Hi, I've tried to play around with the taxes but I still cannot figure out how to get exactly what I want.
I have had a long look at http://forums.timetrex.com/viewtopic.php?t=140 but I didn’t know how to proceed in customizing the Data.class.php and the CA.class.php and all that goes with them
in my country (Kenya) We have a Pay As You Earn (P.A.Y.E.) scheme. The tax brackets and percentages are shown below.
if you earn (per Month):
1-10,164 ; Rate is 10.00%
Above that, we have the following brackets
9,576-15.00%
9,576-20.00%
9,576-25.00%
Greater Than 38,892 30.00%
If one has a gross pay of 32,000 this is how it will be computed:
1. First, you deduct a DEFINED CONTRIBUTION of 200
-Thus the taxable amount is 32,000-200 = 31,800
2. Follow above set tax brackets and you pay a percent in each bracket.
I. 10,164 * 10% = 1,016.4
II. 9,576 * 15% = 1,436.4
III. 9,576 * 20% = 1,915.4
IV. 2,684 * 25% = 621
The 4th tire taxable amount is 2,684. This is because the first three brackets total to 29,316. Thus, you subtract 31,800-29,316 = 2,684 (this then is the taxable amount in that bracket).
These amounts are added and you get TOTAL TAX = 4,989
There is a TAX RELIEF of 1,162 so; 5,039-1,162 = 3,827
There is a HOUSING DEDUCTION for employees:
Earning Bracket FIXED Deduction
1000-1499-------30
1500-1999-------40
2000-2999-------60
3000-3999-------80
4000-4999-------100
5000-5999-------120
6000-above------140
As for the Net Pay of this person;
Total Deductions will be 200 + 140 (housing) = 340
Net Pay = (Gross Pay - Deductions - P.A.Y.E.) = (32,000 - 340 - 3,827) =27,833
Now, how do I add this to TimeTrex and have all employees subjected to this tax? Or can it be done without editing the Data.class.php and the CA.class.php?
Thanks.
Customized Income Tax
The taxes you could do if it wasn't for the 200 defined contribution. We have a custom "Advanced Percent (Tax Bracket)" formula you can configure from the GUI, but it doesn't support a defined contribution at this time. You may be able to work around this by making a fixed deduction that reduces the amount of taxes paid by the amount of (200 / $annual_pay_periods). It will be a little tricky to setup though.
For the housing deduction, if employee wages don't change much, you could just setup a fixed amount deduction and manually set the amount that each employee pays that way.
As far as modifying the code to add direct support for Kenya, all we can do is answer specific questions for you. Or contact our sales department (sales@timetrex.com) to get a quote on having us add Kenya support for you.
For the housing deduction, if employee wages don't change much, you could just setup a fixed amount deduction and manually set the amount that each employee pays that way.
As far as modifying the code to add direct support for Kenya, all we can do is answer specific questions for you. Or contact our sales department (sales@timetrex.com) to get a quote on having us add Kenya support for you.
Hi.
Excuse me for being a little green. I added the PAYE in the "Advanced Percent (Tax Bracket)" you mentioned. Now, (referring to the earlier post) when I add Annual Pay, I multiply the 10,164 * 12 = 12,1968. I then fill in the rate as 10%. The annual Exemption amount I put it as 200*12=2,400
Question is, for the other brackets, where do I fill in this. Or Do I add another "Advanced Percent (Tax Bracket)" and key in the second amount of 9,576 * 12 = 114912?
And will timetrex automatically know what comes first. Or is that taken care by the Calculation order?
From there, I choose a pay stub account. (Earning-Regular Time). Below that is "INCLUDE PAY STUB ACCOUNTS" drop down menu. If I then add "Earning-Regular Time" won't that be double counting?
Also, if I add "Total-Total Gross", how does that affect the payroll? My business language tells me that total gross is inclusive of all other earnings including bonus, overtime etc. Thus, should I only select "Total-Total Gross" in the "INCLUDE PAY STUB ACCOUNTS"?
Excuse me for being a little green. I added the PAYE in the "Advanced Percent (Tax Bracket)" you mentioned. Now, (referring to the earlier post) when I add Annual Pay, I multiply the 10,164 * 12 = 12,1968. I then fill in the rate as 10%. The annual Exemption amount I put it as 200*12=2,400
Question is, for the other brackets, where do I fill in this. Or Do I add another "Advanced Percent (Tax Bracket)" and key in the second amount of 9,576 * 12 = 114912?
