“Description of Individual Processes” scenario
“Personal Income Tax (PIT)” scenario
PIT elements
Path: Administration/Payroll Elements
PIT refers to the personal income tax. In the base, to calculate PIT, payroll elements with the “PIT” element type are used. Separate elements for sick leave at the expense of the enterprise and the fund are necessary when using different financial accounts to account for such sick leave. Features of adding to a payroll document and calculation: In the calculation type, the personal income tax calculation elements are in the type that is used in the calculation Always:
All elements with the “PIT” type will always be added to the payroll document within the period of entry into the personal income tax base. The entry is determined by the value in the PIT Base for field on the element card. If the element is included in the By Accrual Period base, then for each unique value of the Accrual Period, which has document lines with the “Accruals”, “Bonus” element typeand is included in the personal income tax base, a line will be created in the document.
If the element is included in the base By Period Code, then for each unique value of the “Period Code” that the document lines with the “Accrual”, “Bonus” element types have and that are included in the personal income tax base, a line will be created in the document for each element.
The tax base is calculated separately according to the general base, according to the sick leave base at the expense of the enterprise, and according to the sick leave base at the expense of the fund. The rounding difference, which may arise when the base is split, falls into the element with a general base. The personal income tax base is calculated from the personal income tax amount each time a line is calculated within the “Accrual Period” value, first in the current document, then in the employee’s posted documents, depending on the type of entry of the element into the base: • By Accrual Period – the line with the element is included in the base of the personal income tax line, for which the value in the “Accrual period from” field is equal to the value of the “Accrual period from” field of the element line. • By Period Code – the line with the element is included in the base of the personal income tax line, for which the value in the “Accrual period from” field is equal to the value of the “Period Code” field of the element line. At the end of the calculation, the tax amount is distributed among all lines included in the base. The distribution is used to generate a report and to generate the amount to be paid (Salary Payment scenario). You can view the distribution by clicking the Calculation base details button in the “Line” menu, after placing the cursor on the line with the “PIT” type.
Note: Please note that the algorithms for calculating the element, selecting the base, detailing the base and other parameters are carried out by the element calculation settings and can be changed in accordance with legal or user requirements. In the posting group setup, for personal income tax, posting groups are used that are set up through the vendor – the tax authority.
Tax Social Benefit
Path: Administration/Payroll Elements
When calculating personal income tax, the amount of a social tax benefit can be used, by the amount of which the tax base is reduced under certain conditions. To calculate personal income tax, the base uses payroll elements with the “Tax withholdings” element type. For each size of tax social benefit, you need to create a separate payroll element. A benefit is added through the Employee Journal, indicating the period of validity of the benefit. In the Quantity field you must specify 1. Calculation of the benefit amount depends on the settings of a specific element. Only one benefit can be added per employee per period. If an employee has several tax benefits for one period, for the “Tax calculation of income amounts” report, the second benefit must be manually added as a separate line in the report, putting only the income attribute and the tax benefit attribute (without indicating the amounts of income and withheld taxes).
Features of adding to a payroll document and calculation: In the calculation type, the elements of the tax social benefit are in the type used for the calculation If Exists. The priority of the calculation type must be lower than the priority used for the personal income tax type. In the payroll document, all elements with the PIT type will be added according to the value of the Add for period setting. Since the benefit does not need to be applied for future periods, based on the Past+Current value, a line will be added for unique values of Accrual period which are less than or equal to the value of Period code, for which lines have already been created in the current document and which are included in the personal income tax base. The size of the limitation amount and the benefit amount is provided from the Range Code. If a line with a benefit element is added to a payroll document, it will be taken into account when calculating the personal income tax element. The line with the benefit element has the Do not include* posting type and is not included in document posting.
Note: Please note that the algorithms for calculating the element, selecting the base, detailing the base and other parameters carried out by the element calculation settings (Payroll Elements scenario) can be changed in accordance with legal or user requirements. Recalculation of personal income tax.
Path: Administration / Payroll Elements To recalculate personal income tax for a period, a special element with the PIT type is used, which calculates the entire base and the entire personal income tax amount again for the Accrual period and compares with the base and amount that were calculated in standard elements.
Features of adding to a payroll document and calculation: In calculation types, the personal income tax recalculation element is in the type that is used in the calculation Always. The priority of the calculation type must be greater than the priority used for the personal income tax type. In the calculation type line, set Yes in the PIT Recalculation Element field. For a calculation group in which a calculation type with a personal income tax recalculation element has been added, in the PIT Recalculation field the value should be set to For all or Upon Condition. If the value is For all, the recalculation element will be added during the next calculation of the payroll document for all employees. This is required, for example, in the last month of each calendar year. If the value is Upon Condition, the recalculation element will be added during the next calculation of the payroll document for those employees who have the Run PIT Recalculation field set to Yes on their employee card. The value is set automatically when an employee is dismissed, and can also be set manually by the user in any other case when it is necessary to recalculate personal income tax. When one of these two conditions is met, in the payroll document, an element with the PIT Recalculation Element setting will always be added for each unique value of Accrual period within the calendar year of the Period code. The tax calculation base is calculated simultaneously from all bases. The rules for inclusion in the base are the same as for the personal income tax elements.