To access Taxes & benefits settings,
Go to Payroll > Settings > Taxes & benefits
Taxes & Benefits is grouped into tabs
TAX RULES
Tax rules are already pre-configured based on the country you select for your business.
ALLOWANCES
These are items that will go to the earning section of your employees pay e.g. Housing Allowance, Transport Allowance, Commission, e.t.c. You do not need to add Basic pay.
Adding an allowance.
1. To add an allowance, click on “Add allowance”
2.Enter the following
- Allowance name: Enter the allowance name. This is how it will appear on the payslip.
- Allowance type: This is how the allowance is calculated.
Percentage (it will be calculated as a percentage of the basic pay),
Fixed (You will have to enter a value for the allowance e.g. 1000)
Custom: This is where the allowance is a value that differs from one employee to another - Percentage of basic: If the allowance type is a percentage, enter the percentage value e.g. if the allowance if 5% of basic, enter 5.
- Limit / month: If the allowance type is a percentage, enter maximum limit. If the percentage exceeds this limit, then the limit will be applied.
- Amount: If the allowance is a fixed amount, enter the amount here
- Taxable: Select if the allowance is taxable or not
- Deductable: Select if the allowance is deductable or not
- Employees enrolled: Select if all employees should be enrolled to the allowance, or custom to only apply to certain employees
3. Click on “Add”
Editing an allowance
1. To edit an allowance, click on the gear icon on the left most.
2. Click on “Edit”
3. Make your changes
4. Click on “Update”
Deleting an allowance
1. To delete an allowance, click on the gear icon on the right most.
2. Click on delete
3. Confirm delete
DEDUCTIONS/CONTRIBUTIONS
These are items that will go to the deductions section of your employees pay.
mandatory statutory deductions will be available by default.
Adding an deduction.
1. To add a deduction, click on “Add deduction”
2.Enter the following
- Deduction name: Enter the deduction name. This is how it will appear on the payslip.
- Deduction type: This is how the deduction is calculated.
Percentage (it will be calculated as a percentage of the basic or gross pay),
Fixed (You will have to enter a value for the deduction e.g. 1000)
Custom: This is where the deduction is a value that differs from one employee to another - Deduction from: If the deduction type is a percentage, Select if should be applied to basic pay or gross pay.
- Rate: If the deduction type is a percentage, enter the percentage value e.g. if the deduction is 5%, enter 5.
- Limit / month: If the deduction type is a percentage, enter maximum limit. If the percentage exceeds this limit, then the limit will be applied.
- Amount: If the deduction is a fixed amount, enter the amount here
- Is this an employee contribution?: Select if the deduction is an employee contribution
- Institution: If the deduction is an employee contribution, select the institution. (if you can not see the institution, contact support to add it for you)
- Employees enrolled: Select if all employees should be enrolled to the deduction, or custom to only apply to certain employees
3. Click on “Add”
Editing a deduction
1. To edit an deduction, click on the gear icon on the right most.
2. Click on “Edit”
3. Make your changes
4. Click on “Update”
Deleting a deduction
1. To delete a deduction, click on the gear icon on the right most.
2. Click on delete
3. Confirm delete
EMPLOYER CONTRIBUTIONS
Mandatory statutory contributions will be available by default.
Adding an contribution.
1. To add a contribution, click on “Add contribution”
2.Enter the following
- Contribution name: Enter the contribution name.
- Contribution type: This is how the contribution is calculated.
Percentage (it will be calculated as a percentage of the basic or gross pay),
Fixed (You will have to enter a value for the contribution e.g. 1000)
Custom: This is where the deduction is a value that differs from one employee to another - Contribution from: If the contribution type is a percentage, Select if should be applied to basic pay or gross pay.
- Rate: If the contribution type is a percentage, enter the percentage value e.g. if the contribution is 5%, enter 5.
- Limit / month: If the contribution type is a percentage, enter maximum limit. If the percentage exceeds this limit, then the limit will be applied.
- Amount: If the contribution is a fixed amount, enter the amount here
- Institution: Select the institution. (if you can not see the institution, contact support to add it for you)
- Employees enrolled: Select if all employees should be enrolled to the contribution, or custom to only apply to certain employees
3. Click on “Add”
Editing a contribution
1. To edit a contribution, click on the gear icon on the right most.
2. Click on “Edit”
3. Make your changes
4. Click on “Update”
Deleting a contribution
1. To delete a contribution, click on the gear icon on the right most.
2. Click on delete
3. Confirm delete
ENROLLING EMPLOYEES TO AN ALLOWANCE/BENEFIT, DEDUCTION OR CONTRIBUTION
To enroll an employee to a benefit/allowance, deduction or contribution
- Go to Payroll > Settings > Taxes & Benefits
- Switch the tab the benefit or deduction you want
- On the particular allowance, benefit, deduction or contribution, click the icon at the far right
- Click on “Manage enrolls”
- Locate the employee and click the checkbox
- You can enter an amount on some allowances, deductions or contributions.