Calculation Cards for Statutory Deductions

At the payroll relationship level, there is a predefined Statutory Deductions calculation card or organization.

Use the cards to record information specific to a person or organization. You can use the statutory deduction calculation card to record the information specific to a person. Calculation card entries override default values defined at other levels.

Here's the priority of information, from the highest to the lowest:

1. Personal calculation card (payroll relationship level)

2. Tax reporting unit calculation card

3. Payroll statutory unit calculation card

4. Calculation value definitions (legislative data group level)

Calculation card entries override default values defined at other levels.

Here are the prerequisite tasks you need to do before setting up the statutory deduction calculation card for an individual:

1. Tax reporting units created for all the statutory deduction tax components

2. Tax reporting unit associated to the legal entity and legal reporting units.

3. Payroll statutory unit calculation card

Setting Up the Statutory Deduction Calculation Card

You can setup the Statutory Deductions calculation card. The details you capture are effective from the Effective As-Of Date field.

Removing any record details from any of the fields will be end-dated based on the Effective As-Of Date field.

Task: Calculation Cards in Payroll

1. From the home page, navigate to My Clients Groups > Payroll > Calculation Cards.

2. Using the person number or name, search for the required employee.

3. In the Calculation Card page, enter a date in the Effective As-Of Date field and click search for the available calculation cards associated to the employee.

4. Click the Statutory Deduction Calculation Card.

5. In the Statutory Deductions Calculation Card, expand the Associations section and add the tax reporting units for the various tax legislation components.

   1. Click Add.

   2. Set the Effective Start Date and select the Income Tax TRU.

   3. Repeat steps 1 and 2 for each of the tax legislation components:

      • Provident fund

      • Employee State Insurance

      • Labour Welfare Fund

      • Professional Tax

      • National Pension Scheme.

   Note: You need to associate all the TRUs for the various tax components to the employee's calculation card, before capturing the tax information in the Taxes and Social Insurance and Pension sections.You can't set up the start date as the Effective Start Date field. This is a read only field.and based on the Effective As-Of Date field on the top of the Calculation Card page provided

6. In the Taxes section, you can add the income tax, professional tax and previous employment information.

   1. Income tax: Select the tax regime and complete the investment declarations.

   2. Professional Tax: Select the Exempted from PT Contribution checkbox, if applicable, and enter the reason for exemption in the Exemption Reason field.

   3. Enter the previous employment information, if the employee has joined in the middle of the financial year.

7. In the Social Insurance and Pension section, add the provident fund, employee state insurance, labour welfare fund, and NPS information.

   1. Provident Fund: Enter the following details:

      Field	Description
      Universal Account Number	Enter the universal account number. This is a 12 digit authentication number, assigned to an employee and their employer, to contribute to the employee Provident Fund.
      Provident Fund Number	Enter the provident fund number. This is a 22 digit alphanumeric number given to each employee in an organization that provides the PF benefits.
      Employee Pension Scheme Number	Enter the employee pension scheme account number.
      PF or EPS Contribution	Enter the contribution to provident fund or employee pension scheme.
      Override EPS Age	Select the required age range to override the EPS age.
      Voluntary PF Amount	Enter the amount for voluntary PF contribution.
      Voluntary PF Percentage	Enter the percentage for voluntary PF contribution.

      Click OK.

   2. Employee State Insurance: You can view the employee's IP Number.

      • Select the Use Disablity Benefits checkbox, if the employee is eligible for this benefit.

        Note: The employer is exempted from payment of employer's share of contribution on the wages paid to the employees with disability for a maximum period of 10 years from the date of commencement of the contribution period in which such employee with disability is employed.

   3. Labour Welfare Fund:

      • Select the Exempted from LWF Contribution checkbox, if the empoyee is exempted from LWF contribution and enter the reason for exemption.

      • Select the Supervisory Capacity for LWF checkbox, if the employee is in supervisor capacity as per the LWF rules.

      • Click OK.

   4. National Pension Scheme(NPS): Enter the NPS information if the employee has enrolled in NPS.

      • Enter the Employee PRAN number.

      • Select the Employee Contribution Type Tier 1 from the dropdown and enter the Employee Contribution Value Tier 1 value for Tier 1 and Tier 2.

      • Select the Employer Contribution Type from the dropdown and enter the Employer Contribution Value.

      • Click OK.

      Note: Calculation card entries override the default values defined at the NPS TRU level.