In accordance with the Government of Jamaica's tax legislation, Human Employment Resource Training (HEART) contributions are :
- due and payable by employers only.
- computed on a percentage (3%) of the gross taxable payroll.
To calculate the amount of HEART contributions payable by the employer on HRplus Payroll:
- Earnings, Allowances and Other Income types MUST be flagged as Taxable. Non-Taxable types will not be included in the computation of HEART contributions.
- HRplus Payroll Calculation Formula: HEART Contribution (HC) = Total Taxable Gross * HC Rate (3%)
Step 1 - Set up HEART Contribution Deduction
POWERpay>>Maintenance>>Payroll Setup>>Deductions>>Deductions Listing
Click New Record.
- Enter the Deduction Code and Deduction Desc for the HEART TRUST CONTRIBUTION deduction.
- Complete the other fields.
- Note that the Account Codes are user-defined.
- Save your entry.
Step 2 - Link HEART TRUST CONTRIBUTION Deduction to Company
POWERpay>>Maintenance>>Payroll Setup>>Deductions>>Link Deductions to Companies
Click New Record.
- Select the Company for which you wish the HEART Contribution to be calculated (if multi-company).
- Select the HEART TRUST CONTRIBUTION Deduction.
- Enter the user-defined Account Codes.
- Save your entry.
Step 3 - Verify HEART Contribution Rate
POWERpay>>Maintenance>>Statutory Deductions>>NI Schedules
In HRplus Payroll, the HEART TRUST DEDUCTION contribution rate is set to 0.03 in accordance with Jamaica statutory requirements.
Note that HEART Contribution statutory updates are undertaken by HRplus Software.
Step 4 - View HEART Mandatory Rule
POWERpay>>Maintenance>>Payroll Setup>>Deductions>>Mandatory Deductions
In HRplus Payroll, the Mandatory Rule Code/Description: HRTJM HEART TRUST CONTRIBUTION (JAMAICA) has already been defined. Note that it is Employer Only.
Step 5 - Link HEART Deduction to Pay Group and Mandatory Rule
POWERpay>>Maintenance>>Payroll Setup>>Deductions>>Pay Group Mandatory Link
Order of Calculation: set this to 1
Mandatory Rule Code: select HRTJM (system-defined code)
Deduction Code: select the user-defined Deduction that is to be used for the HEART TRUST CONTRIBUTION.
Step 6 - Set up Exceptions to the Rule
POWERpay>>Maintenance>>Payroll Setup>>Deductions>>Mandatory Rules Exceptions
Select the Payroll Code Type (ALLOWANCES, DEDUCTIONS, OTHER INCOME) and the respective Payroll Code that SHOULD NOT be used in the computation of HEART Contributions! Repeat to enter additional records.