Tax On Bonus Provision

SUGGESTED

Hello,

We have employee linked on the Tax on Bonus Provision link - he now received increase after the link and roll has been done.

How do you change the bonus provision - If there is option for bulk as well - it would be appreciated.

Do one just run a normal "recalc" and it will update in the background the amounts on this provision or should it be un-selected and re-selected to take effect.

Thanks

  • 0
    SUGGESTED

    Hi ANNALISERAS,

    We have a related knowledgebase article for this specific message: 

    If you are making use of the Provision for Tax on Annual Bonus Method of Calculation, the calculation will use a specific field defined in the calculation which is guaranteed bonus amount, on which the period provision amount will be calculated.

    The standard provision calculation will indicate the guaranteed bonus field on Line 1  Method 2:

    In the example above, the system uses the Fixed Value on Earning line 01 / Increase screen period salary value (E011). 

    • If your calculation is the same, the system will automatically adjust the calculation  
    • If your calculation is using a different field (e.g. the Calculation Screen), you must ensure to update the field with the new bonus amount to calculate correctly  

    The nice thing about this calculation, if you did not update the calculation when the increase is done, is that it will recalculate every period  - however it will result in higher tax for the employee per period.

    Please let us know if the information helped you by verifying our post.