And will timetrex automatically know what comes first. Or is that taken care by the Calculation order?
From there, I choose a pay stub account. (Earning-Regular Time). Below that is "INCLUDE PAY STUB ACCOUNTS" drop down menu. If I then add "Earning-Regular Time" won't that be double counting?
Also, if I add "Total-Total Gross", how does that affect the payroll? My business language tells me that total gross is inclusive of all other earnings including bonus, overtime etc. Thus, should I only select "Total-Total Gross" in the "INCLUDE PAY STUB ACCOUNTS"?
Please see section 2.8 of the Administrator Guide for more information on this. The short answer is yes, but read the guide to see how to do it properly.Question is, for the other brackets, where do I fill in this. Or Do I add another "Advanced Percent (Tax Bracket)" and key in the second amount of 9,576 * 12 = 114912?
And will timetrex automatically know what comes first. Or is that taken care by the Calculation order?
TimeTrex should figure out the proper order on its own, but I recommend setting the calculation order to something like 1000 for the first bracket, 1001 for the second, etc... "Just in case".
Again, please read section 2.8 of the manual. You will want to choose a pay stub account like: "Employee Deduction - Income Tax"From there, I choose a pay stub account. (Earning-Regular Time). Below that is "INCLUDE PAY STUB ACCOUNTS" drop down menu. If I then add "Earning-Regular Time" won't that be double counting?
The include pay stub accounts is where you select Earnings accounts, that defines the values that TimeTrex uses to calculate the tax on.
You can also select to Include "Total Gross", then simply Exclude Bonuses or other pay stub accounts not subject to this tax if you want to do it that way.
Hi, thanks for referring me back to the manual. I read it with a sober mind in the morning and I "fully" understand timetrex workings. I was able to nail the "Advanced Percent (Tax Bracket)" formula. That is working fine.
However,
This is our Net Pay formula.
Mr. X earns 15000
Deductions (according to gross pay bracket) =housing (320) + social fund (200) = 540
To get PAYE, you will have;
15,000 - 200 (Defined contribution) = 14,800 (chargeable amount)
Tax Due = Apply the tax brackets to 14,800. You will get;
Tax Due= 1,711.80
You then deduct a personal relief to get PAYE.
PAYE= 1,711.80- 1,162.00 = 549.80
Summary:
Gross Pay = 15,000
Deductions = 540
PAYE = 549.80
Net Pay = 13,930
So, how do I implement the above? I've tried playing around with Pay Stubs and Deductions but I couldn't get it to give me the correct amount.
Getting the 14,800 above is just not working. Also, deducting the 1,162 from the Tax Due just ain't clicking.
NB:
Social Fund (defined contribution) => Is deducted from Gross pay when calculating PAYE because that amount is tax exempted.
Personal Relief =>If your PAYE is equal to or less than the personal relief (1,162), then you don't pay PAYE
I hope the explanations are clear.
Thanks
However,
is proving to be quite tricky.You may be able to work around this by making a fixed deduction that reduces the amount of taxes paid by the amount of (200 / $annual_pay_periods). It will be a little tricky to setup though.
This is our Net Pay formula.
e.g (per month)Gross Pay - Defined Contribution (200*12) = Chargeable Amount
"Advanced Percent (Tax Bracket)" applied to Chargeable Amount = Tax Due
Tax Due - Personal Relief (1,162 *12)= PAYE!
Gross Pay - Deductions - PAYE = Net Pay
Mr. X earns 15000
Deductions (according to gross pay bracket) =housing (320) + social fund (200) = 540
To get PAYE, you will have;
15,000 - 200 (Defined contribution) = 14,800 (chargeable amount)
Tax Due = Apply the tax brackets to 14,800. You will get;
Tax Due= 1,711.80
You then deduct a personal relief to get PAYE.
PAYE= 1,711.80- 1,162.00 = 549.80
Summary:
Gross Pay = 15,000
Deductions = 540
PAYE = 549.80
Net Pay = 13,930
So, how do I implement the above? I've tried playing around with Pay Stubs and Deductions but I couldn't get it to give me the correct amount.
Getting the 14,800 above is just not working. Also, deducting the 1,162 from the Tax Due just ain't clicking.
NB:
Social Fund (defined contribution) => Is deducted from Gross pay when calculating PAYE because that amount is tax exempted.
