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Former Member

Regarding NIS deduction of TT

Hi Guys,

We have a requirement...

Currently Employee's NIS Tax Calculation of Trinidad & Tobago is based on the the Salary Slab(NIS Range) on table ZPYH_TT_NISRATE.Now in any month If Employee is paid Overtime Payment & meal allowance of previous month.His gross income of previous month increases(Of which Payroll already run earlier).As a result Employee's comes under higher Taxable Salary Slab(NIS Range) in the table for that particular month.Hence Employee's NIS Tax contribution of that particular month is also increased. Now as per the standard system process due to change in the slab and contributed NIS amount of that particular month, the difference is also being deducted from the employee's current month salary.Now user wants the extra pay should contribute to the NIS earning of the current month . So, it will avoid retro NIS amount deduction/ adjustment.NIS irrespective on when the employee is paid overtime, needs to be calculated within the current month for the total earnings for that period.

For ex.Say for the month of Feb when first payroll run for a perner,the total applicable earning was 12700.00 TTD, which falls in lower slab and resulting the calculated NIS of 666.50 TTD;Now in the month of March, the employee is given overtime payment and meal allowance of February and the total earning is being increased to 16000 which falls in the next slab of NIS rate and resulting the calculated NIS amount of 690.50.As per the standard system process due to change in the slab and contributed amount the difference of 24 TTD is being deducted from the Feb salary for the employee & appear as reatro deduction in March salary.

Now user wants the overtime payment from retro should contribute to Taxable earning of the current month like in march and then do the calculation of the NIS. So, it will avoid retro NIS amount deduction/ adjustment.

Currently Employee's NIS Contribution (Including Retro) is carried out in Log by wagetype 9020...

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