Payroll Half-Year Mini Budget
To use Half-Year Mini Budget, you must first determine the Budget Year Length in the payroll setting.
First, In the system setting, go to payroll tab. Scroll down to see Fiscal Year Section. You can determine the start month of Fiscal Year and also the budget year length.
In this example, we will set the budget year length as 6 months.
Creating a payroll group and choosing employees stages do not have any changes. However, when you generate the payroll, the system will calculate the net salary payroll according to the budget year length that you determined in the setting.
The system will show several new columns in the payroll detail table.
In the Past No. Month in Budget Year column, showing the total number of previous months in the Budget Year.
For an example,
Fiscal Year starts at October
Budget Year Length is set as 6 months and
Currently you are calculating for February Payroll,
The system will show the Past No. Month in Budget Year value as 4.
In the Budget Year Length column, the system will show the Budget Year Length that you determined in the system setting.
In the Total PIT for Budget Year Length column, the system shows the total income tax value for the determined budget year length.
This column value is calculated as
Total PIT for Budget Year Length = Total Yearly PIT * Budget Year Length/12.
For an example, if the budget year length is set as 6 months,
Total PIT for Budget Year Length = Total Yearly PIT * 6/12.
In the Remaining Yearly PIT Balance column, the system will calculate the value as the following equation.
Remaining Yearly PIT Balance = Total PIT for Budget Year Length – Previous Paid PIT
For an example, if the Total PIT for Budget Year Length is 917,300 and previous paid PIT is 203,844, Remaining Yearly PIT Balance is 713,456.
In the Remaining Month this FY column, the system will calculate the value as the following equation.
Remaining Month this FY = Budget Year Length – Past no. Of month in Budget Year
For an example, Budget Year Length is 6, Past no. Of month in Budget Year is 4, Remaining Month is this FY is 2.
In the PIT this month column, the value is calculated as
PIT this month = Remaining Yearly PIT Balance / Remaining Month this FY
For an example, Remaining Yearly PIT Balance is 713,456 and Remaining Month this FY is 2 months , then PIT this month is 356,728.
There is an exception case in the payroll half year mini budget,
For an example, if Budget Year Length < Past no. of month in Budget Year
Yearly tax PIT = 592800
Past no. Month in budget year = 3
Budget year length = 2
Total PIT for budget year length = 98800
Remaining yearly PIT balance = 0
Remaining month this FY = 0
PIT this month = 0
When the Remaining Yearly PIT Balance and the PIT this month column values are 0, the system will show the notification sign and when you hover the value, the system will show “Current month is more than the length of the budget year. To resolve this warning, change the length of the budget year to 12 in setting or change the beginning month of the fiscal year”.
You can review all the Tax payment calculation details in the “Income Tax Calculation Receipt”. This can be seen when you click on the PIT This Month value.
In the “Yearly Tax Payment Calculate” section,
The system will show that this PIT value is calculated based on the Net Taxable Income column’s value. The detail calculation can be seen in the following rows in the receipt.
Finally, the monthly value in this receipt will enter the Net Salary Receipt and the payslip as PIT this month value.
In the mobile app, the user can go to the Payslip tab and click on the Details to see the Payslip details.
In the Deductions section, the user can click on the right arrow beside the Income Tax value to see the detail calculations steps of the Income Tax. In this way, the user can know how this half-year mini budget is calculated accordingly.