Personal Relief =>If your PAYE is equal to or less than the personal relief (1,162), then you don't pay PAYE
I hope the explanations are clear.
Thanks
Your explanation seems to have some holes in it, none the less I will see if I can help you from what I understand:
Social Fund/Defined Contribution: Add a fixed amount Tax / Deduction, with a pay stub account of: Employee Deduction - Social Fund.
Now edit your tax bracket deductions to exclude the pay stub account "Social Fund". Assuming you are including Total Gross, TimeTrex will reduce their total gross by the social fund amount before calculating the tax brackets.
For personal relief, I assume you are getting that number from outside of TimeTrex? So to reduce the taxes by that amount you need to setup another fixed amount Tax / Deduction, and enter that value in as a negative number (-1162), and make the pay stub account the same as the pay stub account in your tax brackets.
So your tax brackets will add whatever value they calculate to the tax being deducted, then the personal relief will minus a fixed amount from that.
The issue of course is if the tax brackets don't calculate an amount over 1162, then the end result will be a negative value and probably cause you problems. So you will need to be careful of that. The only way to handle this 100% is to code the tax formula into TimeTrex from scratch.
Social Fund/Defined Contribution: Add a fixed amount Tax / Deduction, with a pay stub account of: Employee Deduction - Social Fund.
Now edit your tax bracket deductions to exclude the pay stub account "Social Fund". Assuming you are including Total Gross, TimeTrex will reduce their total gross by the social fund amount before calculating the tax brackets.
For personal relief, I assume you are getting that number from outside of TimeTrex? So to reduce the taxes by that amount you need to setup another fixed amount Tax / Deduction, and enter that value in as a negative number (-1162), and make the pay stub account the same as the pay stub account in your tax brackets.
So your tax brackets will add whatever value they calculate to the tax being deducted, then the personal relief will minus a fixed amount from that.
The issue of course is if the tax brackets don't calculate an amount over 1162, then the end result will be a negative value and probably cause you problems. So you will need to be careful of that. The only way to handle this 100% is to code the tax formula into TimeTrex from scratch.
Everything you point out here makes sense. On paper it should work. But just as has been happening earlier, my pay stubs do not change at all. i.e. The Defined contribution is not effected and so is the Personal Relief.
Just for clarification: I am excluding the pay stub account (social fund) in each of the tax brackets or just the first one? Anyway, I excluded from one and got no change. I then excluded from all of them and still no change.
->And yes, I am Including "Total- Total Gross" in my tax brackets
The Personal relief which you suggest I put a negative number, also has got no effect on the calculation. My Tax Brackets Pay stub account is called "Employee Deductions -PAYE" and its what I've made the Pay stub account for the "Negative" Personal Relief.
I was even hoping to get that Negative value you were warning about but alas, no such result.
Timetrex did not recognize any of the above configurations.
Or could there be other configurations which could be causing the skipping of this two extra accounts?
Just for clarification: I am excluding the pay stub account (social fund) in each of the tax brackets or just the first one? Anyway, I excluded from one and got no change. I then excluded from all of them and still no change.
->And yes, I am Including "Total- Total Gross" in my tax brackets
The Personal relief which you suggest I put a negative number, also has got no effect on the calculation. My Tax Brackets Pay stub account is called "Employee Deductions -PAYE" and its what I've made the Pay stub account for the "Negative" Personal Relief.
I was even hoping to get that Negative value you were warning about but alas, no such result.
Timetrex did not recognize any of the above configurations.
Or could there be other configurations which could be causing the skipping of this two extra accounts?
Above, I wasn't applying the Social Fund to an employee. Now I have done so, and the Social Fund is being shown on the pay stub as a Deduction. More so, it looks like I have got the correct Tax Due. I.e. The tax brackets are working fine now that we have the social fund included.
Now what we need to do is apply the Personal Relief to the Tax Due. -->I think! am not sure any more. this math is tricky.
PS: Tax Due->seems to be less by 1 unit (shilling). Don't know if its coz original figures were Monthly but now am working with Annual Salary.
Now what we need to do is apply the Personal Relief to the Tax Due. -->I think! am not sure any more. this math is tricky.
PS: Tax Due->seems to be less by 1 unit (shilling). Don't know if its coz original figures were Monthly but now am working with Annual Salary.
Without applying to an employee, I get no change in my figures.
When I apply it to an employee, this goes;
The Tax brackets are calculated alright, then, since we have the Pay Stub for the Personal Relief being the same as the PAYE pay stub, it increments PAYE which is wrong since what we want to do is deduct from PAYE.
If I assign the Personal Relief its own Pay stub, then it appears as an ordinary deduction which is also wrong.
In THEORY, if we could have the Personal Relief being a negative, it could work.
From the above verbals, and following the different scenarios that I've tried, this is what it seems:
1. Timetrex cannot deduct amount X from Gross Earnings (To allow one to get the correct Taxable Amount)
2. Timetrex cannot deduct amount X from the Amount calculated by an Advanced Tax Bracket Formula (When governments waiver a certain amount from the income tax (personal relief))
3. Timetrex does-not-recognize/cannot-calculate negative amounts in its Tax/Deductions (This though looks like a shortcut and it might have spiraling complications)
The only way to avoid one thinking that negative numbers could work, would be to provide for points 1 & 2 above.
Or am I wrong?
When I apply it to an employee, this goes;
The Tax brackets are calculated alright, then, since we have the Pay Stub for the Personal Relief being the same as the PAYE pay stub, it increments PAYE which is wrong since what we want to do is deduct from PAYE.
If I assign the Personal Relief its own Pay stub, then it appears as an ordinary deduction which is also wrong.
In THEORY, if we could have the Personal Relief being a negative, it could work.
From the above verbals, and following the different scenarios that I've tried, this is what it seems:
1. Timetrex cannot deduct amount X from Gross Earnings (To allow one to get the correct Taxable Amount)
2. Timetrex cannot deduct amount X from the Amount calculated by an Advanced Tax Bracket Formula (When governments waiver a certain amount from the income tax (personal relief))
3. Timetrex does-not-recognize/cannot-calculate negative amounts in its Tax/Deductions (This though looks like a shortcut and it might have spiraling complications)
The only way to avoid one thinking that negative numbers could work, would be to provide for points 1 & 2 above.
Or am I wrong?
Was just browsing the forum and came across this thread: http://forums.timetrex.com/viewtopic.php?t=459
Looks very similar to the problems we have here.
Just as I've pointed above, if you go with option 1.
Option 2:
Looks very similar to the problems we have here.
Just as I've pointed above, if you go with option 1.
My experience is that instead of deducting that fixed amount from your Income Tax, Timetrex will ADD it. thus your figures get all wrong.Adding a deduction with the fixed amount that is adjusted and "including" the Income Tax Pay Stub Account.
Option 2:
Number two looks like a better bet. I'll see if it will work for me. But I'd rather if number 1 workedCreating a Pay Stub Amendment that deducts the fixed amount from the Income Tax Pay Stub Account.
"Deduct From" Option Missing
ooh my,
I tried option 2:
And just in case you ask, I added a Pay Stub Amendment and set the pay stub account to Employee Deductions-PAYE (where the income tax is deposited). What happens then is that PAYE is incremented. What we want to do is deduct.
I then created a new Pay Stub Account for the Pay Stub Amendment. This though gets added to Total Deductions. So it doesn't adjust Income Tax (PAYE).
In my Edit Recurring Pay Stub Amendment Form, am thinking its missing a FROM. When Incrementing a Pay Stub, its okay to have it as it is since the amount you specify there will be added to the PayStub you choose. But when Deducting, Shouldn't there be a "From Pay Stub"? Or how else do we deduct FROM the Income Tax Pay Stub? This is especially because all PayStubs are already preset to add or deduct from Gross Wages and Gross Deductions!
I could be wrong but ...
I tried option 2:
Its all the same. i.e. same as I had described above. This is because, and I quote the manualCreating a Pay Stub Ammendment that deducts the fixed amount from the Income Tax Pay Stub Account
which means you cannot deduct from a "middle transaction" e.g the result of the income tax calculation.earnings accounts (regular time, over time, etc...) are automatically added to an employees gross wage, and deduction accounts (advances, taxes, etc...) are automatically deducted from the employees gross wage.
And just in case you ask, I added a Pay Stub Amendment and set the pay stub account to Employee Deductions-PAYE (where the income tax is deposited). What happens then is that PAYE is incremented. What we want to do is deduct.
I then created a new Pay Stub Account for the Pay Stub Amendment. This though gets added to Total Deductions. So it doesn't adjust Income Tax (PAYE).
