Managing Tax Rules

Tax rules define how payroll-related taxes are calculated, ensuring accurate deductions and compliance with local tax laws. In XandaPay Enterprise, tax rules can be configured for different payroll components, such as income tax, social security, and medical benefits. This tutorial will guide you through the process of creating, editing, and managing tax rules, ensuring payroll accuracy and compliance with government regulations.

Accessing Tax Rules

Log in to XandaPay Enterprise.
From the left-side Payroll menu, expand the Tax section.
Click on Rules to view the list of existing tax rules.

Creating a New Tax Rule

Click the New Tax Rule button at the top of the screen.
In the Rule dropdown, select or enter the tax rule name.
Set the Start Date and End Date to define the validity period.
Enter the Annual Tax Floor (minimum taxable amount) and Annual Tax Ceiling (maximum taxable amount).
Define the Tax Rate (percentage or fixed value) to be applied.
Set Age Limits (if applicable) to specify the eligible age range for the tax rule.
Click Save to create the tax rule.

Editing an Existing Tax Rule

Locate the tax rule in the list and click on its name to edit.
Modify the relevant fields such as tax rate, floor/ceiling, and age limits.
Click Save to apply the changes.

Voiding or Deleting a Tax Rule

To void a tax rule, check the Voided box in the edit screen and click Save.
To delete a tax rule, open the rule and click the Delete button.

⚠ Warning: Deleting tax rules is a permanent action and cannot be undone. Removing these records may affect financial reports, tax calculations, and compliance documentation. Ensure that you have a backup or the necessary approvals before proceeding.

Example Use Case: Medical Benefit Tax

For Medical Benefit Contributions, you may need to:

Set different rates for employees and companies.
Define minimum and maximum age limits for contributions.
Specify a ceiling to cap contributions at a maximum taxable amount.

This ensures that the payroll system correctly applies medical benefit deductions based on company policies and regulations.

Key Considerations

✔ Ensure tax rules comply with local tax laws and regulations.
✔ Verify age limits and ceilings to prevent incorrect deductions.
✔ Update tax rules periodically to reflect policy or law changes.
✔ Use the void option instead of deleting a rule to maintain history.
✔ Check for overlapping or duplicate tax rules to avoid calculation errors.

By properly managing tax rules, payroll administrators can ensure seamless and compliant payroll processing in XandaPay Enterprise.