This infotype allows you to record an employee's tax credit details.

The employee's tax credit details recorded in this infotype are used to calculate the tax credit payment to the employee for the specific pay period. The amount calculated is added to the employee's net pay and shown separately on the employee's payslip.

In the Tax credit award details group box, you enter the tax credit details received from the Inland Revenue. The start and end dates of the award correspond to the from and end dates of the infotype. Since tax credits are issued for 26 weeks, a warning is issued if the end date is not exactly 182 days after the start date.

A check is made between the amounts you enter for the daily rate and the total amount of the tax credit. If the daily rate multiplied by the number of days of the credit does not equal the total amount entered, a warning message indicates the total amount calculated by the system.

The system calculates the amount of tax credit to be paid to the employee per payroll period by multiplying the daily rate you enter by the number of calendar days in the payroll period.

Under Certificate of Payments, you are required to record any certificate of payments issued by the employer when a tax credit is not paid (for example, due to an unpaid illness absence, strike). The certificate of payments shows the tax credits paid by the employer up to the date when the employee leaves and the period they cover. The employee will send this form to the Inland Revenue Tax Credit Office as evidence that the employer payments have ceased.

If a certificate of payments is issued, the date it was issued and reason both have to be recorded in the infotype. An additional text can be entered optionally, but a brief explanation should be given if the reason specified is Others.