Hi, I recently upgraded to v11 and i am trying to familiarize myself with some new features,
I want to know on what salary component do the tax slabs on payroll period apply?
Does it apply to all earning components that fall under the range? or just base salary?
Do i have to create a deduction salary component for it to be applied?
Any form of clarification will be appreciated. thanks
If the “Is Tax Applicable” check box is checked on your “Salary Component” then tax will be applicable to the component as defined in the tax slabs.
thanks @Pawan , but another question is at what point dothe deductions specified in the payment period apply ?? , i have a submitted payslip but no deductions were made on the components even though they are under the payroll period, do i have to set up components for deductions for them to apply? if so, i think that defeats the idea of creating a payroll period. Thank you.
Are you able to clear your issue?
Yes I was, I realised the tax slabs cannot be used in my country.
But are you able to understand how this tax slub is used and what logic behind it, do you have a sample calculation, thx @Ebuka_Joseph_Akeru
Not yet, I meant from my understanding of tax slabs on ERPNext I realized that I could not use it in my country because it calculates taxes in a different way.