Overview
The income tax destination function organizes all the different types of taxes that can be applied to a cost item. For instance, an employee's earnings will be subject to deductions as discussed in the Deductions function. These deductions can take the form of a Federal tax, Provincial tax, etc. Each type of deduction will have a unique identification code with associated content displaying details such as a name for the deduction and a brief description explaining its intended use. A separate section, called the Income Tax Destination Details, displays even further, in another screen, more details about that specific deduction. Any information regarding the deduction type, amounts and the fiscal year being applied to the deduction can be viewed in this screen. It also allows the ability to enter or change information in these fields if a deduction is being created or modified.
Navigation
Payroll Management ► Support Entities ► Deduction Management ► Income Tax Destination
Income Tax Destination screen Fields and Tab
Field | Description |
Code | ID for the Income Tax Destination. It is a user given code. |
Active | If checked, the Income Tax Destination is available. |
Is Fixed Amount Mandatory | If checked, indicated Fixed Amount is mandatory. |
| Has Mandatory Cost Items | |
Basic Personal Deduction | Basic personal amount which is exempted from tax. |
Frequency | Frequency may be Annual or Pay Period. |
| Taxable Amount Calculation Strategy | Values are: SUM ALL Cost Items, SUM ALL CI regardless of institution, Treat each CI INDIVIDUALLY |
| Forecast Taxable Amounts based on Actual Periods | When it is true it allows user to forcast taxable amounts based on actual periods. |
| Employees with incomplete Fiscal Year are Forecasted on full Fiscal Year | When it is true it allows user to Forecasted on full Fiscal Year |
No of Pay Periods For Fixed Amount | This attribute is needed only when a fixed amount is entered in the income tax destination detail is entered instead of a rate and constant. The number that is entered in here will be used to divide the fixed amount. |
Personal Credit Rate | Rate applicable when calculating tax destination amount. |
Name | Description of the Income Tax Destination. |
| Language | Country specific language used to register the descriptions. |
Description | Detailed description of the Income Tax Destination. |
Income Tax Destination Details Tab | Uses to provide details about Income tax Destination. |
| Cost Item | Collection of 0 to many. |
Overview
It defines the Income Tax Destination Details. It has the possibility to define the different ranges.
Income Tax Destination Details Tab screen Fields
Field | Description |
Effective Date | This is the date that the rates become effective. When calculating the tax, the system must find the effective date of the Pay Period. |
Minimum Amount | The minimum amount of the Income Tax Destination. |
Maximum Amount | The maximum amount of the Income Tax Destination. |
Rate | Rate applicable for the calculation of the income tax. Either Rate or Fixed Amount is mandatory. |
Fixed Amount | Fixed amount of the Income Tax. |
Constant | Constant amount of Income Tax if any. |
Income Tax Type | The type of Income Tax. |