In my Edit Recurring Pay Stub Amendment Form, am thinking its missing a FROM. When Incrementing a Pay Stub, its okay to have it as it is since the amount you specify there will be added to the PayStub you choose. But when Deducting, Shouldn't there be a "From Pay Stub"? Or how else do we deduct FROM the Income Tax Pay Stub? This is especially because all PayStubs are already preset to add or deduct from Gross Wages and Gross Deductions!
I could be wrong but ...
I just checked with the developers, TimeTrex only allows positive values for Tax / Deductions. I will discuss this with them further and see if we can get that changed for v2.1.0-rc2 though, since we do currently allow negative values for pay stub amendments, so I don't see why we wouldn't allow it for tax / deductions as well.
So, as a test, try adding a pay stub amendment (not recurring PS amendment) like this:
Employee: <employee your testing with>
Pay Stub Account: Employee Deductions-PAYE
Amount Type: Fixed
Amount: -1162.00
Effective Date: <date in the pay period you are working with>
Now, the Tax / Deduction you have setup to calculate PAYE should result in 1,711.80 being deducted from their pay stub, but then TimeTrex will add the -1162.00 PS amendment for the same pay stub account, resulting in:
1711.80 - 1162.00 = 549.80
If that works, then simply enabling negative Tax / Deduction amounts will get everything working for you.
So, as a test, try adding a pay stub amendment (not recurring PS amendment) like this:
Employee: <employee your testing with>
Pay Stub Account: Employee Deductions-PAYE
Amount Type: Fixed
Amount: -1162.00
Effective Date: <date in the pay period you are working with>
Now, the Tax / Deduction you have setup to calculate PAYE should result in 1,711.80 being deducted from their pay stub, but then TimeTrex will add the -1162.00 PS amendment for the same pay stub account, resulting in:
1711.80 - 1162.00 = 549.80
If that works, then simply enabling negative Tax / Deduction amounts will get everything working for you.
Hi. Thanks for the help so far.
I did as you suggested. And yes, the negative value is applied appropriately. So at least now the Personal Relief is being subtracted from the Tax Due to give the proper PAYE amount!
Thanks for that. now, one more thing and I don't think it will be covered in:
Remember the Defined Contributions? The one that is deducted from Gross Pay that then gives you the Taxable Amount which you will apply the Tax Brackets to? Well, I had said that your suggestion seemed to be working.
That was when we didn't have a Certified Working "Pay Stub Ammendment-Personal Relief". Now that we have the personal relief working, if I do as you suggested, the figures get all warped up! Its back to square 2?
On a spreadsheet, with Defined contribution and Personal relief included, this are the figures: And it is the correct computation.
Gross Pay:-----15000
Deductions:----520
PAYE:----------549.8
=>Total Deductions: 520+549.8=1069.80
=>Net Pay = 15000-1099.80 =13,930.20
=>Tax Bracket 1 ----1,016.4
=>Tax Bracket 2 ----695.4
-The total of which give you 1,711.8. You then deduct personal relief (1,162) to get PAYE 549.8
On Timetrex and with Personal Relief only, This is how my "Pay-Slip" looks like
Gross Pay:-----15000
Deductions:----520
PAYE:----------580
=> Total Deductions: 520+580=1100
=>Net Pay = 15,000-1,100=13,900
=>Tax Bracket 1 ----1,016
=>Tax Bracket 2 ----725
-The total of which give you 1,741. You then subtract personal relief (1,162) to get the 580
When I attempt to deduct Defined Contribution according to your explanation:
Gross Pay:-----15000
Deductions:----520
PAYE:----------601
=> Total Deductions: 520+601=1121
=>Net Pay = 13879
=>Tax Bracket 1 ----1,016
=>Tax Bracket 2 ----774
=>The total of which give you 1,121. You then subtract personal relief (1,162) to get the 601
As you can see, the WRONG changes are on the second tax bracket. So where is the mistake?
I did as you suggested. And yes, the negative value is applied appropriately. So at least now the Personal Relief is being subtracted from the Tax Due to give the proper PAYE amount!
Thanks for that. now, one more thing and I don't think it will be covered in:
.If that works, then simply enabling negative Tax / Deduction amounts will get everything working for you.
Remember the Defined Contributions? The one that is deducted from Gross Pay that then gives you the Taxable Amount which you will apply the Tax Brackets to? Well, I had said that your suggestion seemed to be working.
