Payroll Module > Step 3 - Edit Menu > Employee Master

To access the 'Tax' tab:

- Go to the 'Edit', 'Employee Master' menu options.

- Select the employee you wish to change

- Select the 'Tax' tab.

TaxDetails

Suspended Employees

Any employee that is suspended for one or more periods or re-engaged during the tax year should be removed from the FDS method of calculating tax and put on the PAYE method.

Field Explanations

Tax Directive

Belina PayrollHR is designed to automatically compute PAYE for all employees. If the User would like to turn off the automatic computation and enter a manual amount of tax in terms of a tax directive, or otherwise, then place a tick in the check box and enter the percentage or amount to be deducted. Using this feature is useful in a new payroll when capturing previously computed data. It is possible to globally set all employees onto directive under the 'Data', 'Bulk Routines', then 'Tax Directive Convert' menu options.

Tax Method

There are two methods of calculating tax:

FDS

Under the FDS method the income to date is projected for the year to produce an estimate of annual income. The:

•	Forecast method - takes earnings to date and adds a projection of the current period's regular income for the remaining periods of the year

•	Average method - projects the average regular income to date over the remaining periods of the year

The tax calculated on the projected income is compared to the amount that should have been deducted to date. Any over or under deduction is corrected. This means that at the end of the year the amount deducted in tax will balance exactly with what should have been deducted. This eliminates the necessity of having to wait for ZIMRA to process shortfalls or refunds of taxation.

FDS can only be used for employees that have been on the payroll since the beginning of the tax year. Employees that join the organization during the course of the year should not be put on FDS.

PAYE

This method is only used in circumstances where the FDS Method cannot be used. This applies to all new employees that join the organization during the course of the year or any employee that have been suspended during the year.

The 'traditional' method of computing PAYE uses payroll information from the current period, only, to estimate the total income for the year. The annual tax is calculated on this amount and divided back to give the tax payable the current period. Any irregular income, or loss of income, can easily distort the result and there is no way of balancing the amount over, or under, deducted until an assessment is made by ZIMRA and an adjustment processed.

The 'PAYE' method assumes that the income earned in the current period is the same as that earned in every period of the tax year. This generally means that employees are overtaxed during the year especially where there are irregular earnings involved e.g. overtime. This will result in over taxation which ZIMRA will refund after having made their assessment.

At the end of the year a P6 form will need to be printed for that individual. The employee should submit a tax return for assessment. When a year end procedure is done Belina PayrollHR will automatically convert the tax method for these new employees to 'FDS'.

P6 Accumulatives

The fields on this screen give a summary of the P6 details that have been accumulated for the employee in the year to date.

Tax Credits

Insert the disability credits e.g. 'Blind' and 'Disability' that the employee is entitled to receive.

Motor Vehicles

If the employee has a company vehicle this is considered to be a benefit and the employee is taxed on the deemed benefit being received. The benefit is calculated based on engine capacity. Press 'Insert' to select the engine capacity of the vehicle being used.

Tax Identification No.

Enables the entry of the employee's Tax Identification (TIN) number.

Tax Table Button

Displays the Tax Table setup

Tax Display Button

Displays the current Tax Display report

Spare Credits

Used in very rare circumstances where an employee is entitled to a credit greater than the maximum of two disability credits allowed.

Total Tax Credits

Shows the total value of the credit that the Employee is eligible for.