Adding new Income Tax formulas for different countries.

Discussion for TimeTrex open source community developers.
shaunw
Posts: 7360
Joined: Tue Sep 19, 2006 2:22 pm

Re: Adding new Income Tax formulas for different countries.

Post by shaunw » Mon Feb 01, 2010 7:56 am

Sorry, I don't see why that would be an issue. With the Tax / Deduction system it should have no problem disabling itself for employees who have exceeded the maximum.

allanregistos
Posts: 41
Joined: Wed Oct 21, 2009 11:56 pm
Location: Philippines
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Re: Adding new Income Tax formulas for different countries.

Post by allanregistos » Wed Feb 17, 2010 7:17 pm

shaunw wrote:Sorry, I don't see why that would be an issue. With the Tax / Deduction system it should have no problem disabling itself for employees who have exceeded the maximum.
Hi shaunw,

Thank-you for the usual support. Yes, Tax / Deduction system is so flexible, in that our tax system just work, that is because of your help. But for my SSS/Philhealth, it just doesn't work when I will do the deduction in each payperiod regardless if the outcome is correct. Not only it frustrates the employees, but the accounting people, so I decided to search around the code if I can find a solution.

After several days of searching around the code, I've found a work-around to just add the previous payperiod total gross with the current total gross so that it will compute the correct brackets for SSS and Philhealth. Adding some lines of code means breaking compatibility in times of upgrades, but it can be managed easily since it is only a few lines of code. A few lines of code, a poor implementation, I say, to solve my problem. The good implementation I think is to just query the previous paystub for the total gross amount and add it to the current total, but I don't how to do this. So the code is just a work-around, but it works in my testing. Your suggestions helps a lot.

You've made a wonderful product out of TimeTrex, it is really great!

Cheers..
Allan E. Registos

bernadettej21
Posts: 1
Joined: Wed Feb 17, 2010 1:43 am

Re: Adding new Income Tax formulas for different countries.

Post by bernadettej21 » Wed Feb 17, 2010 7:27 pm

shaunw wrote:Okay, I think its because your annual deduction amount is too high. That value is designed to reduce the employees taxable income by that amount. In the US this would be used as an allowance for the number of children you have or something. So setting it to 52500 basically means the employee must make 52500+<Amount Greater Than> before they fall within that bracket.

The way the calculation works is essentially this:

Pay Period Total Gross * Pay Periods = Annual Wage

Annual Wage - Annual Deduction + Annual Fixed Amount = Taxable Income

The taxable income then must fall between the greater than and less than values for that bracket to be calculated.

Try it without any Deduction/Fixed Amount values and see if that works, then I recommend adding each one back in one by one to make sure you get the proper result.


Your ideas can help me in my problem regarding the calculation of annual wage and taxable income. Now I know how to compute because of your ideas. Thank you for that ideas it can really help. Thank you also for that great suggestion. :)

allanregistos
Posts: 41
Joined: Wed Oct 21, 2009 11:56 pm
Location: Philippines
Contact:

Re: Adding new Income Tax formulas for different countries.

Post by allanregistos » Wed Feb 17, 2010 7:43 pm

bernadettej21 wrote:
shaunw wrote:Okay, I think its because your annual deduction amount is too high. That value is designed to reduce the employees taxable income by that amount. In the US this would be used as an allowance for the number of children you have or something. So setting it to 52500 basically means the employee must make 52500+<Amount Greater Than> before they fall within that bracket.

The way the calculation works is essentially this:

Pay Period Total Gross * Pay Periods = Annual Wage

Annual Wage - Annual Deduction + Annual Fixed Amount = Taxable Income

The taxable income then must fall between the greater than and less than values for that bracket to be calculated.

Try it without any Deduction/Fixed Amount values and see if that works, then I recommend adding each one back in one by one to make sure you get the proper result.
Your ideas can help me in my problem regarding the calculation of annual wage and taxable income. Now I know how to compute because of your ideas. Thank you for that ideas it can really help. Thank you also for that great suggestion. :)
Previously, I compute tax based on schedules that is, each total_gross from each payperiod, but this is a poor idea, as I've found out in this thread, basing everything on annual will reduce much work in any type of payperiods(daily, weekly, semi-monthly, monthly).

alfoph
Posts: 3
Joined: Fri Mar 18, 2011 1:08 am

Re: Adding new Income Tax formulas for different countries.

Post by alfoph » Mon Apr 04, 2011 6:47 pm

do any one have the Tax formulas and deductions (BIR,SSS,PhilHealTH, PAG-IBIG) for the Philippines ?

Would really appreciate if you can share the folder files if you already had.. Thanks.

allanregistos
Posts: 41
Joined: Wed Oct 21, 2009 11:56 pm
Location: Philippines
Contact:

Re: Adding new Income Tax formulas for different countries.

Post by allanregistos » Mon Apr 18, 2011 7:31 pm

alfoph wrote:do any one have the Tax formulas and deductions (BIR,SSS,PhilHealTH, PAG-IBIG) for the Philippines ?

Would really appreciate if you can share the folder files if you already had.. Thanks.
As mentioned, you do not need any coding for Tax computation, just go to: Admin > Payroll > Taxes / Deductions > Add Then the calculation type must be: Advanced Percent (Tax Bracket Alt.). You have the formula already on how to input values in the fields if you do the research, BIR will give you the formula. Pagibig is easy, just schedule a deduction once a month, for Philhealth, a long story, I created a separate calculation type for that. The most difficult setup is the Overtime policies to which I am still unable to use because time excess in minutes are very difficult to setup(rounding) while the documentation says otherwise.

Soujiro
Posts: 8
Joined: Fri Dec 30, 2011 8:05 am

Re: Adding new Income Tax formulas for different countries.

Post by Soujiro » Wed Jan 11, 2012 5:31 am

How additional UserValues are enabled in the user interface? I dont' get it

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