A key measure in the 2020 budget plan is to decrease the tax rate on overtime work. This year, the taxation on the first 100 hours of overtime in the year is lowered to 15 percent for those whose basic salary does not exceed €20,000. This does not apply to workers in a managerial position. 

The Overtime concession opt-out button is found in the Employee Details section of an employee’s profile. 

To exempt an employee from the 2020 overtime concession tax change:

  1. In the left sidebar of Indigo, click Payroll
  2. In the Main section, click on Employees.
  3. Double-click on the employee for whom you want to exempt from the overtime concession tax.
  4. Click on Edit in the functions bar.
  5. In the Employment Details section, click on the Overtime Concession Opt Out box.
  6. Click on Save in the functions bar.

By default, all active employees in your system are opted-in.

The 15 percent tax rate and 100 hour cap is already updated to overtime pay items in your system. Indigo will automatically apply the rate to the first 100 hours of overtime worked and not to the subsequent hours.

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