3+ Dependant - A Dependants Rebate = Max of ([A] or Min of ([B]%*Gross Tax or [C])
Enter the value for [A] 
 3+ Dependant - B Dependants Rebate = Max of ([A] or Min of ([B]%*Gross Tax or [C])
Enter the value for [B] 
 3+ Dependant - C Dependants Rebate = Max of ([A] or Min of ([B]%*Gross Tax or [C])
Enter the value for [C] 
 Gross Adjustment Gross amount adjustment before calculating tax.