Hello,
As per Mauritian Payroll Rule, an employee should receive 13 payslips in a year (for e.g pay period: 01 July 2023 till 30 June 2024). Employee will receive 1 payslip with EOY Bonus and deductions related to the EOY Bonus and at the end of same month the latter will receive normal payslip containing his salary details:
Number of work days = 26 per month excluding Sundays
Tax Rules (Yearly amounts for 13 month for the defined 12 month period (01 July 2023 till 30 June 2024)):
| Amount From | Amount To | Tax Rate (%) |
|---|---|---|
| 0 | 390000 | 0 |
| 390001 | 430000 | 2 |
| 430001 | 470000 | 4 |
| 470001 | 530000 | 6 |
| 530001 | 590000 | 8 |
| 590001 | 890000 | 10 |
| 890001 | 1190000 | 12 |
| 1190001 | 1490000 | 14 |
| 1490001 | 1890000 | 16 |
| 1890001 | 2390000 | 18 |
| 2390001 | > | 20 |
Note that we are using the standard ERPNEXT and no customization has been done on the system.
Salary structure is defined and assigned to employee
Generating salary for Employee in ERPNEXT, we see that tax is wrongly calculated. Correct tax value should be 1442, but erpnext is providing 1133
Manual calculation is as follows:
| Tax Rate | Amount From | Amount To | Bracket | Sum Bracket | (Chargeable Income - bracket Amount) >0 | Tax Amount | |
|---|---|---|---|---|---|---|---|
| 390000 | 0 | 0 | 30000 | 30000.00 | 21500 | 0 | |
| 430000 | 0.02 | 30000 | 33076.92308 | 3076.92 | 3076.92 | 18423.0769230769 | 61.538 |
| 470000 | 0.04 | 33076.92308 | 36153.84615 | 3076.92 | 6153.85 | 15346.1538461538 | 123.077 |
| 530000 | 0.06 | 36153.84615 | 40769.23077 | 4615.38 | 10769.23 | 10730.7692307692 | 276.923 |
| 590000 | 0.08 | 40769.23077 | 45384.61538 | 4615.38 | 15384.62 | 6115.3846153846 | 369.231 |
| 890000 | 0.1 | 45384.61538 | 68461.53846 | 23076.92 | 38461.54 | -16961.5384615385 | 611.538 |
| 1190000 | 0.12 | 68461.53846 | 91538.46154 | 23076.92 | 61538.46 | ||
| 1490000 | 0.14 | 91538.46154 | 114615.3846 | 23076.92 | 84615.38 | ||
| 1890000 | 0.16 | 114615.3846 | 145384.6154 | 30769.23 | 115384.62 | ||
| 2390000 | 0.18 | 145384.6154 | 183846.1538 | 38461.54 | 153846.15 | ||
| > | 0.2 | 183846.1538 | |||||
| Total Tax - PAYE | 1442.308 |
Concerns:
- How can we achieve the correct tax value
- When leave without pay is introduced, the tax value gets even worse
- How to generate 2 payslips in one month for each employee (1 Payslip for EOY Bonus and other is normal Payslip)