Define Period Tax Withheld per Salary Bracket

In this step, you define the period tax withheld per salary bracket. These settings should coincide with the Revised Period Withholding Tax Table provided by the Bureau of Internal Revenue (BIR).

Standard Settings

In the standard system, the salary brackets and taxes provided by the BIR and valid at time of creation have been set up as defaults.

Recommendation

If the BIR changes the salary bracket tax withheld, SAP recommends that you delimit the validity dates of existing records and create new records.

You must never modify an existing record, because tax calculation errors may arise if changes to an existing record are only valid from a certain period.

Activities

To define the period tax withheld per salary bracket, you can either:

1. Choose Edit -> New entries, and enter the relevant tax details, or
2. Flag an existing entry, choose Goto -> Details, and modify the tax details to meet your requirements.