Taxation
Purpose
The Taxation component calculates the amount of tax that an employee must pay in line with Bureau of Internal Revenue (BIR) rules.
Implementation Considerations
Every effort is made to guarantee the legal compliance of all tax rules and reports. However, as the laws affecting taxation change, you must verify and ensure compliance by performing all necessary configuration steps.
To configure the Taxation component and guarantee legal compliance, you must maintain the
Taxation section of Customizing for Payroll Philippines.Integration
The Taxation component accesses data stored in various HR infotypes including Personal Data (0002), Basic Pay (0008), Recurring Payments / Deductions (0014), Additional Payments (0015), and Taxation Philippines (0411), and processes data in the payroll results cluster.
In the Personal Data infotype (0002), you enter the employee's middle name in the Second Name field.
Features
The component enables you to maintain and process:
Employee Tax Information (Infotype 0411) Tax Calculation Methods Tax Processing Tax ReportingCalculations are based on annual and period tax salary brackets configured to coincide with the BIR tax tables.