That was when we didn't have a Certified Working "Pay Stub Ammendment-Personal Relief". Now that we have the personal relief working, if I do as you suggested, the figures get all warped up!
Its back to square 2?On a spreadsheet, with Defined contribution and Personal relief included, this are the figures: And it is the correct computation.
Gross Pay:-----15000
Deductions:----520
PAYE:----------549.8
=>Total Deductions: 520+549.8=1069.80
=>Net Pay = 15000-1099.80 =13,930.20
=>Tax Bracket 1 ----1,016.4
=>Tax Bracket 2 ----695.4
-The total of which give you 1,711.8. You then deduct personal relief (1,162) to get PAYE 549.8
On Timetrex and with Personal Relief only, This is how my "Pay-Slip" looks like
Gross Pay:-----15000
Deductions:----520
PAYE:----------580
=> Total Deductions: 520+580=1100
=>Net Pay = 15,000-1,100=13,900
=>Tax Bracket 1 ----1,016
=>Tax Bracket 2 ----725
-The total of which give you 1,741. You then subtract personal relief (1,162) to get the 580
When I attempt to deduct Defined Contribution according to your explanation:
I get,Social Fund/Defined Contribution: Add a fixed amount Tax / Deduction, with a pay stub account of: Employee Deduction - Social Fund.
Now edit your tax bracket deductions to exclude the pay stub account "Social Fund". Assuming you are including Total Gross, TimeTrex will reduce their total gross by the social fund amount before calculating the tax brackets.
Gross Pay:-----15000
Deductions:----520
PAYE:----------601
=> Total Deductions: 520+601=1121
=>Net Pay = 13879
=>Tax Bracket 1 ----1,016
=>Tax Bracket 2 ----774
=>The total of which give you 1,121. You then subtract personal relief (1,162) to get the 601
As you can see, the WRONG changes are on the second tax bracket. So where is the mistake?
Hello.
Well, I don't think that is possible for now. Am behind a corporate firewall. Nothing -even Popping mail- gets through. And I've tried having a port forwarded to my installation but that is not allowed. I tried doing an installation on a hosted web server but their Mysql and PHP are outdated and they won't upgrade it in the near future!
Now, this would be asking for like the King of assistance and favors. To recreate this, all one would need is 7 Minutes! This post has all the info needed.
All that's needed is a new Employee, New Pay Period, 2 deductions, 5 Level Advanced Pay bracket -though u need only 2 and maybe two Pay stub accounts. Then give the worker about 8 hours a day for a whole month.
From there, this would be the formula.
Coming from a commonwealth country, am sure many countries use this kind of model for their taxes. I wonder if anyone else out there has to deal with a deduction of gross pay before applying taxes.
If anyone could please do it for me, I'd be so grateful. And if its so straight forward and am being dumb, please point out where and how to correct it.
Thanks
Well, I don't think that is possible for now. Am behind a corporate firewall. Nothing -even Popping mail- gets through. And I've tried having a port forwarded to my installation but that is not allowed. I tried doing an installation on a hosted web server but their Mysql and PHP are outdated and they won't upgrade it in the near future!
Now, this would be asking for like the King of assistance and favors. To recreate this, all one would need is 7 Minutes! This post has all the info needed.
All that's needed is a new Employee, New Pay Period, 2 deductions, 5 Level Advanced Pay bracket -though u need only 2 and maybe two Pay stub accounts. Then give the worker about 8 hours a day for a whole month.
From there, this would be the formula.
You will realize that the tricky part is the Defined Contribution. How to apply that, has evaded me.On a spreadsheet.... this are the figures: And it is the correct computation.
Annual Gross Pay Per Year:-----180,000 (which is 15,000 per month)
Deductions:
Housing = 320
Social Fund = 200
Referring to the tax bracket sets on 1st post in this thread, you'd find that;
=>Tax Bracket 1 ----1,016.4
=>Tax Bracket 2 ----695.4
-The total of which give you 1,711.8. You then deduct personal relief (1,162) to get Income Tax (PAYE) as 549.80
=>Total Deductions: 320 + 200 + 549.8 = 1069.80
=>Net Pay = 15000-1099.80 =13,930.20
Coming from a commonwealth country, am sure many countries use this kind of model for their taxes. I wonder if anyone else out there has to deal with a deduction of gross pay before applying taxes.
If anyone could please do it for me, I'd be so grateful. And if its so straight forward and am being dumb, please point out where and how to correct it.
