What are Tax Profiles?
Tax profiles are IRD-set, tax components that affect how taxes are deducted from an employee's taxable income.
What are Tax Profiles used for?
Tax Profiles are used to work out the effective tax rate an employee is levied based on income and time period.
Adding a new Tax Profile
To set a new tax profile:
Go to Payroll and Leave > Payroll Setup > Tax Profiles.
Click on Insert (+) in the functions bar.
Enter the tax profile name and description and choose either FSS main or part-time. Check the Tax on annual proj. gross box if needed.
When finished, click on Save (check mark icon) in the functions bar.
You can now enter further details of the new tax profile by going to the Rates tab. It is here where you can established the tax rate, the dates applicable for this tax profile, the salary range required for one to earn this tax profile, and other important details.
Entering the proper dates for the tax profile is crucial if you intend to use the tax profile for current employees on your payrolls.
To finish creating the new tax profile:
With the new tax profile selected, open the Rates tab.
Click on Insert (+) in the functions bar.
Enter the remaining details of the new tax profile (description of each field found below).
Click on Save (check mark icon) when finished.
Tax profile: Enter a name for the tax profile being created.
Tax profile description: Enter a description for the tax profile being created.
FSS Status: From the drop down menu select whether the profile is applicable for FSS Main or FSS Part Time.
Code: A unique code for this tax rate.
Date From: The date from which this rate applies. This is usually set to the beginning of the year.
Date To: The date until which this rate applies.
Range From: Minimum amount an employee needs to earn for this tax rate to apply. Subtract amount is deducted before tax rate percentage is applied.
Range To: Maximum amount an employee needs to earn for this tax rate to apply.
Tax rate %: The percentage to be deducted as tax for pay falling within this band.
Subtract: Amount to be deducted from projected annual gross before Tax rate % is applied
Show as Part time: Select if earnings using this rate should be listed as part-time emoluments in FSS document.
Editing an existing Tax Profile
To edit an existing tax profile, highlight the profile by clicking once on the respective row and click the Edit button.
Deleting an existing Tax Profile
To delete an existing tax profile highlight the profile and click on delete.