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What is the Tax Allowance Breakdown and how do I use it?

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The Tax Allowance Breakdown, specific to Trinidad and Tobago and St. Lucia, helps track employee allowable deductions for tax purposes.

Here's how to use it:

  1. Enable the Use Tax Allowance Breakdown flag for the relevant pay group in Payroll > Maintenance > Statutory Deductions > Use Tax Allowance Breakdown.

  2. Enter individual tax allowance amounts as cycle changes using the appropriate TA codes (e.g., TA6 for Personal Allowances, TA4 for Annuities) in POWERpay > Process Payroll > Cycle Changes.

Note: With the Auto-Calculate NIS Impact flag enabled, the system automatically calculates the NIS allowance (TA1) based on YTD contributions.

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