Thanks
Could you email a dump of your database to support@timetrex.com? That is the next best thing to having access to your TimeTrex installation.
There is a trick we could probably do to get the defined contribution to work, but we have on our TODO list a way to make it much easier and user friendly.
There is a trick we could probably do to get the defined contribution to work, but we have on our TODO list a way to make it much easier and user friendly.
In the SQL dump you sent me, the tax brackets were excluding the pay stub account Defined Contribution (NSSF), but it didn't have any values because it looks like you changed to the NSSF pay stub account instead.
Once I told the tax brackets to exclude the NSSF pay stub account it seemed to work correctly.
I emailed you a copy of the pay stub showing the end result.
Once I told the tax brackets to exclude the NSSF pay stub account it seemed to work correctly.
I emailed you a copy of the pay stub showing the end result.
Well in!
I got the correct-ish figures alright. Thank you so much.
Now, just four more issues.
1. What do you mean by
2. Currently, it just so happens that the Defined Contribution amount (Ksh 200) is the same as the Statutory NSSF deduction (Ksh 200). So when you exclude the NSSF Paystub, we "trick" timetrex to think that is the defined contribution.
That is why I had created the Defined Contribution (NSSF) Pay stub account and gone ahead to exclude it from the tax brackets. Coz assume the defined contribution changes to say Ksh. 300 but NSSF Deduction stays at Ksh. 200. What happens then?
3. The paystub you sent me had a Net pay that was more by 25 cents. Which looks like its emanating from the first Tax bracket which was less by 10 cents, and the second tax bracket which was also less but by 15 cents. So total PAYE was less by 25 cents which means the Net Pay Increased by 25 cents. What could cause this "small" error?
4. At the top when I say I got the correct values, well, I got the round figure. I cannot seem to get decimals for my figures. The pay stub you sent me had decimals places. Are there settings which I should enable?
I got the correct-ish figures alright. Thank you so much.
Now, just four more issues.
1. What do you mean by
. Especially "but it didn't have any values". I created a fixed deduction of Ksh. 200 with its pay stub account as Defined Contribution (NSSF). That is why I was excluding this pay stub account from the tax brackets. So am assuming it had values.the tax brackets were excluding the pay stub account Defined Contribution (NSSF), but it didn't have any values because it looks like you changed to the NSSF pay stub account instead.
2. Currently, it just so happens that the Defined Contribution amount (Ksh 200) is the same as the Statutory NSSF deduction (Ksh 200). So when you exclude the NSSF Paystub, we "trick" timetrex to think that is the defined contribution.
That is why I had created the Defined Contribution (NSSF) Pay stub account and gone ahead to exclude it from the tax brackets. Coz assume the defined contribution changes to say Ksh. 300 but NSSF Deduction stays at Ksh. 200. What happens then?
3. The paystub you sent me had a Net pay that was more by 25 cents. Which looks like its emanating from the first Tax bracket which was less by 10 cents, and the second tax bracket which was also less but by 15 cents. So total PAYE was less by 25 cents which means the Net Pay Increased by 25 cents. What could cause this "small" error?
4. At the top when I say I got the correct values, well, I got the round figure. I cannot seem to get decimals for my figures. The pay stub you sent me had decimals places. Are there settings which I should enable?
It was only excluding Defined Contribution (NSSF), but that account didn't have any amounts associated with it, so it was essentially excluding $0.1. What do you mean by
Quote:
the tax brackets were excluding the pay stub account Defined Contribution (NSSF), but it didn't have any values because it looks like you changed to the NSSF pay stub account instead.
. Especially "but it didn't have any values". I created a fixed deduction of Ksh. 200 with its pay stub account as Defined Contribution (NSSF). That is why I was excluding this pay stub account from the tax brackets. So am assuming it had values.
You can separate the two again, I didn't realize you intended to have them separate in the first place. Try upgrading to v2.1.0-rc3, it should support Tax / Deductions that result in a negative amount now (for Fixed/Percent calculations anyways)2. Currently, it just so happens that the Defined Contribution amount (Ksh 200) is the same as the Statutory NSSF deduction (Ksh 200). So when you exclude the NSSF Paystub, we "trick" timetrex to think that is the defined contribution.
That is why I had created the Defined Contribution (NSSF) Pay stub account and gone ahead to exclude it from the tax brackets. Coz assume the defined contribution changes to say Ksh. 300 but NSSF Deduction stays at Ksh. 200. What happens then?
