I tried to break it down, I was successful in listing down the components but there is some problem with formulas for components and the structure.
I get the first statistical component by assigning this to a statistical component lets call it ‘CRA’,
gross_pay * 0.21 if gross_pay>20000000.0/12.0 else gross_pay*0.2+200000.0/12.0
Then I get the taxable income (‘TXA’) by evaluating
gross_pay-CRA-Employee pension-3200000.0/12.0
the Tax PAYE amount for that transaction can then be gotten as
TXA*0.24+560000.0/12.0
Note: some figures like Employee pension have to be fetched before taxes can be generated.
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Good day
I Was able to follow through with the earning
but gat stocked in the deduction. i would like you to help me with the condition for “tax payable 1, Tax payable 2 and tax payable 7”
below are my deduction on my excel sheet. how do i incorporate it on each tax payable
=IF(F2>=300000,3000007%,F27%)
=IF(AND(F2>300000,F2<600000),(F2-300000)11%,IF(F2>600000,30000011%,0))
=IF(AND(F2>600000,F2<1100000),(F2-600000)15%,IF(F2>1100000,50000015%,0))
=IF(AND(F2>1100000,F2<1600000),(F2-1100000)19%,IF(F2>1600000,50000019%,0))
=IF(AND(F2>1600000,F2<3200000),(F2-1600000)21%,IF(F2>3200000,160000021%,0))
=IF(F2>3200000,(F2-3200000)*24%,0)
hello @Ebuka_Joseph_Akeru
so i was able to follow through with @flexy2ky snip shot but gat stocked in the deduction. he made mention of “if condition” FOR EACH TAX PAYABLE but i cant seem to wrap my head around it
THIS ARE MY CONDITION OF MY TAX PAYABLE AND I WOULD LIKE TO INCORPORATE ON THE ERP
=IF(T1>=300000,300000 7%,T1 7%) Tax payable 1
=IF(AND(T1>300000,T1<600000),(T1-300000) 11%,IF(T1>600000,300000 11%,0)) Tax payable 2
=IF(AND(T1>600000,T1<1100000),(T1-600000) 15%,IF(T1>1100000,500000 15%,0)) Tax payable 3
=IF(AND(T1>1100000,T1<1600000),(T1-1100000) 19%,IF(T1>1600000,500000 19%,0)) Tax payable 4
=IF(AND(T1>1600000,T1<3200000),(T1-1600000) 21%,IF(T1>3200000,1600000 21%,0)) Tax payable 5
=IF(T1>3200000,(T1-3200000)*24%,0) Tax payable 6
PAYE (T1+T2+…T6)/12
BTW… salary component pension PF = P/12 dont show on my salary slip even thou its not ticked as a statistical formula
Kindly assist
Can you share screenshots of your deduction conditions and formula?
DEDUCTION
T2
T3
I SEE THE SNIP AINT SHOWING THE FULL CONDITION
BASICALLY THIS ARE THE CONDITIONS FROM T2 - T7
I DIDNT PUT ANYTHING ON THE FORMULAE
T2: 300000*.7 if (CI>= 300000 ) else CI*.7 if (CI<300000) else 0
T3: (CI-300000).11 if (CI>300000 and CI<600000) else 300000.11 if (CI>600000) else 0
T4: (CI-600000)0.15 if (CI>600000 and CI<1100000) else 500000.15 if (CI>1100000) else 0
T5: (CI-1100000)0.19 if (CI>1100000 and CI<1600000) else 500000.19 if (CI>1600000) else 0
T6: (CI-1600000)0.21 if (CI>1600000 and CI<3200000) else 1600000.21 if (CI>3200000) else 0
T7: (CI-3200000)*0.24 if (CI>3200000) else 0
when i couldnt see the deduction table on the slip, i knew there was something wrong with the deduction btw the earning is ok
You are doing it all wrong. Formula is what calculates the deduction. Condition is what is used by the formula to base its calculation on.
Check out my screenshots here to see how to combine conditions and formula to calculate the deductions. Using if and else in condition does not calculate anything. Essentially the condition handles the IF and the result of the IF is handled by the formula. It is the formula that eventually defines the deduction amounts and because you’re not using the formula you’re not defining any deduction hence your deduction will be empty.
