Profit Withholding for UTEs
When a supplier is a temporary enterprise union (UTE), profit withholding is calculated individually for each member of the UTE and withholding certificates are printed for each member.
The system stores summary information by company, supplier, profit withholding concept, month, and year for each payment that is made. The system also stores summary information about taxable amounts and profit withholdings.
When a payment is made to a UTE, the voucher taxable amount is recorded for the UTE address number and not for the address numbers of the UTE members. For example, suppose that UTE A is paid with a voucher taxable amount of 10,000. Profit withholding amounts are calculated as follows for the UTE members:
Supplier |
Profit Withholding Amount |
|---|---|
10 |
12 |
20 |
15 |
30 |
25 |
If this is the first payment of the month, the system updates the payments summary table:
Supplier |
Taxable Amount |
Withholding Amount |
|---|---|---|
A |
10000 |
0 |
10 |
0 |
12 |
20 |
0 |
15 |
30 |
0 |
25 |
Suppose that a second payment with a voucher taxable amount of 2,500 is made to UTE A during the same month. The system calculates profit withholding amounts as follows for the UTE members:
Supplier |
Profit Withholding Amount |
|---|---|
10 |
3 |
20 |
4 |
30 |
6 |
The system updates the payments summary table:
Supplier |
Taxable Amount |
Withholding Amount |
|---|---|---|
A |
12500 |
0 |
10 |
0 |
15 |
20 |
0 |
19 |
30 |
0 |
31 |
Suppose that a payment without a voucher taxable amount of 3400 and a calculated profit withholding of 20 is made to supplier 10 during the same month. The system updates the payments summary table as follows:
Supplier |
Taxable Amount |
Withholding Amount |
|---|---|---|
A |
12,500 |
0 |
10 |
3,400 |
35 |
20 |
0 |
19 |
30 |
0 |
31 |
When a voucher for a UTE is selected for payment, if UTE member information doesn't exist for the UTE, the system prints a warning and the user can decide whether to make the payment anyway or undo the payment and include it in a payment group after the UTE member information has been entered.
If the user makes the payment without first entering the UTE member information, any previous payments that were made to the UTE are added to the current payment and the profit withholding amount that is calculated for the combined amount is recorded for the UTE.
When you create payment groups, the system checks whether the supplier is a member of one or more UTEs. If the supplier is a UTE member and another voucher exists in another payment group for the same supplier or to a UTE to which the supplier belongs, the system updates the voucher status to X and excludes the voucher from the payment group.