Are there different ways to deduct Wage Tax in an Aruba payroll or in case wage tax is calculated base on the Income Tax Table?
Yes, in those two cases there are various methods to deduct wage tax during the fiscal year.
A change in the Wage Tax on annual basis, may occur if there is a change in the taxable annual salary, for example caused by bonuses, commission/provision, overtime or a change/increase of the fixed periodic salary.
Within Celery we use the following three methods:
- A. Avocado
- B. Broccoli
- C. Celery
Switching method during the year is possible, but will obviously affect the height of the amounts of wage tax that will be deducted.
However which method is chosen, all three methods will result in the exact same amounts of wage tax deducted on an annual basis.
The Celery method is the standard setting. You can switch from method per employee in Taxes/Taxes and premiums/Wage Tax.
Explanation of the Avocado method is as follows:
Explanation of the Broccoli method is as follows:
Explanation of the Celery method is as follows: