PAYE Payroll Calculation for Nigeria using Formula

@Nwokoro_Nkemakolam here are issues I noticed:

  1. Tax Payable 1 - 7 are statistical components and are not to be included in totals so check those boxes
  2. Employer Pension remittance does not factor into tax calculation so I don’t know why it’s part of your statistical components. If your intention is to pass the necessary ledger entries for employer contributions then you need to create it as a component both in earnings (your employer pension contributions expense ledger will be credited) and deductions (your pensions liability ledger will be debited) while checking the "Do not include in total field.
  3. Only your earning components need to Depend on payment days. If your deductions also depends on payment days then your calculation will return false results as your deductions formula already depend on the values returned by the earnings to determine what values it calculates deductions on.

In summary, from what I can see based on the screenshots you sent above, the issues listed above are the key sources of the error you are facing. Resolve these let’s see if you can get the right data.

Hope this helps.

Br.

Hello @flexy2ky thanks for your contribution so far.

I’m trying to manage deductions like insurance premiums on the platform but can’t seem to automate it, the only fix I have for now is manually adding the deductions like life assurance to the individual salary structures and entering the amount.
Any ideas on a more practical approach?

Kind Regards

Good day all,

I have ventured into customizing Payroll Calculation for Nigeria, and I have not been able to get it right even with all the recommendations and corrections that have so far been shared here on the forum. So I’ll go straight to the point by posting my configurations here.

Please if there’s anyone going through this, can anyone assist by pointing out to me why I can’t get the PAYE right? @flexy2ky @Ebuka_Joseph_Akeru if you guys are available, can you help with this, please?

Thank you very much

Hello @skizz ,
I am assuming you are getting values, but they do not align with your reference document.

Replicate every component from the reference document using the conditions and formula fields. I would advise you to make every component reflect on the salary slip so it becomes easier to track.

In my experience, It is important to capture the Consolidated Relief Allowance (CRA), Taxable Income, and the 6 PAYE deduction bands as individual components. similar to what you have done.

Hello @Ebuka_joseph_Akeru, thank you for your response.

I have that is what I have done, replicated every component from the reference document using the conditions and formula fields.

Please any update in this? It’s not working for me, please