Managing Tax Rule Codes

Tax Rule Codes define how payroll-related taxes are applied to employees and companies, ensuring compliance with local tax regulations. These rules cover different tax types, including income tax, social security, and medical benefits. This guide walks you through accessing, creating, and managing tax rule codes effectively.

Accessing Tax Rule Codes

Log in to XandaPay Enterprise.
Navigate to the Payroll menu on the left side.
Expand the Tax section.
Click Rule Codes to view the existing tax rule codes.

Understanding the Tax Rule Code List

The displayed list includes key details for each tax rule:

ID – Unique identifier for the tax rule.
Code – The short code representing the tax rule.
Type – Specifies if the rule applies to employees (EMP) or companies (COMP).
Name – Name of the tax rule (e.g., Income Tax, Social Security).
Description – Explanation of the tax rule.
Class – A classification value used for categorization.
GL – General Ledger code for accounting purposes.
Country – The country where the tax rule applies.

Creating a New Tax Rule Code

Click the New Tax Rule Code button at the top.
In the form that appears:
- Enter the Code (short identifier).
- Select the Type (EMP for employees, COMP for companies).
- Provide the Name and Description of the tax rule.
- Define the Class (if applicable).
- Enter the GL Code for financial tracking.
- Choose the Country where the rule applies.
Click Save to create the new tax rule code.

Editing an Existing Tax Rule Code

Locate the tax rule in the list.
Click on the tax rule to open its details.
Modify the necessary fields such as the tax name, description, GL Code, or country.
Click Save to update the rule.

Deleting a Tax Rule Code

Open the tax rule you want to remove.
Click the Delete button.
Confirm the deletion if prompted.
💡 Tip: If you may need the rule later, consider deactivating it instead of deleting it.

Example Use Case: Social Security Tax

To set up a Social Security Tax rule, you may need to:

Create two separate tax rules, one for employees (SS_EMP) and another for companies (SS_CO).
Assign appropriate GL codes to ensure proper accounting.
Apply the rule to the correct country.

Best Practices

✔ Ensure tax rules align with government regulations.
✔ Use clear naming conventions for easy identification.
✔ Regularly review and update tax rules as tax laws change.
✔ Avoid duplicate tax rules to prevent miscalculations.

By managing tax rule codes effectively, payroll administrators can ensure accurate tax deductions and compliance with tax laws, reducing errors in payroll processing. 🚀