Important: This topic covers only the essential configuration required for tax compliance rules for use in a ConnectedPay project. Complete information about tax and compliance rules is available in the section beginning with the topic Tax Compliance Rules
Tax Compliance Rules must be set up before you add earnings and deductions for ConnectedPay. Go to Payroll Setup > Earnings and Deductions and click the Tax Compliance Rules tab to see if the tax compliance rules exist for earnings and for deductions or if you need to add them:
- Earnings
- International Regular
- International Memo
- Deductions
- International Pre-tax
- International Post-tax
Configuring tax compliance rules for ConnectedPay
This task assumes you have not created tax compliance rules for ConnectedPay. If you have, use this task to navigate and to verify that the tax compliance rules have been set up correctly.
To configure tax compliance rules for ConnectedPay earnings:
- Go to Payroll Setup > Earnings and Deductions, click the Tax Compliance Rules tab, and then click Earning.
- Add a tax compliance rule for international regular earnings using these steps:
- Click Add to create a new entry.
- In the Name and Description fields, enter International Regular.
- In the Reference Code field, enter InternationalRegular. This is an XREF code, so make sure it contains no spaces.
- Click Earning Type and select Normal.
- Click Save.
- Add a tax compliance rule for international memo earnings using these steps:
- Click Add and to create a new entry.
- In the Name and Description fields, enter International Regular Memo.
- In the Reference Code field, enter InternationalRegularMemo. This is an XREF code, so make sure it contains no spaces.
- Click Earning Type and select Memo Calc.
- Click Save.
To configure tax compliance rules for ConnectedPay deductions:
- Go to Payroll Setup > Earnings and Deductions, click the Tax Compliance Rules tab, and then click Deduction.
- Add a tax compliance rule for international pre-tax deductions using these steps:
- Click Add to create a new entry.
- In the Name and Description fields, enter International Pre Tax.
- In the Reference Code field, enter InternationalPreTax. This is an XREF code, so make sure it contains no spaces.
- Select the MUS Deduction Code checkbox to display the Mauritius sub-tab and associated tax settings. It does not matter which country you are configuring ConnectedPay for: always select MUS Deduction Code at this step.
- Click Tax Type and select Pre-Tax.
- Click Save.
- Add a tax compliance rule for international post-tax deductions using these steps:
- Click Add to create a new entry.
- In the Name and Description fields, enter International Post Tax.
- In the Reference Code field, enter InternationalPostTax. This is an XREF code, so make sure it contains no spaces.
- Select the MUS Deduction Code checkbox to display the Mauritius sub-tab and associated tax settings. It does not matter which country you are configuring ConnectedPay for: always select MUS Deduction Code at this step.
- Click Tax Type and select Post-Tax.
- Click Save.