Hello, @JayRam for your quick response. I have attached a sample computation and the right tax bands that might put things in clear perspective for members. Though I will still prepare a spreadsheet as well later in the day as advised.
If income tax is calculated monthly and your pay period is also monthly, you probably don’t want to be setting up tax slabs and payroll periods. The easiest thing would be to just define all this as components in the salary structure. Have you tried that? Can you show what you’re doing and the erroneous results you are getting?
(Also, there are still contradictions in this data. For example, you say “Income below 24,000 is not subject to PAYE”, but then in the table you show a 10% tax rate for 1-24,000.)
The (1 - 24,000) band is interpreted as income below 24,000 is not subjected to PAYE but if the income exceeds the 24,000 figure then it’s subject to a 10% deduction. Kindly note that these deductions are cumulative.
(See attached erroneous results of my current work)
Like I said in my last post, if income tax is being assessed monthly and you’re also doing payroll monthly, you probably don’t want to be using income tax slabs. Tax slabs are meant to track multiple pay slips (usually monthly, weekly, etc.) across a larger tax period (usually annual). If your brackets are defined on monthly terms, the results might be weird. It will be far easier to try to define this all in the salary structure directly.
Hi, @peterg I have tried configuring Income Tax Slabs on an annual basis and I can’t seem to pull through. I have attached an excel worksheet with a sample calculation, could you kindly have a look and advise. Thank you.
That’s what i exactly did and previously was working just fine,Now i upgraded to V13 and i have a problem ,those components that depend on others to compute their values are not showing in salary slips.
i.e the Paye to be specific(it depends on( Paye before relief ). Can you kindly share your solution.your problem seems kenyan just like mine
I am also have the same problem . The payment salary is per month and income tax is calculated on annual_taxable_earning . I have made a tax salary slab according to our law of tax but it is failed to calculated by system as required