How will the wage tax reduction be processed in payroll?

  • Modified on: Sat, 4 Feb, 2017 at 1:05 PM

The wage tax reduction will be activated by entering wage code 490 under ‘fixed wage codes’ for the employee concerned. The amount to be entered concerns the amount of the wage tax deduction per selected payment period. If it concerns, for instance, a tax reduction of ANG 12,000 per year, then ANG 1,000 should be entered under wage code 490. The wage tax reduction is not visible in the gross-net caculation part in the pay slip, but it will be visible at the bottom of the pay slip where also other tax items such as a the fiscal allowances are mentioned. During a transition to a new fiscal year, wage code 490 will be set to zero, because the wage tax reduction has to be applied for every year again.

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