Tax Slab Computation Challenges

Frappe HR
1

Breakdown of Components

  1. Gross Pay Calculation:
  • Basic Salary: ₵ 1,325.38
  • Food Subsidy: ₵ 60.00
  • Risk Allowance: ₵ 132.54
  • Total Gross Pay: ₵ 1,325.38 + ₵ 60.00 + ₵ 132.54 = ₵ 1,517.92 (correct)
  1. Deductions:
  • Provident Fund: ₵ 132.54
  • Social Security: ₵ 72.90
  • Union fees: ₵ 26.51
  • Total Deductions (before tax): ₵ 132.54 + ₵ 72.90 + ₵ 26.51 = ₵ 231.95
  1. Income Tax Calculation:
  • Given your income of ₵ 1,325.38, let’s go through the tax slabs to see how the tax of ₵ 322.16 was calculated.

Tax Calculation for ₵ 1,325.38

  1. Taxable Income Breakdown:
  • From ₵ 0.00 to ₵ 490.00: 0%
    Tax: ₵ 0
  • From ₵ 491.00 to ₵ 600.00: 5%
    Taxable: ₵ 109.00
    Tax: ₵ 5.45
  • From ₵ 601.00 to ₵ 730.00: 10%
    Taxable: ₵ 129.00
    Tax: ₵ 12.90
  • From ₵ 731.00 to ₵ 1,325.38: 17.5%
    Taxable: ₵ 594.38
    Tax: ₵ 103.06Total Tax: ₵ 0 + ₵ 5.45 + ₵ 12.90 + ₵ 103.06 = ₵ 121.41

Comparing with Reported Tax

  • The tax calculated from the slabs is ₵ 121.41, but the report shows ₵ 322.16. What could be the issue
2

Hi,

We have Ghana Payroll Customization to handle this.

Thanks,

Divyesh Mangroliya

3

Thanks very much. Can you direct me to where I can get it?