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alright
going with ss1 what are your conditions for tax payable 1 , tax payable 2, tax payable 3, tax payable 4, tax payable 5, tax payable 6, tax payable 7 ?
First, determine your taxable income and using the Nigerian tax bracket system, define the taxes that apply to each bracket.
Assuming taxable income = TI
Assuming Annual Gross = AG
Tax Payable one
Condition: TI <= 0
Formula: AG *0.01
Tax Payable 7
Condition: TI > 3200000
Formula: 560000+(0.24*(TI-3200000))
560000 being tax payable up to this point.
Tax Payable one is calculated on AG because according to Nigerian Tax Law, if taxable income is less than or equal to 0, a flat rate of 1% is taxable on gross income.
EARNING
DEDUCTION
Taxable income= CI
ANNUAL Gross= AG
Tax Payable one
Condition: CI <= 0
Formula: AG *0.01
Tax Payable TWO
Condition: CI <= 300000
Formula: CI*.07
Tax Payable THREE
Condition: CI <= 600000
Formula: 21000+(.11*(TI-300000))
Tax Payable FOUR
Condition: CI <= 1100000
Formula: 54000+(.15*(TI-600000))
Tax Payable FIVE
Condition: CI <= 1600000
Formula: 129000+(.19*(TI-1100000))
Tax Payable SIX
Condition: CI <= 3200000
Formula: 224000+(.21*(TI-1600000))
Tax Payable SEVEN
Condition: CI > 3200000
Formula: 560000+(.24*(TI-3200000))
pension fund
SLIP ONE
SLIP TWO
still didnt get the right deduction
I Noticed PENSION FUND is not visible on the slip
Almost there but missing something in condition. To determine the band your condition from Tax Payable 2 upwards must identify the tax bracket otherwise it will calculate payable tax wrongly. so for instance:
Tax Payable 2 Condition: (first N300,000)
CI > 0 and CI <= 300000
Tax Payable 3 Condition: (Next N300,000)
CI > 300000 and TI <= 600000
Tax Payable 4 Condition: (Next N500,000)
CI > 600000 and CI <= 1100000
and so on until you get to Tax Payable 7 which determines the tax payable if next salary band is is in excess of N3,200,000.
Up until this point I assume these tax components are created as statistical components so they will not show up in your totals. you need to create a pension component which will show on your payslip and use it to calculate your pension deduction. But you created a pension component and made it statistical in earning so it will not act as a deduction. Move to deduction section to give it effect.
on the earning i created Pension P as statistical component
I gave it effect in deduction as pension fund (PF) this time its not a statistical component but it is calculated from P
Okay so I’m just going to dump mine here so you can compare with yours to see what could be different.
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i really must appreciate your effort and time in helping me out, trust me i sincerly do but as at this hour, i have compared both with mine yet i dont know why my results are different 
. Does it have anything to do with the unticked check box on each salary component or version or anything ?
Hi @Chibuzor_Derrick, If you are still having issues replicating @flexy2ky suggestions then I suggest you take a step back and ensure the salary components are of the correct types, Generally,
-
Employer Contribution (10% of Basic, Housing, Transport) should be tagged as “do not add to total” with its values not contributing to the total deductions.
-
Consolidated Relief Allowance, Taxable Income, Additional Tax Relief, All Tax Payable Slabs should be Statistical components, so they can be calculated alone.
-
Employee Contribution (8% of Basic, Housing, Transport), PAYE (Income Tax) should be normal deductions with their values contributing to the total deductions.
One way to easily identify the source of the issue would be to change them all to generic components so that they can be seen on the salary slip so as to see where the calculations break.
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Earning : all statistical component are unticked to “dont add on total” and the rest are ticked “depend on payment days”
Deduction: all statistical component where ticked and the rest are “depend on payment days”
i can categorically say that the calculation is correct using the snip_shots from @flexy2ky as shown above
by the time i ticked statistical component for (annual gross,pension,cra,taxfree income, chargable income) in the earning. i get this
Move them to deduction section
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