Irregular Earnings and Deductions

Global Payroll for Thailand provides two segment accumulators, SAL ABS PTD and SAL ABS NM, the ABS EAR earnings element, and the ABS DED deduction element for leave without pay.

The earnings element adds to the accumulator, while the deduction element subtracts from the accumulator. Implementers can add other earnings and deduction elements for leave without pay into the SAL ABS NM accumulator. All earnings and deduction elements for leave without pay should belong to one dedicated section of these accumulators, ABS INTEGRATE. In the beginning of this section, the SAL FM SET METHOD formula is called to set the correct tax calculation method.

ABS EAR and ABS DED act as integration elements to get absence input data from PeopleSoft Absence Management. The following template elements are delivered with Global Payroll for Thailand:

• Absence Entitlement Element (SCK ENT).

• Absence Take Type (SCK).

• Absence Take Element (SCK TAKE).

• Supporting Elements (SCK BR ENT, SCK FM ENT, SCK FM DAYCNT).

• Section (KTSE INIT, KTSE ABS TAKE).

• Process List (THABSENCE).

• Run Type (KTABSENCE).

Overtime is considered as irregular income in payroll calculations, according to labor laws in Thailand. Overtime is defined as an earnings and calculated at an hourly rate in payroll.

To describe the overtime rates in Global Payroll for Thailand, assume that Employee A works a normal schedule of 9:00 a.m. to 5:00 p.m. Monday through Friday and does not work on Saturday or Sunday. Employee B normally works from 9:00 a.m. to 5:00 p.m. Wednesday through Sunday and does not work on Monday or Tuesday. Both employees receive an hourly wage of 100 THB (baht) per hour.

The overtime rates in Global Payroll for Thailand are:

• 1.5 times the hourly rate.

  If an employee works outside of his or her normal work schedule, the employer pays an overtime hourly rate that is at least 1.5 times the employee's normal hourly rate, based on the actual hours worked.

  Using the employees described above, if either employee works from 7:00 p.m. to 9:00 p.m. on a Wednesday, the employee receives at least 1.5 times the normal hourly rate, or 150 THB per hour for the two hours worked.

• 2.0 times the hourly rate.

  If an employee is not normally scheduled to work on weekends, and works during standard working hours on a weekend, he or she will receive an overtime rate at least two times the employee's regular daily wage, for each weekend day he or she works, based on the actual hours worked.

  Using the example employees, if Employee A works on a Sunday from 9:00 a.m. to 11:00 a.m., he or she would receive at least 2.0 times the regular hourly wage, or 200 THB per hour. Employee B normally works on weekends and would receive his or her normal pay rate of 100 THB per hour.

• 3.0 times the hourly rate.

  If the employee works on a day during the weekend outside of the standard working hours, the employer pays an overtime rate of three times the hourly rate, based on the actual hours worked.

  In this case, if Employee A works from 7:00 p.m. to 9:00 p.m. on a Sunday, the employee will receive at least 3.0 times the normal hourly rate, or 300 THB per hour.

Global Payroll for Thailand delivers the OVT EARN earnings element for overtime. This earnings element has two user keys: TAX VR CAL METHOD and OVT VR CAL RATE.

The Calculation Rule is: Unit * Rate * Percentage

Unit represents the hours of overtime. The rate element, HOURLY RT, represents the overtime hourly rate. The percentage element, OVT VR CAL RATE, represents the hourly rate multiplier that employer pays to a payee for overtime, e.g. if an employer pays 2.0 times the hourly rate to a payee, then OVT VR CAL RATE is 200.

The OVT EARN earnings element gets its value through positive input or elements assignment.

The Tax Calculation Method and Overtime Salary Rate are entered in the Tax Setup for Overtime Element region on the Calendar ID Override Details page.

Global Payroll for Thailand provides the BON EARN earnings element to calculate bonus as an irregular income under section 40(1) in Thailand.

Global Payroll for Thailand supports two process modes for bonuses: normal cycle and off cycle. Two user keys, TAX VR CAL METHOD and NON VR SS FLAG, indicate the tax calculation method and whether the bonus is contributed to social security, provident fund, or both.

The value of the bonus, the tax calculation method, and the contribution to social security and provident fund flag are all entered through positive input or the Elements Assignment page.

Global Payroll for Thailand provides the ALL CAR ALLW earnings element to calculate car allowance as an irregular income under section 40(1) in Thailand.

Global Payroll for Thailand supports the three tax calculation methods for car allowances. The TAX VR CAL METHOD indicates the tax calculation method for car allowances.

The value and tax calculation method for a car allowance are entered through positive input or the Elements Assignment page.

Global Payroll for Thailand provides the 402 ER MEET earnings element for meeting allowances as irregular income under section 40(2) in Thailand.

Global Payroll for Thailand supports the three tax calculation methods for meeting allowances. The TAX VR CAL METHOD indicates the tax calculation method for meeting allowances.

The value and tax calculation method for a meeting allowances are entered through positive input or the Elements Assignment page.

Global Payroll for Thailand provides the 402 ER COMSN earnings element for commissions as irregular income under section 40(2) in Thailand.

Global Payroll for Thailand supports the three tax calculation methods for commissions. The TAX VR CAL METHOD indicates the tax calculation method for commissions.

The value and tax calculation method for commissions are entered through positive input or the Elements Assignment page.