Taxation 

The different aspects of taxation which are considered by the program are related to:

●     the estimated yearly income

●     tax withholdings

●     the current IRPEF

●     IRPEF separate taxation

●     the taxation on the arrears of previous years

●     Regional and municipal taxes

Withholding taxes in charge of the employee (IRPEF):

Retirement and social security deductions are subtracted to the employee’s remuneration; to the result tax deductions are applied.

The program for tax calculation allows the company to easily carry out those operations related to:

·         Payment of taxes withdrawn to employees

·         Releases for the employee whose certification states the payment of the remuneration and the effected withdrawals

·         Arrangement for form 770 (yearly declaration of withholding agents).

Relief from social charges

The program calculates the social relieves whose calculation basis usually is the contribution tax base, which merges with a “social security tax base previous year” at the beginning of each year, and which eventually is set to 0.

Special taxes

According to the current law there are special cases of taxes considered by the program, such as:

• Inheritance entitlements
• extra monthly pays

Possible uses

The calculation program relies on functions and rules for calculating the taxes of each employee.

All necessary data and information are managed in infotype 0156. For the correct managing of taxes it is necessary to manage the required data of this infotype.

Outcome

The data of infotype 0156 which are processed by the program result in wage types which are sorted according to:

• IRPEF taxation
• Other taxations
• Deductions (e.g. deductions for household charges).