Small discrepancies like this can often be caused because TimeTrex is incredibly accurate in its calculations. For instance when you specify an annual wage base, or exempt amount for a Tax / Deduction, TimeTrex divides that by the number of pay periods you have, ie: 26, but it won't round the resulting value to the nearest penny, it will do other calculations at 8 decimal place accuracy before it finally rounds to the penny at the end.3. The paystub you sent me had a Net pay that was more by 25 cents. Which looks like its emanating from the first Tax bracket which was less by 10 cents, and the second tax bracket which was also less but by 15 cents. So total PAYE was less by 25 cents which means the Net Pay Increased by 25 cents. What could cause this "small" error?
Not seeing decimal places on the pay stubs is caused by your locale number format settings, usually in your operating system. The most common issue is the locale can't be found in your operating system. In your TimeTrex.ini.php file, set the following debug settings:4. At the top when I say I got the correct values, well, I got the round figure. I cannot seem to get decimals for my figures. The pay stub you sent me had decimals places. Are there settings which I should enable?
enable = TRUE
enable_display = TRUE
buffer_output = TRUE
enable_log = TRUE
verbosity = 10
This will display debug information at the bottom of each page, look for lines like this:
Code: Select all
DEBUG [329]: TTi18n::chooseBestLocale(): Choosing Best Locale...
DEBUG [346]: TTi18n::chooseBestLocale(): Using Language from cookie: en_US
DEBUG [250]: TTi18n::setLocale(): Attempting to set Locale to: en_US Category: 6 Current Locale:
DEBUG [253]: TTi18n::setLocale(): Attempting to set Locale to: en_US
DEBUG [267]: TTi18n::setLocale(): Setting translator normalized locale to: en_US
DEBUG [285]: TTi18n::setLocale(): Set Locale To: en_US
DEBUG [391]: TTi18n::chooseBestLocale(): Using Locale: en_US
Hi there. I downloaded and installed the latest TimeTrex v2.1.0-rc3 as you suggested. Having that I had installed the previous versions quite a number of times, I breezed through the installation and the initial setup.
However, on generating pay stubs, I can see the Gross Pay, the deductions, and net pay, but I cannot see Income tax brackets! How is that? Is there anything inherently different with v2.1.0-rc3?
Just to confirm: I've setup
Employee
Set mass punches for the employee
Defined Pay period.
Defined wages
Defined pay stub accounts
Defined Deductions and taxes then assigned employees to them.
But on generating the pay stubs, The Income Tax brackets have not been calculated.
And with this then I haven't attempted verifying the accuracy of timetrex or setting locales or any of the suggestions you had posted right above this post
Thanks.
PS: I hadn't noticed this in earlier versions but is this correct and could it be causing the Income Tax problems?
Start Date
01-Aug-2007 8:00
End Date
01-Sep-2007 7:59
Transaction date
28-Sep-2007 20:00
I thought Transaction date for the month of August would be 28th of August not the 28th of September?
However, on generating pay stubs, I can see the Gross Pay, the deductions, and net pay, but I cannot see Income tax brackets! How is that? Is there anything inherently different with v2.1.0-rc3?
Just to confirm: I've setup
Employee
Set mass punches for the employee
Defined Pay period.
Defined wages
Defined pay stub accounts
Defined Deductions and taxes then assigned employees to them.
But on generating the pay stubs, The Income Tax brackets have not been calculated.
And with this then I haven't attempted verifying the accuracy of timetrex or setting locales or any of the suggestions you had posted right above this post
Thanks.
PS: I hadn't noticed this in earlier versions but is this correct and could it be causing the Income Tax problems?
Start Date
01-Aug-2007 8:00
End Date
01-Sep-2007 7:59
Transaction date
28-Sep-2007 20:00
I thought Transaction date for the month of August would be 28th of August not the 28th of September?
I'll confirm with our developers that Tax Brackets still work on Monday, but they definitely should.
As for the transaction date, TimeTrex won't allow you to have a transaction date before the pay period has ended. So if your pay period ends Sept 1st, it doesn't make much sense to pay your employees on August 28th before you even have all the data.
As for the transaction date, TimeTrex won't allow you to have a transaction date before the pay period has ended. So if your pay period ends Sept 1st, it doesn't make much sense to pay your employees on August 28th before you even have all the data.