The pay item taxation profile is a support file which link tax rates to a pay item.
This support file is mainly used for the overtime concessions rates as prescribed in Malta's 2020 budget changes.
You can create new pay item taxation profiles.
To create a pay item taxation profile:
- In the left sidebar of Indigo, click on Payroll.
- In the Payroll Setup section, click on Pay Item Taxation Profiles.
- Click on Insert in the functions bar.
- Enter the details of the pay item taxation profile.
- Click on Save.
- Description - enter a description about the pay item taxation profile.
- Payment type - select the payment type of the pay item: basic pay - hourly paid, basic pay - salary, fringe benefit, overtime, leave pay, or adjustment.
- Pay item taxation profile based on - select on what the pay item taxation profile will be based.
- Payment type - select whether the pay item is a weekly or yearly payment type.
You can then select the employment types which this pay item taxation profile will apply to.