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Former Member
Mar 10, 2007 at 11:06 AM

Gratuity is being taxed

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Hey guys,

I have an issue with Gratuity. In the payroll configured at my client site the Gratuity amount is getting added to the income and so it is getting taxed. We are using a customized wage type (1956), which was created by copying MPG0. I have also included the customized wage type 1956 as a parameter in INGTX function. Also the tax code attached to this is SAGA.as gratuity is paid according to the Payment of gratuity Act. What else can be done in order to avoid this. Do i need to change the processing, cumulation classes.

Please help me