>>Payroll >Settings >Income Tax Types

Enable users to define various tax calculations tailored to their country or company's regulation.

ZipHR automatically sets your country's standard tax rates and setting to get you started.

CONFIGURING INCOME TAX TYPE

Click on the default Income tax type to configure its setting

• Name - customize the name
• Description - add a simple description of the usage of the tax type 
• Estimated Net Annual Income Method** - please set as Annualized for PH companies
• Total Wages - automatically includes all computed wages from Activity
• Taxable Other Payments - automatically includes all OP Types classified as "Regular" tax status
• Employer Contributions - identify which Contribution types will be considered taxable 
• Voluntary Contributions Income - enable if voluntary contribution will be considered taxable
• Operational Expenses - input data if your expense type tagged as Operational Expense is deductible before the computation of the tax amount
  Note: PH's Withholding Tax setting, please put 1000 as the age limit & 0 value in Max Amount & Rate to 
• Pension Maintenance - 
  Note: For PH's Withholding Tax setting, please put 1000 as the age limit & 0 value in Max Amount & Rate to 
• Employee Contributions - select which contribution types are deductible before the computation of the tax amount
• Bonus Tax Deduction - add Non-taxable Bonus threshold amount 
  Note: For PH, Please add 90,000
• Voluntary Contributions Deduction - enable if voluntary contributions will be deducted before the computation of the tax amount

• Tax Rate Table - specify the annual income & tax rate to be applied
  

  Tax Bracket	Tax Bracket Min	Tax Bracket Max	Tax Bracket Rate
  add tax bracket level depending on the Government/company policy	Minimum Income amount to consider in the computation	Maximum Income amount to consider in the computation	Applicable tax rate to apply on income specified in Tax Bracket Min & Max

   
• Termination Tax Rate Table - specify the tax rate that will be used during termination payslips
  • Tax Bracket Min
  • Tax Bracket Max
  • Tax Bracket Rate

ADDING ADDITIONAL INCOME TAX TYPE

You may also add other Income Tax Types if you have a special tax configuration that you want to implement. To execute this:

• Click on Add Income Tax Type
• Then, configure the contribution type in accordance with your policies