Free of Tax
Description
A free of tax payment is a payment of an agreed net amount by the employer to the employee.
It is the employer's duty to increase the gross amount in such a way that the subsequent net amount after deductions, is equal to the agreed net amount.
Whether the employer or the employee bears the tax, NI or pensions liability is negotiable.
Free of tax fuctionality is now available in the GB Payroll system.
Some changes have been made to the standard schema G000, notably function GRSUP has been included.
Installation information
The sample wage type M350 can be used for free of tax payments.
Change system parameters in customizing
Information and instructions on how to set up free of tax wage types and
functionality is available in the GB Payroll Implementation Guide, under 
Free of tax.
Here you may copy and adapt if necessary the following sample wage types:
- M350 - Basic pay
- /F01 and /F02 - Technical wage types
- /F50,/F51, /F52 and /F53 - Reporting wage types.